Corporation For National And Community Service: Better Internal Control and Revised Practices Would Improve the Management of AmeriCorps and the National Service Trust Page: 2 of 56
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- GAO
SAccountability- Integrity- Reliability
Highlights
Highlights of GAO-04-225, a report to
Congressional RequestersWhy GAO Did This Study
The Corporation for National and
Community Service (the
Corporation) was created to help
meet community needs and expand
educational opportunity by
providing education awards to
participants. The Corporation
oversees and funds the AmeriCorps
program as well as the National
Service Trust (the Trust), which
pays the education awards. From
November 2002 to March 2003 the
Corporation suspended
AmeriCorps enrollments because
there would not have been
sufficient funds in the Trust to pay
education awards. GAO was asked
to determine (1) if all AmeriCorps
enrollments were accurately
recorded, (2) how the Corporation
estimated its funding needs, and (3)
if the Corporation made changes to
prevent another enrollment
suspension and to address
requirements established in the
Strengthen AmeriCorps Program
Act. GAO analyzed laws, reviewed
documents, interviewed officials,
assessed the reliability of the Trust
database, examined the model used
to estimate funding needs, and
surveyed AmeriCorps grantees.
GAO recommends that the
Corporation make improvements
to strengthen internal control,
enhance the accuracy of its budget
estimates, ensure the Trust does
not accumulate large balances, and
ensure that its policies support
efforts to deliver services. The
Corporation generally agreed with
GAO's recommendations.
www.gao.gov/cgi-bin/getrpt?GAO-04-225.
To view the full product, including the scope
and methodology, click on the link above.
For more information, contact Cornelia M.
Ashby, (202) 512-8403 (ashbyc@gao.gov) or
Susan Poling (202) 512-2667.CORPORATION FOR NATIONAL AND
COMMUNITY SERVICE
Better Internal Control and Revised
Practices Would Improve the
Management of AmeriCorps and the
National Service Trust
What GAO Found
Discrepancies between information in the Trust database and participant
documentation indicate that not all AmeriCorps participant information was
accurately reflected in the Trust database. An estimated 5 percent (8,300) of
about 158,000 enrollments from program years 2000 to 2002 have
discrepancies, and about 3 percent (4,400) have discrepancies that could
affect estimates of future probable expenditures of the Trust. Further, the
users' manual for the Trust database system had not been updated.
In 2003 the Corporation began using a new model with conservative
assumptions of participant behavior to develop its funding estimates.
Corporation officials explained that they used conservative assumptions
because the AmeriCorps program does not have a long history from which to
extrapolate participant behavior, and the Corporation wanted to regain
credibility after the enrollment suspension in 2002. Using the new model
may be prudent until the Corporation gains more experience. However,
because the new model increased the Trust's funding estimates, the
Corporation will need to monitor actual experience compared with the
model's assumptions and may need to deobligate unused Trust funds.
Further, the new model does not incorporate external factors, such as
downturns in the economy, which may affect funding estimates or the
Trust's balances. The Corporation recently formed a team to assess the costs
and benefits of adding external factors in its model.
Flow of Funds and Information for AmeriCorps Education Awards
AmeriCorps National Service
Participants Trust Fund
Corporation
Models
Databases
Source: Corporation officials and GAO analysis.
The Corporation has made some changes to its operations that minimize the
likelihood it will need to suspend enrollments in the future. Corporation
officials have been obligating Trust funds when positions are approved since
June 2003, and the communication and coordination among officials have
greatly improved. Changes have also been implemented and planned to
address the Strengthen AmeriCorps Program Act requirements. However,
changes to improve oversight of grantees have not been fully implemented,
and policies related to refilling vacated positions and converting unfilled
positions may limit enrollments, hinder service delivery, and contribute to
the accumulation of a larger Trust balance.
United States General Accounting Office
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United States. General Accounting Office. Corporation For National And Community Service: Better Internal Control and Revised Practices Would Improve the Management of AmeriCorps and the National Service Trust, report, January 16, 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc295275/m1/2/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.