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.