Reports: Audit

Pursuant to the Federal Information Security Modernization Act of 2014 (FISMA), an independent external auditor, on behalf of OIG conducted an annual independent audit of AmeriCorps’ information security program and practices. The fiscal year (FY) 2024 FISMA audit concluded that AmeriCorps’ information security program remains ineffective, assessed as of July 31, 2024.

Independent auditors have declined to issue an opinion on AmeriCorps’ financial statements for the eighth year. They issued a disclaimer of opinion reporting 11 material weaknesses and two significant deficiencies and added three new recommendations. The auditors, however, verified that AmeriCorps took appropriate actions to close 20 of the 95 prior year recommendations. As a result of this audit, there are now 78 open recommendations.

The National Service Trust holds the funds set aside to pay the education awards of national service members who successfully complete their service terms. Responsibility for the education awards that have been earned or will be earned in the near future is the largest liability on AmeriCorps’ financial statements at $287 million.

The Payment Integrity Information Act (PIIA) requires agencies to annually review and identify programs and activities that may be susceptible to significant improper payments, estimate the improper payment rates in agency programs, and report on their actions to reduce and recover those payments. We found that AmeriCorps implemented corrective actions that improved its compliance with PIIA reporting requirements relative to past years. For FY 2023, AmeriCorps met eight of ten PIIA compliance requirements. We made three findings relating to the two remaining requirements.

The audit of AmeriCorps grants awarded to YouthBuild USA found that AmeriCorps was aware of inconsistencies between Federal Statute and Federal Regulations concerning limitations on Federal share of member living allowance and member support costs beginning in 2009 and neither updated its Federal regulations nor effectively explained the inconsistencies to grantees. In addition, YouthBuild did not comply with Federal or AmeriCorps requirements, resulting in $3,604,355 of questioned Federal and match costs. The audit identified an additional $3,087,791 in funds put to better use.

The audit of AmeriCorps grants awarded to the Puerto Rico Commission for Volunteerism and Community Service (the Commission) and two of its subgrantees found that the Commission and subgrantees did not comply with Federal regulations and AmeriCorps grant terms and conditions resulting in $625,446 in questioned Federal and match costs, and education awards. Specifically, the Commission did not adequately document or appropriately report costs.

The performance audit of AmeriCorps grants awarded to Serve DC, the Mayor’s Office on Volunteerism and Partnership, and three of its 16 subgrantees (including the Jumpstart for Young Children, Center for Inspired Teaching, and Inspired Teaching Demonstration Public Charter School) identified approximately $1.7 million of questioned Federal and match costs covering three calendar years from 2017 through 2019. The Inspired Teaching Demonstration Public Charter School became the Center for Inspired Teaching and had no claimed costs.

Independent auditors have declined to issue an opinion on AmeriCorps’ financial statements for the seventh year. They issued a disclaimer of opinion reporting 12 material weaknesses and two significant deficiencies. Eleven of the material weaknesses are recurring, four of them since FY 2017, six since FY 2018, and one since FY 2021.

The National Service Trust holds the funds set aside to pay the education awards of national service members who successfully complete their service terms. Responsibility for the education awards that have been earned or will be earned in the near future is the largest liability on AmeriCorps’ financial statements at $315 million. AmeriCorps has been unable to produce auditable financial statements for the last seven years. This year, independent auditors issued another disclaimer of opinion, reporting five material weaknesses and one significant deficiency.