CORNERSTONE COMMUNITY OUTREACHNon-Profit

CORRECTIVE ACTION PLAN January 20, 2021 Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 Cornerstone Community Outreach (FEIN 36-3670992) respectfully submits the following corrective action plan for the year ended December 31, 2020. Our independent public accounting firm is: Desmond & Ahern, Ltd 10827 S. Western Avenue Chicago, IL 60643 Phone: 773-779-4720 Audit Period: January 1, 2020 through December 31, 2020 The findings from the December 31, 2020 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2020-001 Closing Records on a Timely Basis Criteria: In a properly functioning internal control environment, accounting records are reconciled and closed within a reasonable time after the end of each accounting period. Condition: Accounting records were not closed over a year after the end of the fiscal year. Cause: The Organization works with the homeless, whose population was dramatically affected by the pandemic. As a result, the Organization was unable to close its books on a timely basis. Effect: If records are not timely closed, management and board of directors may be making decisions based on incomplete information. Auditor?s Recommendation: We recommend the Organization implement procedures to ensure accounting records are reconciled and financial statements completed within 90 days after the end of each period to allow management and the Board to make informed decisions. Grantee Response: We recognize that the accounting records were not reconciled nor financial statements completed, nor the Single Audit Reporting Package submitted, within the appropriate amount of time after the end of the fiscal year. This delay was directly caused by the effects of the world-wide COVID-19 pandemic. Cornerstone is a provider of shelter for some of the most vulnerable people in our society, families and individuals experiencing homelessness. This vulnerable and many times medically fragile community was hit very hard with the COVID-19 disease. In the early stages of the pandemic, over 51% of the residents and staff contracted COVID-19. And throughout this ongoing pandemic, many more either contracted COVID-19, or their lives were affected by it. The operations of the shelter were required to pivot to medically support the residents, while also allowing for the significant reduction in on-site staff. Eighty percent of the administrative staff either contracted the disease and are still suffering the effects of it, or were themselves of and age and medical fragility that they had to discontinue work. The staff, that remained were required to take on the additional life-saving frontline work required in the pandemic in partnership with public health agencies. Though internal controls over the finances were maintained, the ability to complete the reconciling and financial reporting was thereby delayed. This COVID-19 pandemic is ongoing and still affecting residents and staff. However, as recommended, we have implemented additional procedures to ensure record are reconciled and financial statements completed within 90 days after the end of each period to allow management and the Board to make informed decisions, and to submit the Single Audit Reporting Package no later than 9 months after fiscal year-end. Sincerely, Andrew Winter Director of Finance

2019-001

CORRECTIVE ACTION PLAN January 20, 2022 Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 Cornerstone Community Outreach (FEIN 36-3670992) respectfully submits the following corrective action plan for the year ended December 31, 2020. Our independent public accounting firm is: Desmond & Ahern, Ltd 10827 S. Western Avenue Chicago, IL 60643 Phone: 773-779-4720 Audit Period: January 1, 2020 through December 31, 2020 The findings from the December 31, 2020 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2020-002 Submitting Single Audit Package on time Condition: The Organization did not submit its Single Audit Package in a timely manner as required by federal regulations. Criteria: The absence of the audit being completed in a timely manner did not allow the Organization to submit the Single Audit Package on a timely basis. Cause: The Organization did not complete their audit for the year ending December 31, 2020 until after the due date for the Single Audit Package. Effect: The late submission of the Single Audit Package is a violation of federal regulations and impairs grantor agencies? ability to monitor federally funded programs. As a result, the Organization is designated a high-risk auditee until it accomplished timely submission of its Single Audit Package for two consecutive years. Auditor?s Recommendation: We recommend the Organization submit its Single Audit Reporting Package to the FAC no later than 9 months after fiscal year-end. Grantee Response: We recognize that the accounting records were not reconciled nor financial statements completed, nor the Single Audit Reporting Package submitted, within the appropriate amount of time after the end of the fiscal year. This delay was directly caused by the effects of the world-wide COVID-19 pandemic. Cornerstone is a provider of shelter for some of the most vulnerable people in our society, families and individuals experiencing homelessness. This vulnerable and many times medically fragile community was hit very hard with the COVID-19 disease. In the early stages of the pandemic, over 51% of the residents and staff contracted COVID-19. And throughout this ongoing pandemic, many more either contracted COVID-19, or their lives were affected by it. The operations of the shelter were required to pivot to medically support the residents, while also allowing for the significant reduction in on-site staff. Eighty percent of the administrative staff either contracted the disease and are still suffering the effects of it, or were themselves of and age and medical fragility that they had to discontinue work. The staff, that remained were required to take on the additional life-saving frontline work required in the pandemic in partnership with public health agencies. Though internal controls over the finances were maintained, the ability to complete the reconciling and financial reporting was thereby delayed. This COVID-19 pandemic is ongoing and still affecting residents and staff. However, as recommended, we have implemented additional procedures to ensure record are reconciled and financial statements completed within 90 days after the end of each period to allow management and the Board to make informed decisions, and to submit the Single Audit Reporting Package no later than 9 months after fiscal year-end. Sincerely, Andrew Winter Director of Finance

2019-002

CORRECTIVE ACTION PLAN April 26, 2021 Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 Cornerstone Community Outreach (FEIN 36-3670992) respectfully submits the following corrective action plan for the year ended December 31, 2019. Our independent public accounting firm is: Desmond & Ahern, Ltd 10827 S. Western Avenue Chicago, IL 60643 Phone: 773-779-4720 Audit Period: January 1, 2019 through December 31, 2019 The findings from the December 31, 2019 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2019-001 Closing Records on a Timely Basis Criteria: In a properly functioning internal control environment, accounting records are reconciled and closed within a reasonable time after the end of each accounting period. Condition: Accounting records were not closed over a year after the end of the fiscal year. Cause: The Organization works with the homeless, whose population was dramatically affected by the pandemic. As a result, the Organization was unable to close its books on a timely basis. Effect: If records are not timely closed, management and board of directors may be making decisions based on incomplete information. Auditor?s Recommendation: We recommend the Organization implement procedures to ensure accounting records are reconciled and financial statements completed within 90 days after the end of each period to allow management and the Board to make informed decisions. Grantee Response: We recognize that the accounting records were not reconciled nor financial statements completed, nor the Single Audit Reporting Package submitted, within the appropriate amount of time after the end of the fiscal year. This delay was directly caused by the effects of the world-wide COVID-19 pandemic. Cornerstone is a provider of shelter for some of the most vulnerable people in our society, families and individuals experiencing homelessness. This vulnerable and many times medically fragile community was hit very hard with the COVID-19 disease. In the early stages of the pandemic, over 51% of the residents and staff contracted COVID-19. And throughout this ongoing pandemic, many more either contracted COVID-19, or their lives were affected by it. The operations of the shelter were required to pivot to medically support the residents, while also allowing for the significant reduction in on-site staff. Eighty percent of the administrative staff either contracted the disease and are still suffering the effects of it, or were themselves of and age and medical fragility that they had to discontinue work. The staff, that remained were required to take on the additional life-saving frontline work required in the pandemic in partnership with public health agencies. Though internal controls over the finances were maintained, the ability to complete the reconciling and financial reporting was thereby delayed. This COVID-19 pandemic is ongoing and still affecting residents and staff. However, as recommended, we have implemented additional procedures to ensure record are reconciled and financial statements completed within 90 days after the end of each period to allow management and the Board to make informed decisions, and to submit the Single Audit Reporting Package no later than 9 months after fiscal year-end. 2019-002 Submitting Single Audit Package on time Condition: The Organization did not submit its Single Audit Package in a timely manner as required by federal regulations. Criteria: The absence of the audit being completed in a timely manner did not allow the Organization to submit the Single Audit Package on a timely basis. Cause: The Organization did not complete their audit for the year ending December 31, 2019 until after the due date for the Single Audit Package. Effect: The late submission of the Single Audit Package is a violation of federal regulations and impairs grantor agencies? ability to monitor federally funded programs. As a result, the Organization is designated a high-risk auditee until it accomplished timely submission of its Single Audit Package for two consecutive years. Auditor?s Recommendation We recommend the Organization submit its Single Audit Reporting Package to the FAC no later than 9 months after fiscal year-end. Grantee Response: Grantee Response: We recognize that the accounting records were not reconciled nor financial statements completed, nor the Single Audit Reporting Package submitted, within the appropriate amount of time after the end of the fiscal year. This delay was directly caused by the effects of the world-wide COVID-19 pandemic. Cornerstone is a provider of shelter for some of the most vulnerable people in our society, families and individuals experiencing homelessness. This vulnerable and many times medically fragile community was hit very hard with the COVID-19 disease. In the early stages of the pandemic, over 51% of the residents and staff contracted COVID-19. And throughout this ongoing pandemic, many more either contracted COVID-19, or their lives were affected by it. The operations of the shelter were required to pivot to medically support the residents, while also allowing for the significant reduction in on-site staff. Eighty percent of the administrative staff either contracted the disease and are still suffering the effects of it, or were themselves of and age and medical fragility that they had to discontinue work. The staff, that remained were required to take on the additional life-saving frontline work required in the pandemic in partnership with public health agencies. Though internal controls over the finances were maintained, the ability to complete the reconciling and financial reporting was thereby delayed. This COVID-19 pandemic is ongoing and still affecting residents and staff. However, as recommended, we have implemented additional procedures to ensure record are reconciled and financial statements completed within 90 days after the end of each period to allow management and the Board to make informed decisions, and to submit the Single Audit Reporting Package no later than 9 months after fiscal year-end. Sincerely, Andrew Winter Director of Finance