Finding 1130494 (2023-002)

Finding: Item 2023-002–Procurement Procedures Legal Services Corporation 2022 Disaster Supplement Grant (CFDA# 09.737018) Material Weakness Criteria: Management is responsible for designing, implementing, and maintaining effective internal controls to ensure compliance with grant requirements. Condition/context: The Organization's policy and procedures for procuring fixed assets require fixed asset purchases greater than $25,000 to be approved by the Board of Directors. During the year ended December 31, 2023, there was one fixed asset purchase meeting this criterion, however, there was no documentation that the Board of Directors approved the purchase. Cause: This was an oversight by the responsible parties. Effect: The designed control was not operating effectively. However, as the fixed asset was an allowable purchase, it did not result in any noncompliance. Questioned Cost: Not applicable. Repeat finding: This is not a repeat finding. Recommendation: We recommend that the Organization operate the control as designed and seek board approval for fixed asset purchases greater than $25,000. Views of responsible officials: See corrective action plan.