Submitting OIG:
Report Description:
The Corporation for National and Community Service (CNCS or the Corporation) has begun to
implement a plan to restructure the Corporation and alter its core grantmaking and grant
management business practices. While CNCS’s Office of Inspector General (CNCS-OIG) strongly
supports a re-examination of the Corporation’s structure, our experience indicates CNCS does
not have the capacity to carry out its complex transformation plan at the rapid pace envisioned.
CNCS has scheduled the reorganization, with its many risks, to occur at the same time as critically
needed improvements to CNCS’s core business functions – developing information technology
sufficient to support grant management; preparing and testing an effective grant risk model and
aligned cost-effective monitoring activities; achieving reliable financial management, accounting
and reporting; and establishing effective cybersecurity. Despite efforts, CNCS has been unable
to achieve these improvements over the last several years, without the added stress of a major
structural overhaul. The plan to accomplish these critical infrastructure upgrades while
simultaneously reorganizing grantmaking, grant management and grant administration is
unrealistic, exceeds the Corporation’s capabilities and creates a substantial risk that CNCS will
not be able to achieve its mission of supporting national service.
Instead, we strongly recommend that CNCS sequence the reforms, concentrating first on
standing up the infrastructure to support informed, risk-based grantmaking and grant
monitoring. Also imperative is completing and validating the corrective actions for financial
management, accounting and reporting, so that CNCS can accurately track expenditures and
provide strong stewardship of taxpayer funds. We further recommend that CNCS delay the
reorganization to a regional structure until such time as it implements these critical upgrades.
We are not suggesting an abandonment of the reorganization, but rather a slower-paced and
risk-based, tiered approach to appropriately prioritize goals and promote the ultimate success of
CNCS’s comprehensive plan.
Date Issued:
Thursday, April 18, 2019
Agency Reviewed / Investigated:
Location(s):
Agency-Wide
Type of Report:
Other
Questioned Costs:
$0
Funds for Better Use:
$0
Number of Recommendations:
0
Report updated under NDAA 5274:
No
View Document:
Attachment | Size |
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Management-Alert-Unrealistic-Transformation-Plan-Unnecessarily.pdf | 1.29 MB |