Finding 1218092 (2024-002)

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.