FAC Explorer

Finding 27972 (2022-006)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-27
Audit: 23914
Organization: Dakota Plains Legal Services, Inc. (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: DPLS failed to complete necessary approvals for a lease over $25,000 and did not update the Grantee Profile after relocating office space.
  • Impacted Requirements: This oversight violates Grant Terms and Conditions, risking submission of disallowed costs under federal awards.
  • Recommended Follow-Up: DPLS should review LSC reporting requirements with staff to prevent future lapses in compliance.

Finding Text

2022-006 Legal Services Corporation CFDA #09-742018 Legal Services Corporation ? Basic Field ? General CFDA #09-742018 Legal Services Corporation ? Basic Field ? Native American Reporting Significant Deficiency in Internal Control over Compliance Criteria: Grant Terms and Conditions No. 6 establishes various reporting requirements for the auditee. Condition: DPLS entered a lease of personal property exceeding $25,000 requiring the completion of an application of approval, however, this was not completed. Additionally, DPLS entered a lease to relocate office space for an existing branch office requiring an update to DPLS? Grantee Profile on GrantEase within 15 calendar days, however, this was not completed. Cause: There was a lapse in oversight of the internal control process ensuring LSC approval was received prior to entering a personal property lease exceeding $25,000. Additionally, there was a lapse in oversight of the internal control process ensuring the Grantee Profile was updated in GrantEase after relocating office space for an existing branch office. Effect: Failure to notify LSC prior to certain events could result in the reasonable possibility that DPLS could submit disallowed costs under the federal award. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 4 out of 8 annual and semi-annual reports were selected for testing. Additionally, as documented within LSC Reporting Requirements, Prior Approval Requirements Applying to Certain Events, Waivers of Requirements Applying to Certain Events and Reports Contingent on the Occurrence of Certain Events were tested in total. Repeat Finding from Prior Year: Yes. 2021-008 reported a similar finding over reporting. Recommendation: We recommend DPLS review LSC reporting requirements with applicable employees. Views of Responsible Officials: Management is in agreement.

Corrective Action Plan

Legal Services Corporation CFDA #09-742018 Legal Services Corporation - Basic Field - General CFDA #09-742018 Legal Services Corporation - Basic Field - Native American Reporting Significant Deficiency in Internal Control over Compliance 2022-006 Condition: DPLS entered into a lease of personal property exceeding $25,000 requiring the completion of an application of approval, however, this was not completed. Additionally, DPLS entered a lease to relocate office space for an existing branch office requiring an update to DPLS' Grantee Profile on GrantEase within 15 calendar days, however, this was not completed. Auditor's Recommendation: We recommend DPLS review LSC reporting requirements with applicable employees. Management's Response: The Executive Director of the program will usually be making the decisions with regards to transactions that will fall under this finding. The ED and any other applicable staff will work to ensure that the proper procedures are followed with regards to these types of transactions. Responsible Individuals: Michelle Lovejoy, Program Administrator, Tom Mortland, Executive Director, Annemarie Michaels, Deputy Director. Anticipated Completion Date: December 31, 2023.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 27969 2022-003
    Material Weakness Repeat
  • 27970 2022-004
    Significant Deficiency Repeat
  • 27971 2022-005
    Significant Deficiency Repeat
  • 27973 2022-003
    Material Weakness Repeat
  • 27974 2022-004
    Significant Deficiency Repeat
  • 27975 2022-005
    Significant Deficiency Repeat
  • 27976 2022-006
    Significant Deficiency Repeat
  • 604411 2022-003
    Material Weakness Repeat
  • 604412 2022-004
    Significant Deficiency Repeat
  • 604413 2022-005
    Significant Deficiency Repeat
  • 604414 2022-006
    Significant Deficiency Repeat
  • 604415 2022-003
    Material Weakness Repeat
  • 604416 2022-004
    Significant Deficiency Repeat
  • 604417 2022-005
    Significant Deficiency Repeat
  • 604418 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
09.742 Basic Field Grant - Native American $1.15M
09.742 Basic Field Grant - Basic $570,744
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $44,066
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $40,583
09.742 Covid-19 Response Grant $9,387