15-04, Performance Audit of the Corporation for National & Community Service’s Compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA) for Fiscal Year 2014

Performance Audit of the Corporation for National & Community Service’s Compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA) for Fiscal Year 2014

For fiscal year (FY) 2014, the Corporation for National and Community Service (CNCS) did not perform a reliable assessment of the susceptibility of its programs and activities to improper payments, nor did it did it reliably estimate the amount or the rate of improper payments in the AmeriCorps Program.  As a result, the improper payments information reported in CNCS’s FY 2014 Agency Financial Report (AFR) is unreliable and is also incomplete in other respects.  We found significant flaws at every stage of CNCS’s improper payments assessment process.  Some of those flaws had a tendency to understate CNCS’s improper payments.

Given the weaknesses discovered in this evaluation, we believe that CNCS has not met its obligation to perform a susceptibility analysis in FY 2014 and should not wait two years before performing a reliable analysis.  Instead, CNCS should use the information in this evaluation to conduct a more accurate risk assessment in FY 2015, develop a better estimate of improper payments in the AmeriCorps Program, and accurately report the results.