Obligational Practices of the Corporation for National and Community Service
B-300480: Apr 9, 2003
The Corporation for National and Community Service incurs an obligation for education benefits when it enters into a grant agreement. At the time of grant award, in approving enrollment of a specified number of new participants, the Corporation incurs a legal duty that once fully matured, by action of the grantee and participants outside the Corporation's control, will require the Corporation to pay education benefits to qualified participants. As the Corporation incurs an obligation for the education benefits, it must record the obligation against the budget authority available in the National Service Trust. The Corporation's liability at time of grant award is equal to the number of approved positions in a grant award multiplied by the total value of a national service educational award plus the program costs awarded in the grant for each of the approved positions.