Audit 323595

FY End
2023-12-31
Total Expended
$9.96M
Findings
4
Programs
11
Year: 2023 Accepted: 2024-10-01
Auditor: Harrington Group

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
501540 2022-001 Significant Deficiency Yes P
501541 2022-001 Significant Deficiency Yes P
1077982 2022-001 Significant Deficiency Yes P
1077983 2022-001 Significant Deficiency Yes P

Contacts

Name Title Type
XBWKZHSRNHC1 Lynne Hiortdahl Auditee
8182911763 Oswaldo D. Torres Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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, 2023. 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: NLSLA did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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, 2023. 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.
Title: Basis of Accounting Accounting Policies: 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, 2023. 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: NLSLA did not elect to use the 10% de minimis indirect cost rate 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 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.
Title: Pass-through to Sub-recipients Accounting Policies: 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, 2023. 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: NLSLA did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The following list includes sub-recipients and expenditure amounts per Federal Assistance Listing number (“FAL”) as of December 31, 2023: ....................................................................................FAL #: Amount Mental Health Advocacy Services ........................93.778 $239,858 Legal Aid Foundation of Los Angeles ................93.778 229,562 Bet Tzedek ................................................................93.778 96,629 Alliance for Community Empowerment ............93.647 59,000 Maternal and Child Health Access .......................21.027 50,000 $675,049
Title: Other Information Accounting Policies: 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, 2023. 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: 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, 2023 that are required to be reported on the Schedule.
Title: Subsequent Event Accounting Policies: 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, 2023. 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: 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 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 $774,994 State Bar of California ..........................................HP3 Competitive $289,901 Legal Aid Foundation of Los Angeles .................CA-22-019 $521,993 Legal Aid Foundation of Los Angeles .................CA-22-019 $70,257 Legal Aid Foundation of Los Angeles C-138260 $259,491

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.
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.