FAC Explorer

Audit 307990

FY End
2023-12-31
Total Expended
$1.67M
Findings
4
Programs
7
Organization: Legal Services of Northwest Jersey, INC (NJ)
Year: 2023 Accepted: 2024-06-04
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
399874 2023-001 Significant Deficiency - L
399875 2023-001 Significant Deficiency - L
976316 2023-001 Significant Deficiency - L
976317 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
09.331 Basic Grant $682,859 Yes 1
14.537 Eviction Protection Grant Program $152,364 - 0
14.218 Community Development Block Grants/entitlement Grants $78,900 - 0
16.575 Crime Victim Assistance $71,821 - 0
93.914 Hiv Emergency Relief Project Grants $49,087 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $47,125 - 0
16.588 Violence Against Women Formula Grants $22,108 - 0

Contacts

Name Title Type
GF4ZGNF9PGJ3 Michael Wojcik Auditee
9082310840 Bridget Hartnett Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedules of federal and state awards include the federal and state grant activity of the Organization and are presented on the accrual basis of accounting. The information in these schedules 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, and New Jersey Office of Management and Budget Circular Letter 15-08. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Both Rate Explanation: The Organization did not elect to use the de minimis cost rate when allocating indirect costs to federal and state programs with the exception of the Crime Victim Assistance programs. The de minimis cost rate was used to allocate indirect costs to these grants. During the year ended December 31, 2023, the Organization did not provide any funds relating to their federal or state programs to subrecipients.
Title: LOAN AND LOAN GUARANTEE PROGRAMS Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedules of federal and state awards include the federal and state grant activity of the Organization and are presented on the accrual basis of accounting. The information in these schedules 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, and New Jersey Office of Management and Budget Circular Letter 15-08. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Both Rate Explanation: The Organization did not elect to use the de minimis cost rate when allocating indirect costs to federal and state programs with the exception of the Crime Victim Assistance programs. The de minimis cost rate was used to allocate indirect costs to these grants. As of December 31, 2023, the Organization did not have any federal or state loan or loan guarantee programs.

Finding Details

Finding 2023-001
Federal Agency: Legal Services Corporation (LSC) Federal Program Name: LSC Assistance Listing Number: 09.331016 Federal Award Identification Number and Year: 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: LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures requires compliance with the provision of derivative income allocation. The Organization should have internal controls designed to ensure compliance with this provision. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure that derivative income was properly allocated to their Legal Services Corporation grant. Questioned costs: None Context: During our testing, it was noted, that the Organization was not allocating Social Security Income to LSC using a percentage derived from LSC expenditures over total expenditures. In the current year, it was noted, that 100% of SSI income was allocated to LSC. Cause: The Organization did not review the allocation of derivative income to LSC at year end. Effect: The auditor noted that the Organization had overallocated SSI (derivative) income to LSC by $2,171. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Organization designs controls to ensure an adequate review process is in place to review compliance with LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures as it relates to the allocation of derivative income. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Legal Services Corporation (LSC) Federal Program Name: LSC Assistance Listing Number: 09.331016 Federal Award Identification Number and Year: 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: LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures requires compliance with the provision of derivative income allocation. The Organization should have internal controls designed to ensure compliance with this provision. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure that derivative income was properly allocated to their Legal Services Corporation grant. Questioned costs: None Context: During our testing, it was noted, that the Organization was not allocating Social Security Income to LSC using a percentage derived from LSC expenditures over total expenditures. In the current year, it was noted, that 100% of SSI income was allocated to LSC. Cause: The Organization did not review the allocation of derivative income to LSC at year end. Effect: The auditor noted that the Organization had overallocated SSI (derivative) income to LSC by $2,171. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Organization designs controls to ensure an adequate review process is in place to review compliance with LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures as it relates to the allocation of derivative income. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Legal Services Corporation (LSC) Federal Program Name: LSC Assistance Listing Number: 09.331016 Federal Award Identification Number and Year: 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: LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures requires compliance with the provision of derivative income allocation. The Organization should have internal controls designed to ensure compliance with this provision. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure that derivative income was properly allocated to their Legal Services Corporation grant. Questioned costs: None Context: During our testing, it was noted, that the Organization was not allocating Social Security Income to LSC using a percentage derived from LSC expenditures over total expenditures. In the current year, it was noted, that 100% of SSI income was allocated to LSC. Cause: The Organization did not review the allocation of derivative income to LSC at year end. Effect: The auditor noted that the Organization had overallocated SSI (derivative) income to LSC by $2,171. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Organization designs controls to ensure an adequate review process is in place to review compliance with LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures as it relates to the allocation of derivative income. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: Legal Services Corporation (LSC) Federal Program Name: LSC Assistance Listing Number: 09.331016 Federal Award Identification Number and Year: 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: LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures requires compliance with the provision of derivative income allocation. The Organization should have internal controls designed to ensure compliance with this provision. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure that derivative income was properly allocated to their Legal Services Corporation grant. Questioned costs: None Context: During our testing, it was noted, that the Organization was not allocating Social Security Income to LSC using a percentage derived from LSC expenditures over total expenditures. In the current year, it was noted, that 100% of SSI income was allocated to LSC. Cause: The Organization did not review the allocation of derivative income to LSC at year end. Effect: The auditor noted that the Organization had overallocated SSI (derivative) income to LSC by $2,171. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Organization designs controls to ensure an adequate review process is in place to review compliance with LSC Regulation 45 C.F.R. 1630 Cost Standard and Procedures as it relates to the allocation of derivative income. Views of responsible officials: There is no disagreement with the audit finding.