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.

This report identifies three management challenges confronting AmeriCorps in fiscal year (FY) 2024 and beyond: · Improving financial management; · Prioritizing grant fraud prevention and detection in its programs; and · Modernizing and securing information technology. While it does not rise to the significance of a management challenge, we believe that AmeriCorps will be challenged in the future if American Rescue Plan (ARP) funding is not effectively used during FY 2024.