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.