county of los angeles department of children and...

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County of Los Angeles DEPARTMENT OF CHILDREN AND FAMILY SERVICES 425 Shatto Place, Los Angeles, California 90020 (213) 351-5602 Board of Supervisors PHILIP L. BROWNING Director HILDA L SOLIS Fir.st District BRANDON NICHOLS MARK RIDLEY-THOMAS Chier Deputy Director Second District SHEILA KUEHL Third District JANICE HAHN Fourth District December 15, 2016 KATHRYN BARGER Fifth District To: Supervisor Mark Ridley-Thomas, Chainnan Supervisor Hilda L. Solis Supervisor Sheila Kuehl Supervisor Don Knabe Supervisor Michael D. Antonovich From: Philip L. Browning Director - RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT The Department of Children and Family Services (DCFS) Contracts Administration Division (CAD) conducted a Fiscal Compliance Assessment of the Renaissance Unlimited Transitional Housing Placement-Plus-Foster Care (THP+FC) program in November 2015. The THP+FC has 17 sites: seven located in the Second Supervisorial District; five located in the Fourth Supervisorial District; and five located in the Fifth Supervisorial District; and provides services to the County of Los Angeles DCFS and Probation placed Non Minor Dependents (NMDs). According to the THP+FC's Program Statement, its stated purpose is "to provide transitional housing and supportive program to youth for the development of self-sufficiency and prevention of homelessness." At the time of the review, the THP+FC had a licensed capacity of 49 and served 25 DCFS and NMDs youths. The placed youths' average age was 19 and the average length of stay was six months. SUMMARY CAD conducted a Fiscal Compliance Assessment which included an agency-wide review of the THP+FC's financial records, such as financial statements, bank statements, check register, and personnel files to detennine their compliance with the terms, conditions and requirements of the THP+FC and Transitional Housing Contracts, the Auditor-Controller Contract Accounting and Administration Handbook (A-C Handbook), and other applicable federal, State, and County regulations and guidelines. "To Enrich Lives Through Effective and Caring Service"

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County of Los Angeles DEPARTMENT OF CHILDREN AND FAMILY SERVICES

425 Shatto Place Los Angeles California 90020 (213) 351-5602

Board of SupervisorsPHILIP L BROWNING Director HILDA L SOLIS

First District

BRANDON NICHOLS MARK RIDLEY-THOMAS Chier Deputy Director Second District

SHEILA KUEHL Third District

JANICE HAHN Fourth District December 15 2016

KATHRYN BARGER Fifth District

To Supervisor Mark Ridley-Thomas Chainnan Supervisor Hilda L Solis Supervisor Sheila Kuehl Supervisor Don Knabe Supervisor Michael D Antonovich

From Philip L Browning ~ Director ~ shy

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT

The Department of Children and Family Services (DCFS) Contracts Administration Division (CAD) conducted a Fiscal Compliance Assessment of the Renaissance Unlimited Transitional Housing Placement-Plus-Foster Care (THP+FC) program in November 2015 The THP+FC has 17 sites seven located in the Second Supervisorial District five located in the Fourth Supervisorial District and five located in the Fifth Supervisorial District and provides services to the County of Los Angeles DCFS and Probation placed Non Minor Dependents (NMDs) According to the THP+FCs Program Statement its stated purpose is to provide transitional housing and supportive program to youth for the development of self-sufficiency and prevention of homelessness

At the time of the review the THP+FC had a licensed capacity of 49 and served 25 DCFS and NMDs youths The placed youths average age was 19 and the average length of stay was six months

SUMMARY

CAD conducted a Fiscal Compliance Assessment which included an agency-wide review of the THP+FCs financial records such as financial statements bank statements check register and personnel files to detennine their compliance with the terms conditions and requirements of the THP+FC and Transitional Housing Contracts the Auditor-Controller Contract Accounting and Administration Handbook (A-C Handbook) and other applicable federal State and County regulations and guidelines

To Enrich Lives Through Effective and Caring Service

Each Supervisor December 15 2016 Page2

The THP+FC was in full compliance with 2 of 5 applicable areas of the Fiscal Compliance Assessment Board of Directors and Business Influence and Payroll and Personnel

CAD identified potential internal control weaknesses in the areas of Financial Overview related to negative net assets and unpaid payroll taxes Loans Advances and Investments related to a loan due from the Executive Director and CashExpenditures related to an inadequately supported expenditure

Attached are the details of CADs review

REVIEW OF REPORT

On January 8 2016 Helga Kiaian DCFS CAD held an exit conference with the THP+FCs representative Lilian Onyegbaduo Social Worker The THP+FCs representative agreed with the review findings and recommendations was receptive to implementing systemic changes to improve their compliance with regulatory standards and agreed to address the noted deficiencies in a Fiscal Corrective Action Plan (FCAP)

The THP+FC provided the attached approved FCAP addressing the recommendations noted in this report

A copy of this report has been sent to the Auditor-Controller and Community Care Licensing

If you have any questions your staff may contact me or Aldo Marin Board Relations Manager at (213) 351-5530

PLBKR LTlhk

Attachments

c Sachi A Hamai Chief Executive Officer Calvin C Remington Interim Chief Probation Officer John Naimo Auditor-Controller Public Information Office Audit Committee Chris Onyegbaduo Executive Director Renaissance Unlimited Lenora Scott Regional Manager Community Care Licensing Division Lajuannah Hills Regional Manager Community Care Licensing Division

RENAISSANCE UNLIMITED FISCAL COMPLIANCE ASSESSMENT REVIEW

FISCAL YEAR 2015 bull 2016

SCOPE OF REVIEW

The Fiscal Compliance Assessment included a review of the Renaissance Unlimited Transitional Housing Placement-Plus-Foster Cares (THP+FC financial records for the period of January 1 2014 through September 30 2015 The Contracts Administration Division (CAD) reviewed the financial statements bank statements check register and personnel files to determine the THP+FCs compliance with the terms conditions and requirements of the THP+FC and Transitional Housing contracts with DCFS the Auditor-Controller Contract Accounting and Administration Handbook (A-C Handbook and other applicable federal State and County regulations and guidelines

The on-site Fiscal Compliance Assessment review focused on five key areas of internal controls

bull Financial Overview bull Loans Advances and Investments bull Board of Directors and Business Influence bull CashExpenditures and bull Payroll and Personnel

The THP+FC was in full compliance with 2 of 5 areas of the Fiscal Compliance Assessment Board of Directors and Business Influence and Payroll and Personnel

FISCAL COMPLIANCE

CAD found the following three areas out of compliance

Financial Overview

bull According to the Audited Financial Statements (AFS) as of December 31 2014 the THP+FC had a total net asset deficit of $12720

The THP+FCs Board of Directors and Executive Director continue to monitor the THP+FCs fiscal strength and make operational adjustments as necessary to ensure the THP+FC continues to meet its obligations The THP+FC operates within its operational budget The prior losses were incurred due to a significant decline in the Transitional Housing Placement Program (THPP) program due to an unanticipated changes in State licensing and placement related to the policy and placement regulations combined the outstanding debt the management of this THP+FC assumed when they took over the management of this non-profit organization

bull Outstanding past due payroll taxes totaling $2246841

CAD confirmed the THP+FC is currently in its payroll taxes and is working with the Internal Revenue Service (IRS to correctly apply all payments made by the THP+FC making quarterly payments of $8000 on the past due amount and continues to work to further reduce its past due taxes

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE2

The losses were due in part to the change in the California Department of Social Services (COSS) Community Care Licensing Division standards applicable to Transitional Housing Placement-Plus (THPP) placements which reduced the number of children in this placement type The Contractor phased out its THPP program and its current focus is the THP+FC

Recommendations

The THP+FCs management shall ensure that

1 A plan is developed and implemented to eliminate the net asset deficit and demonstrate that it can operate without incurring a loss in the future

2 Outstanding and past due payroll taxes are paid

Loans Advances and Investments

bull Unallowable interest expense of $24 123

The THP+FCs certified public accountant was converting the unallowable interest and finance expenses to an officers loan Effective January 2016 these expenses were no longer paid with the THP+FCs funds

Credit card and line of credit interest and finance charges are no longer being paid by the agency funds The THP+FCs Executive Director will repay the THP+FC $2000 quarterly for the unallowable expenditure amounts until the loans are paid off

Recommendation

The THP+FCs Board of Directors shall ensure that

3 All unallowable interest and finance charges are not paid with THP+FCs funds

CashExpenditures

bull Insufficient supporting documentation for reimbursement to employees

One of the sampled checks did not have supporting documentation The check was issued for $150 and the receipts totaled $14381

In January 2016 the THP+FC established a petty cash system

Recommendations

The THP+FCs management shall ensure that

4 Adequate supporting documents are maintained for all disbursements

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE3

PRIOR YEAR FISCAL COMPLIANCE ASSESSMENT FOLLOW-UP

CAD conducted a Fiscal Compliance Assessment of the THP+FC in Fiscal Year (FY 2014-2015 (review conducted in October 2014 The assessment resulted in eight recommendations CAD verified that the THP+FC implemented six of the recommendations

NEXT FISCAL COMPLIANCE ASSESSMENT

The next Fiscal Compliance Assessment of the Group Home will be conducted in County FY 2016-2017

~naissance VnfimitecfJfomes Inc 3756 Slt1nla Rusltllia Dr Suite 523A Phone 323-935-1786 Renai~sancc Pride License 198209064

Los Angeles California 90008 Fax 323-935-511 1

March 31 2016

Helga Kiaian Fiscal Compliance Administmtor Contracts Administrative Division DCFS CAD Compliance Fiscal 3530 Wilshire Blvd 5111 Floor Los Angeles CA 900 l 0

RE Renaissance Unlimited Homes Inc Fiscal Corrective Action Plan Addendum March 31 2016 For the Fiscal Compliance Assessment shy

Dear Ms Kiaian ~

This is the Fiscal Corrective Action Plan Addendum to address the findings of the Compliance Assessment in January 8 2016 Our agency is working diligently lo ensure ongoing compliance with all contract requirements

Finding According to the Audited Financial Statements (AFS) as of December 31 2014 the contractor had a total net assets deficit of $12720 Negative net assets raise doubts about Renaissance Unlimited Homes ability to continue as a going concern The agency may face challenges in meeting its future obligations as they become due

Corrective Action Implemented-Effective 12312014 and ongoing Renaissance is currently operating within its operational budget The prior losses were incurred due to significant decline in the client census as a result of unforeseen changes in state policies and regulations governing the Transitional Housing programs that the agency was operating Our agency is no longer operating those programs that incurred the losses All of our current programs operate within their operation budget without incurring annual tosses The Agency Board of Directors and the executive director will continue to monitor

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

Each Supervisor December 15 2016 Page2

The THP+FC was in full compliance with 2 of 5 applicable areas of the Fiscal Compliance Assessment Board of Directors and Business Influence and Payroll and Personnel

CAD identified potential internal control weaknesses in the areas of Financial Overview related to negative net assets and unpaid payroll taxes Loans Advances and Investments related to a loan due from the Executive Director and CashExpenditures related to an inadequately supported expenditure

Attached are the details of CADs review

REVIEW OF REPORT

On January 8 2016 Helga Kiaian DCFS CAD held an exit conference with the THP+FCs representative Lilian Onyegbaduo Social Worker The THP+FCs representative agreed with the review findings and recommendations was receptive to implementing systemic changes to improve their compliance with regulatory standards and agreed to address the noted deficiencies in a Fiscal Corrective Action Plan (FCAP)

The THP+FC provided the attached approved FCAP addressing the recommendations noted in this report

A copy of this report has been sent to the Auditor-Controller and Community Care Licensing

If you have any questions your staff may contact me or Aldo Marin Board Relations Manager at (213) 351-5530

PLBKR LTlhk

Attachments

c Sachi A Hamai Chief Executive Officer Calvin C Remington Interim Chief Probation Officer John Naimo Auditor-Controller Public Information Office Audit Committee Chris Onyegbaduo Executive Director Renaissance Unlimited Lenora Scott Regional Manager Community Care Licensing Division Lajuannah Hills Regional Manager Community Care Licensing Division

RENAISSANCE UNLIMITED FISCAL COMPLIANCE ASSESSMENT REVIEW

FISCAL YEAR 2015 bull 2016

SCOPE OF REVIEW

The Fiscal Compliance Assessment included a review of the Renaissance Unlimited Transitional Housing Placement-Plus-Foster Cares (THP+FC financial records for the period of January 1 2014 through September 30 2015 The Contracts Administration Division (CAD) reviewed the financial statements bank statements check register and personnel files to determine the THP+FCs compliance with the terms conditions and requirements of the THP+FC and Transitional Housing contracts with DCFS the Auditor-Controller Contract Accounting and Administration Handbook (A-C Handbook and other applicable federal State and County regulations and guidelines

The on-site Fiscal Compliance Assessment review focused on five key areas of internal controls

bull Financial Overview bull Loans Advances and Investments bull Board of Directors and Business Influence bull CashExpenditures and bull Payroll and Personnel

The THP+FC was in full compliance with 2 of 5 areas of the Fiscal Compliance Assessment Board of Directors and Business Influence and Payroll and Personnel

FISCAL COMPLIANCE

CAD found the following three areas out of compliance

Financial Overview

bull According to the Audited Financial Statements (AFS) as of December 31 2014 the THP+FC had a total net asset deficit of $12720

The THP+FCs Board of Directors and Executive Director continue to monitor the THP+FCs fiscal strength and make operational adjustments as necessary to ensure the THP+FC continues to meet its obligations The THP+FC operates within its operational budget The prior losses were incurred due to a significant decline in the Transitional Housing Placement Program (THPP) program due to an unanticipated changes in State licensing and placement related to the policy and placement regulations combined the outstanding debt the management of this THP+FC assumed when they took over the management of this non-profit organization

bull Outstanding past due payroll taxes totaling $2246841

CAD confirmed the THP+FC is currently in its payroll taxes and is working with the Internal Revenue Service (IRS to correctly apply all payments made by the THP+FC making quarterly payments of $8000 on the past due amount and continues to work to further reduce its past due taxes

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE2

The losses were due in part to the change in the California Department of Social Services (COSS) Community Care Licensing Division standards applicable to Transitional Housing Placement-Plus (THPP) placements which reduced the number of children in this placement type The Contractor phased out its THPP program and its current focus is the THP+FC

Recommendations

The THP+FCs management shall ensure that

1 A plan is developed and implemented to eliminate the net asset deficit and demonstrate that it can operate without incurring a loss in the future

2 Outstanding and past due payroll taxes are paid

Loans Advances and Investments

bull Unallowable interest expense of $24 123

The THP+FCs certified public accountant was converting the unallowable interest and finance expenses to an officers loan Effective January 2016 these expenses were no longer paid with the THP+FCs funds

Credit card and line of credit interest and finance charges are no longer being paid by the agency funds The THP+FCs Executive Director will repay the THP+FC $2000 quarterly for the unallowable expenditure amounts until the loans are paid off

Recommendation

The THP+FCs Board of Directors shall ensure that

3 All unallowable interest and finance charges are not paid with THP+FCs funds

CashExpenditures

bull Insufficient supporting documentation for reimbursement to employees

One of the sampled checks did not have supporting documentation The check was issued for $150 and the receipts totaled $14381

In January 2016 the THP+FC established a petty cash system

Recommendations

The THP+FCs management shall ensure that

4 Adequate supporting documents are maintained for all disbursements

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE3

PRIOR YEAR FISCAL COMPLIANCE ASSESSMENT FOLLOW-UP

CAD conducted a Fiscal Compliance Assessment of the THP+FC in Fiscal Year (FY 2014-2015 (review conducted in October 2014 The assessment resulted in eight recommendations CAD verified that the THP+FC implemented six of the recommendations

NEXT FISCAL COMPLIANCE ASSESSMENT

The next Fiscal Compliance Assessment of the Group Home will be conducted in County FY 2016-2017

~naissance VnfimitecfJfomes Inc 3756 Slt1nla Rusltllia Dr Suite 523A Phone 323-935-1786 Renai~sancc Pride License 198209064

Los Angeles California 90008 Fax 323-935-511 1

March 31 2016

Helga Kiaian Fiscal Compliance Administmtor Contracts Administrative Division DCFS CAD Compliance Fiscal 3530 Wilshire Blvd 5111 Floor Los Angeles CA 900 l 0

RE Renaissance Unlimited Homes Inc Fiscal Corrective Action Plan Addendum March 31 2016 For the Fiscal Compliance Assessment shy

Dear Ms Kiaian ~

This is the Fiscal Corrective Action Plan Addendum to address the findings of the Compliance Assessment in January 8 2016 Our agency is working diligently lo ensure ongoing compliance with all contract requirements

Finding According to the Audited Financial Statements (AFS) as of December 31 2014 the contractor had a total net assets deficit of $12720 Negative net assets raise doubts about Renaissance Unlimited Homes ability to continue as a going concern The agency may face challenges in meeting its future obligations as they become due

Corrective Action Implemented-Effective 12312014 and ongoing Renaissance is currently operating within its operational budget The prior losses were incurred due to significant decline in the client census as a result of unforeseen changes in state policies and regulations governing the Transitional Housing programs that the agency was operating Our agency is no longer operating those programs that incurred the losses All of our current programs operate within their operation budget without incurring annual tosses The Agency Board of Directors and the executive director will continue to monitor

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

RENAISSANCE UNLIMITED FISCAL COMPLIANCE ASSESSMENT REVIEW

FISCAL YEAR 2015 bull 2016

SCOPE OF REVIEW

The Fiscal Compliance Assessment included a review of the Renaissance Unlimited Transitional Housing Placement-Plus-Foster Cares (THP+FC financial records for the period of January 1 2014 through September 30 2015 The Contracts Administration Division (CAD) reviewed the financial statements bank statements check register and personnel files to determine the THP+FCs compliance with the terms conditions and requirements of the THP+FC and Transitional Housing contracts with DCFS the Auditor-Controller Contract Accounting and Administration Handbook (A-C Handbook and other applicable federal State and County regulations and guidelines

The on-site Fiscal Compliance Assessment review focused on five key areas of internal controls

bull Financial Overview bull Loans Advances and Investments bull Board of Directors and Business Influence bull CashExpenditures and bull Payroll and Personnel

The THP+FC was in full compliance with 2 of 5 areas of the Fiscal Compliance Assessment Board of Directors and Business Influence and Payroll and Personnel

FISCAL COMPLIANCE

CAD found the following three areas out of compliance

Financial Overview

bull According to the Audited Financial Statements (AFS) as of December 31 2014 the THP+FC had a total net asset deficit of $12720

The THP+FCs Board of Directors and Executive Director continue to monitor the THP+FCs fiscal strength and make operational adjustments as necessary to ensure the THP+FC continues to meet its obligations The THP+FC operates within its operational budget The prior losses were incurred due to a significant decline in the Transitional Housing Placement Program (THPP) program due to an unanticipated changes in State licensing and placement related to the policy and placement regulations combined the outstanding debt the management of this THP+FC assumed when they took over the management of this non-profit organization

bull Outstanding past due payroll taxes totaling $2246841

CAD confirmed the THP+FC is currently in its payroll taxes and is working with the Internal Revenue Service (IRS to correctly apply all payments made by the THP+FC making quarterly payments of $8000 on the past due amount and continues to work to further reduce its past due taxes

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE2

The losses were due in part to the change in the California Department of Social Services (COSS) Community Care Licensing Division standards applicable to Transitional Housing Placement-Plus (THPP) placements which reduced the number of children in this placement type The Contractor phased out its THPP program and its current focus is the THP+FC

Recommendations

The THP+FCs management shall ensure that

1 A plan is developed and implemented to eliminate the net asset deficit and demonstrate that it can operate without incurring a loss in the future

2 Outstanding and past due payroll taxes are paid

Loans Advances and Investments

bull Unallowable interest expense of $24 123

The THP+FCs certified public accountant was converting the unallowable interest and finance expenses to an officers loan Effective January 2016 these expenses were no longer paid with the THP+FCs funds

Credit card and line of credit interest and finance charges are no longer being paid by the agency funds The THP+FCs Executive Director will repay the THP+FC $2000 quarterly for the unallowable expenditure amounts until the loans are paid off

Recommendation

The THP+FCs Board of Directors shall ensure that

3 All unallowable interest and finance charges are not paid with THP+FCs funds

CashExpenditures

bull Insufficient supporting documentation for reimbursement to employees

One of the sampled checks did not have supporting documentation The check was issued for $150 and the receipts totaled $14381

In January 2016 the THP+FC established a petty cash system

Recommendations

The THP+FCs management shall ensure that

4 Adequate supporting documents are maintained for all disbursements

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE3

PRIOR YEAR FISCAL COMPLIANCE ASSESSMENT FOLLOW-UP

CAD conducted a Fiscal Compliance Assessment of the THP+FC in Fiscal Year (FY 2014-2015 (review conducted in October 2014 The assessment resulted in eight recommendations CAD verified that the THP+FC implemented six of the recommendations

NEXT FISCAL COMPLIANCE ASSESSMENT

The next Fiscal Compliance Assessment of the Group Home will be conducted in County FY 2016-2017

~naissance VnfimitecfJfomes Inc 3756 Slt1nla Rusltllia Dr Suite 523A Phone 323-935-1786 Renai~sancc Pride License 198209064

Los Angeles California 90008 Fax 323-935-511 1

March 31 2016

Helga Kiaian Fiscal Compliance Administmtor Contracts Administrative Division DCFS CAD Compliance Fiscal 3530 Wilshire Blvd 5111 Floor Los Angeles CA 900 l 0

RE Renaissance Unlimited Homes Inc Fiscal Corrective Action Plan Addendum March 31 2016 For the Fiscal Compliance Assessment shy

Dear Ms Kiaian ~

This is the Fiscal Corrective Action Plan Addendum to address the findings of the Compliance Assessment in January 8 2016 Our agency is working diligently lo ensure ongoing compliance with all contract requirements

Finding According to the Audited Financial Statements (AFS) as of December 31 2014 the contractor had a total net assets deficit of $12720 Negative net assets raise doubts about Renaissance Unlimited Homes ability to continue as a going concern The agency may face challenges in meeting its future obligations as they become due

Corrective Action Implemented-Effective 12312014 and ongoing Renaissance is currently operating within its operational budget The prior losses were incurred due to significant decline in the client census as a result of unforeseen changes in state policies and regulations governing the Transitional Housing programs that the agency was operating Our agency is no longer operating those programs that incurred the losses All of our current programs operate within their operation budget without incurring annual tosses The Agency Board of Directors and the executive director will continue to monitor

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE2

The losses were due in part to the change in the California Department of Social Services (COSS) Community Care Licensing Division standards applicable to Transitional Housing Placement-Plus (THPP) placements which reduced the number of children in this placement type The Contractor phased out its THPP program and its current focus is the THP+FC

Recommendations

The THP+FCs management shall ensure that

1 A plan is developed and implemented to eliminate the net asset deficit and demonstrate that it can operate without incurring a loss in the future

2 Outstanding and past due payroll taxes are paid

Loans Advances and Investments

bull Unallowable interest expense of $24 123

The THP+FCs certified public accountant was converting the unallowable interest and finance expenses to an officers loan Effective January 2016 these expenses were no longer paid with the THP+FCs funds

Credit card and line of credit interest and finance charges are no longer being paid by the agency funds The THP+FCs Executive Director will repay the THP+FC $2000 quarterly for the unallowable expenditure amounts until the loans are paid off

Recommendation

The THP+FCs Board of Directors shall ensure that

3 All unallowable interest and finance charges are not paid with THP+FCs funds

CashExpenditures

bull Insufficient supporting documentation for reimbursement to employees

One of the sampled checks did not have supporting documentation The check was issued for $150 and the receipts totaled $14381

In January 2016 the THP+FC established a petty cash system

Recommendations

The THP+FCs management shall ensure that

4 Adequate supporting documents are maintained for all disbursements

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE3

PRIOR YEAR FISCAL COMPLIANCE ASSESSMENT FOLLOW-UP

CAD conducted a Fiscal Compliance Assessment of the THP+FC in Fiscal Year (FY 2014-2015 (review conducted in October 2014 The assessment resulted in eight recommendations CAD verified that the THP+FC implemented six of the recommendations

NEXT FISCAL COMPLIANCE ASSESSMENT

The next Fiscal Compliance Assessment of the Group Home will be conducted in County FY 2016-2017

~naissance VnfimitecfJfomes Inc 3756 Slt1nla Rusltllia Dr Suite 523A Phone 323-935-1786 Renai~sancc Pride License 198209064

Los Angeles California 90008 Fax 323-935-511 1

March 31 2016

Helga Kiaian Fiscal Compliance Administmtor Contracts Administrative Division DCFS CAD Compliance Fiscal 3530 Wilshire Blvd 5111 Floor Los Angeles CA 900 l 0

RE Renaissance Unlimited Homes Inc Fiscal Corrective Action Plan Addendum March 31 2016 For the Fiscal Compliance Assessment shy

Dear Ms Kiaian ~

This is the Fiscal Corrective Action Plan Addendum to address the findings of the Compliance Assessment in January 8 2016 Our agency is working diligently lo ensure ongoing compliance with all contract requirements

Finding According to the Audited Financial Statements (AFS) as of December 31 2014 the contractor had a total net assets deficit of $12720 Negative net assets raise doubts about Renaissance Unlimited Homes ability to continue as a going concern The agency may face challenges in meeting its future obligations as they become due

Corrective Action Implemented-Effective 12312014 and ongoing Renaissance is currently operating within its operational budget The prior losses were incurred due to significant decline in the client census as a result of unforeseen changes in state policies and regulations governing the Transitional Housing programs that the agency was operating Our agency is no longer operating those programs that incurred the losses All of our current programs operate within their operation budget without incurring annual tosses The Agency Board of Directors and the executive director will continue to monitor

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

RENAISSANCE UNLIMITED TRANSITIONAL HOUSING PLACEMENT-PLUS FOSTER CARE FISCAL COMPLIANCE ASSESSMENT PAGE3

PRIOR YEAR FISCAL COMPLIANCE ASSESSMENT FOLLOW-UP

CAD conducted a Fiscal Compliance Assessment of the THP+FC in Fiscal Year (FY 2014-2015 (review conducted in October 2014 The assessment resulted in eight recommendations CAD verified that the THP+FC implemented six of the recommendations

NEXT FISCAL COMPLIANCE ASSESSMENT

The next Fiscal Compliance Assessment of the Group Home will be conducted in County FY 2016-2017

~naissance VnfimitecfJfomes Inc 3756 Slt1nla Rusltllia Dr Suite 523A Phone 323-935-1786 Renai~sancc Pride License 198209064

Los Angeles California 90008 Fax 323-935-511 1

March 31 2016

Helga Kiaian Fiscal Compliance Administmtor Contracts Administrative Division DCFS CAD Compliance Fiscal 3530 Wilshire Blvd 5111 Floor Los Angeles CA 900 l 0

RE Renaissance Unlimited Homes Inc Fiscal Corrective Action Plan Addendum March 31 2016 For the Fiscal Compliance Assessment shy

Dear Ms Kiaian ~

This is the Fiscal Corrective Action Plan Addendum to address the findings of the Compliance Assessment in January 8 2016 Our agency is working diligently lo ensure ongoing compliance with all contract requirements

Finding According to the Audited Financial Statements (AFS) as of December 31 2014 the contractor had a total net assets deficit of $12720 Negative net assets raise doubts about Renaissance Unlimited Homes ability to continue as a going concern The agency may face challenges in meeting its future obligations as they become due

Corrective Action Implemented-Effective 12312014 and ongoing Renaissance is currently operating within its operational budget The prior losses were incurred due to significant decline in the client census as a result of unforeseen changes in state policies and regulations governing the Transitional Housing programs that the agency was operating Our agency is no longer operating those programs that incurred the losses All of our current programs operate within their operation budget without incurring annual tosses The Agency Board of Directors and the executive director will continue to monitor

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

~naissance VnfimitecfJfomes Inc 3756 Slt1nla Rusltllia Dr Suite 523A Phone 323-935-1786 Renai~sancc Pride License 198209064

Los Angeles California 90008 Fax 323-935-511 1

March 31 2016

Helga Kiaian Fiscal Compliance Administmtor Contracts Administrative Division DCFS CAD Compliance Fiscal 3530 Wilshire Blvd 5111 Floor Los Angeles CA 900 l 0

RE Renaissance Unlimited Homes Inc Fiscal Corrective Action Plan Addendum March 31 2016 For the Fiscal Compliance Assessment shy

Dear Ms Kiaian ~

This is the Fiscal Corrective Action Plan Addendum to address the findings of the Compliance Assessment in January 8 2016 Our agency is working diligently lo ensure ongoing compliance with all contract requirements

Finding According to the Audited Financial Statements (AFS) as of December 31 2014 the contractor had a total net assets deficit of $12720 Negative net assets raise doubts about Renaissance Unlimited Homes ability to continue as a going concern The agency may face challenges in meeting its future obligations as they become due

Corrective Action Implemented-Effective 12312014 and ongoing Renaissance is currently operating within its operational budget The prior losses were incurred due to significant decline in the client census as a result of unforeseen changes in state policies and regulations governing the Transitional Housing programs that the agency was operating Our agency is no longer operating those programs that incurred the losses All of our current programs operate within their operation budget without incurring annual tosses The Agency Board of Directors and the executive director will continue to monitor

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 3 t 2016

the fiscal strength of the agency and make adjustments as necessary to ensure that it continues to meet all of its obligations

The losses identified with the December 31 2014 Audited Financial Statement will be resolved by December 31 2016

Finding Per Internal Revenue Service (IRS) letter dated October 6 2015 Renaissance has unpaid payroll taxes of $2246841 for the quarters ending September 30 2013 December 31 2013 March 31 2014 and September 30 2014 Per IRS letter dated October 6 2015 Renaissance should continue to make voluntary payments until a final payment plan is established and IRS adjust its errors in applying Renaissances payments

Action taken 01082016 and Ongoing Back payroll taxes are being be paid off and new payroll taxes are being timely paid on the date they are due to the IRS and to the California Franchise Tax Board (FTB)

The Executive Director will ensure that there is no future nonpayment of taxes

The Executive Director will ensure that all outstanding past due payroll taxes are paid off to the IRS and to the FTB on or before December 31 2016

Finding Per AFS as of 123114 Renaissance has a related party officers advance of $24123 The officers advance refers from the THPPs line of credits and accrued credit card interest and finance charges which were considered unallowable by their independent auditor The Board members are required to pay from their personal funds There is no repayment plan

Action taken 01082016 and Ongoing No actual officers Advance was made to the Executive Director However interest from agencys line of credits from prior contracts was considered by the Auditor as non-allowed and was considered officers advance

Credit card and line of credit interest and finance charges are no longer being paid with agency funds The current Executive Director has started repaying Renaissance Unlimited for the unallowable expenditure amounts that were converted to officers loans The Executive Director will make payments of not less than $200000 quarterly at the rate of $8000 per year with annual quarterly payments due on 0331 06300930 and 1231 until the loans are paid off

Finding USupporting documents for one of three sampled checks issued to

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom

Renaissance Unlimited Homes Fiscal Corrective Action Plan Addendum March 31 2016

employees for reasons other than payroll was not complete The check number 3355 dated 0821 15 was issued in the amount of $150 but the supporting invoice was $14381

Action taken 01082016 and Ongoing Renaissance has established a petty cash system The petty cash will be used to cover minor expenses The petty cash amount will not exceed $50000 exact amount of employee expenses with receipts will be reimbursed through petty cash The custodian of the petty cash will be responsible for safeguarding the cash disbursing cash from a petty cash account documenting expenditures keeping all original receipts and requesting for replenishing the petty cash account when it runs low The Executive Director will review petty cash disbursements monthly to ensure that it is appropriately managed

Please feel free to contact us if you have any questions

Respectfully Submitted

Chris N Onyegbaduo Executive Director

C Renaissance Board of Directors middot Ike Okoro ikcohorltNlVahoncom

Marcel Njoku mcnjoku ltcaolcom Bede Agbakwuru getcoodhomcu vahoocom Moses Anusiem chigozicuglmiddotll vahoocom