Reports: Audit

For the third year in a row, an independent audit of CNCS’s consolidated Fiscal Year 2019 financial statements resulted in a disclaimer of opinion, the worst possible outcome for a financial statement audit. CNCS cured none of the ten material weaknesses and two significant deficiencies from the prior year audit. Three of the material weaknesses and one significant deficiency were first identified in the FY 2017 audit. In short, CNCS’s financial statements were unauditable and CNCS was unable to support some of its largest transactions and liabilities.

For the third year in a row, an independent audit of CNCS’s National Service Trust Fund Fiscal Year 2019 financial statements resulted in a disclaimer of opinion, the worst possible outcome for a financial statement audit. CNCS cured none of the three material weaknesses and one significant deficiency, which were first identified in the FY 2017 audit. In short, CNCS’s financial statements were unauditable and CNCS was unable to support some of its largest transactions and liabilities.

The audit of an AmeriCorps grant awarded directly from the Corporation for National and Community Service (CNCS) to the St. Bernard Project (SBP) identified questioned Federal costs of $53,490, questioned match costs of $51,246, and compliance findings. These costs were incurred between April 1, 2016, and March 31, 2018. Most of the questioned costs were due to (1) inadequate payroll records, (2) untimely National Service Criminal History Checks (NSCHCs), and (3) an unallowable fine. SBP concurred with most of the findings and questioned costs and began taking corrective actions.

The Digital Accountability and Transparency Act of 2014 (DATA Act) requires Federal agencies to submit quarterly financial and award data for publication on USASpending.gov. The Office of Management and Budget and Department of Treasury established standards for Federal agencies to use 57 data elements in reporting its financial and award information. The DATA Act also requires the Office of Inspector General (OIG) of each Federal agency to audit a statistically valid sample of the data elements that support the data submitted by its Federal agency.

The agreed-upon procedures review of AmeriCorps grant funds awarded to the Delaware Governor’s Commission on Community and Volunteer Service (DGCCVS), and two subgrantees, Division of Parks and Recreation and Reading Assist Institute, identified questioned Federal costs of $11,463, questioned match costs of $46,380, questioned education awards and interest forbearance of $8,721 and compliance findings. The costs tested were incurred between April 1, 2016, and March 31, 2018.

We engaged a contract audit firm to conduct an audit of the VISTA grant awarded to Conservation Legacy. The auditors found 40 percent of the VISTA projects tested were not sustained, which was similar to the finding in OIG report 18-12, VISTA Program Evaluation. In that report, the Office of Inspector General recommended the Corporation for National and Community Service (CNCS) define sustainability and improve VISTA monitoring.

Despite a continuous focus on improving its Improper Payments Elimination and Recovery Act of 2010 (IPERA) compliance program, the Corporation for National and Community Service (CNCS) remains unable to reliably estimate the amount or the rate of improper payments in the AmeriCorps State and National Program (AmeriCorps), Foster Grandparent Program (FGP), Retired and Senior Volunteer Program (RSVP), and Senior Companion Program (SCP).

The agreed-upon procedures review of AmeriCorps grant funds awarded to the Serve Guam Commission and two subgrantees, Sanctuary Incorporated and Guam Homeland Security, identified questioned Federal costs of $14,447, questioned match costs of $18,761, and compliance findings. Most of the questioned costs identified were caused by inadequate pre-award evaluations and post-award monitoring. The costs tested were incurred between January 1, 2016 and June 30, 2018.The Serve Guam Commission concurred with most of the findings and is working on corrective actions.

We engaged a contract audit firm to conduct an Agreed-Upon Procedures review of selected AmeriCorps grant awards issued to Conservation Legacy, to include AmeriCorps Grants awarded by CNCS and the Corps Network, a nonprofit entity that received grant awards through CNCS. The auditors did not question any claimed Federal costs, match costs, or member education awards, or identify any compliance findings. In its response to the draft report, Conservation Legacy stated that it concurred with the AUP scope, accepted the report, and took pride in its management of Federal funds.

From August 2014 to June 2017, the North Carolina Commission on Volunteerism and Community Service (Commission) and two of its larger subgrantees claimed $16,132,771 in federal and match expenditures under the AmeriCorps State and National program.