In fiscal year 2016, CNCS received  appropriations totaling more than $787.9 million and used $783.9 million  to fund approximately 2,300 grants. The agency did not comment on this recommendation and has not yet  addressed it. CNCS’s IT Modernization Projects Are Aligned with Business and Management Needs of the Existing Grant Monitoring Process, but Are Not Defined for a Future Risk- based Approach

To define system requirements that meet users’ business needs, key  practices identified by SEI call for, among other things, ensuring that the  business needs are understood and that supporting system requirements  are defined and agreed upon by system stakeholders, including system  developers and users. As currently planned, CNCS’s projects to develop and deliver the  modernized grant monitoring system align with the agency’s business and  management needs for its existing process, but are not yet defined for a  future risk-based process. However, in March 2017, we reported that CNCS had not evaluated its  monitoring efforts to identify opportunities to improve its assessment of,  and response to, risks related to grant management. Because business needs for a risk-based monitoring process have  not been determined, OIT officials and system stakeholders cannot begin  to define requirements for the second version of the system to align with  business and management needs for a future process, as intended by  CNCS’s IT modernization plans. CNCS Has Made Limited Progress Toward Successfully Delivering a Modernized Grant Monitoring System, but Has Taken Steps to Help Avoid Continued Delays

Although the agency and its development contractor took steps to align  the first version of the system with changing business needs, CNCS has  made limited progress toward developing and delivering the modernized  system capabilities to support grant monitoring. After  subsequent delays, officials and the contractor then planned to deliver the  system in September 2016. However, as of July 2017, the system still  had not been delivered to support the agency’s existing monitoring  process. Further, as part of its modernization program, CNCS initially planned to  deliver the second version of the system in October 2017. Weaknesses in Software Development Practices Introduced Risks to Successful Delivery of the First Version of the Grant Monitoring System

In the development of the first version of the system, CNCS and the  development contractor did not follow all established software  development practices. Likewise, unless OIT officials and the  development contractor develop a schedule that can be used to monitor  and measure progress of the development and delivery of the second  version of the system against baseline and actual dates, the agency will  remain at risk that it will not be able to successfully execute all activities  needed to deliver system capabilities that could support a future risk- based monitoring process. However, the program experienced halts and re- starts of testing activities, along with delays in system implementation, in  part because the agency and its contractor did not conduct all stages of  testing for the system. However, although the agency conducted alpha testing  according to plans, it did not include the grant monitoring system in that  phase of testing. Figure 6 depicts the timeline of  CNCS’s corrective action plan requirements and the contractor’s delivery  of the plans. According to CNCS’s CIO and documented results of status reviews held  with IT management officials, since the last corrective action plan was  delivered by the contractor in December 2016, performance has improved  and the project is on track to deliver the first version of the grant  monitoring system in October 2017. This version of the system was to be delivered in April 2016, but  weaknesses in schedule and testing management practices have  introduced risks to the successful delivery of a modernized system. Unless CNCS officials make needed improvements in system  development practices, successful delivery of system functionality  necessary to support grant monitoring will remain at risk. Meanwhile,  CNCS’s grant monitoring officers continue to rely on the agency’s  outdated legacy system to support an inefficient and ineffective process  for monitoring the use of hundreds of millions of dollars in grants awarded  each year. After  assessing the additional documentation, we revised the report to  incorporate this information and modified the conclusion and  recommendation regarding project schedule management practices. Appendix I: Objectives, Scope, and Methodology

The objectives of this study were to determine (1) to what extent the  Corporation for National and Community Service’s (CNCS) planned  information technology (IT) modernization projects align with business  and management needs for grant monitoring and (2) what progress  CNCS has made toward ensuring the successful and timely delivery of a  new system to support its grant monitoring process.
Why GAO Did This Study

CNCS engages more than five million Americans yearly in national volunteer service by awarding grants to programs such as AmeriCorps and Senior Corps. In fiscal year 2016, CNCS received almost $800 million in appropriations to fund approximately 2,300 grants. The agency is taking steps to modernize its outdated IT infrastructure, including developing and delivering systems to replace its legacy grant management system and improve IT support of the agency's grant monitoring program. In a March 2017 report, GAO noted system deficiencies that resulted in usability, data quality, and other technical issues.
This report examines (1) the extent to which CNCS's IT modernization projects align with business and management needs for grant monitoring and (2) progress CNCS has made toward ensuring the successful and timely delivery of new systems to support grant monitoring. GAO assessed agency planning and IT project management documents against key practices and conducted interviews with agency officials.

What GAO Found

The Corporation for National and Community Service's (CNCS) information technology (IT) modernization projects are currently planned to align with the agency's business and management needs for its existing process, but are not yet defined for a future risk-based process. The projects include the development of a modernized system in two versions. The first version was planned to provide support for business needs of the agency's existing grant monitoring process. The second version is to provide additional functionality to support monitoring within a yet-to-be-defined risk-based process. CNCS officials and the development contractor responsible for delivering the first version of the system agreed to a set of requirements that address business needs for improving outcomes of the existing monitoring process. However, because business needs for a risk-based monitoring process have not been determined, OIT officials and system stakeholders have not defined requirements for the second version of the future system, as intended by CNCS's IT modernization plans.
CNCS has taken steps to help avoid continued delays, but progress toward delivering the system has been limited. In July 2015, CNCS initiated a project that was to deliver the first version of the system in April 2016. After subsequent delays, agency officials updated plans to reflect a September 2016 delivery. However, as of July 2017, this version had not been delivered, and the delivery date was changed to October 2017. Successful development and delivery of IT systems relies on adherance to key practices for managing project schedules and testing. However, weaknesses in CNCS's practices introduced risks to successful delivery of the system. In particular, the system development project schedules could not be used to track progress because they did not include actual dates when activities were started and finished. In addition, although CNCS and its contractor conducted testing according to plans, the grant monitoring system was not included in all phases of testing. Agency officials used other tools to track progress, and plans did not require them to conduct all stages of testing for the system. However, unless CNCS officials improve system development practices for managing project schedules and testing, they will continue to introduce risks to successful delivery of system functionality that supports grant monitoring.
The grant monitoring system development project experienced delays when CNCS did not initially conduct oversight needed to ensure that the contractor took corrective actions as planned. In monitoring the contractor's performance during system development and testing, agency officials enhanced oversight to avoid continued delays. In ongoing management reviews of the project, CNCS officials reported that, since the last corrective action plan was provided by the contractor in December 2016, performance has improved and the project is on track to deliver the first version of the grant monitoring system in October 2017.
However, successful delivery of system functionality that supports the agency's grant monitoring process will remain at risk unless CNCS takes steps to correct weaknesses in system development practices for managing project schedules and testing. Further, CNCS's grant monitoring officers will continue to rely on an outdated legacy system to support the processes they follow for monitoring the use of millions of dollars of grant funds awarded each year.

What GAO Recommends

GAO is recommending three actions to improve CNCS's practices for defining requirements and developing schedules and test plans for grant monitoring system development. In comments on a draft of this report, CNCS did not fully agree with the recommendations. Based on additional documentation that CNCS provided, GAO revised the report, as appropriate, and modified the recommendations.