Goodwill Educates, IncNon-Profit

Goodwill Educates, Inc. acknowledges the finding related to the inclusion of in-kind contribution expenses in a federal reimbursement request. We agree with the auditor’s assessment that this was an isolated error. Upon internal review, we determined that the error stemmed from a misclassification during the preparation of the reimbursement documentation. The expenses in question were supported by in-kind contributions and not actual cash disbursements, and therefore should not have been submitted for reimbursement. Corrective action was taken by Goodwill Educates, Inc. and all in-kind contributions submitted for federal reimbursement have been billed to the school by Evansville Goodwill Industries, Inc. and cash disbursements will be made. A reimbursable bill for these in-kind contributions was submitted to Goodwill Educates, Inc. in September 2025 and funds will be disbursed in October 2025. Internal training will be conducted with all Finance staff, contracted with Goodwill Educates, Inc., to review and re-train on proper federal reimbursement procedures. An internal control of two separate finance staff to review all federal reimbursement requests prior to submission will be implemented by the organization in the 4th quarter of 2025.