Title: Loan/loan guarantee outstanding balances
Accounting Policies: Basis of Presentation- 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, 2022. 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. Summary of Significant Accounting Policies- 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
HOME INVESTMENT PARTNERSHIP PROGRAM (14.239)- Balances outstanding at the end of the audit period were 3702917. COMMUNITY DEVELOPMENT BLOCK GRANT (14.218)- Balances outstanding at the end of the audit period were 5411259.
Title: 3. Reconciliation to the Consolidated Financial Statements
Accounting Policies: Basis of Presentation- 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, 2022. 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. Summary of Significant Accounting Policies- 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Federal loan programs reflected in long-term debt in the Consolidated Statement of Financial Position, 9,114,176. Federal expenditures included in the Consolidated Statement of Activities, 655,315. Total expenditures per the Schedule of Expenditures of Federal Awards, 9,769,491.
Title: 4. Loan Programs with Continuing Compliance Requirements
Accounting Policies: Basis of Presentation- 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, 2022. 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. Summary of Significant Accounting Policies- 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
CFDA Number- 14.218 Program Name- Community Development Block Grant Entitlement Program Beginning Balance June 30, 2021- 5,249,907 Amounts forgiven in FY 2022- 0 Outstanding Balance June 30, 2022- 5,411,259. CFDA Number- 14.239 Program Name- HOME Investment Partnership Program Beginning Balance June 30, 2021- 3,702,917 Amounts forgiven in FY 2022- 0 Outstanding Balance June 30, 2022- 3,702,917.
Title: 5. Contingency
Accounting Policies: Basis of Presentation- 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, 2022. 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. Summary of Significant Accounting Policies- 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
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.