Management has carefully reviewed the contract governing its CDBG loan and attendant accounting requirements, including compliance with the US GAAP and single audit obligations. Given the issues that were identified and corrected during the course of the single audit, the Foundation is in the process of replacing its third-party accountant with a team that has significant experience with the US GAAP and the requirements that arise upon an award of Federal grant funds. The Foundation’s duties under the current contract will be unequivocally communicated to its new accountant of record. In addition, Management, by and through its Treasurer, will carefully review financial documents completed by the Foundation’s third-party accountant on a quarterly basis to ensure that all transactions related to the CDBG contract are appropriately entered pursuant to the agreement, the US GAAP, and all other governing protocols. If any ambiguities or uncertainties arise as to the entry of transactions related to the CDBG contract, the Foundation will immediately consult with the officials from the City of Los Angeles overseeing the administration of the agreement to ensure proper recording. To the extent the Foundation receives further federal awards, it will consult with the grantor upon execution of the governing contract to guarantee all related transactions are appropriately categorized and recorded in its books.