Corporation for National and Community Service: Amount of Obligations
B-300480.2: Jun 6, 2003
- Full Report:
As we stated in our April 9, 2003, legal opinion, because the Corporation for National and Community Service, at time of grant award, accepts a legal duty to cover the education benefits of new participants, it incurs, and must record, its maximum potential liability at that time. To ensure compliance with the Antideficiency Act, 31 U.S.C. 1341, and other fiscal laws, the Corporation should be recording and tracking its obligations as the value of an educational award multiplied by all approved positions. As more information is known, for example, when an approved participant fails to enroll or a volunteer drops out of the program, the Corporation may adjust the obligation, i.e., deobligate funds or increase the obligational level, as needed. Because funds in the Trust are available without fiscal year limitation, the deobligated funds can be reobligated and used for future education benefits.