Audit 322166

Title: 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. For the Legal Services Corporation Basic Field Grant and Migrant Grant, the expenditures in 2023 exceeded the 2023 grant amount. PLA received the same LSC grants in previous calendar year periods and underspent those grants. Under LSC policy, PLA may carry forward an LSC fund balance that it may spend in future years. LSC grantees must request approval from LSC if they carry forward more than 10% of their LSC fund balance and must provide a plan for spending down the fund balance. In 2023, PLA spent down its 2022 LSC fund balance, which is why the expenditures exceeded the grant amount. De Minimis Rate Used: N Rate Explanation: PLA has not elected to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and local awards (the “Schedule”) includes the federal and local award activity of Philadelphia Legal Assistance Center, Inc. ("PLA") under programs of the federal and local government for the year ended December 31, 2023. All financial assistance received directly from federal agencies, as well as financial awards passed through other governmental and nonprofit agencies, are presented on the Schedule. The information in this Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Title: SUBRECIPIENT FUNDING 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. For the Legal Services Corporation Basic Field Grant and Migrant Grant, the expenditures in 2023 exceeded the 2023 grant amount. PLA received the same LSC grants in previous calendar year periods and underspent those grants. Under LSC policy, PLA may carry forward an LSC fund balance that it may spend in future years. LSC grantees must request approval from LSC if they carry forward more than 10% of their LSC fund balance and must provide a plan for spending down the fund balance. In 2023, PLA spent down its 2022 LSC fund balance, which is why the expenditures exceeded the grant amount. De Minimis Rate Used: N Rate Explanation: PLA has not elected to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and local awards reflects $249,069 that was passed through to other organizations as follows: