COASTAL COMMUNITY ACTION, INC

To remediate this weakness and strengthen financial reporting, management will implement the following: 1. Monthly Close & Reconciliation Calendar – Establish a documented month-end close checklist with due dates and owners for all key reconciliations (cash, A/R, A/P, payroll liabilities, grants/grant receivables, fixed assets, debt, accrued expenses). 2. Trial Balance–to–GL Tie-Out – Implement a standardized tie-out package requiring each balancesheet account to be supported by a reconciliation that agrees to the detailed GL and the trial balance; variances >$0 must be researched and resolved before closing. 3. Document Standards – Adopt minimum documentation requirements (e.g., bank statements, reconciliations, inventory roll-forwards, grant schedules, amortization/support for accruals) and a centralized digital filing structure to ensure audit-ready support. 4. Adjusting Entry Controls – Require preparer/reviewer sign-off for all journal entries, with written support attached (calculation, source documents) and a monthly summary review by the CFO. 5. Grants & Receivables Subledger – Implement (or remediate) a grants/AR subledger that agrees monthly to the GL, including aging, award mapping, and reconciliation to external funder reports. 6. Training & Accountability – Provide training to finance staff on the close checklist, reconciliation standards, and documentation requirements; performance goals will include timely, accurate completion of assigned reconciliations. 7. Oversight & Governance – Provide the Audit/Finance Committee with a monthly close status report (checklist completion, unreconciled items, and corrective items) until the weakness is fully remediated. 8. Transitional Support – Engage temporary external accounting support, as needed, to clear priorperiod backlogs and to assist with initial implementation of the close process.

Management will ensure that all rental arrangements are supported by executed lease agreements and that such documentation is retained in accordance with federal recordkeeping requirements

management has implemented a monitoring system to ensure earlier coordination with auditors and timely filing going forward.

2023-001

Year audit will be completed on time, ensuring greater efficiency and accountability moving forward.

have taken added controls in places to ensure this issue does not reoccur moving forward.

GSA_MIGRATION

2016-001

GSA_MIGRATION