Finding 406477 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-07-03

AI Summary

  • Core Issue: LSC funds were improperly used for membership fees not allowed under guidelines.
  • Impacted Requirements: Compliance with cost standards and procedures was not met, leading to potential funding issues.
  • Recommended Follow-Up: Implement new policies to ensure proper coding of expenses and conduct monthly financial reviews for accuracy.

Finding Text

Criteria LSC funds may not be used to pay membership fees or dues to any private or nonprofit organization, whether on behalf of the recipient or an individual. A recipient may use LSC funds to pay membership fees or dues mandated by a governmental organization to engage in a profession. Payment of other membership fees or dues may be paid with non-LSC funds. Condition During testing of membership fees and dues it was noted there were expenses coded to LSC funding that were not allowable. Cause Management Oversight Effect The Organization did not comply with cost standards and procedures. Context We reviewed all membership fees and dues expenditures made with LSC funds noting unallowable membership dues. Recommendation We recommend the Organization implement policies and procedures to ensure expenses are being coded to the proper funds. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure future membership fees or dues are paid with non-LSC funds and record necessary adjustments if needed. On a monthly basis, the financial statements will be balanced, and any necessary correcting journal entries will be made in a timely manner.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Other Findings in this Audit

  • 406475 2023-001
    Significant Deficiency
  • 406476 2023-001
    Significant Deficiency
  • 406478 2023-002
    Significant Deficiency
  • 406479 2023-002
    Significant Deficiency
  • 406480 2023-002
    Significant Deficiency
  • 982917 2023-001
    Significant Deficiency
  • 982918 2023-001
    Significant Deficiency
  • 982919 2023-001
    Significant Deficiency
  • 982920 2023-002
    Significant Deficiency
  • 982921 2023-002
    Significant Deficiency
  • 982922 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.535 Base Grant $802,879
09.535 Native American $457,289
16.575 Crime Victim Assistance $44,594
09.535 2022 Disaster Relief Supplemental Appropriation $6,532
16.588 Violence Against Women Formula Grants $6,010
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $4,369
64.056 Veteran Grants Program $1,118