Finding Text
Finding 2024-007 LSC Financial Guide § 2.1.1 a. General Accounting Controls Grantor: Legal Services Corporation Program Name: Legal Services Corporation Basic Field Grant CFDA No.: 09.952000 Award No.: Basic Field Grant Award Year: 2024 Repeat Finding From Prior Audit? No Finding Type: Significant deficiency Criteria: Per LSC Financial Guide § 2.1.1 a. general accounting controls, the recipient needs to have written policies and procedures to request and approve changes to the chart of accounts. Condition: MLSC does not have written policies and procedures to request and approve changes to the chart of accounts. We did not see any documentation to indicate any requests or approvals of the changes to the chart of accounts. Cause : MLSC did not establish policies and procedures to govern the changes to the chart of accounts. Effect: The absence of documented policies and procedures for requesting and approving changes to the chart of accounts results in noncompliance with LSC Financial Guide § 2.1.1(a). Without formal controls, there is an increased risk of unauthorized or inconsistent account changes, misclassification of transactions, and reduced reliability of financial reporting. Recommendation: MLSC should develop and implement written policies and procedures governing changes to the chart of accounts. These procedures should outline who may request changes, who must review and approve them, and what documentation is required to ensure proper authorization and maintain an accurate and controlled accounting structure. Finding 2024-007 LSC Financial Guide § 2.1.1 a. General Accounting Controls, continued Management’s Response and Corrective Action Plan: Management agrees. Management has addressed this as follows: Responsible person: Lee Pliscou Since July 2024, management has required that accounting staff must request changes to the chart of accounts by completing a Google Form, which is reviewed and approved by the Executive Director. This policy is carried over into our new Accounting Manual, approved by MLSC’s Board in October 2025: • Accounting staff must request any changes to our GL account using this form: https://docs.google.com/forms/d/e/1FAIpQLSceN9Qaipv786HA5HH8VR2ayb6MmtW-aocJDYwHauU1RLC45w/viewform?usp=sf_link • The Executive Director will review these promptly, and approve as informed by our financial operations. • Records of the request and review are saved here: https://docs.google.com/spreadsheets/d/10__3CiYXwORgspzysd_xtnxYFovuPeDLbHSAN3A2JQE/edit?usp=sharing We have been using this form since July 2024. Anticipated completion date: Completed.