To Whom it May Concern,
NEF has reviewed the identified weaknesses and has made appropriate
corrections in its financials to ensure that its positions are accurately
reflected. To rectify these identified weaknesses, NEF will implement
appropriate corrective steps to improve.
The following action pl...
To Whom it May Concern,
NEF has reviewed the identified weaknesses and has made appropriate
corrections in its financials to ensure that its positions are accurately
reflected. To rectify these identified weaknesses, NEF will implement
appropriate corrective steps to improve.
The following action plan is identified:
NEF will implement additional year-end closing procedures and review of
GAAP adjustments to include a management review of year-end accounting
and internal control procedures. This will allow for practical improvemeents
and timely submission of Audited Financial Statements.
Immediate actions include:
• Adjust Journal Entries to ensure assets, depreciation, previous
legal expenses, grants receivable, sources of funds, timing of grant
awards, Loan provisioning, and payables are properly reflected in
adjustments.
• Reclassify Journal Entries to reclassify current maturities of longterm
obligatons, office expenses, net assets with donor restrictions.
We will reclassify journal entries to our year end closing
procedures to ensure proper reflection of these categories.
Additional actions steps include:
• Confirmation of all PY adjustments are entered upon completion
of final audit by January 2024. • Our procedures will be reviewed and executed to include all
transactions in appropriate accounts to accurately reflect incomes,
expenses, assets and liabilities in monthly financial reporting to be
reviewed by management monthly. Any adjustments will be
reviewed at periodically.
• In addition to monthly management review, quarterly finance
committee review and annual review will take place. This will
ensure these items are included, and additional adjustments will
not need to be made in order to present the financial statements in
accordance with accounting principles, generally accepted in the
United States of America.
• Prepare end of quarter and semi-annual proposed adjustments and
reclassifications for confirmation.
• Quarterly meeting with NEF’s contracted accounting specialist to
review areas for improvement and enhancements of efficiency.
• Institute a plan to document the retention of quarterly reports.
Party Responsible for Implementation: Jane Olson, Program Manager
Implementation Start date: January 1, 2024
Signed:
James A. Reiff
Executive Director