FAC Explorer

Finding 397078 (2023-002)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-05-17
Audit: 306498
Organization: Legal Aid of Nebraska (NE)
Auditor: Bland and Associates PC

AI Summary

  • Core Issue: The Organization lacks a proper property management system to track LSC-funded versus non-LSC-funded assets.
  • Impacted Requirements: This non-compliance with 45 C.F.R. 1631 could jeopardize future funding.
  • Recommended Follow-Up: Conduct a thorough review and reconciliation of property records to strengthen internal controls and meet LSC Financial Guide standards.

Finding Text

Criteria: Per LSC regulation 45 C.F.R. 1631 Purchasing and Property Equipment, the recipient must maintain a property management system for its LSC-funded activities that is adequate to meet the LSC Financial Guide requirements. Condition: During our audit testing, the Organization was unable to provide a property and equipment listing differentiating between LSC funded versus non-LSC funded including accumulated depreciation. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained relating to property and equipment. Effect: Non-compliance could affect funding in future years. Recommendation: We recommend the Organization perform an extensive search and reconciliation over property and equipment to establish property and equipment internal controls to satisfy the requirements in the LSC Financial Guide. Organization Response: Management agrees with this finding.

Corrective Action Plan

FINDING 2023-002: SUPPORT FOR LSC FUNDED PROPERTY Please provide an explanation of how your Organization plans to resolve any further issues surrounding eligibility moving forward. Legal Aid will continue to follow up with last year’s auditors to obtain the necessary information. If these attempts are unsuccessful, we will collaborate with LSC to determine if they have the information on file. Should neither of these avenues yield results, we will review physical audit files from previous years in an attempt to retrieve the information retroactively. Reasonable completion date: December 31st, 2024 Responsible Party: Stephanie Kitselman, Interim CFO – this will transition to the new inhouse Finance Director upon hire in 2024.

Categories

Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 397079 2023-002
    Significant Deficiency
  • 397080 2023-002
    Significant Deficiency
  • 397081 2023-002
    Significant Deficiency
  • 397082 2023-002
    Significant Deficiency
  • 397083 2023-002
    Significant Deficiency
  • 973520 2023-002
    Significant Deficiency
  • 973521 2023-002
    Significant Deficiency
  • 973522 2023-002
    Significant Deficiency
  • 973523 2023-002
    Significant Deficiency
  • 973524 2023-002
    Significant Deficiency
  • 973525 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.528 Lsc - Basic Field Grant $2.01M
93.667 Social Services Block Grant $407,719
16.575 Crime Victim Assistance $202,969
09.528 Lsc - Agricultural Worker Grant $199,468
21.008 Low Income Taxpayer Clinics $150,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $122,202
09.528 Lsc - Technology Initiative Grant $107,464
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $93,750
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $69,038
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program (b) $59,600
10.U02 Ncfh Farm Worker $57,388
09.528 Lsc - Native American Grant $49,837
16.582 Crime Victim Assistance/discretionary Grants $40,192
09.528 Lsc - Loan Repayment Assistance Program $40,000
93.U01 Reducing the Impact of Covid19 on Farmworkers $30,400
64.056 Homeless Veterans Legal Services (lsv-H) $24,564
09.528 Lsc - Disaster Supplemental Appropriations Grant $2,962