Finding 406478 (2023-002)

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

AI Summary

  • Core Issue: The organization purchased an asset over $25,000 using LSC funds without prior approval.
  • Impacted Requirements: This violates the requirement for LSC approval for purchases exceeding $25,000.
  • Recommended Follow-Up: Implement policies to ensure LSC approval is obtained before purchasing property with LSC funds over $25,000.

Finding Text

Criteria Requirement of LSC Approval for Purchase of Personal Property over $25,000 – A recipient using more than $25,000 of LSC funds to purchase or lease personal property or contract for services must request and receive LSC’s prior approval. Condition One asset was purchased using more than $25,000 of LSC funds for which the Organization did not receive prior LSC approval. Cause Management Oversight Effect The Organization did not comply with purchasing and property management requirements. Context The organization had three property additions in 2023. The supporting documentation for all three additions was reviewed. We then reviewed to see which funding source these additions were allocated to, noting one addition in excess of $25,000 expended with LSC funds. Recommendation We recommend the Organization implement policies and procedures to ensure prior approval is received on personal property purchased charges to LSC funds greater than $25,000. Repeat Finding This is not a repeat finding Response Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds.

Corrective Action Plan

Contact Person Kim Kramer, Chief Financial Officer Corrective Action Plan Legal Services of North Dakota will evaluate their internal controls to ensure they request and receive LSC’s approval prior to the purchase of any future property additions in excess of $25,000 that will be allocated to LSC funds. Completion Date Fiscal year end 2025

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Other Findings in this Audit

  • 406475 2023-001
    Significant Deficiency
  • 406476 2023-001
    Significant Deficiency
  • 406477 2023-001
    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