COMMONLIT INC

Finding 2020-001 ? Late Filing of the Single Audit Report to the Federal Audit Clearinghouse Federal Programs: All Criteria or Specific Requirements: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The Organization filed its Single Audits with the Federal Audit Clearinghouse (FAC) after the due dates for the years ended December 31, 2019 and 2018. Cause: The Organization does not have a formal policy to monitor the filing of the Single Audit by the due date. Effect: Failure to submit the Single Audit to the Federal Audit Clearinghouse by the due date. Questioned Costs: None. Context: The Organization relied on the auditor for the Single Audit report submission and did not have a proper monitoring procedure in place. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization develop a formal policy to monitor the Single Audit filings due dates and submissions. Views of Responsible Officials and Planned Corrective Actions: The Organization has retained a new auditor and new outside accountants, and has developed a formal policy and implemented to ensure that Single Audit filings will be submitted timely in the future. Title of Responsible Officials: Executive Director Chief Operating Officer Anticipated Completion Date: Completed

CommonLit, Inc. Corrective Action Plan for Current Year Audit Finding Year Ended December 31, 2020 September 30, 2021 In accordance with Title 2 CFR 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements under Section 200.511, ?Audit Findings Follow-Up?, the following details the corrective action plan to be taken for the finding disclosed in the December 31, 2020 year-end audit: Federal Award Findings and Questioned Costs under 2 CFR 200.516(a): Finding 2020-001 Federal Programs: All Criteria or Specific Requirements: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse by the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The Organization filed its Single Audits with the Federal Audit Clearinghouse (FAC) after the due dates for the years ended December 31, 2019 and 2018. Cause: The Organization relied on its auditor and outside accountants for the Single Audit report submission and did not have a proper monitoring procedure in place to ensure timely filing. Effect: Failure to submit the Single Audit to the Federal Audit Clearinghouse by the due date. Questioned Costs: None. Context: The Organization relied on the auditor for the Single Audit report submission and did not have a proper monitoring procedure in place. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Organization develop a formal policy to monitor the Single Audit filings due dates and submissions. Views of Responsible Officials and Planned Corrective Actions: The Organization has retained a new auditor and new outside accountants, and has developed a formal policy and implemented to ensure that Single Audit filings will be submitted timely in the future. Title of Responsible Officials: Executive Director Chief Operating Officer Anticipated Completion Date: Completed ____________________________________________________ Michelle Brown Chief Operating Officer CommonLit, Inc.