LEADERSHIP FOUNDATIONS CORRECTIVE ACTION PLAN September 26, 2023 Corrective action plan in response to: Schedule of Findings and Questioned Costs Year Ended December 31, 2022 Section III ? Federal Award Findings and Questioned Costs 2022-001 Award Expenditures and Cutoff Finding Purchases at the end of the grant period were for items not obtained or utilized by the organization until after the grant period. Software was ordered September 29, 2022, the day before the last day of the grant period. The software continuation license, support and one year benefit of use for the Organization did not commence until November 1, 2022. Auditor?s Recommendations We recommend that the organization utilize grant funding for expenditures in accordance with the requirements of the grant, keeping in mind accrual-based accounting standards for expenses related to the grant period. Corrective Action Plan Upon receiving the finding, Leadership Foundations will adhere to accrual-based accounting standards and the proper timing of expenses according to the grant period. To maintain compliance with the DOJ guidelines, both the obligation of funds for services outside of the grant and the date of funds expended outside of grant period will be taken into consideration. Further follow-up will be taken for clarification to determine whether the services were performed prior to the end of the performance period versus meeting the allowance to expense in the liquidation period. Staff Member Responsible for Correction Action Plan: Larry Lloyd, President Corrective Action Plan actions implemented and effective September 26, 2022.