Finding 395025 (2023-101)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-29
Audit: 304957
Organization: Community Legal Services (AZ)

AI Summary

  • Core Issue: The organization failed to submit 2 out of 5 required board meeting minutes on time.
  • Impacted Requirements: Compliance with Legal Services Corporation grant terms, specifically the reporting of board meeting minutes every six months.
  • Recommended Follow-Up: Implement policies and procedures to ensure timely submission of all board meeting minutes.

Finding Text

Finding 2023-101 — Semi-Annual Reports – Significant Deficiency in Internal Controls over Compliance (Compliance - Reporting) Federal program information: Funding agencies: Legal Services Corporation Titles: Basic Field Grant, Migrant Worker Grant Assistance Listing Number: 09.703030 Award year: 2023 Award numbers: N/A Pass-Through grantors: N/A Compliance Requirements: Reporting Questioned Costs: N/A Criteria: Under the Legal Services Corporation grant terms and conditions the organization is required to submit all board approved minutes from each each full board and committee meeting that occurred in the prior six months. The reports are to be submitted on February 1st and again on August 1st of each year. Condition: As of the date that audit testwork was performed the organization had not submitted 2 of the 5 approved board meeting minutes. Cause and Effect: The organization does not have adequate policies and procedures in place to ensure that all board meeting minutes are submitted timely. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that all board meeting minutes are submitted at the time due.

Corrective Action Plan

One of the two meeting minutes noted, January 30, 2023, was approved at the March 3, 2023 board meeting and submitted to LSC on May 9, 2023. The minutes of the May 22, 2023 meeting have not been approved and should not have been submitted on September 7, 2023. The minutes for the May 22, 2023 meeting will be placed on the upcoming Executive Committee meeting agenda for review and approval as appropriate. Upon approval, the May 22, 2023 meeting minutes will be re‐submitted to LSC. CLS recently implemented a new process. If there is not a quorum at a full board meeting, the minutes that were on that meeting’s agenda for approval will be placed on the next scheduled Executive Committee meeting for review and approval. For example, if there is no quorum at the January full board meeting, all meeting minutes that were scheduled for review and approval at that meeting will be placed on the agenda for the Executive Committee meeting later that month for approval and reported out to the full board at its next regularly scheduled meeting in March. This will ensure timely review, approval and submission of minutes for board and committee meetings.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 395026 2023-101
    Significant Deficiency Repeat
  • 395027 2023-102
    Significant Deficiency
  • 395028 2023-102
    Significant Deficiency
  • 971467 2023-101
    Significant Deficiency Repeat
  • 971468 2023-101
    Significant Deficiency Repeat
  • 971469 2023-102
    Significant Deficiency
  • 971470 2023-102
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.703 Basic Field Grant $6.21M
09.703 Migrant Worker Grant $324,633
93.558 Temporary Assistance for Needy Families $173,290
93.569 Community Services Block Grant $100,040
21.008 Low Income Taxpayer Clinics $100,000
16.575 Crime Victim Assistance $47,322
21.027 Coronavirus State and Local Fiscal Recovery Funds $14,550
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $13,438
64.033 Va Supportive Services for Veteran Families Program $13,361