Finding Text
2022-004 Legal Services Corporation CFDA #09-742018 Legal Services Corporation ? Basic Field ? General CFDA #09-742018 Legal Services Corporation ? Basic Field ? Native American Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Criteria: 45 CFR 1630 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance identified in which hours worked by an employee did not agree to hours paid. Cause: There was a lapse in oversight of the internal control process ensuring hours worked reconciled to hours paid. Effect: DPLS? controls did not detect or correct the errors identified, which results in a reasonable possibility that DPLS could submit disallowed costs under the federal award. Questioned Costs: None reported. The error was corrected in a subsequent pay period. Context/Sampling: A nonstatistical sample of 60 payroll transactions that had time charged to the LSC grants were reviewed. Total LSC direct payroll accounted for $539,572 out of $876,222 direct payroll expenditures. Repeat Finding from Prior Year: Yes. 2021-004 reported a similar finding over payroll. Recommendation: We recommend DPLS review payroll policies and procedures with applicable employees to ensure compliance with documented procedures. Views of Responsible Officials: Management is in agreement.