Audit 404272

2024-001 Financial Statement Preparation Condition: The Organization's financial statements required numerous material audit adjustments in order to be presented in conformity with U.S. generally accepted accounting principles. Criteria: Management is responsible for preparing financial statements in accordance with U.S. generally accepted accounting principles. Cause: The Organization did not identify and record all necessary year-end adjustments prior to the commencement of the audit. Effect: Material audit adjustments were required to properly state receivables, revenues, accounts payable, lease balances, and other financial statement accounts. Auditor's Recommendation: Management should strengthen its financial reporting procedures and year-end closing process to ensure financial statements are prepared in accordance with U.S. generally accepted accounting principles prior to the audit. Grantee Response: Management agrees with the finding and is working to improve its financial reporting and review procedures to ensure that year-end financial information is complete and accurate before the audit begins.

2024-002 Closing Records on a Timely Basis Condition: Accounting records and supporting reconciliations were not completed on a timely basis during the year-end close process. 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 Organization experienced turnover in key finance leadership positions and did not maintain sufficient accounting and reconciliation procedures necessary to complete the financial close process in a timely manner. Effect: Management was unable to complete the year-end close process and related account reconciliations on a timely basis, increasing the risk that errors or omissions could occur and not be detected in a timely manner. Auditor’s Recommendation: We recommend the Organization strengthen its financial close process through timely account reconciliations, supervisory review procedures, and sufficient staffing resources to support accurate and timely financial reporting. RENAISSANCE SOCIAL SERVICES, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2024 Section II – Financial Statement Findings (cont.) 2024-002 Closing Records on a Timely Basis Grantee Response: Management agrees with the finding. During 2024, the Organization experienced turnover in key finance leadership positions which affected the timely reconciliation and closing of the accounting records. Management has implemented additional review procedures and is working to strengthen the financial reporting process through improved reconciliations, enhanced oversight, and additional accounting support to ensure financial records are completed accurately and timely in future periods.

2024-003 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 the financial statement audit and related reporting processes in sufficient time to submit the Single Audit Reporting Package within the timeframe required under Uniform Guidance. 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: Management agrees with the finding. Delays in completing the financial statement audit and resolving accounting matters resulted in the Organization’s inability to submit the required reporting package within the timeframe required under Uniform Guidance. Management is working with its auditors and internal accounting personnel to improve the timing of year-end closing procedures and audit preparation in order to facilitate timely filing in future periods. RENAISSANCE SOCIAL SERVICES, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2024 Section IV – Financial Statement Findings – Prior Year Finding 2023-001 – Closing Records on a Timely Basis Condition: The Organization did not complete account reconciliations and financial reporting processes on a timely basis, resulting in material audit adjustments during the audit process. Current Status: Not corrected. During the current year, this finding was separated into Finding 2024-001, Financial Statement Preparation, and Finding 2024-002, Closing Records on a Timely Basis.