FAC Explorer

Finding 560089 (2024-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-05-12
Audit: 356058
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: The organization failed to follow its own procurement rules for transactions over $4,000, specifically not providing required rate quotes and written evaluations.
  • Recommended Follow-Up: Management should review and strengthen the internal control process to ensure all procurement decisions are properly documented and compliant.

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 two instances in which the transaction exceeded the Organization’s 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 the Organization’s 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, two items exceeded the Organization’s small purchase threshold. Repeat Finding from Prior Year: Yes. 2023‐004 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 two instances in which the transaction exceeded the Organization's small purchase threshold of $4,000, requiring rate quotes and a written. evaluation why the vendor was chosen, however, this was not completed. Management's Response: Management will work to ensure that all qualified transactions that exceed the small purchase threshold will contain the proper documentation with regards to quotes, evaluations, and other factors which determined the selection of a particular service, product, or vendor. Management proposed to raise the purchase threshold for Board approval to $25,000, per LSC's recommendations. The Board approved this increase April 26, 2025 at the Board meeting. DPLS was given a Special Grant Condition to update the Procurement Policy. Pursuant to the Special Grant Condition deadline, a draft Procurement Policy was provided to LSC on April 1, 2025. DPLS is awaiting LSC's revisions. Responsible Individuals: Tom Mortland, Executive Director, Lori Stanford, Deputy Director Anticipated Completion Date: July 2025

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 560087 2024-002
    Significant Deficiency
  • 560088 2024-002
    Significant Deficiency
  • 560090 2024-003
    Material Weakness Repeat
  • 560091 2024-004
    Material Weakness Repeat
  • 560092 2024-004
    Material Weakness Repeat
  • 1136529 2024-002
    Significant Deficiency
  • 1136530 2024-002
    Significant Deficiency
  • 1136531 2024-003
    Material Weakness Repeat
  • 1136532 2024-003
    Material Weakness Repeat
  • 1136533 2024-004
    Material Weakness Repeat
  • 1136534 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
09.U02 Basic Field Grant - Native American $1.56M
09.U01 Basic Field Grant - Basic $656,405
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $58,079
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $52,306
16.021 Justice Systems Response to Families $12,787