09-17, Audit of the National Service Trust Fund Status Report for the Year Ended September 30, 2008

Audit of the National Service Trust Fund Status Report for the Year Ended September 30, 2008

The Office of Inspector General (OIG), Corporation for National and Community Service (Corporation), conducted the Audit of the National Service Trust Fund Status Report for the Year Ended September 30, 2008 (Audit). We conducted the audit to express an opinion on whether the Corporation's September 2008 National Service Trust (Trust) Fund Status Report presents fairly, in all material respects, and to notify Congress' Committees on Appropriations of the accuracy of the report, as well as any internal controls weaknesses noted related to the Trust operations. In meeting the latter objective, the OIG will provide copies of this report to the committee.

In our opinion, the schedules referred to in the Trust Fund Status Report present fairly, in all material respects, the financial position as of September 30, 2008, and the results of its operations and changes in net position, budgetary resources, and Trust obligations for the year then ended in conformity with the basis of accounting described in the Trust Fund Status Report and provisions of the Strengthen AmeriCorps Program Act of 2003. We noted that the current Corporation policies related to Trust operations and reporting are not current. Based on our observations, we recommend the Corporation update its policies, particularly Corporation Policy CFO-06-001, Administrative Control of Funds, and Corporation Policy 1027, Calculating the Service Award Liability. In Other Matters, we noted that certain input data to the Corporation's Service Award Liability (SAL) model may change significantly because the Edward M. Kennedy Serve America Act (Serve America Act) will become effective on October 1, 2009, which will significantly change existing Corporation operations and its AmeriCorps programs.

The Corporation concurred with our recommendation that it update its policies, and specifically its administrative control of funds policy. It also agreed that it should regularly review its policies to ensure that they remain current and has started reviewing all of its policies. In addition, The Corporation stated that it has begun a project to update the SAL model. The Corporation's verbatim response to the draft report is included as an Appendix.