FAC Explorer

Audit 307340

FY End
2023-12-31
Total Expended
$4.00M
Findings
10
Programs
9
Organization: Southern Minnesota Regional Legal Services Inc. (MN)
Year: 2023 Accepted: 2024-05-28
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398591 2023-002 Significant Deficiency - P
398592 2023-002 Significant Deficiency - P
398593 2023-002 Significant Deficiency - P
398594 2023-002 Significant Deficiency - P
398595 2023-002 Significant Deficiency - P
975033 2023-002 Significant Deficiency - P
975034 2023-002 Significant Deficiency - P
975035 2023-002 Significant Deficiency - P
975036 2023-002 Significant Deficiency - P
975037 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
09.524 Basic Field and Pai Grants $2.13M Yes 1
09.524 Migrant Grant $764,726 Yes 1
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $173,422 Yes 0
16.575 Crime Victim Assistance $173,191 - 0
14.418 Private Enforcement Initiatives $170,111 - 0
09.524 Technology Improvement Grant $61,909 Yes 1
14.169 Housing Counseling Assistance Program $57,122 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $41,553 - 0
09.524 Adoption, Expansion and Enhancement Grant $12,397 Yes 1

Contacts

Name Title Type
JA21LVFA85V4 Vannam Khen Auditee
6512289823 Rebekah Martin Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 2 CFR 200.510(b)(6) De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of Southern Minnesota Regional Legal Services, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Guide. Because this Schedule presents only a selected portion of the operations of Southern Minnesota Regional Legal Services, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Southern Minnesota Regional Legal Services, Inc.
Title: Summary of Significant Accounting Policies Accounting Policies: 2 CFR 200.510(b)(6) De Minimis Rate Used: N Rate Explanation: N/A Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the Guide, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: Indirect Cost Rate Accounting Policies: 2 CFR 200.510(b)(6) De Minimis Rate Used: N Rate Explanation: N/A Southern Minnesota Regional Legal Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.
Finding 2023-002
Criteria: Legal Services Corporation (LSC) grant recipients are required to establish and maintain adequate accounting systems and financial records to accurately account for all funds (both LSC and non-LSC funds). LSC requires recipients and subrecipients to (1) responsibly manage all funds pursuant to the cost standards and procedures of 45 C.F.R. Part 1630 and other LSC regulations at 45 C.F.R. Parts 1600-1644; and (2) record transactions in accounting records and, where required, prepare annual financial statements in accordance with GAAP. Recipients are also required to adhere to requirements of the LSC Financial Guide (effective January 1, 2023) including Section 2 "Accounting Systems and Governance" and Section 3 "Managing LSC Grants." Condition/Context: The Organization's written policies and procedures did not meet the requirements outlined by the LSC Financial Guideline and other LSC regulations. Cause: The Organization did not align its policies and procedures with the recently issued LSC Financial Guide. The updated Guide required operational changes that had not yet been implemented. Effect: Lack of proscribed procedures and controls could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise their written policies and operational procedures to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the Organization’s accounting manual to align with the regulatory requirements. The Director of Finance will work directly with the Organization’s assigned Fiscal Compliance Analyst from Legal Services Corporation (LSC) to ensure policies and procedures are aligned with LSC’s Financial Guide. The Director will review the Organization’s accounting manual annually and will notify the CEO and the Finance and Audit Committee of any updates to any policy and procedures.