Management agrees with this finding. Management acknowledges that balance sheet reconciliations were not performed or reviewed with sufficient consistency and documentation, which increases the risk that errors, omissions, or unauthorized activity may not be identified on a timely basis. Management will implement a formal reconciliation process for significant balance sheet accounts, including cash, receivables, payables, debt, accrued liabilities, intercompany or related-party balances if applicable, and other key accounts. Reconciliations will be prepared on a documented monthly or quarterly basis depending on account risk and volume, independently reviewed, and retained in a centralized file. Reconciling items will be investigated and resolved within an established deadline, except where a longer period is justified and documented. Corrective action plan: • Adopt a reconciliation policy identifying each significant balance sheet account, frequency of reconciliation, preparer, reviewer, and required supporting documentation. • Prepare monthly reconciliations for cash, major receivables, major payables, payroll liabilities, and debt accounts; prepare quarterly reconciliations for lower-risk or less active balance sheet accounts. • Require independent review and sign-off by the Finance Manager/Controller or General Manager, as appropriate. • Retain all reconciliation workpapers and supporting schedules in an organized electronic and/or paper file. • Establish a requirement that routine reconciling items be cleared within 30 days after identification, and no later than the subsequent monthly close absent documented management approval. Responsible party/role: Staff Accountant or Bookkeeper as preparer; Business Office Manager as primary reviewer; General Manager for oversight. Implementation timeline: Reconciliation templates and the formal policy will be implemented within 60 days of issuance of the audit report. Full documented monthly and quarterly reconciliations will begin with the next monthly close thereafter, and all significant balance sheet accounts are expected to be covered by September 30, 2026.