Finding 1205659 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-01

AI Summary

  • Core Issue: The Organization failed to maintain proper client eligibility records for the TANF program.
  • Impacted Requirements: This violates federal regulations under 2 CFR 200.303 and 2 CFR 200.334 regarding eligibility documentation.
  • Recommended Follow-Up: Implement procedures to ensure only eligible clients are served and that their records are properly maintained.

Finding Text

2025-003: 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 4400012652. Criteria: The Organization should have processes and procedures in place to keep and maintain client eligibility records, per 2 CFR 200.303 and 2 CFR 200.334. Condition: During our audit, we noted that the Organization was not performing procedures to ensure eligibility of clients participating in the program and thus were unable to locate records substantiating the eligibility of clients served. Context: During testing, the Organization was unable to support eligibility for 7 out of the 7 samples that received services as part of a federal program. The sample was not intended to be, and was not, a statistically valid sample. Cause/Effect: Internal control processes over proper processes for eligibility and maintenance of clients’ records were not operating effectively, causing documentation to not be located. Questioned Costs: Unknown. Identification of Repeat Finding: N/A Recommendation: We recommend procedures are implemented to ensure only eligible clients participate in the federal program and client records are maintained. Views of Responsible Officials: Management agrees with the recommendation and has implemented corrective action as outlined in the corrective action plan.

Corrective Action Plan

Finding 2025-003 – Incomplete Eligibility Documentation Management agrees with the recommendation and will implement stronger processes to ensure that records confirming the eligibility of program participants are obtained and properly maintained. Specifically, all program staff documenting client eligibility will receive related training on eligibility requirements and best practices for related recordkeeping. While the organization will take these steps to help prevent reoccurrence of this finding, management also states that it directly sought and followed guidance from the program pass-through entity specific to client eligibility which was deemed in this audit to be inconsistent with requirements guiding the federal program. At the time of writing, this matter is being evaluated by the pass-through entity with further guidance forthcoming. Therefore, in addition to the steps outlined above, the organization will also further verify any guidance received from pass-through entities or other monitoring agencies to ensure its internal processes align directly and specifically with all requirements of the federal program. The contact persons for the Corrective Action Plan are Bill Threlkeld, VP of Community Resources Partnerships; Ted Lewis, EVP of Operations and Information Technology (IAT Co-Chair); and Aaron Hernandez, Sr. Director, Finance (IAT Co-Chair). The anticipated completion date is June 30, 2026. In addition to these specific steps, Cornerstones has strengthened its compliance review operations overall through the addition of a staff member who will focus primarily on compliance issues across the organization. Cornerstones has also formed an Internal Audit Team (IAT) comprised of organizational leadership that will provide objective assurance that the organization operates in full alignment with laws, regulations, contract provisions, and ethical standards.

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205657 2025-001
    Material Weakness Repeat
  • 1205658 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $3.70M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $345,030
93.569 COMMUNITY SERVICES BLOCK GRANT $124,717
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $98,604
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $73,918
10.558 CHILD AND ADULT CARE FOOD PROGRAM $56,309
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $12,587
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $210