Finding 480062 (2021-005)

Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Emergency Solutions Grants (ESG) Program, Assistance Listing Number 14.231 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. Condition: Twenty (20) of 46 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. 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. 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.. Questioned costs: Unknown Context: Our sample was not intended to be statistically valid. Identification of prior audit finding: N/A 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.