FAC Explorer

Finding 397172 (2023-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-05-17
Audit: 306525
Organization: Dakota Plains Legal Services, Inc. (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to procurement procedures.
  • Impacted Requirements: 45 CFR 1631 mandates that procurement must follow documented procedures, especially for purchases over $4,000, which were not properly evaluated.
  • Recommended Follow-Up: Management should review and strengthen the internal control process to ensure all procurement evaluations are documented and retained.

Finding Text

Legal Services Corporation FFAL #09-742018 Legal Services Corporation – Basic Field – Basic FFAL #09-742018 Legal Services Corporation – Basic Field – Native American Procurement Material Weakness in Internal Control over Compliance Criteria: 45 CFR 1631 requires that a non-Federal entity must use its own documented procurement procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal law. Condition: Our testing detected three instances in which the transaction exceeded DPLS’ small purchase threshold of $4,000, requiring rate quotes and a written evaluation why the vendor was chosen, however, this was not completed. Cause: There was a lapse in oversight of the internal control process ensuring a written evaluation was completed, detailing DPLS’ considerations over the procurement process. Effect: Without completing a written evaluation detailing the history of procurement, demonstrating the program complies with laws, regulations, and other compliance requirements is difficult. Questioned Costs: None reported based on assessment of comparative pricing readily available. Context/Sampling: A nonstatistical sample of 60 disbursements out of more than 250 disbursements were selected for testing. Out of the 60 disbursements, three items exceeded DPLS’ small purchase threshold. Repeat Finding from Prior Year: Yes. 2022-003 reported a similar finding over procurement. Recommendation: We recommend management review the internal control process to ensure procurement considerations are documented and retained. Views of Responsible Officials: Management is in agreement.

Corrective Action Plan

Legal Services Corporation CFDA #09-742018 Legal Services Corporation - Basic Field - General CFDA #09-742018 Legal Services Corporation - Basic Field - Native American Procurement Material Weakness in Internal Control over Compliance Condition: Auditor testing detected three instances in which the transaction exceeded the DPLS' small purchase threshold, requiring rate quotes and a written evaluation why the vendor was chose, however, this was not completed. Management's Response: Management will work to ensure that all qualified transactions exceeding the small purchase threshold will contain the proper documentation with regards to quotes, evaluations, and other factors which determine the selection of a particular service, product, or vendor. DPLS is working with David de la Tour on the development of a new Procurement Policy that will simplify and improve the current policy and procedures. Management will work to have this new Procurement Policy completed and presented for consideration to the DPLS Board of Directors, at the next board meeting in July 2024. Responsible Individuals: Michelle Lovejoy, Program Administrator, and Tom Mortland, Executive Director. Anticipated Completion Date: July 31, 2024.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 397170 2023-003
    Significant Deficiency Repeat
  • 397171 2023-003
    Significant Deficiency Repeat
  • 397173 2023-004
    Material Weakness Repeat
  • 397174 2023-005
    Material Weakness
  • 397175 2023-005
    Material Weakness
  • 973612 2023-003
    Significant Deficiency Repeat
  • 973613 2023-003
    Significant Deficiency Repeat
  • 973614 2023-004
    Material Weakness Repeat
  • 973615 2023-004
    Material Weakness Repeat
  • 973616 2023-005
    Material Weakness
  • 973617 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
09.U02 Basic Field Grant - Native American $1.30M
09.U01 Basic Field Grant - Basic $656,403
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $97,482
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $37,408