LSC Grants (Basic and Native American) – Assistance Listing No. 09.742018 Recommendation: The Organization should implement a review process for proper cutoff of federal expenditures incurred during a grant’s period o fperformance to ensure only expenses incurred during current periods are included....
LSC Grants (Basic and Native American) – Assistance Listing No. 09.742018 Recommendation: The Organization should implement a review process for proper cutoff of federal expenditures incurred during a grant’s period o fperformance to ensure only expenses incurred during current periods are included. Explanation of disagreement with audit finding: The Organization respectfully disagrees to the extent the finding suggests a reporting deficiency related to the specific item identified. As reflected in the audit correspondence, the underlying accrual in question was reviewed and determined by both the Organization’s accounting support and the auditors to be immaterial, and no adjustment was recommended or required. However, the Organization acknowledges the value of formalizing documentation of its review procedures to ensure consistency and clarity in all reporting determinations. Action taken in response to finding: Notwithstanding the above, the Organization will implement a formalized review and documentation process for financial and performance reports to ensure that all determinations—including immaterial items—are consistently reviewed, documented, and supported. This will include: • A standardized report review checklist • Documentation of materiality assessments and related decisions • Secondary review and approval prior to submission This process will be incorporated into the Organization’s accounting procedures and applied consistently across all LSC-funded grants. In addition, the revision to the Accounting Manual will be submitted to LSC for its review. Name(s) of the contact person(s) responsible for corrective action: William Sulik, Interim Executive Director and Lori Stanford, Deputy Director Planned completion date for corrective action plan: June 30, 2026