Finding Text
2022-006 Legal Services Corporation CFDA #09-742018 Legal Services Corporation ? Basic Field ? General CFDA #09-742018 Legal Services Corporation ? Basic Field ? Native American Reporting Significant Deficiency in Internal Control over Compliance Criteria: Grant Terms and Conditions No. 6 establishes various reporting requirements for the auditee. Condition: DPLS entered a lease of personal property exceeding $25,000 requiring the completion of an application of approval, however, this was not completed. Additionally, DPLS entered a lease to relocate office space for an existing branch office requiring an update to DPLS? Grantee Profile on GrantEase within 15 calendar days, however, this was not completed. Cause: There was a lapse in oversight of the internal control process ensuring LSC approval was received prior to entering a personal property lease exceeding $25,000. Additionally, there was a lapse in oversight of the internal control process ensuring the Grantee Profile was updated in GrantEase after relocating office space for an existing branch office. Effect: Failure to notify LSC prior to certain events could result in the reasonable possibility that DPLS could submit disallowed costs under the federal award. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 4 out of 8 annual and semi-annual reports were selected for testing. Additionally, as documented within LSC Reporting Requirements, Prior Approval Requirements Applying to Certain Events, Waivers of Requirements Applying to Certain Events and Reports Contingent on the Occurrence of Certain Events were tested in total. Repeat Finding from Prior Year: Yes. 2021-008 reported a similar finding over reporting. Recommendation: We recommend DPLS review LSC reporting requirements with applicable employees. Views of Responsible Officials: Management is in agreement.