Audit 44279

FY End
2022-06-30
Total Expended
$2.71M
Findings
4
Programs
3
Organization: Cornerstone Montgomery, Inc. (MD)
Year: 2022 Accepted: 2023-03-12

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
43963 2022-001 Significant Deficiency Yes L
43964 2022-002 Significant Deficiency - L
620405 2022-001 Significant Deficiency Yes L
620406 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.829 Covid-19 - Certified Community Behavioral Health Clinic Expansion Program $1.89M Yes 1
93.498 Covid-19 - Provider Relief Fund $752,358 Yes 1
14.231 Community Development Block Grant (cdbg) $61,650 - 0

Contacts

Name Title Type
UX92NFJVGU78 Eric Hittle Auditee
2406144286 Julien Decosimo Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures are reported on the modified cash basis of accounting which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Under the modified cash basis of accounting, expenses for capitalized assets and prepaid items are recognized when paid. If the schedule were maintained on the accrual basis of accounting, all expenses would be recognized when incurred. The modified cash basis includes accounts payable and accrued expenses as it does on an accrual basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

2022-001 Reporting Federal Agency: Department of Health and Human Services Federal Program Name: COVID-19 Certified Community Behavioral Health Clinic Expansion Federal Award Identification Number and Year: H79SM083348 - 2022 Assistance Listing Number: 93.829 Award Period: February 15, 2021 ? February 14, 2023 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matter - Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the reporting requirements. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organizations internal controls were not sufficient to ensure reports were submitted timely and documentation was maintained to support the details of the reports submitted. Questioned Costs: None. Context: We noted Cornerstone Montgomery did not submit timely 2 of 7 relevant reports selected for testing. In addition, there were 5 of 7 reports selected for testing where the evidence of review was not found before submission. Furthermore, for 3 of the 7 reports, we were not able to determine whether the reports were submitted timely as the Organization was not able to provide proof to substantiate timely submission. Cause: Insufficient internal controls of reporting. Effect: Inability to determine accuracy and timeliness of reports. Repeat Finding: 2021-004 Recommendation: We recommend internal controls over reporting be enhanced to ensure evidence is maintained to support the reports and review performed over the reports. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.
2022-002 Reporting Federal Agency: Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: P3-16420745516 - 2022 Award Period: January 1, 2020 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matter - Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with the federal statutes, regulations, and conditions of the federal award. The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used budgets included in the lost revenue calculation that were not approved prior to March 27, 2020. While the budget covering the period of availability from January 1, 2020 to June 30, 2020 was approved on May 20, 2019, the budgets covering the period of availability from July 1, 2020 to June 30, 2021 and July 1, 2021 to June 30, 2022 were approved on June 29, 2020 and May 24, 2021, respectively. Questioned Costs: None Context: During our testing, we noted that there were certain budgets included in the lost revenue calculation that were not approved prior to March 27, 2020, as required. Cause: Insufficient internal controls of reporting. Effect: The lack of timely approved budgets. Repeat Finding: N/A. Recommendation: We recommend that management implement procedures to ensure budget approvals are received timely. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.
2022-001 Reporting Federal Agency: Department of Health and Human Services Federal Program Name: COVID-19 Certified Community Behavioral Health Clinic Expansion Federal Award Identification Number and Year: H79SM083348 - 2022 Assistance Listing Number: 93.829 Award Period: February 15, 2021 ? February 14, 2023 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matter - Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the reporting requirements. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organizations internal controls were not sufficient to ensure reports were submitted timely and documentation was maintained to support the details of the reports submitted. Questioned Costs: None. Context: We noted Cornerstone Montgomery did not submit timely 2 of 7 relevant reports selected for testing. In addition, there were 5 of 7 reports selected for testing where the evidence of review was not found before submission. Furthermore, for 3 of the 7 reports, we were not able to determine whether the reports were submitted timely as the Organization was not able to provide proof to substantiate timely submission. Cause: Insufficient internal controls of reporting. Effect: Inability to determine accuracy and timeliness of reports. Repeat Finding: 2021-004 Recommendation: We recommend internal controls over reporting be enhanced to ensure evidence is maintained to support the reports and review performed over the reports. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.
2022-002 Reporting Federal Agency: Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: P3-16420745516 - 2022 Award Period: January 1, 2020 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matter - Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with the federal statutes, regulations, and conditions of the federal award. The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used budgets included in the lost revenue calculation that were not approved prior to March 27, 2020. While the budget covering the period of availability from January 1, 2020 to June 30, 2020 was approved on May 20, 2019, the budgets covering the period of availability from July 1, 2020 to June 30, 2021 and July 1, 2021 to June 30, 2022 were approved on June 29, 2020 and May 24, 2021, respectively. Questioned Costs: None Context: During our testing, we noted that there were certain budgets included in the lost revenue calculation that were not approved prior to March 27, 2020, as required. Cause: Insufficient internal controls of reporting. Effect: The lack of timely approved budgets. Repeat Finding: N/A. Recommendation: We recommend that management implement procedures to ensure budget approvals are received timely. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.