EIN: 251741353
UEI: H477TNBLGUD6
Audited by: Tarwater & Company, PC
Oversight agency: 16 [Department of Justice]
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Showing data from August 28, 2026 — the Federal Audit Clearinghouse is under high demand right now, so this couldn't be refreshed. This is the most recent data on record, not necessarily today's.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 21, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 21, 2026 (222 days ago).
What is a management decision? →FAC accepted this audit on September 25, 2024 — management decision was due March 25, 2025.
FAC accepted this audit on September 27, 2023 — management decision was due March 27, 2024.
Criteria Purchases and commitments to purchase during the grant period should be for expenses for the grant period. Condition Purchases at the end of the grant period were for items not obtained or utilized by the organization until after the grant period. Context Software was ordered September 29th, 2022, 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. Cause The organization interpreted a decision to make a prepaid purchase for an asset to be used after the grant period to be acceptable use of funds. Effect The grant expenditures were overstated by $36,400. The grant was improperly billed for the purchase and reimbursed. A payable to the grantor was not recorded, and grant revenue was overstated by the improperly billed and reimbursed amount. The prepaid asset was not recognized. 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.
Show full finding ▾Hide full finding ▴Criteria Purchases and commitments to purchase during the grant period should be for expenses for the grant period. Condition Purchases at the end of the grant period were for items not obtained or utilized by the organization until after the grant period. Context Software was ordered September 29th, 2022, 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. Cause The organization interpreted a decision to make a prepaid purchase for an asset to be used after the grant period to be acceptable use of funds. Effect The grant expenditures were overstated by $36,400. The grant was improperly billed for the purchase and reimbursed. A payable to the grantor was not recorded, and grant revenue was overstated by the improperly billed and reimbursed amount. The prepaid asset was not recognized. 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.
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.
FAC accepted this audit on September 25, 2022 — management decision was due March 25, 2023.
Criteria All accounts should be reconciled monthly to detail supporting ledgers. Condition Several accounts not related to federal funding were not reconciled at year-end to detail support and resulted in improper cutoff for transactions. The accounts receivable and bank reconciliation issues together resulted in three versions of the trial balance. Context Several accounts were not reconciled by year-end resulting in an adjustment to correct accounts receivable and accounts payable. The initial December bank reconciliation for the operating account was significantly less than the trial balance. Cause Year-end closing reconciliations were incomplete. Effect Accounts receivable was initially misstated, requiring correction to increase the account and revenue. Accounts payable included expenses that related to the next fiscal year and the amounts were removed. The bank reconciliation for December was updated, and as a result, all the bank reconciliations for 2021 were updated. The last version of the trial balance was received on the last day of the audit. Auditor's Recommendations We recommend that procedures are implemented and followed to reconcile all statement of financial position accounts to detail supporting ledgers monthly. We also recommend providing additional resources to assist with the monthly reconciliations.
Show full finding ▾Hide full finding ▴Criteria All accounts should be reconciled monthly to detail supporting ledgers. Condition Several accounts not related to federal funding were not reconciled at year-end to detail support and resulted in improper cutoff for transactions. The accounts receivable and bank reconciliation issues together resulted in three versions of the trial balance. Context Several accounts were not reconciled by year-end resulting in an adjustment to correct accounts receivable and accounts payable. The initial December bank reconciliation for the operating account was significantly less than the trial balance. Cause Year-end closing reconciliations were incomplete. Effect Accounts receivable was initially misstated, requiring correction to increase the account and revenue. Accounts payable included expenses that related to the next fiscal year and the amounts were removed. The bank reconciliation for December was updated, and as a result, all the bank reconciliations for 2021 were updated. The last version of the trial balance was received on the last day of the audit. Auditor's Recommendations We recommend that procedures are implemented and followed to reconcile all statement of financial position accounts to detail supporting ledgers monthly. We also recommend providing additional resources to assist with the monthly reconciliations.
LEADERSHIP FOUNDATIONS CORRECTIVE ACTION PLAN September 21, 2022 Corrective action plan in response to: Schedule of Findings and Questioned Costs Year Ended December 31, 2021 Section II ? Financial Statement Findings 2021-001 Account Reconciliations and Cutoff Finding Several accounts not related to federal funding were not reconciled at year-end to detail support and resulted in improper cutoff for transactions. Auditor?s Recommendations Leadership Foundations should implement and follow procedures to reconcile all statement of financial position accounts to detail supporting ledgers monthly. It is also recommended that Leadership Foundations provide additional resources to assist with the monthly reconciliations. Actions Taken Upon receiving the finding, Leadership Foundations immediately implemented month-end procedures to reconcile accounts on the statement of financial position to their supporting detail ledgers. These procedures have been documented in their Accounting Policies and Procedures manual. Staff Member Responsible for Correction Action Plan: Christa Mooi, Finance Director Corrective Action Plan actions implemented and effective September 21, 2022.
FAC accepted this audit on September 26, 2021 — management decision was due March 26, 2022.
FAC accepted this audit on September 24, 2020 — management decision was due March 24, 2021.
Section III - Federal Award Findings and Questioned Costs 2019-001 Schedule of Federal Awards Funding Agency: Department of Justice CFDA Number: 16.726 Criteria The schedule of federal awards ("SEFA") is required to be prepared in accordance with the Uniform Guidance to reflect expenditures of federal awards. Condition The SEFA, as originally prepared, was materially understated. Context The SEFA did not accurately reflect the proper amount of federal expenditures and it was understated. Effect The SEFA did not properly reflect the amount of federal awards as required by the Uniform Guidance. Cause The SEFA was completed using spreadsheets maintained by Leadership Foundations to track reimbursements rather than actual expenditures that were expensed in the general ledger. Auditor's Recommendation We recommend staff training in preparation of the SEFA and the implementation of procedures to provide oversight that ensures the completion of an accurate SEFA.
Show full finding ▾Hide full finding ▴Section III - Federal Award Findings and Questioned Costs 2019-001 Schedule of Federal Awards Funding Agency: Department of Justice CFDA Number: 16.726 Criteria The schedule of federal awards ("SEFA") is required to be prepared in accordance with the Uniform Guidance to reflect expenditures of federal awards. Condition The SEFA, as originally prepared, was materially understated. Context The SEFA did not accurately reflect the proper amount of federal expenditures and it was understated. Effect The SEFA did not properly reflect the amount of federal awards as required by the Uniform Guidance. Cause The SEFA was completed using spreadsheets maintained by Leadership Foundations to track reimbursements rather than actual expenditures that were expensed in the general ledger. Auditor's Recommendation We recommend staff training in preparation of the SEFA and the implementation of procedures to provide oversight that ensures the completion of an accurate SEFA.
CORRECTIVE ACTION PLAN Corrective action plan in response to: Schedule of Findings and Questioned Costs Year Ended December 31, 2019 Section III ? Federal Award Findings and Questioned Costs 2019-001 Schedule of Federal Awards Finding The SEFA, as originally prepared, was materially understated. The SEFA did not accurately reflect the proper amount of federal expenditures and it was understated. The SEFA did not properly reflect the amount of federal awards as required by the Uniform Guidance. The SEFA was completed using spreadsheets maintained by Leadership Foundations to track reimbursements rather than actual expenditures that were expensed in the general ledger. Auditor?s Recommendations We recommend staff training in preparation of the SEFA and the implementation of procedures to provide oversight that ensures the completion of an accurate SEFA. Actions Taken Leadership Foundations immediately remedied the finding upon receiving the finding. Leadership Foundations immediately added documentation into the Accounting Policies and Procedures manual to reflect correct preparation and completion of an accurate SEFA. Staff member responsible for Correction Action Plan: Jacki Michaels, CFO. Corrective Action Plan actions implemented and effective on August 31, 2020.
2018-001
FAC accepted this audit on September 29, 2019 — management decision was due March 29, 2020.
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Show full finding ▾Hide full finding ▴FAC accepted this audit on September 26, 2018 — management decision was due March 26, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on June 14, 2017 — management decision was due December 14, 2017.
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