Finding Text
Accounting Requirements. Condition: The Organization has not yet implemented written policies and procedures to adhere to the LSC Financial Guide, effective January 1, 2023. Criteria: The LSC Financial Guide sets forth financial, accounting and reporting standards for recipients of LSC funds and describes the accounting policies, records and internal control procedures to be maintained to ensure the integrity of financial, accounting, reporting systems. Cause: The Organization has written policies and procedures in the form of an Accounting Procedures Manual which was last updated in August 2020, and a Compliance Manual that was last updated in March 2020. Revising both of these manuals requires considerable internal collaboration. Effect: The Organization is not in compliance with the Part D, Other Compliance Requirements, Accounting Requirements of the Compliance Supplement for Audits of LSC Recipients (October 2023). Recommendation: Senior management of the Organization should review, revise and consolidate the Accounting Procedures Manual and Compliance Manual to more closely align to the financial, accounting and reporting requirements of the LSC Financial Guide. View of Responsible Official: Beginning in 2024, the Executive Director has been holding weekly meetings with senior management to revise and update the Accounting Procedures Manual and Compliance Manual with an anticipated completion date of June 30, 2024.