FAC Explorer

Audit 355304

FY End
2024-12-31
Total Expended
$6.00M
Findings
12
Programs
10
Organization: Dna - People's Legal Services, Inc. (AZ)
Year: 2024 Accepted: 2025-05-01
Auditor: Jaramillo Accounting Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
559039 2024-001 Significant Deficiency - B
559040 2024-001 Significant Deficiency - B
559041 2024-001 Significant Deficiency - B
559042 2024-001 Significant Deficiency - B
559043 2024-001 Significant Deficiency - B
559044 2024-001 Significant Deficiency - B
1135481 2024-001 Significant Deficiency - B
1135482 2024-001 Significant Deficiency - B
1135483 2024-001 Significant Deficiency - B
1135484 2024-001 Significant Deficiency - B
1135485 2024-001 Significant Deficiency - B
1135486 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
09.703 Basic Field Grant - Native American - Arizona $3.65M Yes 1
09.703 Basic Field Grant - Arizona $1.12M Yes 1
09.703 Basic Field Grant - New Mexico $449,154 Yes 1
21.008 Low Income Taxpayer Clinics $184,121 - 0
93.558 Temporary Assistance for Needy Families $126,577 - 0
16.575 Crime Victim Assistance $72,870 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $53,281 - 0
09.703 Carry Forward 2023 $22,582 Yes 1
09.703 Basic Field Grant - Native American - New Mexico Jicarilla Apache $11,045 Yes 1
09.703 Basic Field Grant - Technical Improvement Grant $313 Yes 1

Contacts

Name Title Type
H54FSY1P38P3 Rodolfo D. Sanchez Auditee
9288715630 Scott Eliason Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of DNA - People's Legal Services, Inc. under programs of the federal government for the year ended December 31, 2024. 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 DNA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of DNA. 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. De Minimis Rate Used: N Rate Explanation: DNA has not elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs.

Finding Details

Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.
Finding 2024-001
2024-001 FOLLOW UP ON THE LEGAL SERVICES CORPORATION OFFICE OF THE INSPECTOR GENERAL - AUDIT OF SELECTED INTERNAL CONTROLS Federal Agency: Legal Services Corporation Federal Program Information & Assistance Listing Number: 09.703068 Award Period: 1/1/2024 to 12/31/2024 Type of Findings: Significant Deficiency, Material Non-compliance Compliance Areas: Allowable Cost and Cost Principles Questioned Costs: None Condition The Legal Services Corporation Office of Inspector General issued a final report (OIG Report) on December 2, 2024 for its testing of internal control and operational activities and noted inadequate policies, practices, and oversight over ten of eleven areas (formalize internal controls in writing for fixed assets, cost allocation, credit cards, contracting, derivative income, general ledger and financial control, disbursements, budgeting and management reporting, payroll, and client trust funds for the period of January 1, 2022 through April 30, 2023. Given the timing of the December 2, 2024 OIG Report, certain conditions existed during the annual audit of the year-ended December 31, 2024. As of April 30, 2025, management has updated most of the policies noted in the OIG report; however, the policies mentioned in the OIG report have not been reviewed or adopted by the Board. Criteria 45 CFR Subtitle B - Subtitle B-Regulations Relating to Public Welfare, Chapter XVI - CHAPTER XVI- LEGAL SERVICES CORPORATION, § 1600.1 - § 1600.1 as further clarified in the LSC Financial Guide. Effect DNA is not in compliance with Legal Services Corporation federal statutes as further clarified in the LSC Financial Guide. Cause Primarily due to turnover and short staffing in the accounting transaction cycle. Additionally, with the last update of the accounting policies in November 2019, many of the policies have not since been updated as they do not conform to the LSC's current compliance requirements.