Finding 2023-003 Material Audit Adjustments Contact person responsible for corrective action: Bryana Marsicano, Chief Executive Officer Anticipated completion date: June 30, 2027 Corrective Action: Management agrees with the finding and will strengthen its month-end and year-end closing processes as follows: • Adopt a written month-end and year-end close calendar identifying each required procedure, the assigned preparer, the reviewer, and the due date. • Reconcile all significant balance sheet accounts on a monthly or quarterly basis, including cash, fees and grants receivable, property and equipment, accrued payroll and related liabilities, and refundable advances. • Reconcile the fixed asset subledger to the general ledger at least annually, including the fixed asset clearing account, and document the reconciliation. Prepare a schedule of refundable advances by funding source at each reporting date, reconciled to the executed award, cumulative expenditures, and cumulative amounts drawn. • Review all clearing and suspense accounts monthly, clear them to zero, and document any balance that remains. • Require documented supervisory review of journal entries above an established dollar threshold before posting. • Complete and review a year-end close checklist before the trial balance is released to the auditors. Corrective action already taken: The fixed asset subledger has been rebuilt and reconciled to the general ledger, and the land account has been reconciled in full from inception. Reconciliations of deferred and refundable grant balances by funding source have been prepared and provided to the auditors.