Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have effective internal controls in place over tracking of employee time to federal grants and contracts, for the Activities allowed/Allowable costs compliance requirement, per 2 CFR 200.430(i).
Condition: During the FY 2023 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs for Q1 and the first month of Q2 (October 2022). Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: Out of the 25 samples that were tested, 9 did not have proper coding in the timesheet. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over payroll did not detect that employee timesheets did not appropriately capture time specifically chargeable to federal programs.
Questioned Costs: $82,253, which was comprised of payroll charges to BEN TANF program for the time allocable to federal programs for Q1 and the first month of Q2 (October 2022).
Identification of Repeat Finding: Repeat Finding 2022-001
Recommendation: We recommend that Cornerstones implements a system to properly track time charged to federal programs. In addition, we recommend that management implements internal controls to review and ensure that employee timesheets possess contemporaneous documentation of time spent on individual federal programs. Timesheets should be reviewed and approved in writing by employees’ supervisors.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Significant Deficiency in Internal Control over Compliance with Federal Awards
Criteria: The Organization should have effective internal controls in place over review of intake forms, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, it was noted that there was not an effective review of intake forms.
Context: During testing, 9 of the 60 intake forms did not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2022 through June 2023.
Questioned Costs: N/A
Identification of Repeat Finding: Repeat Finding 2022-003
Recommendation: We recommend that Cornerstones implements a review process to ensure that intake forms are complete and accurate as possess all appropriate signatures.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have processes and procedures in place to keep and maintain client records, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, we noted that the Organization was unable to find supporting records.
Context: During testing, the Organization was unable to find supporting records for 15 out of the 60 samples that received services as part of a federal program. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper maintenance of clients’ records were not operating effectively, causing documentation to not be located.
Questioned Costs: Unknown
Identification of Repeat Finding: Repeat Finding 2022-004
Recommendation: We recommend procedures are implemented to ensure proper maintenance of client records.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have effective internal controls in place over tracking of employee time to federal grants and contracts, for the Activities allowed/Allowable costs compliance requirement, per 2 CFR 200.430(i).
Condition: During the FY 2023 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs for Q1 and the first month of Q2 (October 2022). Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: Out of the 25 samples that were tested, 9 did not have proper coding in the timesheet. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over payroll did not detect that employee timesheets did not appropriately capture time specifically chargeable to federal programs.
Questioned Costs: $82,253, which was comprised of payroll charges to BEN TANF program for the time allocable to federal programs for Q1 and the first month of Q2 (October 2022).
Identification of Repeat Finding: Repeat Finding 2022-001
Recommendation: We recommend that Cornerstones implements a system to properly track time charged to federal programs. In addition, we recommend that management implements internal controls to review and ensure that employee timesheets possess contemporaneous documentation of time spent on individual federal programs. Timesheets should be reviewed and approved in writing by employees’ supervisors.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Significant Deficiency in Internal Control over Compliance with Federal Awards
Criteria: The Organization should have effective internal controls in place over review of intake forms, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, it was noted that there was not an effective review of intake forms.
Context: During testing, 9 of the 60 intake forms did not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2022 through June 2023.
Questioned Costs: N/A
Identification of Repeat Finding: Repeat Finding 2022-003
Recommendation: We recommend that Cornerstones implements a review process to ensure that intake forms are complete and accurate as possess all appropriate signatures.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have processes and procedures in place to keep and maintain client records, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, we noted that the Organization was unable to find supporting records.
Context: During testing, the Organization was unable to find supporting records for 15 out of the 60 samples that received services as part of a federal program. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper maintenance of clients’ records were not operating effectively, causing documentation to not be located.
Questioned Costs: Unknown
Identification of Repeat Finding: Repeat Finding 2022-004
Recommendation: We recommend procedures are implemented to ensure proper maintenance of client records.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have effective internal controls in place over tracking of employee time to federal grants and contracts, for the Activities allowed/Allowable costs compliance requirement, per 2 CFR 200.430(i).
Condition: During the FY 2023 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs for Q1 and the first month of Q2 (October 2022). Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: Out of the 25 samples that were tested, 9 did not have proper coding in the timesheet. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over payroll did not detect that employee timesheets did not appropriately capture time specifically chargeable to federal programs.
Questioned Costs: $82,253, which was comprised of payroll charges to BEN TANF program for the time allocable to federal programs for Q1 and the first month of Q2 (October 2022).
Identification of Repeat Finding: Repeat Finding 2022-001
Recommendation: We recommend that Cornerstones implements a system to properly track time charged to federal programs. In addition, we recommend that management implements internal controls to review and ensure that employee timesheets possess contemporaneous documentation of time spent on individual federal programs. Timesheets should be reviewed and approved in writing by employees’ supervisors.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Significant Deficiency in Internal Control over Compliance with Federal Awards
Criteria: The Organization should have effective internal controls in place over review of intake forms, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, it was noted that there was not an effective review of intake forms.
Context: During testing, 9 of the 60 intake forms did not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2022 through June 2023.
Questioned Costs: N/A
Identification of Repeat Finding: Repeat Finding 2022-003
Recommendation: We recommend that Cornerstones implements a review process to ensure that intake forms are complete and accurate as possess all appropriate signatures.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have processes and procedures in place to keep and maintain client records, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, we noted that the Organization was unable to find supporting records.
Context: During testing, the Organization was unable to find supporting records for 15 out of the 60 samples that received services as part of a federal program. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper maintenance of clients’ records were not operating effectively, causing documentation to not be located.
Questioned Costs: Unknown
Identification of Repeat Finding: Repeat Finding 2022-004
Recommendation: We recommend procedures are implemented to ensure proper maintenance of client records.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have effective internal controls in place over tracking of employee time to federal grants and contracts, for the Activities allowed/Allowable costs compliance requirement, per 2 CFR 200.430(i).
Condition: During the FY 2023 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs for Q1 and the first month of Q2 (October 2022). Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: Out of the 25 samples that were tested, 9 did not have proper coding in the timesheet. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over payroll did not detect that employee timesheets did not appropriately capture time specifically chargeable to federal programs.
Questioned Costs: $82,253, which was comprised of payroll charges to BEN TANF program for the time allocable to federal programs for Q1 and the first month of Q2 (October 2022).
Identification of Repeat Finding: Repeat Finding 2022-001
Recommendation: We recommend that Cornerstones implements a system to properly track time charged to federal programs. In addition, we recommend that management implements internal controls to review and ensure that employee timesheets possess contemporaneous documentation of time spent on individual federal programs. Timesheets should be reviewed and approved in writing by employees’ supervisors.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Significant Deficiency in Internal Control over Compliance with Federal Awards
Criteria: The Organization should have effective internal controls in place over review of intake forms, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, it was noted that there was not an effective review of intake forms.
Context: During testing, 9 of the 60 intake forms did not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2022 through June 2023.
Questioned Costs: N/A
Identification of Repeat Finding: Repeat Finding 2022-003
Recommendation: We recommend that Cornerstones implements a review process to ensure that intake forms are complete and accurate as possess all appropriate signatures.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have processes and procedures in place to keep and maintain client records, per 2 CFR 200.303 and 2 CFR 200.334.
Condition: During our audit, we noted that the Organization was unable to find supporting records.
Context: During testing, the Organization was unable to find supporting records for 15 out of the 60 samples that received services as part of a federal program. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper maintenance of clients’ records were not operating effectively, causing documentation to not be located.
Questioned Costs: Unknown
Identification of Repeat Finding: Repeat Finding 2022-004
Recommendation: We recommend procedures are implemented to ensure proper maintenance of client records.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.
Department of Housing & Urban Development
Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231
Pass Through Virginia Department of Housing and Community Development, Pass Through Entity Identifying Number 22-VHSP-07 and 20-CHERP-077
Pass Through Fairfax County, Pass Through Entity Identifying Number 4400010031
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: The Organization is required to maintain controls to ensure compliance with the terms of the grants which it negotiates with the federal government and is required to comply with the terms of the grant agreements to include eligibility, per the 2023 Compliance Supplement.
Condition: During the period of the grant, we noted the Organization did not have documented controls in place to ensure that individuals were eligible to receive funds.
Context: 13 of 37 individuals receiving services under the grant selected for testing did not have documented eligibility forms to reflect that the individuals were eligible to receive funds or services. The sample was not intended to be, and was not, a statistically valid sample.
Questioned costs: Unknown
Cause/Effect: Evidence of eligibility was not available over some individuals. Without appropriate documentation of eligibility, there is no degree of certainty that the individual was eligible to receive funds from Cornerstones, Inc.
Identification of Repeat Finding: Repeat Finding 2022-007
Recommendation: The Organization should ensure that it has controls in place to monitor compliance with eligibility to include proper retention of eligibility forms.
Views of responsible officials and planned corrective actions: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.