FAC Explorer

Audit 311639

FY End
2023-12-31
Total Expended
$1.42M
Findings
12
Programs
7
Organization: Legal Services of North Dakota (ND)
Year: 2023 Accepted: 2024-07-03
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
406475 2023-001 Significant Deficiency - N
406476 2023-001 Significant Deficiency - N
406477 2023-001 Significant Deficiency - N
406478 2023-002 Significant Deficiency - N
406479 2023-002 Significant Deficiency - N
406480 2023-002 Significant Deficiency - N
982917 2023-001 Significant Deficiency - N
982918 2023-001 Significant Deficiency - N
982919 2023-001 Significant Deficiency - N
982920 2023-002 Significant Deficiency - N
982921 2023-002 Significant Deficiency - N
982922 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
09.535 Base Grant $802,879 Yes 2
09.535 Native American $457,289 Yes 2
16.575 Crime Victim Assistance $44,594 - 0
09.535 2022 Disaster Relief Supplemental Appropriation $6,532 Yes 2
16.588 Violence Against Women Formula Grants $6,010 - 0
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $4,369 - 0
64.056 Veteran Grants Program $1,118 - 0

Contacts

Name Title Type
F8U6Q57QG219 Kim Kramer Auditee
7012222110 Nicole Heldstab Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Legal Services of North Dakota has elected not to use the 10-percent de minimis cost rate as allowed under Uniform Guidance. The schedule includes the federal award activity of Legal Services of North Dakota 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 (CFR) 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 Legal Services of North Dakota, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. The amounts reported on the schedule have been reconciled to and are in agreement with amounts recorded in the accounting records from which the financial statements have been reported.

Finding Details

Finding 2023-001
Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.
Finding 2023-001
Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.
Finding 2023-001
Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.
Finding 2023-002
Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.
Finding 2023-002
Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.
Finding 2023-002
Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.
Finding 2023-001
Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.
Finding 2023-001
Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.
Finding 2023-001
Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.
Finding 2023-002
Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.
Finding 2023-002
Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.
Finding 2023-002
Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.