FAC Explorer

Finding 480050 (2022-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2024-07-31
Audit: 316339
Organization: Cornerstones Inc, Cornerstones Housing Corporation & Rihc Partners, Lp (VA)
Auditor: Forvis Mazars

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over the review of TANF intake forms.
  • Impacted Requirements: Compliance with 2 CFR 200.303 and 2 CFR 200.334 regarding effective internal controls.
  • Recommended Follow-Up: Implement a review process to ensure all intake forms are complete, accurate, and have the necessary signatures.

Finding Text

Department of Health and Human Services Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558 Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054 Type of Finding: Significant Deficiency in Internal Control over Compliance with Federal Awards Criteria: The Organization should have effective internal controls in place over review of intake forms, per 2 CFR 200.303 and 2 CFR 200.334. Condition: During our audit, it was noted that there was not an effective review of intake forms. Context: During testing, 6 of 60 intake forms tested to not contain appropriate signatures by individuals or management noting approval. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: N/A Cause/Effect: Internal control processes over intake forms were not operating effectively from July 2021 through June 2022. Identification of Repeat Finding: N/A Recommendation: We recommend that Cornerstones implements a review process to ensure that intake forms are complete and accurate as possess all appropriate signatures. Views of Responsible Officials and Correction Action: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.

Corrective Action Plan

Management agrees with and will implement the recommendation that processes be in place to review and confirm the completeness and accuracy of intake forms within the regulations while also considering the needs and choices of the program participants. These file completeness processes will be executed by program staff, with oversight by the Vice President of Community Building and Neighborhood Resources, Executive Vice President of Housing and Community Programs, Vice President of Family Empowerment and Self Sufficiency, Chief Financial & Operating Officer, and Sr. Director of Finance. Due to timing of receiving this finding, remediation processes began in fiscal year 2024 and will be applied fully to the fiscal year 2025, beginning 7/1/2024, files.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480049 2022-001
    Material Weakness
  • 480051 2022-004
    Significant Deficiency
  • 480052 2022-005
    Significant Deficiency
  • 480053 2022-007
    Material Weakness Repeat
  • 480054 2022-007
    Material Weakness Repeat
  • 480055 2022-007
    Material Weakness Repeat
  • 480056 2022-007
    Material Weakness Repeat
  • 480057 2022-007
    Material Weakness Repeat
  • 480058 2022-001
    Material Weakness
  • 480059 2022-003
    Significant Deficiency
  • 480060 2022-004
    Significant Deficiency
  • 480061 2022-005
    Significant Deficiency
  • 1056491 2022-001
    Material Weakness
  • 1056492 2022-003
    Significant Deficiency
  • 1056493 2022-004
    Significant Deficiency
  • 1056494 2022-005
    Significant Deficiency
  • 1056495 2022-007
    Material Weakness Repeat
  • 1056496 2022-007
    Material Weakness Repeat
  • 1056497 2022-007
    Material Weakness Repeat
  • 1056498 2022-007
    Material Weakness Repeat
  • 1056499 2022-007
    Material Weakness Repeat
  • 1056500 2022-001
    Material Weakness
  • 1056501 2022-003
    Significant Deficiency
  • 1056502 2022-004
    Significant Deficiency
  • 1056503 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $3.70M
14.231 Emergency Solutions Grant Program $645,931
14.218 Community Development Block Grants/entitlement Grants $375,916
93.558 Temporary Assistance for Needy Families $145,055
93.569 Community Services Block Grant $73,822
14.169 Housing Counseling Assistance Program $44,900
10.558 Child and Adult Care Food Program $40,335
97.024 Emergency Food and Shelter National Board Program $20,011