FAC Explorer

Audit 354409

FY End
2023-12-31
Total Expended
$3.64M
Findings
4
Programs
2
Organization: Renaissance Social Services, Inc. (IL)
Year: 2023 Accepted: 2025-04-23
Auditor: Desmond & Ahern LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555755 2023-001 Material Weakness - P
555756 2023-002 Material Weakness - L
1132197 2023-001 Material Weakness - P
1132198 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $3.55M Yes 2
14.231 Emergency Solutions Grant Program $91,460 - 0

Contacts

Name Title Type
LN8DJNLQ4KC5 Rachael Brinker Auditee
3125763930 Paul Betlinski Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation 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 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the Federal grant activity of Renaissance Social Services, Inc., under programs of the federal government for the year December 31, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because this schedule presents only a selected portion of the operations of Renaissance Social Services, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Renaissance Social Services, Inc.
Title: Note 2 – Summary of Significant Accounting Policies 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 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 – Sub-Recipients 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 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Renaissance Social Services, Inc. did not provide any federal awards to sub-recipients during the year ended December 31, 2023.
Title: Note 4 – Other Matters 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 2 CFR Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), wherein certain types or expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Amount of non – cash assistance None Amount of insurance None Amount of loans None Amount of loan guarantees None

Finding Details

Finding 2023-001
2023-001 Closing Records on a Timely Basis Condition: Accounting records were not closed for over six months after the end of the fiscal year. 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. Cause: The finance team was not adequately staffed to manage the size and complexity of the organization, resulting in extended timelines to complete certain finance and accounting tasks. 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: The Finance Team has developed and deployed a comprehensive month-end close process that includes: • A detailed procedural checklist with clearly defined responsibilities • Specific deadlines for each critical task in the close sequence • Formal approval requirements at key control points • A targeted completion timeline of 30 days post month-end To support this enhanced process, we have strategically increased resources within the finance function, including additional staff allocation to high-priority areas. Furthermore, we are conducting a thorough assessment of automation opportunities throughout our accounting workflow to improve efficiency, reduce manual processing, and accelerate the completion of key accounting tasks.
Finding 2023-002
2023-002 Submitting Single Audit Package on time Condition: The Organization did not submit its Single Audit Package to the Federal Audit Clearing House 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, 2023 until after the due date of September 30, 2024 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 the fiscal year-end. Grantee Response: We have executed strategic process improvements and personnel adjustments within the Finance function specifically designed to facilitate more efficient and timely completion of month-end, quarter-end, and year-end close procedures. These improvements include standardized workflows, clearly defined responsibilities, and process automation. Additionally, the finance team has committed to ensuring adequate time allocation for all audit activities. We have established a proactive planning framework that incorporates appropriate buffer periods to guarantee completion well in advance of regulatory deadlines. Furthermore, we commit to conducting all fieldwork within the initially scheduled timeframes to prevent timeline extensions.
Finding 2023-001
2023-001 Closing Records on a Timely Basis Condition: Accounting records were not closed for over six months after the end of the fiscal year. 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. Cause: The finance team was not adequately staffed to manage the size and complexity of the organization, resulting in extended timelines to complete certain finance and accounting tasks. 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: The Finance Team has developed and deployed a comprehensive month-end close process that includes: • A detailed procedural checklist with clearly defined responsibilities • Specific deadlines for each critical task in the close sequence • Formal approval requirements at key control points • A targeted completion timeline of 30 days post month-end To support this enhanced process, we have strategically increased resources within the finance function, including additional staff allocation to high-priority areas. Furthermore, we are conducting a thorough assessment of automation opportunities throughout our accounting workflow to improve efficiency, reduce manual processing, and accelerate the completion of key accounting tasks.
Finding 2023-002
2023-002 Submitting Single Audit Package on time Condition: The Organization did not submit its Single Audit Package to the Federal Audit Clearing House 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, 2023 until after the due date of September 30, 2024 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 the fiscal year-end. Grantee Response: We have executed strategic process improvements and personnel adjustments within the Finance function specifically designed to facilitate more efficient and timely completion of month-end, quarter-end, and year-end close procedures. These improvements include standardized workflows, clearly defined responsibilities, and process automation. Additionally, the finance team has committed to ensuring adequate time allocation for all audit activities. We have established a proactive planning framework that incorporates appropriate buffer periods to guarantee completion well in advance of regulatory deadlines. Furthermore, we commit to conducting all fieldwork within the initially scheduled timeframes to prevent timeline extensions.