Audit 1389

FY End

2023-06-30

Total Expended

$3.12M

Findings

2

Programs

2

Organization: Renaissance Court, INC (OR)

Year: 2023 Accepted: 2023-10-25

Auditor: Kernutt Stokes

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
736	2023-001	Significant Deficiency	-	N
577178	2023-001	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.239	Home Investment Partnerships Program	$420,000	-	0
14.181	Supportive Housing for Persons with Disabilities	$142,611	Yes	0

Contacts

Name	Title	Type
FJ14QLP9LPA5	Marci Pierce	Auditee
5036882646	Patrick Deming	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Renaissance Court, Inc. (the Organization) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the OMB Circular A-122 and Uniform Guidance. The Organization elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance; however, the agreements with HUD do not include indirect cost reimbursement, so there were no indirect costs charged to the federal award programs for the year ended June 30, 2023 Capital Advance and Home Funds: As of June 30, 2023, the Organization had the following Section 811 capital advance and HOME investment Partnerships Program funds which are presented within the net assets with donor restrictions. The capital advance and HOME funds are also included in the federal expenditures presented. Program or Cluster Title Assistance Listing Number Amount Outstanding Supportive housing for persons with disabilities: Section 811 capital advance 14.181 $ 2,559,300 HOME Investment Partnerships Program 14.239 $ 420,000. Subrecipients: There were no federal awards passed through to subrecipients. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Supportive housing for persons with disabilities: Section 811 capital advance (14.181) - Balances outstanding at the end of the audit period were $ 2,559,300. HOME Investment Partnerships Program (14.239) - Balances outstanding at the end of the audit period were $420,000.

Finding Details

Finding 2023-001

Finding 2023-001 Type of Findings: Significant deficiency in internal control over compliance and instance of immaterial noncompliance. Federal Program: HUD Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing #14.181. Compliance Requirement: Replacement Reserve Criteria: Renaissance Court, Inc.'s regulatory agreement with HUD requires monthly deposits of $873 into the replacement reserve fund. Total deposits required annually is $10,476. Condition: The monthly required deposit of $873 and the total annually required deposit of $10,476 were not deposited into replacement reserve fund. Cause: The organization has suffered recuring losses from operations which have negatively impacted cash flows. Effect: The effect is immaterial non-compliance with the terms of the HUD programs listed above. Questioned Costs: None Repeat Finding: No. Context: We reviewed the Replacement Reverse Fund and noticed there was no monthly required deposit made in the Fund during fiscal year 2023. Recommendation: We recommend management design and implement internal controls over compliance to ensure the amount of $873 is deposited monthly into the Replacement Reserve account as required by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Finding 2023-001

Finding 2023-001 Type of Findings: Significant deficiency in internal control over compliance and instance of immaterial noncompliance. Federal Program: HUD Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing #14.181. Compliance Requirement: Replacement Reserve Criteria: Renaissance Court, Inc.'s regulatory agreement with HUD requires monthly deposits of $873 into the replacement reserve fund. Total deposits required annually is $10,476. Condition: The monthly required deposit of $873 and the total annually required deposit of $10,476 were not deposited into replacement reserve fund. Cause: The organization has suffered recuring losses from operations which have negatively impacted cash flows. Effect: The effect is immaterial non-compliance with the terms of the HUD programs listed above. Questioned Costs: None Repeat Finding: No. Context: We reviewed the Replacement Reverse Fund and noticed there was no monthly required deposit made in the Fund during fiscal year 2023. Recommendation: We recommend management design and implement internal controls over compliance to ensure the amount of $873 is deposited monthly into the Replacement Reserve account as required by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.