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.