Audit 323594

FY End
2022-12-31
Total Expended
$9.42M
Findings
2
Programs
10
Year: 2022 Accepted: 2024-10-01
Auditor: Harrington Group

Organization Exclusion Status:

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Contacts

Name Title Type
XBWKZHSRNHC1 Lynne Hiortdahl Auditee
8182911763 Oswaldo D. Torres Auditor
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Notes to SEFA

Title: Pass-through to Sub-recipients Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal award activity of Neighborhood Legal Services of Los Angeles County (“NLSLA”), under programs of the federal government for the year ended December 31, 2022. The 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 NLSLA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NLSLA. De Minimis Rate Used: N Rate Explanation: Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200, Subpart E (Cost Principles), wherein certain types of expenditures are not allowable or are limited as to reimbursement. NLSLA did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. TThe following list includes sub-recipients and expenditure amounts per the Federal Assistance Listing (“FAL”) number for the year ended December 31, 2022: FAL # Amount Legal Aid Foundation of Los Angeles .......93.778 $215,549 Mental Health Advocacy Services ............93.778 169,693 Bet Tzedek ..............................................93.778 74,903 Maternal and Child Health Access .... .......21.027 50,000 $510,145
Title: Other Information Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal award activity of Neighborhood Legal Services of Los Angeles County (“NLSLA”), under programs of the federal government for the year ended December 31, 2022. The 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 NLSLA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NLSLA. De Minimis Rate Used: N Rate Explanation: Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200, Subpart E (Cost Principles), wherein certain types of expenditures are not allowable or are limited as to reimbursement. NLSLA did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NLSLA did not receive federal insurance, loans, or non-cash assistance during the year ended December 31, 2022 that are required to be reported on the Schedule.
Title: Subsequent Event Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal award activity of Neighborhood Legal Services of Los Angeles County (“NLSLA”), under programs of the federal government for the year ended December 31, 2022. The 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 NLSLA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NLSLA. De Minimis Rate Used: N Rate Explanation: Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 200, Subpart E (Cost Principles), wherein certain types of expenditures are not allowable or are limited as to reimbursement. NLSLA did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In May 2024, NLSLA was informed by the State Bar of California and the Legal Aid Foundation of Los Angeles that its Schedule of Expenditures of Federal Awards (“SEFA”) for fiscal years 2022 and 2023 were incomplete. Specifically, funding sources from each entity were missing from the SEFA. As a result, compliance testing was conducted on the additional major program with Federal Assistance Listing number 21.027, which was omitted from the original SEFA. The updated SEFA includes the following contract numbers and amounts: State Bar of California .....................HP3 Formula $561,508 State Bar of California .....................HP3 Competitive $322,192 Legal Aid Foundation of Los Angeles ....CA-22-019 $284,719 Legal Aid Foundation of Los Angeles ..........C-138260 $244,361 Legal Aid Foundation of Los Angeles ..........C-138260 $316,136

Finding Details

Schedule of Expenditures of Federal Awards Reconciliation. Criteria: Section 200.510(b) of the Uniform Guidance mandates that auditees prepare a Schedule of Expenditures of Federal Awards (“SEFA”) for the period covered by the auditee's financial statements. This schedule must include the total federal awards expended. Condition: The SEFA initially provided was inaccurate and incomplete for the fiscal year-end. Cause: Neighborhood Legal Services of Los Angeles County (“NLSLA”) failed to thoroughly review the renewal funding sources for the State Bar of California Homelessness Prevention (HP) program and the passthrough funding for the Stay Housed Los Angeles Eviction Defense Program (SHLA EDP) from the lead agency, Legal Aid Foundation of Los Angeles. The original funding for both projects was not federally based. However, during COVID-19, these programs continued through federal funding. Effects: Failure to review and reconcile the SEFA may result in noncompliance with applicable standards. Recommendation: Implement procedures to designate management members responsible for the completion and accuracy of the SEFA. All government grants and contracts should be thoroughly reviewed to determine the funding source. Those identified as federal should be included in the SEFA. Views of Responsible Officials: In 2024, NLSLA will conduct a thorough review of all renewal contracts to confirm the funding source, whether NLSLA is the lead agency or a passthrough agency. If the renewal funding source is federally based, NLSLA will request a Notice of Federal Award to ensure proper inclusion in the annual SEFA and related Single Audit report.
Schedule of Expenditures of Federal Awards Reconciliation. Criteria: Section 200.510(b) of the Uniform Guidance mandates that auditees prepare a Schedule of Expenditures of Federal Awards (“SEFA”) for the period covered by the auditee's financial statements. This schedule must include the total federal awards expended. Condition: The SEFA initially provided was inaccurate and incomplete for the fiscal year-end. Cause: Neighborhood Legal Services of Los Angeles County (“NLSLA”) failed to thoroughly review the renewal funding sources for the State Bar of California Homelessness Prevention (HP) program and the passthrough funding for the Stay Housed Los Angeles Eviction Defense Program (SHLA EDP) from the lead agency, Legal Aid Foundation of Los Angeles. The original funding for both projects was not federally based. However, during COVID-19, these programs continued through federal funding. Effects: Failure to review and reconcile the SEFA may result in noncompliance with applicable standards. Recommendation: Implement procedures to designate management members responsible for the completion and accuracy of the SEFA. All government grants and contracts should be thoroughly reviewed to determine the funding source. Those identified as federal should be included in the SEFA. Views of Responsible Officials: In 2024, NLSLA will conduct a thorough review of all renewal contracts to confirm the funding source, whether NLSLA is the lead agency or a passthrough agency. If the renewal funding source is federally based, NLSLA will request a Notice of Federal Award to ensure proper inclusion in the annual SEFA and related Single Audit report.