Audit 325204

FY End
2024-06-30
Total Expended
$3.10M
Findings
2
Programs
2
Organization: Renaissance Court, INC (OR)
Year: 2024 Accepted: 2024-10-18
Auditor: Kernutt Stokes

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
503162 2024-001 Significant Deficiency - E
1079604 2024-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $420,000 - 0
14.181 Supportive Housing for Persons with Disabilities $117,557 Yes 0

Contacts

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

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Baisis 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, 2024. 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, 2024. De Minimis Rate Used: Y Rate Explanation: 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, 2024. Supportive housing for persons with disabilities: Section 811 capital advance (14.181) - Balance outstanding at the end of the audit period was $2,559,300. HOME Investment Partnerships Porgram (14.239) - Balance outstanding at the end of the audit period as $420,000.

Finding Details

Finding 2024 – 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: Eligibility Criteria: In accordance with Renaissance Court's regulatory agreement with HUD and the 2024 compliance supplement, Renaissance Court is required to annually recertify its tenants as eligible tenants. It is the responsibility of management to design and implement internal controls to ensure the tenants are recertified within the applicable timeframe required by HUD. Condition: Renaissance Court did not recertify some of its tenants within the timeframe specified by HUD. Cause: There were not properly designed or implemented internal controls to ensure the tenant recertifications were performed in the timeframe required by HUD. Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above. The deficiency in internal controls over compliance could lead to material non-compliance with the eligibility compliance requirement. Questioned Costs: None Repeat Finding: No. Context: We selected a sample of 6 tenants from a population of 21. The sample size was determined based upon guidelines provided by the AICPA and was not considered a statistically valid sample. We performed procedures to determine whether the annual tenant recertification occurred within the timeframe specified by HUD. From our sample, four tenant recertification were not performed within the 12 month timeframe specified by HUD. Recommendation: We recommend management design and implement internal controls over compliance to ensure tenant recertification is performed within the timeframe specified by HUD.
Finding 2024 – 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: Eligibility Criteria: In accordance with Renaissance Court's regulatory agreement with HUD and the 2024 compliance supplement, Renaissance Court is required to annually recertify its tenants as eligible tenants. It is the responsibility of management to design and implement internal controls to ensure the tenants are recertified within the applicable timeframe required by HUD. Condition: Renaissance Court did not recertify some of its tenants within the timeframe specified by HUD. Cause: There were not properly designed or implemented internal controls to ensure the tenant recertifications were performed in the timeframe required by HUD. Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above. The deficiency in internal controls over compliance could lead to material non-compliance with the eligibility compliance requirement. Questioned Costs: None Repeat Finding: No. Context: We selected a sample of 6 tenants from a population of 21. The sample size was determined based upon guidelines provided by the AICPA and was not considered a statistically valid sample. We performed procedures to determine whether the annual tenant recertification occurred within the timeframe specified by HUD. From our sample, four tenant recertification were not performed within the 12 month timeframe specified by HUD. Recommendation: We recommend management design and implement internal controls over compliance to ensure tenant recertification is performed within the timeframe specified by HUD.