FAC Explorer

Audit 316340

FY End
2021-06-30
Total Expended
$9.90M
Findings
6
Programs
7
Organization: Cornerstones Inc, Cornerstones Housing Corporation & Rihc Partners, Lp (VA)
Year: 2021 Accepted: 2024-07-31
Auditor: Forvis Mazars

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480062 2021-005 Material Weakness - E
480063 2021-005 Material Weakness - E
480064 2021-005 Material Weakness - E
1056504 2021-005 Material Weakness - E
1056505 2021-005 Material Weakness - E
1056506 2021-005 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $3.70M - 0
14.218 Community Development Block Grants/entitlement Grants $375,916 Yes 0
14.231 Emergency Solutions Grant Program $336,235 Yes 1
93.569 Community Services Block Grant $125,692 - 0
14.169 Housing Counseling Assistance Program $62,250 - 0
97.024 Emergency Food and Shelter National Board Program $37,733 - 0
10.558 Child and Adult Care Food Program $33,874 - 0

Contacts

Name Title Type
HZDEJ668RLK4 Kerrie Wilson Auditee
5713239555 Tamara Vineyard Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones. De Minimis Rate Used: Both Rate Explanation: Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones. De Minimis Rate Used: Both Rate Explanation: Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants.
Title: Reconciliation to the Consolidated Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones. De Minimis Rate Used: Both Rate Explanation: Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants. Federal loan programs reflected in long-term debt in the Consolidated Statement of Financial Position $ 8,952,824 Federal expenditures included in the Consolidated Statement of Activities 951,720606,988 Total expenditures per the Schedule of Expenditures of Federal Awards $ 9,904,544559,812
Title: Loan Programs with Continuing Compliance Requirements Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones. De Minimis Rate Used: Both Rate Explanation: Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants. Assistance Balance Forgiven in Balance Listing Program Name June 30, 2020 FY 2021 June 30,2021 14.218 Community Development Block Grant Entitlement Cluster $ 5,249,907 $ - $ 5,249,907 14.239 HOME Investment Partnership Program $ 3,702,917 $ - $ 3,702,917
Title: Contingency Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones. De Minimis Rate Used: Both Rate Explanation: Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants. The grant revenue amounts received and expenses (eligible for reimbursement) are subject to audit adjustment. If any expenses are disallowed by the grantor as a result of such audit, any claim for reimbursement to the grantor would become a liability of Cornerstones, Inc. and Cornerstones Housing Corporation (Cornerstones). In the opinion of management, all grant expenses (eligible for reimbursement) are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations.
Title: Restatement Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Cornerstones, Inc., Cornerstones Housing Corporation, and RIHC Partners, LP (Cornerstones) under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of the 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstones. De Minimis Rate Used: Both Rate Explanation: Cornerstones has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance only for its Housing counseling grants. The schedule has been restated to include the following federal aw ards: Assistance Expenditures Listing Program Name June 30, 2021 14.231 COVID-19 Emergency Solutions Grant $ 8,497 14.231 COVID-19 Emergency Solutions Grant - CARES Act $ 336,235

Finding Details

Finding 2021-005
Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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 Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.
Finding 2021-005
Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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 Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.
Finding 2021-005
Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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 Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.
Finding 2021-005
Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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 Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.
Finding 2021-005
Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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 Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.
Finding 2021-005
Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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 Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.