Audit 19669

FY End
2022-12-31
Total Expended
$1.30M
Findings
4
Programs
4
Organization: Cornerstone Rescue Mission (SD)
Year: 2022 Accepted: 2023-09-24
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
22537 2022-003 Material Weakness - E
22538 2022-003 Material Weakness - E
598979 2022-003 Material Weakness - E
598980 2022-003 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $72,186 - 0
14.231 Emergency Solutions Grant Program $38,618 - 0
64.033 Va Supportive Services for Veteran Families Program $29,962 Yes 0
10.569 Emergency Food Assistance Program (food Commodities) $3,575 - 0

Contacts

Name Title Type
G5QEZFPNEKV6 Sara Vanvlack Auditee
6057188712 Stacey Nelson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Cornerstone Rescue Mission and Cornerstone Apartments Limited Partnership (the Organization) under programs of the federal government for the year ended December 31, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Cornerstone Rescue Mission, it is not intended to and does not present the financial position, changes in net asset, or cash flows of Cornerstone Rescue Mission.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: Emergency Solutions Grant Program Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures in the amount of $34,610 were expended in a prior fiscal year. These expenditures were approved for payment by the pass through organization in 2022 and are included on the schedule of expenditures of federal awards for the year ending December 31, 2022.

Finding Details

2022-003 Department of Veteran Affairs Federal Financial Assistance Listing #64.033, 20-SD-136-21, 10/1/2021 ? 9/30/2022 Federal Financial Assistance Listing #64.033, 20-SD-136-22, 10/1/2022 ? 9/30/2023 Eligibility Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. 38 CFR Part 62.36(a) requires grantees must recertify the participant?s eligibility as a very low-income veteran family at least once every three months. Condition: Six instances were identified in which the participant was not recertified within three months. Cause: There was a misinterpretation of the requirement by the Organization. Effect: Lack of compliance with designed internal controls over eligibility could result in the Organization using funds for participants that are not eligible under the federal program. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 62 participants out of 266 total participants were selected for eligibility testing. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization review the Supportive Services for Veteran Families (SSVF) program guide with applicable employees to ensure there?s a full understanding of compliance requirements over the federal program. Views of Responsible Officials: Management is in agreement.
2022-003 Department of Veteran Affairs Federal Financial Assistance Listing #64.033, 20-SD-136-21, 10/1/2021 ? 9/30/2022 Federal Financial Assistance Listing #64.033, 20-SD-136-22, 10/1/2022 ? 9/30/2023 Eligibility Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. 38 CFR Part 62.36(a) requires grantees must recertify the participant?s eligibility as a very low-income veteran family at least once every three months. Condition: Six instances were identified in which the participant was not recertified within three months. Cause: There was a misinterpretation of the requirement by the Organization. Effect: Lack of compliance with designed internal controls over eligibility could result in the Organization using funds for participants that are not eligible under the federal program. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 62 participants out of 266 total participants were selected for eligibility testing. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization review the Supportive Services for Veteran Families (SSVF) program guide with applicable employees to ensure there?s a full understanding of compliance requirements over the federal program. Views of Responsible Officials: Management is in agreement.
2022-003 Department of Veteran Affairs Federal Financial Assistance Listing #64.033, 20-SD-136-21, 10/1/2021 ? 9/30/2022 Federal Financial Assistance Listing #64.033, 20-SD-136-22, 10/1/2022 ? 9/30/2023 Eligibility Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. 38 CFR Part 62.36(a) requires grantees must recertify the participant?s eligibility as a very low-income veteran family at least once every three months. Condition: Six instances were identified in which the participant was not recertified within three months. Cause: There was a misinterpretation of the requirement by the Organization. Effect: Lack of compliance with designed internal controls over eligibility could result in the Organization using funds for participants that are not eligible under the federal program. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 62 participants out of 266 total participants were selected for eligibility testing. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization review the Supportive Services for Veteran Families (SSVF) program guide with applicable employees to ensure there?s a full understanding of compliance requirements over the federal program. Views of Responsible Officials: Management is in agreement.
2022-003 Department of Veteran Affairs Federal Financial Assistance Listing #64.033, 20-SD-136-21, 10/1/2021 ? 9/30/2022 Federal Financial Assistance Listing #64.033, 20-SD-136-22, 10/1/2022 ? 9/30/2023 Eligibility Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. 38 CFR Part 62.36(a) requires grantees must recertify the participant?s eligibility as a very low-income veteran family at least once every three months. Condition: Six instances were identified in which the participant was not recertified within three months. Cause: There was a misinterpretation of the requirement by the Organization. Effect: Lack of compliance with designed internal controls over eligibility could result in the Organization using funds for participants that are not eligible under the federal program. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 62 participants out of 266 total participants were selected for eligibility testing. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization review the Supportive Services for Veteran Families (SSVF) program guide with applicable employees to ensure there?s a full understanding of compliance requirements over the federal program. Views of Responsible Officials: Management is in agreement.