The Corporation for National and Community Service, also known as AmeriCorps, failed its eighth consecutive financial audit in November, highlighting persistent mismanagement of taxpayer dollars. This pattern of fiscal dysfunction raises serious questions about AmeriCorps’ ability to operate effectively. Lawmakers—and the incoming Donald Trump Administration should prioritize reviewing AmeriCorps’ operations and consider significant reforms, reductions, or even its elimination to ensure responsible stewardship of public funds.
AmeriCorps, the federal agency for national service and volunteerism, was established by the National and Community Service Trust Act of 1993 during the Bill Clinton Administration. In FY 2024, it received $1.3 billion in taxpayer funding.
While the “volunteer” mission of this government agency may sound commendable, it has become a financial liability for American taxpayers, rife with waste, fraud, and abuse. Not only does this translate to inefficient use of taxpayers’ hard-earned dollars, it also means that the aim of volunteerism and community service intended to help Americans in need throughout the country is not being effectively achieved.
The agency’s FY 2024 financial audit, conducted by the public accounting firm RMA Associates, resulted in a “disclaimer of opinion”—a serious red flag indicating that the agency’s financial records are unreliable.
Auditors define a material weakness as “a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the financial statement will not be prevented or detected and corrected on a timely basis.” A significant deficiency, while less severe, is “a deficiency, or a combination of deficiencies . . . important enough to merit the attention of those charged with governance.” The audit uncovered 11 material weaknesses and two significant deficiencies in AmeriCorps’ financial management, a number of which are repeats from years prior, some in modified form:
Material Weaknesses:
- Internal Controls Environment (Modified Repeat)
- Financial Reporting (Modified Repeat)
- General Ledger Adjustments (Modified Repeat)
- Undelivered Orders—Grants and Grant Activity (Repeat)
- Undelivered Orders—Procurement and Accounts Payable (Repeat)
- Trust Obligations and Liability Model (Repeat)
- Recoveries of Prior Year Obligations (Repeat)
- Grant Processes (Repeat)
- Advances from Others (Repeat)
- Interface Issues Between Momentum and Oracle (Modified Repeat)
- Other Liabilities (Repeat)
Significant Deficiencies:
- Information Technology Security Controls (Modified Repeat)
- Internal Software Cost (Repeat)
The persistence of these weaknesses and deficiencies demonstrates AmeriCorps’ lack of progression when it comes to financial management. Alarmingly, eight of these material weaknesses consistently appear in annual audits since at least 2017, indicating that many of these problems may continue to linger for years.
Given AmeriCorps’ consistent failure to manage taxpayer dollars appropriately, it is incumbent upon Congress and the upcoming Trump Administration to seriously consider reforming or even abolishing the agency altogether. Termination is not a novel proposal. Indeed the previous Trump administration proposed eliminating AmeriCorps in its 2020 budget.
AmeriCorps’ eighth consecutive failed audit shines light on its inability to serve as a responsible steward of taxpayer funds. If Congress and President-elect Trump seek to eliminate or reform agencies that do not treat tax dollars with the care and respect that they deserve, AmeriCorps ought to be at the top of their list.