Finding Text
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.