Reports: Audit

The agreed-upon procedures (AUP) review of AmeriCorps grant funds to Serve Indiana and two subgrantees, the Boys and Girls Club of Wayne County Indiana (BGCWCI) and the American Red Cross of Indiana (ARCI), identified questioned Federal costs totaling $127,090, questioned matching costs of $82,157, questioned Education Awards of $20,055 and compliance findings. Most of the questioned costs identified were caused by inadequate financial management by BGCWCI and deficiencies with the National Service Criminal History Checks (NSCHC) by ARCI.

We have determined that the Corporation for National and Community Service’s (CNCS’s) information security program is NOT EFFECTIVE. CNCS has in place the basic information technology policies, procedures and system security documentation needed for effective cybersecurity. To progress beyond the current maturity level, the Corporation must consistently implement and monitor security controls. We continued to find severe vulnerabilities on the network.

United States Government Accountability Office Office of the Inspector General's System Review Report of the Corporation for National and Community Service Office of the Inspector General 2018

For the second year in a row, an independent audit of CNCS’s consolidated Fiscal Year 2018 financial statements resulted in a disclaimer of opinion, the worst possible outcome for a financial statement audit. CNCS did not cure the four material weaknesses and one significant deficiency identified in the FY 2017 audit. This year, the auditors reported six additional material weaknesses and another significant deficiency.In layman’s terms, the financial statements were unauditable and likely subject to pervasive material errors.

For the second year in a row, an independent audit of CNCS’s National Service Trust Fund Fiscal Year 2018 financial statements resulted in a disclaimer of opinion, the worst possible outcome for a financial statement audit. CNCS did not cure the three material weaknesses and one significant deficiency identified in the FY 2017 audit. This year, the auditors reported another new material weakness. In layman’s terms, the financial statements were unauditable and likely subject to pervasive material errors.

The Corporation for National and Community Service, Office of Inspector General (CNCS-OIG) conducted an evaluation of the Volunteers in Service to America (VISTA) program to assess its effectiveness. CNCS-OIG’s evaluation focused on member activity, project sustainability, and member attrition.CNCS-OIG found:•Documentation maintained during the execution of a project does not contain sufficient details to validate member activities are consistent with program purposes or are the same as the planned activities.

The agreed-upon procedures (AUP) review of AmeriCorps grant funds to SerVermont, Vermont’s State Service Commission and two subrecipients identified questioned Federal costs totaling $122,551, questioned matching costs of $38,746, questioned Education Awards of $40,342 and compliance findings. The majority of the questioned costs were caused by deficiencies with National Service Criminal History Checks.

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).

Audit of Corporation for National and Community Service Grants to the Mayor’s Fund to Advance New York City The Mayor's Fund to Advance New York City (Mayor's Fund) served as the intermediary (i.e., the prime grantee) for a Social Innovation Fund (SIF) grant from CNCS totaling approximately $28.5 million for the period from August 1, 2010 to July 31, 2015. The Mayor's Fund divided its responsibilities among itself, the Center for Economic Opportunity (CEO) and MDRC, a non-profit, nonpartisan social and education policy research firm.

CNCS has devoted significant resources to improving cybersecurity over the past few years, with meaningful progress. Although its information security program is not yet sufficiently mature, it can reach effectiveness with continued effort and investment.Achieving effectiveness will require attention to weaknesses that pose significant risks to information security. Our 2017 evaluation found inadequacies in risk management, configuration management, identity and access management, information security continuous monitoring, and contingency planning.