Finding Text
Finding 2024-009 LSC Financial Guide § 3.2.1 Bank accounts 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 § 3.2.1 Bank accounts, the recipient needs to have policies and procedures for all banking activities, including electronic banking. Specifically, LSC requires recipients to conduct risk assessments of their electronic banking policies and procedures to identify areas that need additional safeguards and protections. Condition: MLSC did not have policies and procedures for this area and no risk assessment was conducted for this area. Cause : MLSC failed to update the policies and procedures to include the risk assessment to meet the LSC financial guide requirement. Effect: MLSC's lack of documented policies, procedures, and risk assessments for banking activities, including electronic banking, increases the risk of non-compliance with LSC requirements and potential mismanagement or fraud related to bank accounts. Recommendation: MLSC should develop and implement comprehensive policies and procedures for all banking activities, including electronic banking, and conduct formal risk assessments to identify and address vulnerabilities. This will ensure compliance with LSC Financial Guide § 3.2.1 and enhance the safeguarding of their banking operations. Finding 2024-009 LSC Financial Guide § 3.2.1 Bank accounts, continued Management’s Response and Corrective Action Plan: See the response on finding 2024-009