Freedom House Detroit (FHD) acknowledges the late completion and submission of its 2024 audit and recognizes its responsibility to meet applicable audit and reporting deadlines per the grant terms for Federal Assistance Listing Numbers 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds and 93.268 – Immunization Cooperative Agreements The delay in the 2024 audit resulted primarily from the unresolved backlog associated with the 2022 and 2023 audits and the subsequent transition to a new audit firm. As described in FHD’s response to the 2023 finding, difficulties with the former auditing firm delayed completion of the 2022 audit, which, in turn, postponed the 2023 audit and the start of the 2024 audit. Glen Olivache CPA PC was engaged to complete the 2023 and 2024 audits. Although FHD anticipated that continuity with the same firm would expedite the 2024 audit, the accumulated delays continued to affect the organization’s reporting schedule. FHD recognizes that these circumstances do not relieve the organization of its compliance responsibilities. Under its new executive leadership, FHD has prioritized resolving the audit backlog and strengthening oversight of audit preparation, completion, and submission. To address this finding, FHD has engaged Yeo & Yeo to conduct the 2025 audit, with a targeted completion date of November 2026, contingent upon completion of the 2024 audit and availability of the necessary prior-year documentation. FHD is preparing the required financial records and supporting schedules to facilitate this transition. Going forward, management will maintain an audit and reporting calendar, establish milestones with the external auditor, assign responsibility for preparing and delivering supporting documentation, and monitor progress through regular communication with the auditor and the Board’s Finance and Operations Committee. Any delays that could jeopardize required deadlines will be escalated promptly to executive leadership and the Committee for corrective action. Through these measures, FHD aims to eliminate the audit backlog by the end of 2026 and complete and submit future audits within applicable deadlines.