Audit Report 12-15

The Office of Inspector General conducted an audit of grants awarded by the Corporation for National and Community Service (Corporation) to Operation REACH, Inc.

 

Summary of Results

 

The Audit identified costs of $886,845 that were unsupported by required documentation and/or incurred improperly, in violation of applicable laws, regulations and grant terms and conditions. This represents 36 percent of the $2.5 million in grants awarded to ORI during the period from June 2008 to September 2011. The Office of Inspector General (OIG) audit also discovered pervasive noncompliance and internal control deficiencies across all of the Corporation’s sponsored programs, many of which persisted despite ORI’s prior assurances to multiple State Commissions that these problems were being rectified. Inadequate financial management, poor record retention and lack of oversight of service sites resulted in substantial mismanagement of Federal and match funds. These deficiencies placed Federal funds at such substantial risk that, in the midst of the audit, the OIG alerted the Corporation and representatives of the State Commissions of Alabama, Louisiana and Georgia, enabling them to take immediate action to prevent further losses.