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 2022 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs. Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: During testing 10 out of the 20 individuals tested did not have appropriate timesheet coding. 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: $70,982, which was comprised of payroll charges to BEN TANF program for the 10 of 20 individuals tested whose timesheets did not reflect time charged to the BENTANF program.
Identification of Repeat Finding: N/A
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, 6 of 60 intake forms tested to not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs: N/A
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2021 through June 2022.
Identification of Repeat Finding: N/A
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: Significant Deficiency in Internal Control over Compliance with Federal Awards
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 for individuals that received services as part of a federal program, leading to noncompliance with the program.
Context: During testing, 4 of 60 individuals tested did not have the appropriate records. 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 eligibility documentation to not be located.
Questioned Costs: N/A
Identification of Repeat Finding: N/A
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 Fairfax County, Pass Through Entity Identifying Number 440009926
Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance with Federal Awards
Criteria: The Organization should have processes and procedures in place to properly calculate and drawdown the allowed amount, per 2 CFR 200.414.
Condition: During our audit, we noted that the Organization charged more than the allowed indirect rate of 10%, leading to noncompliance with the program.
Context: During testing, the Organization requested reimbursement for funds in excess of the allowed indirect rate in the amount of $2,735. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper calculation and drawdowns of funds were not operating effectively.
Questioned Costs: $2,735, which was calculated by applying the 10% de minimis rate to total direct costs and comparing to the indirect costs charged to the grant per the financial reports.
Identification of Repeat Finding: N/A
Recommendation: We recommend that the Organization implement review procedures to ensure proper calculation of indirect costs charged to federal programs.
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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 2022 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs. Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: During testing 10 out of the 20 individuals tested did not have appropriate timesheet coding. 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: $70,982, which was comprised of payroll charges to BEN TANF program for the 10 of 20 individuals tested whose timesheets did not reflect time charged to the BENTANF program.
Identification of Repeat Finding: N/A
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, 6 of 60 intake forms tested to not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs: N/A
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2021 through June 2022.
Identification of Repeat Finding: N/A
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: Significant Deficiency in Internal Control over Compliance with Federal Awards
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 for individuals that received services as part of a federal program, leading to noncompliance with the program.
Context: During testing, 4 of 60 individuals tested did not have the appropriate records. 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 eligibility documentation to not be located.
Questioned Costs: N/A
Identification of Repeat Finding: N/A
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 Fairfax County, Pass Through Entity Identifying Number 440009926
Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance with Federal Awards
Criteria: The Organization should have processes and procedures in place to properly calculate and drawdown the allowed amount, per 2 CFR 200.414.
Condition: During our audit, we noted that the Organization charged more than the allowed indirect rate of 10%, leading to noncompliance with the program.
Context: During testing, the Organization requested reimbursement for funds in excess of the allowed indirect rate in the amount of $2,735. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper calculation and drawdowns of funds were not operating effectively.
Questioned Costs: $2,735, which was calculated by applying the 10% de minimis rate to total direct costs and comparing to the indirect costs charged to the grant per the financial reports.
Identification of Repeat Finding: N/A
Recommendation: We recommend that the Organization implement review procedures to ensure proper calculation of indirect costs charged to federal programs.
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 2022 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs. Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: During testing 10 out of the 20 individuals tested did not have appropriate timesheet coding. 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: $70,982, which was comprised of payroll charges to BEN TANF program for the 10 of 20 individuals tested whose timesheets did not reflect time charged to the BENTANF program.
Identification of Repeat Finding: N/A
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, 6 of 60 intake forms tested to not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs: N/A
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2021 through June 2022.
Identification of Repeat Finding: N/A
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: Significant Deficiency in Internal Control over Compliance with Federal Awards
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 for individuals that received services as part of a federal program, leading to noncompliance with the program.
Context: During testing, 4 of 60 individuals tested did not have the appropriate records. 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 eligibility documentation to not be located.
Questioned Costs: N/A
Identification of Repeat Finding: N/A
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 Fairfax County, Pass Through Entity Identifying Number 440009926
Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance with Federal Awards
Criteria: The Organization should have processes and procedures in place to properly calculate and drawdown the allowed amount, per 2 CFR 200.414.
Condition: During our audit, we noted that the Organization charged more than the allowed indirect rate of 10%, leading to noncompliance with the program.
Context: During testing, the Organization requested reimbursement for funds in excess of the allowed indirect rate in the amount of $2,735. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper calculation and drawdowns of funds were not operating effectively.
Questioned Costs: $2,735, which was calculated by applying the 10% de minimis rate to total direct costs and comparing to the indirect costs charged to the grant per the financial reports.
Identification of Repeat Finding: N/A
Recommendation: We recommend that the Organization implement review procedures to ensure proper calculation of indirect costs charged to federal programs.
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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: 16 of 42 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.
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.
Questioned costs: Unknown
Identification of Repeat Finding: Repeat Finding 2021-005
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 2022 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs. Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: During testing 10 out of the 20 individuals tested did not have appropriate timesheet coding. 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: $70,982, which was comprised of payroll charges to BEN TANF program for the 10 of 20 individuals tested whose timesheets did not reflect time charged to the BENTANF program.
Identification of Repeat Finding: N/A
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, 6 of 60 intake forms tested to not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs: N/A
Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2021 through June 2022.
Identification of Repeat Finding: N/A
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: Significant Deficiency in Internal Control over Compliance with Federal Awards
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 for individuals that received services as part of a federal program, leading to noncompliance with the program.
Context: During testing, 4 of 60 individuals tested did not have the appropriate records. 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 eligibility documentation to not be located.
Questioned Costs: N/A
Identification of Repeat Finding: N/A
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 Fairfax County, Pass Through Entity Identifying Number 440009926
Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance with Federal Awards
Criteria: The Organization should have processes and procedures in place to properly calculate and drawdown the allowed amount, per 2 CFR 200.414.
Condition: During our audit, we noted that the Organization charged more than the allowed indirect rate of 10%, leading to noncompliance with the program.
Context: During testing, the Organization requested reimbursement for funds in excess of the allowed indirect rate in the amount of $2,735. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper calculation and drawdowns of funds were not operating effectively.
Questioned Costs: $2,735, which was calculated by applying the 10% de minimis rate to total direct costs and comparing to the indirect costs charged to the grant per the financial reports.
Identification of Repeat Finding: N/A
Recommendation: We recommend that the Organization implement review procedures to ensure proper calculation of indirect costs charged to federal programs.
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.