We acknowledge the deficiencies noted in Finding 2024-001 and are taking proactive steps to strengthen our internal controls and year-end procedures. Regarding the missed accounts payable entries, we recognize that these two payments in 2025 should have been recorded as 2024 liabilities. To address this, we will implement a more rigorous review process for yearend payables. Moving forward, we will ensure that all invoices are not only recorded promptly within Bill.com but also subjected to additional layers of review at year-end to confirm proper
period recognition. Having the presence of a dedicated Controller throughout the fiscal year will also further strengthen oversight and improve accuracy in financial reporting.
For the Blight program, we have established a repeatable treatment approach to ensure consistency. When new situations arise, our team will meet to determine the appropriate accounting treatment and ensure proper documentation.