Finding 1208893 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-27

AI Summary

  • Core Issue: Lack of documented review and approval process for required reports submitted to LSC.
  • Impacted Requirements: Internal control over compliance with reporting criteria under Uniform Guidance and LSC Audit Guides.
  • Recommended Follow-Up: Establish a review process for all financial and performance reports to ensure accuracy and completeness before submission.

Finding Text

Federal Agency: Legal Services Corporation (LSC) Federal Program Name: LSC Grants Assistance Listing Number: 09.742018 Federal Award Identification Number and Year: 09.742018 2025 Award Period: 1/1/2025-12/31/2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Reporting Condition: During our testing of reporting requirements under Uniform Guidance and the LSC Audit Guides, we noted the Organization did not have key internal control around a documented review and approval of the required reports by an informed member of management. Context: The instance was noted during our testing of internal controls over reporting compliance for 9 required report submissions in 2025. Cause: We noted no evidence from management that all reports had been reviewed and approved by someone other than the preparer for those submitted in 2025. We noted timely submissions of all reports, however, no key control was in place over reporting. Effect: Reporting submitted to the funder may contain errors without a documented review process in place to review the completeness and accuracy of the report submissions. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should implement a review process for all financial and performance reports required for submission during each year to ensure completeness and accuracy of the report submissions. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

LSC Grants (Basic and Native American) – Assistance Listing No. 09.742018 Recommendation: The Organization should implement a review process for all financial and performance reports required for submission during each year to ensure completeness and accuracy of the report submissions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement a formal report review and certification process for all required financial and performance reports submitted to LSC. This process will include: • Development of a report submission calendar identifying all required filings and deadlines • Use of a standardized pre-submission checklist to verify completeness, accuracy, and consistency with underlying financial and case management data (including LegalServer reports) • A two-level review protocol: o Initial preparation and verification by responsible staff o Final review and certification by the Executive Director or Deputy Director • Reconciliation of financial reports to the general ledger and supporting documentation prior to submission • Retention of review documentation demonstrating compliance with this process This structured review process will ensure timely, accurate, and complete reporting in accordance with LSC requirements. Name(s) of the contact person(s) responsible for corrective action: William Sulik, Interim Executive Director and Lori Stanford, Deputy Director Planned completion date for corrective action plan: June 30, 2026

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1208890 2025-002
    Material Weakness Repeat
  • 1208891 2025-002
    Material Weakness Repeat
  • 1208892 2025-003
    Material Weakness Repeat
  • 1208894 2025-004
    Material Weakness Repeat
  • 1208895 2025-004
    Material Weakness Repeat
  • 1208896 2025-005
    Material Weakness Repeat
  • 1208897 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
09.U02 Basic Field Grant - Native American $1.83M
09.U01 Basic Field Grant - Basic $587,202
16.815 TRIBAL CIVIL AND CRIMINAL LEGAL ASSISTANCE GRANTS, TRAINING AND TECHNICAL ASSISTANCE $119,309
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $91,721
16.021 JUSTICE SYSTEMS RESPONSE TO FAMILIES $4,290