Finding 2025-001: Subrecipient monitoring Name of contact person: Shavone Smith, Vice President of Finance, (404) 653-0790 Recommendation: The Foundation should ensure that established policies and procedures that are in place to ensure proper subrecipient monitoring activities are adhered to and if there are delays in performing certain key tasks that a plan with a timeline be developed to address when missed tasks will be completed. Corrective action: The Foundation acknowledges that it did not obtain internal control surveys and audit certification forms for a portion of fiscal year 2025 due to reductions in force and other organizational changes which temporarily limited staff capacity to complete all monitoring activities. Internal control surveys and audit certification fully resumed in October 2025. At that time, we also went back to the period May-October 2025 to perform the procedures that were paused and completed monitoring for all subrecipient agreements that were still active. The procedures we performed retroactively did not indicate any heightened risks for the applicable subrecipients. Additionally, all current subrecipient agreements with end dates beyond October of 2025 have had monitoring completed or are scheduled to be completed (due to more recent start dates). To prevent recurrence, the Foundation has implemented procedural safeguards to ensure continuity of compliance monitoring (specifically internal control survey administration, audit certification and an audit review and follow-up) during periods of staffing or operational disruption. These safeguards include (1) reaffirming formal assignment of responsibility for internal control survey administration and audit certification/foll-up to designated roles rather than individual staff, (2) cross-training of additional personnel to perform these functions as needed, and (3) increased management review to confirm completion and timeliness of monitoring. The Foundation will proactively assess the potential impact of anticipated and unanticipated staffing changes on subrecipient monitoring and compliance activities. Management will identify critical functions (including internal controls surveys and audit certification collection) and will ensure appropriate coverage, cross-training, or alternative resources are in place to maintain compliance with federal requirements. These controls were designed to ensure continuity of compliance activities during periods of staffing transition or operational disruption. Management will monitor compliance with this process on an ongoing basis to ensure monitoring is consistently performed in accordance with policy. Proposed completion date: October 2025