Finding 971387 (2023-002)

2023-002: General Disbursements Federal Agency: Legal Services Corporation (LSC) Federal Program: LSC Grants Assistance Listing Number: 09.514020 Federal Award Identification Number and Year: 09.514020 - 2023 Award Period: January 1, 2023 to December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Costs are to be recorded into the correct reporting period. Condition: Through testing of allowable costs, determined that an expense for November 2022 was recorded in the general ledger as an expense for the year ended December 31, 2023. Questioned costs: None Context: For one of the seven disbursements selected for testing, the disbursement was incurred in November 2022; however, it was recorded as an expense of $28 in January 2023. Cause: Unknown. Effect: General disbursements that are not monitored for cut-off around the end of a reporting period could result in the expense being recorded into the incorrect reporting period. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend that management review its policies and procedures surrounding cut-off around the end of reporting periods to ensure disbursements are recorded in the correct reporting period. Views of Responsible Official: There is no disagreement with this finding.