FAC Explorer

Audit 307979

FY End
2023-12-31
Total Expended
$8.03M
Findings
4
Programs
8
Organization: Inland Counties Legal Services (CA)
Year: 2023 Accepted: 2024-06-04
Auditor: Halliday & Company Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
399872 2023-002 Significant Deficiency - L
399873 2023-003 Significant Deficiency - I
976314 2023-002 Significant Deficiency - L
976315 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
09.U01 Legal Services Corporation Basic Field Grant $5.60M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.58M Yes 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $271,876 - 0
21.008 Low Income Taxpayer Clinics $185,342 - 0
09.U02 Legal Services Corporation Pro Bono Innovation Fund Grant $171,123 Yes 0
16.524 Legal Assistance for Victims $81,925 - 0
93.634 Support for Ombudsman and Beneficiary Counseling Programs for States Participating in Financial Alignment Model Demonstrations for Dually Eligible Individuals $38,657 - 0
64.033 Va Supportive Services for Veteran Families Program $1,815 - 0

Contacts

Name Title Type
TECJB5PQX516 Pam Herness Auditee
9513682536 Chadrick Halliday Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate in relation to applicable grants as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Inland Counties Legal Services (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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate in relation to applicable grants as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate in relation to applicable grants as allowed under the Uniform Guidance. The Organization elected to use the ten percent de minimis indirect cost rate in relation to applicable grants as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
LSC Case Information Disclosure Reporting Federal Program: Legal Services Corporation (09-805230) grant period ending December 31, 2023 Finding Type: Significant deficiency Condition/Context: Case information disclosure reports were incomplete. We identified three instances in which court filings in the period July – December 2023 occurred but were not included in the reporting to LSC. We also identified one instance in which a prior year court filing was not included in prior or revised reporting to LSC. Criteria: 45 CFR 1644.4 requires that recipients file semiannual Case Information Disclosure reports. These reports must include all cases filed in court during the six-month reporting period, if the recipient serves as legal counsel for the plaintiff and this was the first court filing. Questioned Costs: None Cause: The relevant information was not input into the Organization’s case management system in a timely manner which resulted in the cases not being identified at the time the Organization’s semiannual Case Information Disclosure reports were initially prepared for these periods. Effect: The semiannual Case Information Disclosure reports submitted to LSC were incomplete. Repeat Finding: No Recommendation: The organization should implement additional policies and procedures to ensure timely input of the relevant information in the case management system for the accurate completion of Case Information Disclosure reports and provide additional training to relevant staff members regarding the timely and accurate completion of this information. Views of Responsible Officials and Planned Corrective Actions: Management accepts the finding. See management’s Corrective Action Plan included at the end of the report.
Finding 2023-003
Service Contract Prior Approval Federal Program: Legal Services Corporation (09-805230) grant period ending December 31, 2023 Finding Type: Significant deficiency Condition/Context: The Organization failed to obtain prior approval for a contract for security guard service for which over $25,000 was charged to LSC. Criteria: 45 CFR Parts 1630 Cost Standards and Procedures and 1631 Purchasing and Property Management require prior approval by LSC for certain purchases for which over $25,000 of LSC funds will be utilized. Questioned Costs: $29,924 Cause: Prior approval was request from LSC; however, the contract was sent back to the Organization by LSC with items for clarification/correction. At the time application was returned, the submitting party was on sick leave. They inadvertently missed the notification that the request was returned and failed to follow-up on it, so the prior approval was never successfully obtained. Effect: The Organization is seeking retroactive approval; however, it is possible the amount charged to LSC may be disallowed. Repeat Finding: No Recommendation: The organization should implement additional policies and procedures requiring periodic follow-up and review of outstanding prior approval request to ensure the process is seen through to the end and the necessary approvals are obtained. Views of Responsible Officials and Planned Corrective Actions: Management accepts the finding. See management’s Corrective Action Plan included at the end of the report.
Finding 2023-002
LSC Case Information Disclosure Reporting Federal Program: Legal Services Corporation (09-805230) grant period ending December 31, 2023 Finding Type: Significant deficiency Condition/Context: Case information disclosure reports were incomplete. We identified three instances in which court filings in the period July – December 2023 occurred but were not included in the reporting to LSC. We also identified one instance in which a prior year court filing was not included in prior or revised reporting to LSC. Criteria: 45 CFR 1644.4 requires that recipients file semiannual Case Information Disclosure reports. These reports must include all cases filed in court during the six-month reporting period, if the recipient serves as legal counsel for the plaintiff and this was the first court filing. Questioned Costs: None Cause: The relevant information was not input into the Organization’s case management system in a timely manner which resulted in the cases not being identified at the time the Organization’s semiannual Case Information Disclosure reports were initially prepared for these periods. Effect: The semiannual Case Information Disclosure reports submitted to LSC were incomplete. Repeat Finding: No Recommendation: The organization should implement additional policies and procedures to ensure timely input of the relevant information in the case management system for the accurate completion of Case Information Disclosure reports and provide additional training to relevant staff members regarding the timely and accurate completion of this information. Views of Responsible Officials and Planned Corrective Actions: Management accepts the finding. See management’s Corrective Action Plan included at the end of the report.
Finding 2023-003
Service Contract Prior Approval Federal Program: Legal Services Corporation (09-805230) grant period ending December 31, 2023 Finding Type: Significant deficiency Condition/Context: The Organization failed to obtain prior approval for a contract for security guard service for which over $25,000 was charged to LSC. Criteria: 45 CFR Parts 1630 Cost Standards and Procedures and 1631 Purchasing and Property Management require prior approval by LSC for certain purchases for which over $25,000 of LSC funds will be utilized. Questioned Costs: $29,924 Cause: Prior approval was request from LSC; however, the contract was sent back to the Organization by LSC with items for clarification/correction. At the time application was returned, the submitting party was on sick leave. They inadvertently missed the notification that the request was returned and failed to follow-up on it, so the prior approval was never successfully obtained. Effect: The Organization is seeking retroactive approval; however, it is possible the amount charged to LSC may be disallowed. Repeat Finding: No Recommendation: The organization should implement additional policies and procedures requiring periodic follow-up and review of outstanding prior approval request to ensure the process is seen through to the end and the necessary approvals are obtained. Views of Responsible Officials and Planned Corrective Actions: Management accepts the finding. See management’s Corrective Action Plan included at the end of the report.