FAC Explorer

Audit 310608

FY End
2023-12-31
Total Expended
$5.96M
Findings
2
Programs
8
Organization: Nevada Legal Services, Inc. (NV)
Year: 2023 Accepted: 2024-06-27
Auditor: Ellsworth & Stout LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403577 2023-002 Significant Deficiency - N
980019 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
09.U01 Legal Services Program $5.06M Yes 1
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $347,765 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $153,524 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $107,636 - 0
93.917 Hiv Care Formula Grants $103,240 - 0
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $82,819 - 0
64.056 Legal Services for Vetrans Grant $68,228 - 0
21.008 Low Income Taxpayer Clinics $18,917 - 0

Contacts

Name Title Type
G7GWK4E3J8C1 Alex Cherup Auditee
7752843491 Jeff Stout Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Nevada Legal Services, Inc. (the “Organization”) 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”). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For cost reimbursement grants, federal awards are considered expended when the transactions occur. For program income, federal awards are considered expended when funds are received or used. Indirect Cost Rate The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Nevada Legal Services, Inc. (the “Organization”) 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”). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For cost reimbursement grants, federal awards are considered expended when the transactions occur. For program income, federal awards are considered expended when funds are received or used. Indirect Cost Rate The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Finding: 2023-002 ALN and Title: 09.829050 – Legal Services Program Cluster Name: N/A Federal Agency: Office of Inspector General – Legal Services Corporation Passthrough Entity: N/A Type of Finding: Significant Deficiency Compliance Requirement: N. Special Tests and Provisions – Compliance Supplement for Audits of LSC Recipients Part 1631 Purchasing and Property Management and the LSC Financial Guide (effective January 1, 2023). Criteria: The Compliance Supplement for Audits of LSC Recipients Part 1631 Purchasing and the LSC Financial Guide states, “Recipients are required to conduct a physical count of assets listed in the property subsidiary ledger at least once every two (2) years. Recipients must document the inventory process and investigate and reconcile any differences… Recipients must inventory information technology equipment that contains sensitive information, regardless of the equipment’s value.” Condition: During testing procedures over Part 1631, it was noted that the Organization had not performed a physical count of assets since 2021. Cause: The Organization has had significant changes in upper management, including accounting personnel, during the past two years. The Organization did not have adequate internal controls to ensure that through transitions, a physical count of assets listed in the property subsidiary ledger was completed once every two years. Effect: Items were included on the property subsidiary ledger (fixed asset schedule) that were related to a building that was sold during the fiscal year and should have been removed. Questioned costs: N/A Context: The Organization did not have proper controls in place to track asset purchases and disposals during the fiscal year. Recommendation: It is recommended that the Organization implement adequate controls to ensure a physical count of assets is performed at least once every two years. This physical count should be reconciled to the property subsidiary ledger. The Organization should also inventory technology equipment that contains sensitive information (e.g. any computer or device with confidential client information), regardless of the equipment’s value. Views of Responsible Officials: Management agrees with this recommendation. See auditee prepared corrective action plan for details.
Finding 2023-002
Finding: 2023-002 ALN and Title: 09.829050 – Legal Services Program Cluster Name: N/A Federal Agency: Office of Inspector General – Legal Services Corporation Passthrough Entity: N/A Type of Finding: Significant Deficiency Compliance Requirement: N. Special Tests and Provisions – Compliance Supplement for Audits of LSC Recipients Part 1631 Purchasing and Property Management and the LSC Financial Guide (effective January 1, 2023). Criteria: The Compliance Supplement for Audits of LSC Recipients Part 1631 Purchasing and the LSC Financial Guide states, “Recipients are required to conduct a physical count of assets listed in the property subsidiary ledger at least once every two (2) years. Recipients must document the inventory process and investigate and reconcile any differences… Recipients must inventory information technology equipment that contains sensitive information, regardless of the equipment’s value.” Condition: During testing procedures over Part 1631, it was noted that the Organization had not performed a physical count of assets since 2021. Cause: The Organization has had significant changes in upper management, including accounting personnel, during the past two years. The Organization did not have adequate internal controls to ensure that through transitions, a physical count of assets listed in the property subsidiary ledger was completed once every two years. Effect: Items were included on the property subsidiary ledger (fixed asset schedule) that were related to a building that was sold during the fiscal year and should have been removed. Questioned costs: N/A Context: The Organization did not have proper controls in place to track asset purchases and disposals during the fiscal year. Recommendation: It is recommended that the Organization implement adequate controls to ensure a physical count of assets is performed at least once every two years. This physical count should be reconciled to the property subsidiary ledger. The Organization should also inventory technology equipment that contains sensitive information (e.g. any computer or device with confidential client information), regardless of the equipment’s value. Views of Responsible Officials: Management agrees with this recommendation. See auditee prepared corrective action plan for details.