[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] DEMANDING ACCOUNTABILITY AT THE CORPORATION FOR NATIONAL COMMUNITY SERVICE ======================================================================= HEARING before the SUBCOMMITTEE ON HIGHER EDUCATION AND WORKFORCE TRAINING COMMITTEE ON EDUCATION AND THE WORKFORCE U.S. House of Representatives ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION __________ HEARING HELD IN WASHINGTON, DC, MAY 24, 2016 __________ Serial No. 114-49 __________ Printed for the use of the Committee on Education and the Workforce [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=education or Committee address: http://edworkforce.house.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 20-236 PDF WASHINGTON : 2017 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON EDUCATION AND THE WORKFORCE JOHN KLINE, Minnesota, Chairman Joe Wilson, South Carolina Robert C. ``Bobby'' Scott, Virginia Foxx, North Carolina Virginia Duncan Hunter, California Ranking Member David P. Roe, Tennessee Ruben Hinojosa, Texas Glenn Thompson, Pennsylvania Susan A. Davis, California Tim Walberg, Michigan Raul M. Grijalva, Arizona Matt Salmon, Arizona Joe Courtney, Connecticut Brett Guthrie, Kentucky Marcia L. Fudge, Ohio Todd Rokita, Indiana Jared Polis, Colorado Lou Barletta, Pennsylvania Gregorio Kilili Camacho Sablan, Joseph J. Heck, Nevada Northern Mariana Islands Luke Messer, Indiana Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon David Brat, Virginia Mark Pocan, Wisconsin Buddy Carter, Georgia Mark Takano, California Michael D. Bishop, Michigan Hakeem S. Jeffries, New York Glenn Grothman, Wisconsin Katherine M. Clark, Massachusetts Steve Russell, Oklahoma Alma S. Adams, North Carolina Carlos Curbelo, Florida Mark DeSaulnier, California Elise Stefanik, New York Rick Allen, Georgia Juliane Sullivan, Staff Director Denise Forte, Minority Staff Director ------ SUBCOMMITTEE ON HIGHER EDUCATION AND WORKFORCE TRAINING VIRGINIA FOXX, North Carolina, Chairwoman David P. Roe, Tennessee Ruben Hinojosa, Texas Matt Salmon, Arizona Ranking Minority Member Brett Guthrie, Kentucky Hakeem S. Jeffries, New York Lou Barletta, Pennsylvania Alma S. Adams, North Carolina Joseph J. Heck, Nevada Mark DeSaulnier, California Luke Messer, Indiana Susan A. Davis, California Bradley Byrne, Alabama Raul M. Grijalva, Arizona Carlos Curbelo, Florida Joe Courtney, Connecticut Elise Stefanik, New York Jared Polis, Colorado Rick Allen, Georgia C O N T E N T S ---------- Page Hearing held on May 24, 2016..................................... 1 Statement of Members: Adams, Hon. Alma S., a Representative in Congress from the state of North Carolina.................................... 4 Prepared statement of.................................... 5 Foxx, Hon. Virginia, Chairwoman, Subcommittee on Higher Education and Workforce Training........................... 1 Prepared statement of.................................... 3 Statement of Witnesses: Cohn, Mr. Joseph, Legislative and Policy Director, Foundation for Individual Rights in Education, Philadelphia, PA....... Prepared statement of.................................... Maatz, Ms. Lisa M., Vice President for Government Relations, American Association of University Women, Washington, DC... Prepared statement of.................................... Jeffrey, Ms. Deborah, Inspector General, Corporation for National and Community Service............................. 19 Prepared statement of.................................... 21 Spencer, Ms. Wendy, Chief Executive Officer, Corporation for National and Community Service............................. 7 Prepared statement of.................................... 9 Additional Submissions: Ms. Adams: Letter dated May 23, 2016, from The Corps Network........ 48 Prepared statement of.................................... 50 Courtney, Hon. Joe, a Representative in Congress from the State of Connecticut: Hartford Courant article: Veteran's coffeehouse opens in Danielson.............................................. 53 Chairwoman Foxx, questions submitted for the record to: Ms. Jeffrey.............................................. 136 Ms. Spencer.............................................. 139 Response to questions submitted: Ms. Jeffrey.............................................. 143 Ms. Spencer.............................................. 161 Corporation for National and Community ServiceGrant Competitions Results - Fiscal Years 2010-2016.......... 170 Scott, Hon. Robert C. ``Bobby'', a Representative in Congress from the State of Virginia: May 2008 Executive Summary Still Serving: Measuring the Eight-Year Impact of AmeriCorps on Alumni.............. 57 May 2008 Still Serving:Measuring the Eight-Year Impact of AmeriCorps on Alumni................................... 70 AmeriCorps Alumni Outcomes Summary Report Executive Summary October 2015................................... 126 AmeriCorps Alumni Outcomes Summary Report October 2015... 134 DEMANDING ACCOUNTABILITY AT THE CORPORATION FOR NATIONAL COMMUNITY SERVICE ---------- Tuesday, May 24, 2016 House of Representatives Committee on Education and the Workforce, Subcommittee on Higher Education and Workforce Training Washington, D.C. ---------- The Subcommittee met, pursuant to call, at 10:00 a.m., in Room 2175, Rayburn House Office Building, Hon. Virginia Foxx [chairwoman of the subcommittee] presiding. Present: Representatives Foxx, Roe, Guthrie, Curbelo, Stefanik, Adams, DeSaulnier, Davis, Courtney, and Polis. Also Present: Representatives Kline, and Scott. Staff Present: Janelle Belland, Coalitions and Members Services Coordinator; James Forester, Professional Staff Member; Tyler Hernandez, Deputy Communications Director; Amy Raaf Jones, Director of Education and Human Resources Policy; Nancy Locke, Chief Clerk; Dominique McKay, Deputy Press Secretary; Krisann Pearce, General Counsel; Alex Ricci, Legislative Assistant; Mandy Schaumburg, Education Deputy Director and Senior Counsel; Alissa Strawcutter, Deputy Clerk; Tylease Alli, Minority Clerk/Intern and Fellow Coordinator; Pierce Blue, Minority Labor Detailee; Mishawn Freeman, Minority Staff Assistant; Denise Forte, Minority Staff Director; Carolyn Hughes, Minority Senior Labor Policy Advisor; Brian Kennedy, Minority General Counsel; Veronique Pluviose, Minority Civil Rights Counsel; and Rayna Reid, Minority Education Policy Counsel. Chairwoman Foxx. The quorum being present, the Subcommittee on Higher Education and Workforce Training will come to order. Good morning, everyone, and welcome to today's hearing. Ms. Spencer and Ms. Jeffrey, I would like to thank both of you for joining us to address the most recent misuse of taxpayer funds in the AmeriCorps program, or perhaps more accurately, the most recent misuse of taxpayer funds that we know of. Let me start by providing a little more context for those who are not familiar with this case. The Corporation for National Community Service, or CNCS, is in charge of overseeing the community service activities of more than eight different Federal programs and initiatives. For the current fiscal year, CNCS received more than $1 billion to carry out these programs, one of which is the AmeriCorps program. As the head of the corporation, Ms. Spencer, you have a responsibility to ensure the Federal funds you receive, which are no small sum, are being spent in full compliance with Federal law. That includes policies that prohibit the use of taxpayer dollars to fund abortion activities. We are here today because the office of your inspector general has reported one AmeriCorps grantee, the National Association of Community Health Centers, violated the law. As of today this organization is still receiving taxpayer funds. More specifically, this organization, one of the largest to participate in the AmeriCorps program, allowed AmeriCorps members to engage in illegal activity by providing support services during abortion procedures. Regardless of your position on the issue of abortion, the law is the law and it must be followed. The most recent law reauthorizing CNCS programs explicitly prohibits the use of AmeriCorps resources to provide abortion services or referrals for receipt of such services, end quote. For two years these illegal activities were allowed to continue completely undetected by the very agency meant to oversee these programs in the agency you are in charge of. The investigation that began when you finally did become aware of what had happened confirmed that taxpayer funds were used to support unlawful activities. But it also revealed much more. The inspector general also found that several AmeriCorps members were regularly tasked with conducting work performed by employees of the centers they supported. This activity is also against the law, but the grantee failed to stop or even report it. AmeriCorps members technically are to serve strictly in volunteer roles and should never perform the same task as employees. But again, that is not the end of it. It was also discovered that the grantee's senior management chose not to inform the corporation of instances of waste, fraud, and abuse, choosing instead to undermine transparency and avoid reporting information that would make them look bad. This disturbing list of unlawful and dishonest practices really makes you wonder, how on Earth was this allowed to happen? How were these activities allowed to go on for so long? And why is the National Association of Community Health Centers still a grantee? When the committee learned about this unlawful activity last month, Chairman Kline immediately called on the corporation to cease all future funding of this organization. On behalf of the committee, I am renewing this call today, Ms. Spencer. I sincerely hope you will be able to provide us with a plan of action and describe steps you are taking to address this situation. Revoking this grant would be a good start, but it is also important to recognize that this is not an isolated incident. In fact, I chaired a hearing back in 2011 examining reports that AmeriCorps members had engaged in other unlawful activity. In response to questioning, the head of CNCS assured us the corporation would be diligent in educating grantees, ``helping them to understand the rules,'' and would require, ``all AmeriCorps grantees to annually assure compliance with regulations on prohibited activities.'' It seems that neither strategy has solved the problem. That's why today I am also calling on the Corporation to conduct a comprehensive review to ensure all other grantees in the program are complying with the law. Enough is enough. The Corporation needs to be held accountable for the way it spends taxpayer dollars and that's why we are here today. We have many questions to answer and much to discuss. So I now recognize Ranking Member Adams for her opening remarks. [The information follows:] Prepared Statement of Hon. Virginia Foxx, Chairwoman, Subcommittee on Higher Education and Workforce Training The Corporation for National and Community Service, or CNCS, is in charge of overseeing the community service activities of more than eight different federal programs and initiatives. For the current fiscal year, CNCS received more than $1 billion to carry out these programs, one of which is the AmeriCorps program. As the head of the corporation, Ms. Spencer, you have a responsibility to ensure the federal funds you receive--which is no small sum--are being spent in full compliance with federal law. That includes policies that prohibit the use of taxpayer dollars to fund abortion activities. We're here today because the office of your Inspector General has reported one AmeriCorps grantee, the National Association of Community Health Centers, violated the law. As of today, this organization is still receiving taxpayer funds. More specifically, this organization--one of the largest to participate in the AmeriCorps program--allowed AmeriCorps members to engage in illegal activity by providing support services during abortion procedures. Regardless of your position on the issue of abortion, the law is the law, and it must be followed. The most recent law reauthorizing CNCS programs explicitly prohibits the use of AmeriCorps resources to ``provide abortion services or referrals for receipt of such services.'' For two years, these illegal activities were allowed to continue, completely undetected by the very agency meant to oversee these programs. The investigation that began when you finally did become aware of what had happened confirmed that taxpayer funds were used to support unlawful activities, but it also revealed much more. The Inspector General also found that several AmeriCorps members were regularly tasked with conducting work performed by employees of the centers they supported. This activity is also against the law, but the grantee failed to stop or even report it. AmeriCorps members are to serve strictly in volunteer roles and should never preform the same tasks as employees. But, again, that's not the end of it. It was also discovered that the grantee's senior management chose not to inform the corporation of instances of waste, fraud, and abuse, choosing instead to undermine transparency and avoid reporting information that would make them look bad. This disturbing list of unlawful and dishonest practices really makes you wonder: How on earth was this allowed to happen? How were these activities allowed to go on for so long? And, why is the National Association of Community Health Centers still a grantee? When the committee learned about this unlawful activity last month, Chairman Kline immediately called on the corporation to cease all future funding of this organization. On behalf of the committee, I am renewing that call today, Ms. Spencer. I sincerely hope that you will be able to provide us with a plan of action and describe steps you are taking to address this situation. Revoking this grant would be a good start, but it's also important to recognize that this is not an isolated incident. In fact, I chaired a hearing back in 2011 examining reports that AmeriCorps members had engaged in other unlawful activity. In response to questioning, the head of CNCS assured us the corporation would be diligent in educating grantees, ``helping them to understand the rules,'' and would require ``all AmeriCorps grantees to annually assure compliance with regulations on prohibited activities.'' It seems that neither strategy has solved the problem. That's why today I am also calling on the corporation to conduct a comprehensive review to ensure all other grantees in the program are complying with the law. Enough is enough. The corporation needs to be held accountable for the way it spends taxpayer dollars, and that's why we are here today. ______ Ms. Adams. Thank you, Madam Chair, and thank you both for being here today. I would also like to welcome Wendy Spencer, chief executive officer for the Corporation for National and Community Service, and Deborah Jeffrey, the inspector general. And I want to thank you both for joining us today. We are here today to discuss the critical role that the Corporation for National and Community Service, or CNCS, has in encouraging volunteerism and civic engagement. Service is the rent that we pay for living on this Earth and it is also the foundation of our democracy, and its value to our society cannot be overstated. Since its founding, CNCS has engaged millions of volunteers in national and community service. These volunteers have served as teachers and tutors and mentors and counselors working with disadvantaged students in high-need schools. In cases of natural disaster, volunteers have helped local communities prepare for, mitigate, respond, and recover from forest fires and floods and hurricanes and tornadoes. Volunteers have assisted our Nation's veterans in adjusting to civilian life, constructed and rebuilt homes for thousands of families, and help our Nation's seniors in maintaining the highest degree possible of independent living and much more. All of us ought to be engaged in national service. So thank you, CNCS, for being a leader on this issue. You see, my upbringing taught me that we won't be able to celebrate community, nor can we build community if we are not inclusive, if we do not care for the least of these. So as we engage ourselves in trying to improve our community for the better, we must do so remembering that we are thy brother's and thy sister's keepers, and as such, inextricably tied to one another. But in order for the community to be engaged, the community must be involved. And that is exactly what CNCS does. CNCS and the community volunteers that they coordinate enable tens of thousands of nonprofit organizations, faith-based groups and schools and municipal agencies to solve tough problems and meet local needs. CNCS also serves and builds and makes an impact that change lives and communities. Martin Luther King once said that the ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands in times of challenge and controversy. So during the times of challenge, CNCS is there. During the Flint crisis, CNCS deployed an AmeriCorps team to Flint to support State and local efforts to protect the public health of residents facing challenges from increased lead levels in the Flint water supply. And when tornadoes wreaked havoc in Oklahoma, CNCS deployed an AmeriCorps team to that region. So needless to say, I could praise the instances of these volunteers helping our Nation's communities in times of need. But I will stop here and say that it is without a doubt that CNCS has improved the quality of life in my home State of North Carolina and communities around this great Nation. After I was sworn into Congress, I made it a priority to join the Committee on Education and the Workforce and I am glad I am here. And I fought to do that intentionally because I understand the significance of community engagement. And as a member of the Committee, I feel responsible for ensuring that the Corporation has strong management, monitoring, and oversight as well as the resources necessary to effectively administer its programs and carry out its mission. And while there is always room for improvement, I strongly believe that CNCS is taking this responsibility serious. So with regard to the recent incidences that occurred with the AmeriCorps program, CNCS discovered and resolved these issues with deliberate action. And I can't help but think that if this were anything other than services related to women's health, that the Corporation would not be called in front of us here today. So as we proceed with today's hearing, I want to strongly encourage my colleagues on this committee to focus on the vital importance of service to our Nation. And while we must maintain vigorous oversight and enforcement, we must also remember how CNCS engages over a million volunteers, which is something that benefits local communities all across America on both sides of the aisle. So I look forward to hearing more about how we can improve and strengthen National Service programs that are so important to our Nation's success. Thank you, Madam Chair. [The information follows:] Prepared Statement of Hon. Alma S. Adams, a Representative in Congress from the state of North Carolina Good morning and thank you, Chairwoman Foxx. I would also like to welcome Wendy Spencer, chief executive officer (CEO) for the Corporation for National and Community Service (CNCS) and Deborah Jeffries, the Inspector General, for joining us today. We are here today to discuss the critical role that the Corporation for National and Community Service, or CNCS, has in encouraging volunteerism and civic engagement. I'm a big fan of saying that ``service is indeed the rent we pay for living on this earth.'' Service is the foundation of our democracy, and its value to our society cannot be overstated. Since its founding, CNCS has engaged millions of volunteers in national and community service. These volunteers have served as teachers, tutors, mentors, and counselors working with disadvantaged students in high need schools. In cases of natural disasters, volunteers have helped local communities prepare for, mitigate, respond, and recover from forest fires, floods, hurricanes and tornadoes. Volunteers have assisted our nation's veterans in adjusting to civilian life, constructed and rebuilt homes for thousands of families, helped our nation's seniors in maintaining the highest degree possible of independent living and much more. All of us ought to be engaged in national service. So thank you CNCS for being a leader on this issue. You see, my upbringing taught me that we won't be able to celebrate community nor can we build community--``if we're not inclusive and don't care for the least of these.'' As we engage ourselves in trying to improve and better our community, we must do so remembering that we are thy brother's and thy sister's keepers and as such we are inextricably tied to one another. But in order for the community to be engaged, the community must be involved. And that is exactly what CNCS does. CNCS and the community volunteers they coordinate enable tens of thousands of nonprofit organizations, faith-based groups, schools, and municipal agencies to solve tough problems and meet local needs. CNCS serves, builds, and makes an impact that changes lives and communities. Martin Luther King, Jr. once said, ``The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.'' During times of challenge, CNCS is there---- * During the Flint Water Crisis, CNCS deployed an AmeriCorps team to Flint, Michigan, to support state and local efforts to protect the public health of residents facing challenges from increased lead levels in the Flint water supply. * When Hurricane Katrina devastated the South, CNCS deployed an AmeriCorps team to the region. * And when tornadoes wreaked havoc in Oklahoma, AmeriCorps volunteers were there. Needless to say, I could praise the instances of these volunteers helping our nation's communities in times of need. But, I'll stop here and say that it is without a doubt that CNCS has improved the quality of life in my home state of North Carolina and in communities around this great nation. The Edward M. Kennedy Serve America Act reauthorized and expanded the national service programs administered by CNCS. After I was sworn into Congress, I made it a priority to join the Committee on Education and the Workforce. I fought to get on this Committee intentionally because I understand the significance of community engagement. And as a member of this Committee, I feel responsible for ensuring that the Corporation has strong management, monitoring, and oversight, as well as the resources to effectively administer its programs and carry out its mission. While there is always room for improvement, I strongly believe that CNCS is taking this responsibility seriously. With regard to the recent incidences that occurred with the 1AmeriCorps program, CNCS discovered and resolved these issues with deliberate action. And I can't help but think that if this were anything other than services related to women's health, that the Corporation would not be called in front of us here today. As we proceed with this hearing, I want to strongly encourage my colleagues on this Committee to focus on the vital importance of service to our nation. While we must maintain vigorous oversight and enforcement, we must also remember how CNCS engages over a million volunteers, which is something that benefits local communities all across America, on both sides of the aisle. And I look forward to hearing more about how we can improve and strengthen national service programs that are so important to our nation's success. Thank you. ______ Chairwoman Foxx. Thank you, Dr. Adams. Pursuant to Committee Rule 7(c), all members will be permitted to submit written statements to be included in the permanent hearing record. And without objection, the hearing record will remain open for 14 days to allow such statements and other extraneous material referenced during the hearing to be submitted for the official hearing record. It is now my pleasure to introduce our distinguished witnesses. The Honorable Wendy Spencer is the chief executive officer for the Corporation for National and Community Service here in Washington, D.C. Ms. Spencer began serving as CEO of the Corporation on April 9, 2012. Prior to that, the Corporation, Ms. Spencer served as the CEO of the Florida Governor's Commission on Volunteerism and as the director of the Florida Parks Service. The Honorable Deborah Jeffrey is the inspector general for the Corporation for National and Community Service here in Washington, D.C. Ms. Jeffrey joined the corporation as inspector general on July 19, 2012. Prior to this, Ms. Jeffrey spent 25 years in private practice of law, including as an in- house counsel on ethics and loss prevention. I now ask our witnesses to raise your right hand. [Witnesses sworn.] Chairwoman Foxx. Let the record reflect the witnesses answered in the affirmative. Before I recognize you to provide your testimony, let me briefly explain our lighting system. You have 5 minutes to present your testimony. When you begin, the light in front of you will turn green. When 1 minute is left, the light will turn yellow. When your time has expired, the light will turn red. At that point, I will ask you to wrap up your remarks as best as you are able. Members will each have 5 minutes to ask questions. Now I would recognize the Honorable Wendy Spencer for her opening statement. TESTIMONY OF WENDY SPENCER, CHIEF EXECUTIVE OFFICER, CORPORATION FOR NATIONAL AND COMMUNITY SERVICE Ms. Spencer. Thank you, Madam Chair, Dr. Adams, members of the committee. Thank you for inviting me to testify today. I welcome this opportunity to discuss our commitment to accountability and good stewardship of taxpayer dollars. Today, 345,000 Senior Corps and AmeriCorps members are serving in 50,000 locations across the Nation. These dedicated Americans serve in tough conditions to meet pressing local needs like tutoring and mentoring at-risk youth, responding to disasters, supporting veterans and their families, and much, much more, all while recruiting millions of additional volunteers to serve alongside them and multiply their impact. National Service invests in local solutions. It provides human capital support to increase the impact of nonprofits and faith-based organizations and other community organizations. Governor-appointed state service commissions decide where most of the AmeriCorps resources are invested. Local groups recruit, select, and supervise their members. Mayors and county leaders are also an important part of our partnerships at the local level. Congress created our agency years ago to empower citizens, solve problems, and expand opportunity. Our agency is built on smart, commonsense principles, local control, competition, public-private partnership, and a focus on results. And it's working. I share the committee's view that our agency has a responsibility to ensure Federal funds are well managed. That has been my priority from day one. We have built a culture of accountability and strong systems of monitoring and oversight. These systems are working. Misconduct is very rare, but when it happens, we take strong action. Accountability is more than compliance. It also means achieving our mission. We are investing funds more effectively to drive community impact by using evidence, increasing competition, and measuring performance. My written testimony details our comprehensive risk-based system to prevent and detect issues and enforce our rules. But let me list just a few to highlight. We start before a grant is ever made by doing a financial scan and reviewing past performance. Every direct grant is monitored for fiscal and programmatic compliance. Every year our staff conducts a risk assessment of our entire portfolio of grants to inform our monitoring plan. Grantees identified as having risk receive site visits, desk reviews, and other types of audits. In fact, 3,200 have occurred in the last 5 years. If issues are discovered, we enforce our rules. That can mean requiring corrective action plans, placing funds on hold, reporting activities to the inspector general, or even suspending or terminating a grant. In recent years we have strengthened our monitoring and oversight in many ways through expanded grantee and staff training, better use of financial data, increased control on fixed-amount grants, improvements to our grants management system, better communication with our grantees and members, and more. Several initiatives currently underway, we have just recently hired a chief risk officer; the first in our agency's history and one of only a few positions like it in the Federal Government. This executive will lead an office that oversees all of our risk assessment programs, an integrated coordinated approach to better manage our resources and decision-making. We believe we are ahead of the curve in developing an enterprise risk management program to help us take a holistic view of risk. We are updating our grant management IT system. A key component will be to enhance and validate our grantee risk model. This will enable us to move from compliance-focused monitoring to a more nimble and targeted risk-based approach. Given the priority we place on accountability, we are deeply disappointed that a grantee authorized National Service participants to engage in prohibited activities. We immediately referred this matter to the inspector general for investigation. Once the results were known, we suspended the grantee from enrolling new members, directed them to hire an independent oversight monitor, and required them to take several other corrective actions. The inspector general stated our response was robust. The IG concluded that the noncompliance was extremely limited in scope involving six of nearly 1,600 members serving under this particular grantee over three years. It is important to put that in perspective. That is six members out of more than 1 million National Service positions in the same period. In fact, since this subcommittee's hearing five years ago, there have been nearly 2 million AmeriCorps members and Senior Corps positions granted. Members have served 820 million hours. They have made an extraordinary contribution to our communities and our Nation. I hope that my testimony today assures the committee of our commitment to accountability and our interest in doing more and making improvements where needed. We look forward to working with you to further strengthen the impact of National Service. And as I always ask members of Congress, I welcome your advice and your guidance. Thank you, Madam Chair. [The statement of Ms. Spencer follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairwoman Foxx. Thank you very much, Ms. Spencer. Ms. Jeffrey, you are recognized. TESTIMONY OF DEBORAH JEFFREY, INSPECTOR GENERAL, CORPORATION FOR NATIONAL AND COMMUNITY SERVICE Ms. Jeffrey. Chairwoman Foxx, Ranking Member Adams, and members of the subcommittee, thank you for inviting me to testify about the work of the Office of Inspector General to strengthen accountability at CNCS. I have had the privilege of serving as the IG for nearly 4 years. Since early 2013, OIG has been recommending substantial improvements to CNCS's grants management, especially risk assessment and focused monitoring. We have identified new monitoring requirements and encourage CNCS to begin work on them early. Our work has shown that better internal controls and risk management are needed across the organization. OIG conveys our recommendations in audit and investigation reports, in meetings with CNCS's leaders, and in briefings of the board of directors. We summarize them in our semiannual reports to Congress. We have also identified other sources of help for CNCS. Following a troubling financial statement audit, we initiated discussions with OMB and CNCS to develop a plan for substantial upgrades to internal controls. We recommended an assessment of information technology and how it could better support the agency's operations and programs. CNCS responded by commissioning a report by The MITRE Corporation which gave rise to the present IT modernization plan. To jumpstart progress, we introduced the chief operating officer to the Federal Enterprise Risk Management community and its resources. We have long advocated that CNCS hire a chief risk officer whom we recently welcomed. At our suggestion, the House Committee on Government Reform requested a GAO study of grant monitoring at CNCS which is currently in progress. And to improve criminal history checking, we brought in the National Center for Missing and Exploited Children to share its expertise in assisting nonprofits. CNCS has adopted a number of our individual recommendations. There is an increased focus on accountability and the leaders recently brought on board share that priority. But much work remains to be done on basic risk management systems. High turnover in key accountability positions, insufficient resources, and lack of trained leadership have impaired efforts to improve accountability. CNCS lacks bench- strength and grant risk assessments and monitoring, creating appropriate internal controls, and identifying and reducing improper payments. The agency has repeatedly promised progress, but it continues to struggle. Its grant monitoring depends heavily on risk assessments of unproven reliability. Our preliminary review of 40 seriously troubled grants found that half had not been monitored closely because they were rated as low or medium risk. CNCS was therefore blindsided by the serious problems that occurred. Our audits and investigations also often find that the staff has missed red flags. That was the case with OIG's recent investigation of abortion-related prohibited activities. As you alluded to, Chairwoman Foxx, last month OIG reported that the National Association of Community Health Centers allowed a few AmeriCorps members to provide emotional support to women during abortions at three New York City clinics operated by a sub- grantee. The Federal statute authorizing the AmeriCorps program expressly forbids the use of AmeriCorps resources to provide abortion services or referrals for receipt of such services. Among the missed opportunities, from 2009, CNCS was on written notice that one NACHC's sub-grantees was performing abortions and having AmeriCorps members provide pre-abortion assistance. The agency did not ask the identity of the sub-grantee, did not determine whether the pre-abortion support activities were prohibited abortion services, and did not target NACHC or the sub-grantee for particular monitoring. The staff also did not record this key risk-related information in its online grants management system. Important institutional knowledge was therefore lost. The agency made a considered decision in 2009 not to provide general guidance on the meaning of the abortion prohibitions. Its first interpretive guidance was imbedded in voluntary online training in 2014. There, CNCS stated for the first time that an AmeriCorps member is prohibited from accompanying a woman at a facility for an abortion; precisely what was taking place at the sub-grantee. The measures that CNCS is now implementing could have been adopted long ago. These include OIG's recommendations, one, to analyze grantees' programmatic activity and clientele in order to identify those that present a heightened risk of a particular prohibited activity. There is a greater risk of abortion-related activities at a clinic that provides women's healthcare than at a program for Meals on Wheels to senior citizens. Second, to expand its repertoire of monitoring activities to include more frequent direct communications with AmeriCorps members, including surveys. My staff and I see great potential to improve accountability at CNCS and we look forward to working with the Congress and agency leaders to that important objective. Madam Chairwoman, this concludes my statement. I would be pleased to answer any questions that you or the other members might have. [The statement of Ms. Jeffrey follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairwoman Foxx. Thank you very much, Ms. Jeffrey. I would now like to recognize our subcommittee members for their questioning and I will recognize the chairman of the full committee, Mr. Kline, to ask the first question. Mr. Kline. Thank you, Madam Chair. Thank the witnesses for being here today for your testimony. I must say, Ms. Jeffrey, listening to your testimony, there are a lot of concerns that you raised and one of them was repeated staff did not, staff did not, staff did not, did not recognize, they didn't take action, they could have, they did not. And that makes me worry about what the culture and the leadership might be and that would be back into Ms. Spencer's box. But I want to come specifically back to you, Ms. Jeffrey, the inspector general, because you talked about some steps that have been taken and could be taken, you hope will be taken. But you also in your testimony highlight the structural challenges to better oversight at the corporation. Can you discuss why these structural challenges pose an issue in whether the corporation can properly oversee the program under its charge, structural? Ms. Jeffrey. Thank you, Mr. Chairman. The corporation has not invested enough time, attention, and effort in strengthening its structural internal controls. That has been a finding repeatedly in the financial statement audits which are conducted by an independent auditing company that audits a number of Federal agencies. The corporation often says that it will improve, it makes efforts to do so, but its turnover in leadership of that effort has impeded progress. The staff who are charged with responsibility for this important function are undertrained. They are under-resourced. And until the recent hiring of a chief risk officer, they have not been led by someone who is properly educated, trained, and with sufficient expertise. The corporation also suffers some structural impediments by virtue of its outdated information technology system and how that impacts grant management. That is a place in which the corporation has made some progress. There is an IT modernization plan. It is underway and I believe it will substantially improve grant monitoring two or three years hence. Until that time however, the monitoring is extremely laborious, conducted by hand, and does not have the benefit of data analytics. We have been urging improvement on that score as well virtually since the day I came to the corporation in late 2012. Mr. Kline. It sounds daunting to say the least. It's going to take time. It's going to take real leadership. Is it going to take reorganizing, creation, eliminating some departments and creating new ones? Obviously, you've created a new one when you hired a chief risk management officer. Are there other organizational things that the IG has recommended? Ms. Jeffrey. We have recommended that the corporation undertake an assessment of what it will take to do these things, real planning with meaningful milestones, meaningful deadlines, and an assessment of the resources that will be required to get to the finish line. I understand that is underway now. We have not yet seen its results. And of course, the chief risk officer has only been on board for about a month. Mr. Kline. It is like an indictment of a lot of people in an oversight role and a management role. I suppose we have to include ourselves in the oversight business. We will be taking a close and continuous look as we go forward because the problems, to listening to the IG, are extensive. I yield back, Madam Chair. Chairwoman Foxx. Chairman yields back. Mr. Scott, I recognize you for 5 minutes. Mr. Scott. Thank you. Thank you, Madam Chair. Ms. Spencer, most of this fanfare is over the abortion services. How many employees were involved in that? Ms. Spencer. Good day, Mr. Scott. According to the IG's investigation that was very thorough and swift, it illustrated that there were six AmeriCorps members at a limited scope of time. I don't know that we can delineate the exact amount of time, but if we were pressed we would probably say, combined, maybe as much as 10 hours. Mr. Scott. Ten hours, okay. And the hourly rate-- Ms. Spencer. Total. Mr. Scott. Total aggregate total. And the expense of an AmeriCorps member is about $10 an hour give or take? Ms. Spencer. Well, AmeriCorps members' stipends vary. These are full-time members. They receive approximately $12,600 a year. It is a living stipend, not a living wage. And then followed up with a college scholarship of around $5,700 at the close of their commitment. Mr. Scott. Full-time, 2,000 hours-- Ms. Spencer. Seventeen hundred. Mr. Scott. It is about, in stipend, it is about $10 an hour. So we are talking about somewhere around $100? Ms. Spencer. That is correct. Mr. Scott. Uh-huh. What is the total budget for this grantee? Ms. Spencer. Around $6 million, approximately 525 full-time AmeriCorps members. Mr. Scott. Were they told by outside attorneys that their activities were legal? Ms. Spencer. Were legal? Mr. Scott. Right. Did they consult outside attorneys before they reported it? Before you found out? Ms. Spencer. So several things occurred. Several years ago there was dialogue by Email back and forth, but looking back at that, not very clear to me. It talked about reproductive services, other things. I think looking back, both parties, the grantee and our staff, could have been more clear. But yes, they were told that it was against the rules to provide abortion services. Mr. Scott. Well, they were told. Before they were told that, did they seek other counsel that gave them the impression that it was not illegal? Ms. Spencer. The inspector general report alludes to in writing that it appeared there was some conversation on their part with outside legal counsel. She might be able to speak to that a little bit better than me. Mr. Scott. All right, let me ask Ms. Jeffrey. Did they seek outside counsel and were told that their activities were not inappropriate? Ms. Jeffrey. I think that would be something of an overstatement. What we know is that at some point when the grantee learned that an individual AmeriCorps member and a sub- grantee was acting as an abortion doula, they did two things. The national director at NACHC said that he analyzed for himself whether this conduct was permissible. He also said that he spoke to outside counsel. Looking at the documents, it appears that his conversation with outside counsel concerned whether it was permissible to be performing abortions at that clinic, not whether it was permissible to use AmeriCorps members. But he was not very specific about it and sometimes implied-- Mr. Scott. Okay, so there was at least some discussion about whether--the legality of this activity. We are talking about $100 out of millions. I mean, we have spent more than that in congressional salaries listening to the opening statements. We have run through $100. I would like to get from the chair how much money has been spent on this subcommittee meeting. If we could provide that for the record so we can put all these numbers in perspective because we are talking about $100 that we are chasing. What has happened to the grantee since then? Ms. Spencer. Several things have occurred over the course of several weeks, so allow me just to share the entire picture. Mr. Scott. Well, I only have a couple seconds left. Is it true that they are not being renewed? Ms. Spencer. May I continue? I know we are out of time, Madam Chair. Chairwoman Foxx. Yes, ma'am. Ms. Spencer. Thank you. So during this time period of this particular grantee, coincidentally, happened to be up for a new grant, the start of a brand new grant. They were notified a few days ago through the regular grant process that they will not receive a new grant in this process based on our regular grant process. Now, they have an existing grant that is ongoing. It terminates on July 31st. So they have received a letter this morning reminding them that their grant terminates on July 31st and instructing them to end the AmeriCorps member service at the New York site where the inappropriate activity occurred. Now normally a grantee would ask for a no-cost extension for a year as a normal process. I am not inclined to grant them a no-cost extension. But if they meet all of our demands over the coming days as they close out this grant--hiring a monitor, an ombudsman, not enrolling new members, all of these things; there is a long list of requirements--I am amenable to entertaining the thought of a short-term extension for 90 days. If I did so it would mean that 500 AmeriCorps members get to complete their full term of service. I want to look at the AmeriCorps members and try to say, should they be completing their terms of service, their commitment they made to our country. Above the actions of one or two individuals at the agency, at the Community Health Corps Administration? So I am amenable to looking into that. So that is the current status at this point. Chairwoman Foxx. The gentleman's time has expired. The gentleman from Tennessee, Dr. Roe, is recognized. Mr. Roe. Thank you, Madam Chairman. You know, typically the indiscretions of a few will hurt the many who do good. And there is no question that is true. And many of us feel very strongly about abortion whether you are pro-choice or pro-life. I happen to be an obstetrician. As I spent 31 years doing that, delivering about 5,000 babies, I am strongly pro-life. And I think that the intent of those grants was very clear. I can certainly see why someone who has had an abortion, who has problems emotionally, would feel like you want to help them. I certainly understand that. I have done that. When people had them someone else and came to me, I did offer support for those patients and would continue to do so. But the grants can prohibit that. It's not to be used and I think we feel like if we allow that, you will get on a slippery slope and then people just decided what they want to do. And I think that's the problem I have seen with--I am on the Veteran's Affairs Committee and one of the problems I have with this place is the lack of accountability. People just do what they want to because they think they want to, not the intent of Congress, and then there are no consequences to it. So what I want to dig into, first of all, were there just six people? What have been the consequences to that? Because if the consequences were in this, we just cut the grant off. And realizing that there are AmeriCorps members out there working hard every day, New York or wherever they may be working that are doing good work, if those consequences were there like that, those grantees would not do that. If there was some accountability like that. And I think that you as a director, Ms. Spencer, are going to have to say, well, I would like to see these people go on and do all. Well, then there have been nothing for these people. If you think about it, we are having this discussion about not a lot. And what Mr. Scott was talking about, about the amount of money, I do not care about that. It is the principle that is involved. And I think, you know, a billion dollars is a lot of money. It is a thousand million dollars that you oversee every year. And so I want to know had there been more than six, Ms. Jeffrey? Were there more than that? Or how did you determine there were just six people involved? Ms. Jeffrey. Thank you. We, in fact, know that there were more than six involved. Mr. Roe. Okay. Ms. Jeffrey. There are six that we can identify by name. The only way we are able to identify the individuals who served as abortion doulas is if they somehow made a blog post or sent something that is in the public record about their service. We know that there were additional individuals. We do not know how many because typically AmeriCorps members do not keep detailed time records of their activities. And so it is very difficult to quantify the number of people. That said, it appears that the activity was limited to this one sub-grantee. And it is not given the number of individuals we can identify, we don't think it is orders of magnitude off. Mr. Roe. Thank you, Ms. Jeffrey. What date does the sub- grantees contract basic grant end? Ms. Spencer. July 31st. Mr. Roe. And has not been renewed. Ms. Spencer. No. Mr. Roe. And that they can't apply in some other grant. Would you accept a different grant from these people? Ms. Spencer. They just applied for one which was denied, and they just received that. That was a $6 million request, a little over $6 million request, and they were denied that. Mr. Roe. Let me ask a question. When you are looking at a program, a success or a failure of a program, what is a win? How do you evaluate the success of a program because this one clearly was not? I mean, someone in that shop decided we are going to do this knowing good and well that they should not do it. We will just do it and we probably would not get caught. We will ask for forgiveness if we get cause because there is no risk to us if we do. And the risk, I guess, is not getting another grant, but that is it. You did not stop the grant. So how do you evaluate a program? In other words, how do you define a win, a success? Ms. Spencer. Thank you for that question, Congressman. Fortunately, we have an amazing array of successes all over the country with 345,000 National Service participants during a day. I have the joy of seeing those all over the country in rural and cities and travel communities serving in disasters, education. And a success would be something like this. A program meets all of our requirements. They have filed their financial reports on time. They have strong audits. They have proper management and oversight. They have strong outcomes. They are measuring their performance and reporting to us what-- that--our larger programs are doing-- Mr. Roe. I am about out of time, but when someone applies for a grant, there are metrics out there, benchmarks that they have to meet. Ms. Spencer. Absolutely. Mr. Roe. Okay, I yield back. Ms. Spencer. Thank you. Chairwoman Foxx. Thank you, Dr. Roe. Dr. Adams, you are recognized for 5 minutes. Ms. Adams. Thank you, Madam Chair. I am a little bit curious about the review process. If you could talk a little bit more about it. Was it just written? Were there verbal conversations with the applicants? How did that work, Ms. Spencer? Ms. Spencer. Thank you, Dr. Adams. I am sure you are still referencing the Community Health Corps or just in general review processes? Ms. Adams. Yeah, for this particular-- Ms. Spencer. For this particular. Ms. Adams. Right. Ms. Spencer. They did have a desk audit in 2014. So they are assigned a program officer as soon as they receive a grant from us. In this particular case, it is a direct grant that we are managing. It is not going through one of our Governor's Commissions on Volunteerism, which two-thirds of our grants are AmeriCorps grants, are managed through Governor's Commissions on Volunteerism. But this one is not. This is a direct grantor agency, so they are assigned a program officer. That program officer reviews all of the terms and conditions with them. They provide direction to them to trainings, to opportunities to find information like on our Knowledge Network. We host nationwide trainings and regional trainings. They attend those. They do monthly check-ins. So it is a regular communication all the time. In this particular case, this grantee knew the rules. Ms. Adams. Okay, so-- Ms. Spencer. That's what is unfortunate. Ms. Adams. Yeah, okay. So as a follow-up, in the discussions, did they talk about abortion? Ms. Spencer. It happened and I read a string of Emails where there was communication back and forth. But if you look back today as sort of hindsight armchair quarterbacking, the language between the parties was sort of evasive. I think the parties should have just picked up the phone and say, what are you trying to do? Let us give you direct guidance. You may not do abortion services. That is not allowed according to the Serve America Act of which Congress has given us those rules. So it looked like they were dancing around words and it was hard to understand. But they were told you could not perform abortion services. Ms. Adams. Okay, let me ask. You mentioned no-cost extension, that they could ask for that. Ms. Spencer. Uh-huh. Ms. Adams. Have they asked for a no-cost extension? Ms. Spencer. No. Ms. Adams. And so you did say you would consider it. So when did you make a decision and would you approach them about doing it? I mean, since we are talking about, maybe you are talking about some misconduct, but not everybody was responsible for it and not wanting everybody to suffer. So what is your thought about that? Ms. Spencer. Well, I think Congressman Roe makes a good point. You do have to look at the intent of an organization and how they are being managed. So I am concerned. What would guide my decision in the coming weeks would be are they following our demands? Are they meeting all of the requests that we have asked them to do of which the IG also made recommendations to us which we have adhered to? So I would watch and see. Are we working in good faith with one another? Are they being responsive? There are many things they could do to try to convince us that they will adhere to the rules. Ms. Adams. Okay, so since there is not much time, you mentioned that the grant is up in July. But let me just move on and ask, what exactly were the volunteers doing? I mean, did they perform the abortions that you are talking about? Ms. Spencer. Oh, no, ma'am. Ms. Adams. Okay. Ms. Spencer. As I understand it, an abortion doula. And this is things that I am learning about, too, but was seated with these women during the-- Ms. Adams. Okay, and finally before I run out of time, I wanted to ask you, you know, if there were some things that you think that were inappropriate, but what would reduced funding for CNCS mean for communities around the country if you had to do that? Ms. Spencer. I am sorry, what would-- Ms. Adams. What would reduced funding do? What would it mean for communities around the country if their funding was reduced, eliminated? Ms. Spencer. Well, you know, I looked at all of the other things that the Community Health Corps does. They do diabetes screenings. They do breastfeeding courses. They do well-baby care education. They do support to veterans, support for seniors. They do obesity prevention. You know, this is why it is a mystery to me why they had to focus on this particular issue. There are so many other things: financial literacy, helping people figure out what kind of healthcare is affordable and available to them. There is so many other avenues they could be serving in. And in 2011, I was a grantee of this agency. I was receiving funds from this agency running the Florida Governor's Commission on Volunteerism. And I remember, Madam Chair Foxx, this hearing and watched with interest. It was no secret what was allowed and what was not allowed to any of us as a grantee. So, it was very clear at that time that they made the decision to change the wording for the member contract that allowed this activity to go on. So I am perplexed by that because all of us in the field understood the rules clearly. Ms. Adams. Yes, ma'am. Well, it sounds like it would have a devastating impact in terms of the services overall that are provided if the funding was not there. And I yield back, Madam Chair. Chairwoman Foxx. Thank you very much, Dr. Adams. I believe, Mr. Courtney, we are going to recognize you for 5 minutes. Mr. Courtney. Thank you, Madam Chairman. Thank you to the witnesses. Ms. Spencer, I just want to drill down a little deeper in terms of just who the program was in New York that was the subject of the IG report. Again, it was not the National Association of Community Health Centers that operated that program. It was a sub-grantee of the National Association of Community Health Centers, isn't that correct? Ms. Spencer. Yes, sir. Mr. Courtney. And so the total grant for the community health centers group nationally, again, the 535 volunteers that are funded, I mean, those are all across the country. Ms. Spencer. That is correct. Mr. Courtney. Not just in New York City. So for example, in Connecticut, where I come from, there are 21 individuals that are funded through that National Association grant. There are four in my district in Norwich, Connecticut, who I am, you know, a frequent flyer at that community health center. They don't provide anything remotely close to abortion services. So the four volunteers that are funded through that grant, I mean, do things like schedule flu shots, you know, help with monitoring patients who are high emergency room utilizers, you know, help with medication management. I mean, they are doing this sort of blocking and tackling of primary care. And in many instances, our young individuals who later on end up going to medical school or advanced practice nursing, I mean, it is really a launching pad for people in terms of a healthcare career that has benefits that exceed even, sort of, the metrics of what you were talking about in terms of program success. So I guess, you know, I think it is important sometimes right now, to put this in perspective here. I mean, if we cancel a contract across the country, you are hitting community health centers that, again, are not even close-- Mr. Courtney.--to the activity that was the subject of the complaints. And you are really just depriving low-income patients, elderly patients. Actually, in Norwich, Connecticut, they provide services to some veterans in terms of dental care that are not covered by the VA. So, I mean, let's not shoot the bystander here in terms of, you know, overreacting to this problem that was identified. And I hope you keep that in mind as you sort of evaluate the next steps here. Again, the surgical remedies that have been put into place are totally appropriate and that's your job. But, again, sort of an across the board chainsaw through, you know, community health centers I think really undercuts the mission of the AmeriCorps law. I do not know if you want to react to that, but I really think we got to put this in perspective. Ms. Spencer. Thank you for that input and I concur. Hopefully, in the future we will find more organizations like this agency that is interested in our grants. So you make fine points on it. I agree. Mr. Courtney. Thank you. And I would just say that, again, stepping back even further in terms of just the scope of AmeriCorps as far as its, you know, value to the taxpayer, we have an RSVP program up in northeastern Connecticut that organizes veterans' coffeehouse. It sounds kind of small potatoes, but actually it has become a gathering point for the most rural part of the State for veterans who, as a result, are now getting VA benefits that they did not know they were entitled to because of, you know, the good information that is shared at that coffeehouse. We have medal recoveries for World War II vets, Korean War vets that never would have happened. And, you know, you are talking, Greg Kline's the director of it. I mean-- Ms. Spencer. Yeah. Mr. Courtney. You know, this is really, at best, you know, part-time pay that is happening. But again, the ripple effect in terms of the value to people who wore the uniform of this country is, you know, far excess in terms of whatever small investment the taxpayer makes. Ms. Spencer. I recently saw Greg at a training we did, a regional training. And he gave me an update on that vet coffeehouse because he had told me about his plans over a year ago. And I am very pleased that you recognize them. We are leaning in on veterans and military family members heavily because there is great need there. Mr. Courtney. Thank you. Madam Chairman, I have an article from the Hartford Current which describes the AmeriCorps program for veterans which we discussed here and I have asked that it be made part of the record. Chairwoman Foxx. Without objection. Mr. Courtney. And again, I think what's--you know, again, get some perspective here about what happened and what is an appropriate remedy and not throw the baby out with the bathwater. I yield back. Chairwoman Foxx. Thank you very much. That is an interesting analogy you would use. Mr. Guthrie, you are recognized for 5 minutes. Mr. Guthrie. Thank you, Madam Chairwoman. Thank you for being here. And my question, actually, kind of focuses on veterans as well. And to Ms. Jeffrey, in your second fiscal year 2014 semiannual report to Congress you detail an investigation in which you determine a grantee was supposed to use grant funds to support veterans and military families, improperly disbursed about 140,000 of Federal funds and improperly certified another 61,000 education awards. The grantee acknowledged the findings and offered to refund the corporation the entire amount you recommended. Unconscionably, the corporation not only requested reimbursement for only about a third of the funds you recommended, but the corporation retroactively expanded the range of service activities of the grant in order to justify the move. Is there any justification for the corporation to retroactively approve over 12,000 National Service hours under this grant to non-veterans fundamentally changing the purpose of AmeriCorps' member service? Ms. Jeffrey. In my view, there is not. And not only did that happen with respect to this one veteran services grant, a very similar thing happened at around the same time with two other grants where the grantee unilaterally changed the objective of service, did not ask the corporation for approval. And then, when they were caught, sought forgiveness rather than permission. I think strong accountability requires the opposite. Grantees should be encouraged to ask first so the corporation makes the decision about the proper allocation of resources. Now, I believe there has to be accountability when a grantee exceeds its authority in that fashion. Mr. Guthrie. Yeah, well, what reforms are possible when the corporation does not want to have the inclination to move forward in that? What kind of reforms can you have if the corporation changes the scope? Ms. Jeffrey. Well, what I can do is report on it. That is the limit of my authority. Mr. Guthrie. Okay, well, thank you. So, Ms. Spencer, on that, what are the steps to terminate a grant for failure to comply with the Federal law or the conditions of the grant? Ms. Spencer. Thank you, Congressman Guthrie. I wanted to point out that we looked at all of the grants over the last couple of years and what actions we have been taken. And I made a short list for the committee if it's helpful. We have had 26 debarments, two suspensions. We have recovered $2 million in grant funds and we have had 52 mutually agreed terminations. So it is certainly something we don't take lightly. You know, we are co-investing with these organizations who start out well- meaning. Many of them are faith organizations, veterans' organizations, local nonprofits, charities, local governments, education, schools. And we start out with a good plan together and we review them to see if they are worthy of a Federal investment. And we go through a lot of criteria to see if they are. So when we find, and these generally, there are exceptions, but generally for AmeriCorps we are looking at 3-year commitments. So we go into a relationship for 3 years. When we find that the grantees are not performing at the highest level, that's when we start interventions. That is when you do the desk audits. That is when you do more monitoring. On occasion, if needed, we will ask for our annual audit report. We will put them on the list for the inspector general to audit. Unfortunately, the inspector general does not have all the resources to audit all of our requests, but they do a very good job of doing what they can with what resources they have. So we want them to succeed. Mr. Guthrie. Absolutely. Ms. Spencer. I mean, we are in this together,-- Mr. Guthrie. Uh-huh. Ms. Spencer.--but when they do not and after we have really tried--and I have been in a position to have to terminate grants from Florida when I was there directly managing about 45 AmeriCorps grants on behalf of the governor, of three different governors in Florida. It's a tough decision. It is not always popular. But we are not in the popularity business. We are in the outcome business. And we chase problems and we have solutions for those. And so, I just say this-- Mr. Guthrie. And in your audit, so some of them you said were mutual because I am about out of time. Ms. Spencer. Yes. Mr. Guthrie. Mutual, but if they were not mutual and you have had the audit and you say, hey, this is not--what do you actually have to-- Ms. Spencer. I would say-- Mr. Guthrie. What process do you have to follow to-- Ms. Spencer.--without looking at a list, and I could certainly provide that of these 52 mutually agreed terminations, that's a good way to end it-- Mr. Guthrie. Uh-huh. Ms. Spencer.--but I am probably certain that if it was not mutually agreed it would have been terminated. That's the best way to end a relationship, but--and sometimes grants find out they just are not suitable to manage a Federal grant. We do have a lot of requirements, as we should. It is the taxpayers' money. Mr. Guthrie. I think that was the case on the matter of this situation. They said we thought we were going to have a more bigger group of veterans to serve. We didn't. Therefore, we diverted to try to do some other things and admitted--I do not think it was intentional to begin with, but it became that. I-- Ms. Spencer. That was a tough one because they did provide services to local residents, but they were not in the original agreement for veterans. Mr. Guthrie. Right. Ms. Spencer. So the fact they did provide services is one thing, but that was a tough one. Mr. Guthrie. Thank you and I am out of time. I yield back. Chairwoman Foxx. The gentlemen's time has expired. Ms. Davis, you are recognized for 5 minutes. Ms. Davis. Thank you, Madam Chair, and thank you both for being with us today. Ms. Spencer, one of the things that I think strikes me is that you all have really exhausted multiple resources, time, effort, everything in following up on this situation. Ms. Spencer. Yes, ma'am, we have. Ms. Davis. Do you have any sense in terms of what was required to do that? I think what I am trying to see here because we need to have some way of being aggressive as I think you have been and at the same time not having a chilling effect on the ability to use resources to actually improve programs, to make sure that everything is working as it should. What is your sense of that? Ms. Spencer. Thank you very much. When we have a grantee that does not follow the rules, it does take a lot of energy of the organization, sadly, at some of the highest level personnel, including our general counsel, including our chief of grants, including our AmeriCorps director. But that's our job-- Ms. Davis. Uh-huh. Ms. Spencer.--and we will continue to be forthright and-- Ms. Davis. And as I understand it, too, I mean, this started out as a media post, a social media post in terms of how it was picked up initially, but that you all took the steps to bring the Inspector General into it. And so, it seems to me that, you know, you are moving ahead in the way that is required. And that what we need to do and what I think we all need to do is to be sure that if we believe that community service--and I happen to believe and would love to see it expanded. I think that in this country, we know there are other countries that do this. You know, I would love to see every 18- year-old give at least 18 months of their time in community service. If we had the infrastructure in this country to do that, it would be great. And I think we need to think about what that would take in order to do that. Clearly, in this kind of a situation, you have to be very aggressive about those grants. You have to be very aggressive that people are doing what they are expected to do. And occasionally, and out of 345,000 or so volunteers today, there were a few people who in trying to do the right thing and perhaps not getting the direction that they obviously should have gotten, they erred. Geez, I do not know. (Laughs) I do not know if we have very many organizations in the country that can say that. So I think we need to be clear about that. But I also wanted to know from you, as well, Madam IG, what do you see in terms of resources? I think you have spoken to this a little bit, but if we had a way of crafting additional help and support, would it be more monitors? Is that what you think is required here? Is it more training, more education? We are short on the resources that we're providing. Ms. Jeffrey. It is a very good question and I do have some thoughts on it. To a considerable extent, the corporation needs to think outside the box about how it monitors. As things stand now, roughly one of the few ways that a corporation employee has contact with members is when that person does a site visit. Site visits may not happen but once every six years. That is not an effective way to know whether there are prohibited activities taking place at a grantee. So I think there need to be avenues for more frequent contacts with AmeriCorps members. Ms. Davis. Uh-huh. Ms. Jeffrey. In the experience of the OIG, if you want know what is really going at a grantee, the members will tell you. They are vocal when they see something they don't like. Now in this case, the grantee reported this to us, to the corporation. But I do think that the more contact there is with members, and it could be done with some simple survey questions, the better the monitoring would be without investment of tremendous resources. Ms. Davis. And are you all monitoring the social media as well to pick up problems? Ms. Jeffrey. Interestingly enough, that was a recommendation that CNCS made to grantees, that they monitor social media. Ms. Davis. Uh-huh. Ms. Jeffrey. Had they done that, that is how the grantee found it in this case. Ms. Davis. Yeah. Ms. Jeffrey. Now CNCS, as far as I know, does not take its own advice and do that even on an intermittent or selective basis. That may be something that it is considering now. Ms. Davis. Thank you. Well, I looked at so many of the organizations, certainly from San Diego, and the amount of work the Catholic Charities is doing and many others, and, quite frankly, in a number of situations, of course they are providing emotional support. So, I think we want to be careful how we use those words and how that relates to other issues and other concerns that we have. And, perhaps, we need some way of better defining what that means, under what circumstances. I think that some of that has already been done, perhaps. But again, let's be really clear with the people who are engaged in this and let's not have a chilling effect on the young people in this country who are doing such fabulous work. Thank you so much. I see that my time is up. I am sorry. Thank you. Chairwoman Foxx. Thank you, Ms. Davis. Chairwoman Foxx. Excuse me, I am sorry. Mr. Polis is next. I apologize. Mr. Polis. Thank you. I really appreciate it. Thank you both for being here today and I want to highlight some of the contributions the Corporation for National Community Service has made in my district as an example. As my colleagues know, Colorado declared a state of emergency in the fall of 2013 after experiencing the most damaging floods in our State's history. Many homes, businesses, roads, bridges were destroyed. There was loss of life. Thanks to CNCS, though, volunteers were immediately deployed to Colorado to help in the aftermath of our floods. And in total, over 700 National Service members came to our State. Their work involved volunteer donations, management, staffing call centers, coordination of medical mobility rides, community relations activities, meal services. I got to visit a number of them as they were working to help feed some of those who had lost their homes, and mucking and gutting and debris removal as well. I want to thank you, first of all, for CNCS's quick response. And I was hoping you could talk a little bit more, Ms. Spencer, about the important role CNCS has when a natural disaster occurs, like ours. Ms. Spencer. Thank you so much, Congressman. After some of those disasters I actually toured in your district to see the work of our National Service participants and I appreciate you calling out their success. We have responded over the last several years to 200 natural disasters and some manmade disasters across the country. So we are very busy. We have individuals deployed right now in communities across the country. This is an area that is very personal to me. I led the volunteer and donations response for Governor Bush in 2004 and 2005, when we had eight major disasters over a 2-year period and about 250,000 volunteers, including thousands of National Service participants who were leading the way there. So this is very personal to me. We have a robust disaster program. We have trained virtually every governor's commission on how to be engaged with their State emergency manager using National Service participants in their response and volunteers working closely with their local volunteer organizations active in disasters, their faith-based organizations that are working in disasters. We have trained a cadre of individuals all over the country. At any given time, we have got over 3,000 AmeriCorps members ready to respond, ready to be deployed, redeployed, mobilized across the country. We worked with the private sector on this. And during Hurricane Sandy we actually had Southwest Airlines move AmeriCorps members quickly across the country so they could get in and be deployed along with about 400 AmeriCorps members. We have FEMACorps now who are serving, young people 18 to 24, who are serving alongside FEMA professionals. They are doing amazing work and they are learning now how to become professional disaster responders. And they are moving into careers in government and in nonprofits with disaster response. So we are not only helping the individual communities. We are training a new cadre of Americans to serve in this area. And emergency managers both local and State and Federal across the country have told me this is a gap that they have in professionals, and they have a lot of professionals retiring, like many sectors, and they need young people pursuing disaster response as a career and many of our young people are pursuing technology, but we need more in this area of public service. So I am very excited about this. Whenever we have a major disaster, I generally go personally, stop what I am doing, travel to that district within 10 to 14 days so that I can speak with local authorities and make sure that we are responding swiftly and see what else we can do. I meet with elected officials in the area. I have been all over the country in disasters and I bring with me the experience I brought from Florida and all of the service we did and how to train individuals to respond with appropriate volunteer and donations response. So thanks for pointing them out. We are doing a lot. We have a robust program and we want to do more. Mr. Polis. Well, thank you. And it was a great opportunity to interact with that, with many of your members in the field and in so many important roles in our State. And as you indicated during your visit to our district, it was--there were tens of thousands that were temporarily homeless. Many thousands lost their homes. And really, the community came together. But truly, the help with the managing, the outpouring of support from the untrained volunteers in our community is why we needed the trained volunteer and donations management. So many people wanted to help with goods and with time, but without the structure that CNCS provided with folks on the ground, we really wouldn't have been able to take advantage of that, and I just want to thank you. Ms. Spencer. Thank you for those remarks. Chairwoman Foxx. Thank you, Mr. Polis. Now, Mr. DeSaulnier, you are recognized for 5 minutes. Mr. DeSaulnier. Thank you, Madam Chairwoman, and no apology necessary. I just really want to commend you both on the work you do. What you do is so important. I do not think often enough we give enough attention to programs, the volunteer programs that you oversee and also the challenge of doing them properly. And I am reminded sitting here today, whether it was de Tocqueville to David Brooks recently talking about the importance of community and the breakdown of community in the United States and how important these nonprofits, community groups are to the fabric of America. So thank you for what you do. I want to talk little bit about--well, first I want to follow what Mr. Polis said. In California, of course, we had similar instances where your services and your grantee services have been very helpful in natural emergencies and now with the drought. With wildfires, I hear the same thing. So thank you for that. But I want to talk about both proportionality that Mr. Courtney brought in, that all the good things you do and, you know, this might go in one of those categories where no good deed goes unpunished in terms of your proper oversight given the overall proportion of good work that most of your grantees are doing and your oversight, but also sort of the right investment. So, Ms. Spencer, you mentioned in your comments under strengthening risk-based monitoring, ``In the spirit of continuous improvement, we are implementing additional steps to increase the effectiveness of our oversight and monitoring,''-- and I want to sort of emphasize that word ``effectiveness''-- then you go on to say, ``as part of our continued effort to incorporate best practices in our risk management.'' So there is, coming from the private sector--I know that industries, whether it's their insurance or just good management practices, you know, for instance in the construction industry, a certain proportion of your overall budget is going to be waste or theft. I was in the restaurant business. You did not want anybody stealing from you, but you did know that there was a point where there was diminishing returns on what you spent to make sure you bring it to zero. So that is what wanted to ask you. As you look at your risk management and, sort of, industry best practices, given that you are dealing with nonprofits, given that you are dealing with nonprofits who do not have a lot of administrative overhead, and you are trying to encourage volunteerism, is there sort of an accepted--or do you--knowing that particularly in areas where you know that there is going to be a certain amount of public and political consequences if you don't get it to zero, what is appropriate? And I think back at my time in the California legislature wherein the previous governor spent so much time on waste and abuse in the food stamp program, we actually found out that we were spending too much and it was affecting our participation rates. So somewhere in there, it is sort of the right porridge. Is there a best practice when you come to your profession/ industry? Ms. Spencer. Thank you so much, Congressman. I think it would be too strong to say that there should be an accepted amount of risk. And I come from this from my experience in Florida managing about 45 AmeriCorps grants all over the State, about 1,800 AmeriCorps members at any given time and we had strong grantees. We had, during my watch, no fraud. I can't recall any waste. Did we--we were focused on are we investing the resources in the right areas? For example, I had a grantee, a long-term grantee, that was providing education programs in an area that was improving in their education success. So we moved those resources to another area that was struggling. So as you see success, right, you shift your resources. Mr. DeSaulnier. Uh-huh. Ms. Spencer. That is not fraud, waste, or abuse. That is just smart management. Mr. DeSaulnier. Uh-huh. Ms. Spencer. So I would not be able to say that there is some kind of accepted risk. I do not think that is a path that we should consider. The inspector general and I agree on-- Mr. DeSaulnier. If I could-- Ms. Spencer.--much more than we-- Mr. DeSaulnier. Yeah, I am sorry to interrupt, but since I have limited time, I did want to suggest that you want to get to zero and I think you have done a great job of that. Ms. Spencer. Uh-huh. Mr. DeSaulnier. But at some point from a business model, there is diminishing returns where you are spending so much, where you, sort of, have to go upstream, which I think you have done. Ms. Spencer. I see. Mr. DeSaulnier. So it is more--less on the subjective point. We are more of the objective. We are spending X-amount of dollars to capture this much of fault. Ms. Spencer. And I think that--I was going to say and this pertains to this, the inspector general and I agree on a lot more than we disagree on. Mr. DeSaulnier. Uh-huh. Ms. Spencer. And she is right. We need improvements in our IT. We need improvements in our internal controls. We hope Enterprise Risk Management is going to help us. We hope that our new chief risk officer, our first in our agency's history, is going to lead us and guide us. We need to take this advice and counsel. We are down, quite frankly, a lot of this comes to money, We are down $6 million over the last six years in our salaries and expenses line. So at some point, we have got to look very hard at where we are shifting our resources. So it's an important to make. You have to make best decisions and the most cost-effective decisions. And I think that was where you were going. Mr. DeSaulnier. Thank you. Thank you, Madam Chair. Chairwoman Foxx. Thank you. The gentleman's time has expired. Ms. Spencer, I am glad to hear you make--in response, that you don't want to accept waste and abuse. You did make a very bold statement that in your programs in Florida you had absolutely no fraud and no waste. That is a pretty strong statement to make, but I appreciate-- Ms. Spencer. During my time. Chairwoman Foxx. Would you please tell me what specific steps you are now taking to ensure that your grantees and every participant in the programs are--every participant is clear about what conduct is and is not allowed. And I don't want you to use up my whole 5 minutes outlining every single one, but give me some as specific as you can and then I am hoping to do a follow-up later to get more details from you. Ms. Spencer. Can I ask for clarification? Chairwoman Foxx. What are you doing to ensure your grantees and every participant is clear about what conduct is and is not allowed? Ms. Spencer. Thank you. I think we are really leaning in hard on our training of all of our grantees across the country. We have implemented some regional trainings just at the last couple of years that we have gotten excellent feedback from. And virtually all of our medium to large grantees are attending. Even small grantees are attending. This year we will probably see over 2,000 grantees in four trainings. I attend all of these and I address all of the participants. The inspector general sends her staff there. This is one way. We now have-- Chairwoman Foxx. Just to clarify. All 2,000 go to four events each? Ms. Spencer. So there is four regional. So we try to spread them out so travel costs are reduced. In this case, this year, four regional conferences. And we will see about 2,000 grantees. And these are the leaders. These are the people running the programs. It is important. They are listening to the rules. They are hearing what our expectations are. They are learning about accountability and oversight. The Inspector General brings her staff there. Their sessions are full. I have looked in on them. We are talking about criminal history checks. We are talking about oversight to its fullest. We are talking about performance measures. So we also now, and the Inspector General makes a good point about, can we do more to reach out directly to members? She makes an excellent point. I want to find more ways that we can do that. Since your last hearing, one of the things that--a good thing that came out of it, several good things, but one was that every AmeriCorps member receives a communication from us that stipulates very clearly what the prohibited activities are. Chairwoman Foxx. Do they sign anything acknowledging that they have received that? Ms. Spencer. I will get back to you on that. Chairwoman Foxx. Okay, and you said 2,000 grantees. Who is left out of that? I mean, how many are not participating in those regional programs? Ms. Spencer. I would have to get back to you on that to find out-- Chairwoman Foxx. And why not everyone? Ms. Spencer. Well, that is a good point. In fact, in California, I went to the training conference with the Southwest United States, and I asked--California, of course, being our largest state. And the California commission director, who serves at the pleasure of the governor there, said all of her grantees in the entire State of California under her watch, except one, attended that training. And she was going to make sure that one received all the materials and instructions that the others received during their--now that is just one option. You know, each State commission-- Chairwoman Foxx. I am--we are about to run out of time. Ms. Spencer. Okay. Chairwoman Foxx. And I have one more question. I am going to ask you to detail tell me what steps you are taking. So is an annual assurance that a grantee is in compliance with regulations on prohibited activities currently part of the monitoring protocols? And if so, did the National Association of Community Health Centers make this assurance? If so, what good is the assurance if the grantees and sub-grantees are not faithfully adhering to the requirements of the law? Ms. Spencer. We will certainly get back to you on that so that we can be assured of the correct answer. Absolutely. Chairwoman Foxx. Okay, well, thank you very much. Ms. Jeffrey, I am going to submit some questions to you afterwards related to the Improper Payments Elimination Recovery Act and how the agency is not complying with that. And I know you have given us some information on this, so I would want to get back to you with that, okay? Ms. Jeffrey. We look forward to responding. Chairwoman Foxx. All right, great. My time has expired and I believe all members have had an opportunity to ask their questions. Therefore, I would ask Ms. Adams if she is ready to make closing remarks? Ms. Adams. Thank you, Madam Chair. I am and I want to thank both of you for your participation today. Since its creation more than 20 years ago, the Corporation for National and Community Service has been a strong pillar in our community. Across this Nation, CNCS has engaged millions of Americans in service. It's AmeriCorps, Senior Corps, Social Innovation Fund, and the Volunteer Generation Fund program. CNCS has been a leader in alleviating the role of national service, which is important to those involved. Madam Chair, I have a letter I wanted to submit. I am trying to figure out where it is right now. Oh, here it is. Chairwoman Foxx. Without objections. Ms. Adams. Okay, thank you. So let me just move on to say last year, CNCS provided 345,000 volunteers who served over 155 million hours through AmeriCorps and Senior Corps in more than 500,000 locations. And it's clear that our continued support is absolutely necessary. Tackling issues like literacy and homelessness and hunger have been continued priorities for CNCS, as well responding to national disasters and helping seniors reenter the workforce to improving student academic achievement, CNCS is making a real difference and we appreciate that. But, you know, I guess I didn't come prepared today to hear so much about the use of government funds and what appears to me to be somewhat attacks on a woman's right to determine what to do with their bodies. But CNCS did, from what I hear, what they were supposed to do, address the issue at hand, but yet it continues to come up in this Congress about women and what we ought to do concerning reproductive rights. So while the hearing is--was--I did not believe it was supposed to be about reproductive rights, I just wanted to just comment that I think that we wasted a lot of time with baseless attacks. For instance, the Select Panel on the Planned Parenthood has been nothing more in my opinion than a political theater. But we, my colleagues, have pushed for 21 anti-women's health votes, introduced 51 anti-women's health bills, and we have had 8 anti-women health hearings. And I just think that we need to be talking about misuse of some of those funds. But again, let me just applaud you for the hard work that you have done over the past two decades and I know that what you do will continue to engage more citizens and more volunteers in a productive way. And I just think that the work that CNCS has done and continues to do has made significant contributions and I certainly hope that you will continue to do that and that we will support those efforts. Thank you very much. Madam Chair, I yield back. Chairwoman Foxx. Thank you very much. Ms. Adams and I have worked together over many years when we were both in the North Carolina legislature and I will have to say I very much disagree that this is only a hearing about women's reproductive rights. This hearing has come about because there is an agency in Federal Government that is not being held accountable properly in terms of how it spends money in many different ways. I am home every weekend and I come in contact with hardworking citizens who do their jobs and they pay their taxes. They volunteer and they do not get paid for it. They are true volunteers. And I see those people struggling every day to make ends meet and do work in their fire departments as volunteers, the Boy Scouts, and Girl Scouts. And they want their money spent well. They do not begrudge helping their fellow citizens. We are the most generous people in the world. But they want their money spent well. And this agency does not spend its money well in many cases. You mentioned, Ms. Spencer, that you had a $6 million reduction over six years. Well, you are just talking to the wrong folks because our congressional offices over the past eight years have had a 20 percent reduction in the money allowed to us to serve a lot of people, over 700,000 people. And all of us are struggling very hard to continue the level of service that we gave before our funds were cut. So I am sorry, that argument does not go very far with this group. Your idea of a culture of accountability and mine and Dr. Roe's and the folks on our side of the aisle are two very different things. You can say you have a culture of accountability, but I am sorry to say you have not described that very well today in my opinion. If people had worked for me who had broken the law, I'd have no tolerance for them whatsoever. Zero tolerance. And many members of Congress have exhibited that. You talk a lot about intentions. We need to be talking about metrics and true accountability here. Maybe Dr. Roe and I are a little old-fashioned in what we think, but we think you ought to be measuring real things. What kind of outcomes are you actually getting? What skills are the people in these programs truly getting? Do they get any certifications? You know, we demand that kind of accountability in certain areas and then in other areas where our colleagues want to measure only intentions, we don't get that. Now, it is true that the law has been broken by people, by agencies, and groups you have funded. The law is clear. The Federal Government is not going to support abortion services. So while this hearing was not about that particular issue, I don't think we can close it without making it very clear. You seem to have a lack of concern about the violation of the law. Your consideration of a no-cost extension is very troubling to me. We have said it before, I said it at the beginning of the hearing, and I am going to say it again, this grant should be pulled immediately and under no circumstances should it be extended. And I hope we will get back from you a report that will fulfill that because when you allow the violation of law in whatever category that it is, then we start down a slippery slope in this country. We are governed by the rule of law and we should all want to uphold that. There being no further business, the subcommittee stands adjourned. [Additional submissions by Ms. Adams follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Additional submission by Mr. Courtney follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Additional submissions by Mr. Scott follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Link:https://www.nationalservice.gov/sites/default/files/ evidenceexchange/FR--CNCS-- Alumni%20Outcomes%20Survey%20Executive%20Summary.pdf [Questions submitted for the record and their responses follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Responses to questions submitted for the record follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Extensive material was submitted by Ms. Spencer. The submission for the record is in the committee archive for this hearing.] [Whereupon, at 11:32 a.m., the subcommittee was adjourned.] [all]