FAC Explorer

Audit 327100

FY End
2024-06-30
Total Expended
$1.69M
Findings
2
Programs
5
Organization: Virginia Legal Aid Society, Inc. (VA)
Year: 2024 Accepted: 2024-11-04
Auditor: Coley Eubank & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504527 2024-001 - - P
1080969 2024-001 - - P

Programs

ALN Program Spent Major Findings
09.447 Basic Field Grant No. 447061 $1.15M Yes 1
16.575 Crime Victim Assistance Grant $324,000 - 0
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges $147,623 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds (cslfrf) $50,000 - 0
14.218 Community Development Block Grants/entitlement Grants $15,000 - 0

Contacts

Name Title Type
NMHCQCM7N7J1 Keita Rodgers Auditee
4344553095 J Phillip Coley Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: This schedule of expenditures of federal awards includes the federal grant activity of Virginia Legal Aid Society, Inc. (the “Society”) presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 of the 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. Because this schedule presents only a selected portion of the Society’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Society. De Minimis Rate Used: Y Rate Explanation: The Society has elected to utilize the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. This schedule of expenditures of federal awards includes the federal grant activity of Virginia Legal Aid Society, Inc. (the “Society”) presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 of the 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. Because this schedule presents only a selected portion of the Society’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Society.
Title: Subrecipients Accounting Policies: This schedule of expenditures of federal awards includes the federal grant activity of Virginia Legal Aid Society, Inc. (the “Society”) presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 of the 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. Because this schedule presents only a selected portion of the Society’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Society. De Minimis Rate Used: Y Rate Explanation: The Society has elected to utilize the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. For the year ended June 30, 2024, there were no subrecipients of the Society’s federal awards expended.
Title: Derivative Income Accounting Policies: This schedule of expenditures of federal awards includes the federal grant activity of Virginia Legal Aid Society, Inc. (the “Society”) presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 of the 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. Because this schedule presents only a selected portion of the Society’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Society. De Minimis Rate Used: Y Rate Explanation: The Society has elected to utilize the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The above federal expenditures include expenditures of litigation income derived from the Society’s Legal Services Corporation basic field grant award. During the year ended June 30, 2024, such expenditures amounted to $3,350.
Title: Indirect Cost Rate Accounting Policies: This schedule of expenditures of federal awards includes the federal grant activity of Virginia Legal Aid Society, Inc. (the “Society”) presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 of the 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. Because this schedule presents only a selected portion of the Society’s operations, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Society. De Minimis Rate Used: Y Rate Explanation: The Society has elected to utilize the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The Society has elected to utilize the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding No. 2024-001 (LSC Basic Field Grant, CFDA No. 09.447061): Condition – Insufficient fidelity bond coverage was maintained for the year ended June 30, 2024. Criteria – A recipient of LSC funds must supply fidelity bond coverage for all employees, officers, directors, agents, and volunteers and, if a recipient uses a third party for payroll, billing, or collection services, the recipient must either supply coverage covering the third party or ensure that the third party has a fidelity bond or similar insurance coverage. The recipient must carry fidelity bond coverage or similar coverage at a minimum level of at least ten percent of its annualized funding level for the previous fiscal year. Cause – Policies and procedures are in place to routinely remind all personnel to renew various insurance policies including fidelity bonding. However, it appears that management personnel were unaware of LSC’s minimum fidelity bond coverage requirements and, as a result, insufficient coverage was obtained. Effect – During the year ended June 30, 2024, there was a violation of LSC’s rules and regulations. Context – Not applicable. The aforementioned condition was not noted by any sampling methodology. Recommendation – Appropriate personnel of Virginia Legal Aid Society, Inc. should review LSC’s rules and regulations regarding fidelity bond coverage and immediately obtain the required coverage and design and institute procedures to ensure the required coverage is maintained on a prospective basis. Views of Responsible Officials and Planned Corrective Actions – Please refer to the accompanying Corrective Action Plan of Virginia Legal Aid Society, Inc.
Finding 2024-001
Finding No. 2024-001 (LSC Basic Field Grant, CFDA No. 09.447061): Condition – Insufficient fidelity bond coverage was maintained for the year ended June 30, 2024. Criteria – A recipient of LSC funds must supply fidelity bond coverage for all employees, officers, directors, agents, and volunteers and, if a recipient uses a third party for payroll, billing, or collection services, the recipient must either supply coverage covering the third party or ensure that the third party has a fidelity bond or similar insurance coverage. The recipient must carry fidelity bond coverage or similar coverage at a minimum level of at least ten percent of its annualized funding level for the previous fiscal year. Cause – Policies and procedures are in place to routinely remind all personnel to renew various insurance policies including fidelity bonding. However, it appears that management personnel were unaware of LSC’s minimum fidelity bond coverage requirements and, as a result, insufficient coverage was obtained. Effect – During the year ended June 30, 2024, there was a violation of LSC’s rules and regulations. Context – Not applicable. The aforementioned condition was not noted by any sampling methodology. Recommendation – Appropriate personnel of Virginia Legal Aid Society, Inc. should review LSC’s rules and regulations regarding fidelity bond coverage and immediately obtain the required coverage and design and institute procedures to ensure the required coverage is maintained on a prospective basis. Views of Responsible Officials and Planned Corrective Actions – Please refer to the accompanying Corrective Action Plan of Virginia Legal Aid Society, Inc.