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CEO of the Corporation for National and Community Service Testifies Before Committee

Today, the Committee on Education and the Workforce, chaired by Rep. Virginia Foxx (R-NC), held an oversight hearing on “Fraud, Mismanagement, Non-Compliance, and Safety: The History of Failures of the Corporation for National and Community Service (CNCS).” Over the years, the committee has held a total of four hearings to address the many problems related to the management of CNCS.

Today, the Committee on Education and the Workforce, chaired by Rep. Virginia Foxx (R-NC), held an oversight hearing on “Fraud, Mismanagement, Non-Compliance, and Safety: The History of Failures of the Corporation for National and Community Service (CNCS).”

Over the years, the committee has held a total of four hearings to address the many problems related to the management of CNCS.

“As far back as 2011, the Higher Education and Workforce Development subcommittee examined the issues plaguing CNCS,” Chairwoman Foxx said in her opening statement. “In each of these hearings, CNCS management has assured Congress that it would correct mistakes of the past, and bring accountability to the programs under its jurisdiction. These promises have proven to be empty, and here we are again addressing these issues with CNCS. While the practices of CNCS have not changed yet, there has been a change in the agency’s management.”

Members of the committee heard from Ms. Barbara Stewart, the newly confirmed Chief Executive Officer (CEO) of CNCS who joined the Corporation in February.

“While there is no question as to the noble mission of the agency, I also understand the management challenges the agency has had over the years. While some may be isolated incidents, I understand – and share – the Committee’s concerns that each occurrence may be a symptom of larger management problems that impede our ability to make an impact in communities,” Ms. Stewart said. “Taking the lessons learned from prior incidents, I am committed to making meaningful changes to address them.”

Ms. Stewart described to members several of the operational and management challenges facing CNCS, and the steps she intends to take to address these problems. 

In the past, the Corporation has struggled to carry out its main purpose of grant management and oversight to ensure grantees are compliant and spending taxpayer dollars effectively.

Ms. Stewart told members that “CNCS is committed to detecting compliance issues and holding noncompliant grantees accountable. That means reclaiming unallowable costs when necessary, and ensuring timely resolution of all compliance issues, audits, and investigations.” 

Additionally, CNCS is responsible for ensuring that all grantees conduct criminal history checks through the National Service Criminal History Check (NSCHC). In the past, CNCS has failed to prevent employees and program participants with disqualifying criminal histories – including murder and a sexual offense – from working on grants and gaining access to vulnerable populations. 

“While there is no silver bullet that guarantees grantees will meet the complex NSCHC requirements, we expect the organizations we fund to fully comply with them. When grantees fail to do so, we hold them accountable. During the last two and half years, CNCS has disallowed $3.17 million in costs due to lack of full and timely NSCHC compliance,” Ms. Stewart said.

The Corporation has also failed to monitor improper payments made by grantees, and the agency’s Office of Inspector General has found that it will be at least two more years before CNCS is in compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA).

“The CNCS FY17 improper payment root cause analysis indicated that more than 90% of the agency’s improper payments are a result of grantees’ difficulty in completing a National Service Criminal History Check. As the agency improves its NSCHC compliance – which I am fully committed to achieving – we expect to see improved improper payment results,” Ms. Stewart said.

At the conclusion of her testimony, Ms. Stewart reiterated that while early progress has been made, there is still much more work that needs to be done to rehabilitate CNCS.

“My leadership team and I recognize the need to accelerate progress and, in some cases, make significant course corrections,” Ms. Stewart said. “I intend to leverage the agency’s enterprise risk management framework to make evidence-informed decisions that enable us to meet our oversight responsibilities; prevent waste, fraud, and abuse; improve compliance; and strengthen our impact in the communities we serve.” 

As highlighted throughout Ms. Stewart’s testimony, CNCS has a long road ahead. During her questioning of Ms. Stewart, Chairwoman Foxx underscored the need to change the Corporation’s culture of complacency.

“Ms. Stewart, I think you have seen on the part of our members that we recognize very well that you are new on the job, but we’re very concerned," Chairwoman Foxx said. "The Office of Inspector General has given us a lot of information about the problems in the Corporation. In fact, the FY2017 management challenges report notes that the Corporation’s giant management system, quote, ‘Has encouraged complacency inside the agency, stifled any urgency about improvement for the Corporation’s core function, and increased resistance to change.’ This summarizes one of my biggest concerns about the Corporation. We’ve heard many proposals for change from each new face of leadership at the Corporation, yet each of them fell short every time.”

The Chairwoman concluded, “We’ll be back to you and be asking for a lot more accountability. Thank you very much for being willing to take on the job.”

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