FAC Explorer

Audit 304918

FY End
2023-12-31
Total Expended
$5.16M
Findings
6
Programs
9
Organization: Legal Aid Society of Mid-New York, Inc. (NY)
Year: 2023 Accepted: 2024-04-29
Auditor: Grossman St Amour Certified Public Accountants PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395001 2023-002 - - P
395002 2023-003 - Yes P
395003 2023-004 - - P
971443 2023-002 - - P
971444 2023-003 - Yes P
971445 2023-004 - - P

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $2.29M Yes 0
09.233 Legal Services Corporation Basic Field Grant $1.92M Yes 3
09.233 Legal Services Corporation Agricultural Worker Grant $525,646 Yes 0
16.524 Legal Assistance for Victims $35,056 - 0
93.044 Special Programs for the Aging $22,717 - 0
93.558 Temporary Assistance for Needy Families $13,689 - 0
09.233 Legal Services Corporation Technology Initiative Grant $12,671 Yes 0
14.231 Emergency Solutions Grant Program $12,000 - 0
14.218 Community Development Block Grants $6,995 - 0

Contacts

Name Title Type
KM13FK1GH9B4 Paul Lupia Auditee
3157937077 Michael Lisson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. The Schedule presents the activity of all federal award programs administered by the Organization. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the Schedule. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Legal Aid Society of Mid-New York, Inc. (Organization) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements For Federal Awards (Uniform Guidance). Assistance listing numbers and pass-through numbers are provided when available. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. The Schedule presents the activity of all federal award programs administered by the Organization. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the Schedule. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. The Schedule presents the activity of all federal award programs administered by the Organization. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the Schedule.
Title: Indirect Costs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. The Schedule presents the activity of all federal award programs administered by the Organization. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the Schedule. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Non-Cash Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. The Schedule presents the activity of all federal award programs administered by the Organization. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the Schedule. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization did not receive any non-cash awards during the year ended December 31, 2023.

Finding Details

Finding 2023-002
Completion and Review of Payroll Timecards. Condition: One out of the twenty-one employees tested who charged time to the Legal Services Corporation (LSC) grants, completed and submitted their timecard late. Additionally, two out of the twenty-one employees tested completed their timecards in a timely manner but the supervisor approved the timecards late. Criteria: Pursuant to the Organization’s accounting procedures manual, timecards must be completed by employees within 5 days of the pay period end date which should then be approved by the employee’s supervisor in a timely manner. Cause: The late completion and late review of timecards was due to human error. Effect: Failure to complete and submit timecards in a timely manner results in delays related to the review and approval of timecards. Additionally, late review of timecards could result in inappropriate allocation of payroll expense to LSC grants. Recommendation: The auditor recommends that employees complete timecards and supervisors review timecards in a timely manner in compliance with the Organization’s timekeeping policy. View of Responsible Official: The Executive Director will reinforce the importance of the timely completion and review of timecards to all employees.
Finding 2023-003
Retainer Agreement. Condition: One out of the sixty-one case files selected for testing did not have an executed retainer agreement. Criteria: Except where the service is brief advice and consultation by telephone or other non-in-person means, the Organization must obtain a signed retainer agreement with each client when extended representation commences or as soon thereafter as practicable. Cause: The attorney in charge of this case failed to obtain a signed retainer agreement. Effect: The Organization was not in compliance with the requirements set forth under 45 CFR § 1611. Recommendation: The auditor recommends that retainer agreements be executed as soon as practicable, unless only advice and counsel or brief service is provided. View of Responsible Official: The Executive Director will reinforce the importance of obtaining executed retainer agreements with all paralegals and attorneys.
Finding 2023-004
Accounting Requirements. Condition: The Organization has not yet implemented written policies and procedures to adhere to the LSC Financial Guide, effective January 1, 2023. Criteria: The LSC Financial Guide sets forth financial, accounting and reporting standards for recipients of LSC funds and describes the accounting policies, records and internal control procedures to be maintained to ensure the integrity of financial, accounting, reporting systems. Cause: The Organization has written policies and procedures in the form of an Accounting Procedures Manual which was last updated in August 2020, and a Compliance Manual that was last updated in March 2020. Revising both of these manuals requires considerable internal collaboration. Effect: The Organization is not in compliance with the Part D, Other Compliance Requirements, Accounting Requirements of the Compliance Supplement for Audits of LSC Recipients (October 2023). Recommendation: Senior management of the Organization should review, revise and consolidate the Accounting Procedures Manual and Compliance Manual to more closely align to the financial, accounting and reporting requirements of the LSC Financial Guide. View of Responsible Official: Beginning in 2024, the Executive Director has been holding weekly meetings with senior management to revise and update the Accounting Procedures Manual and Compliance Manual with an anticipated completion date of June 30, 2024.
Finding 2023-002
Completion and Review of Payroll Timecards. Condition: One out of the twenty-one employees tested who charged time to the Legal Services Corporation (LSC) grants, completed and submitted their timecard late. Additionally, two out of the twenty-one employees tested completed their timecards in a timely manner but the supervisor approved the timecards late. Criteria: Pursuant to the Organization’s accounting procedures manual, timecards must be completed by employees within 5 days of the pay period end date which should then be approved by the employee’s supervisor in a timely manner. Cause: The late completion and late review of timecards was due to human error. Effect: Failure to complete and submit timecards in a timely manner results in delays related to the review and approval of timecards. Additionally, late review of timecards could result in inappropriate allocation of payroll expense to LSC grants. Recommendation: The auditor recommends that employees complete timecards and supervisors review timecards in a timely manner in compliance with the Organization’s timekeeping policy. View of Responsible Official: The Executive Director will reinforce the importance of the timely completion and review of timecards to all employees.
Finding 2023-003
Retainer Agreement. Condition: One out of the sixty-one case files selected for testing did not have an executed retainer agreement. Criteria: Except where the service is brief advice and consultation by telephone or other non-in-person means, the Organization must obtain a signed retainer agreement with each client when extended representation commences or as soon thereafter as practicable. Cause: The attorney in charge of this case failed to obtain a signed retainer agreement. Effect: The Organization was not in compliance with the requirements set forth under 45 CFR § 1611. Recommendation: The auditor recommends that retainer agreements be executed as soon as practicable, unless only advice and counsel or brief service is provided. View of Responsible Official: The Executive Director will reinforce the importance of obtaining executed retainer agreements with all paralegals and attorneys.
Finding 2023-004
Accounting Requirements. Condition: The Organization has not yet implemented written policies and procedures to adhere to the LSC Financial Guide, effective January 1, 2023. Criteria: The LSC Financial Guide sets forth financial, accounting and reporting standards for recipients of LSC funds and describes the accounting policies, records and internal control procedures to be maintained to ensure the integrity of financial, accounting, reporting systems. Cause: The Organization has written policies and procedures in the form of an Accounting Procedures Manual which was last updated in August 2020, and a Compliance Manual that was last updated in March 2020. Revising both of these manuals requires considerable internal collaboration. Effect: The Organization is not in compliance with the Part D, Other Compliance Requirements, Accounting Requirements of the Compliance Supplement for Audits of LSC Recipients (October 2023). Recommendation: Senior management of the Organization should review, revise and consolidate the Accounting Procedures Manual and Compliance Manual to more closely align to the financial, accounting and reporting requirements of the LSC Financial Guide. View of Responsible Official: Beginning in 2024, the Executive Director has been holding weekly meetings with senior management to revise and update the Accounting Procedures Manual and Compliance Manual with an anticipated completion date of June 30, 2024.