FAC Explorer

Audit 365979

FY End
2024-12-31
Total Expended
$37.39M
Findings
4
Programs
18
Organization: Legal Services Nyc and Constituent Corporations (NY)
Year: 2024 Accepted: 2025-09-10
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
576080 2024-001 - - N
576081 2024-002 - Yes N
1152522 2024-001 - - N
1152523 2024-002 - Yes N

Programs

ALN Program Spent Major Findings
09.233 Legal Services Corporation $16.20M Yes 2
93.558 Temporary Assistance for Needy Families $9.52M - 0
21.023 Emergency Rental Assistance Program $5.11M Yes 0
16.575 Crime Victim Assistance $2.06M - 0
93.914 Hiv Emergency Relief Project Grants $1.10M - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $640,431 - 0
14.418 Private Enforcement Initiatives $387,173 - 0
21.008 Low Income Taxpayer Clinics $377,698 - 0
93.569 Community Services Block Grant $300,561 - 0
64.056 Legal Services for Veterans Grants $241,881 - 0
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $138,107 - 0
16.588 Violence Against Women Formula Grants $123,222 - 0
93.667 Social Services Block Grant $104,342 - 0
93.493 Congressional Directives $66,666 - 0
64.033 Va Supportive Services for Veteran Families Program $46,102 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $38,664 - 0
93.778 Grants to States for Medicaid $35,982 - 0
16.524 Legal Assistance for Victims $5,625 Yes 0

Contacts

Name Title Type
MBNLSWYMX798 Gregory Klemm Auditee
6464423554 Irmin Hutchinson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activities of Legal Services NYC and its Constituent Corporations (collectively, Legal Services NYC) under programs of the federal government for the year ended December 31, 2024. The information in this 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 Legal Services NYC, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of Legal Services NYC. NOTE 2 SUMMARY OF SIGNIFICANT 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 as to reimbursements. NOTE 3 INDIRECT COST RATE Legal Services NYC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Legal Services NYC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activities of Legal Services NYC and its Constituent Corporations (collectively, Legal Services NYC) under programs of the federal government for the year ended December 31, 2024. The information in this 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 Legal Services NYC, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of Legal Services NYC.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activities of Legal Services NYC and its Constituent Corporations (collectively, Legal Services NYC) under programs of the federal government for the year ended December 31, 2024. The information in this 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 Legal Services NYC, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of Legal Services NYC. NOTE 2 SUMMARY OF SIGNIFICANT 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 as to reimbursements. NOTE 3 INDIRECT COST RATE Legal Services NYC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Legal Services NYC has elected not 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements.
Title: INDIRECT COST RATE Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activities of Legal Services NYC and its Constituent Corporations (collectively, Legal Services NYC) under programs of the federal government for the year ended December 31, 2024. The information in this 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 Legal Services NYC, it is not intended to and does not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of Legal Services NYC. NOTE 2 SUMMARY OF SIGNIFICANT 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 as to reimbursements. NOTE 3 INDIRECT COST RATE Legal Services NYC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Legal Services NYC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Legal Services NYC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
2024-001 Financial Eligibility Legal Services Corporation ALN#09.233100 Criteria: Per LSC § 1611.4 (a) Financial Eligibility, a recipient may provide legal assistance supported with LSC funds only to individuals whom the recipient has determined to be financially eligible for such assistance. Nothing in this part, however, prohibits a recipient from providing legal assistance to an individual without regard to that individual's income and assets if the legal assistance is wholly supported by funds from a source other than LSC, and is otherwise permissible under applicable law and regulation. Condition: During the LSC case file testing, we identified two instances, where the program clients were not financially eligible for the LSC program but were reported as LSC eligible. Cause: Certain Legal Service NYC employees mistakenly classified the program clients who were not LSC financial eligible as LSC financial eligible in the case system. Effect: Incorrect financial eligibility documentation may lead to the improper inclusion or exclusion of clients from receiving services under the LSC program. Questioned costs: There are no questioned costs noted. Context: Out of 60 cases selected for testing, two (2) cases were erroneously reported as LSC eligible. Recommendation: We recommend that Legal Services NYC continue to provide relevant training to employees involved in client intake regarding financial eligibility. Views of responsible officials: See corrective action plan.
Finding 2024-002
2024-002 Financial Eligibility – Assets Definition Legal Services Corporation ALN#09.233100 Criteria: Per LSC Reg.# 1611.2(d) Definition of Assets, “Assets” means cash or other resources of the applicant or members of the applicant’s household that are readily convertible to cash, which are currently and actually available to the applicant Condition: The recorded assets considered for client financial eligibility determination for two (2) cases did not meet the asset definition as per the LSC regulation. Cause: Certain assets including a primary residence were inaccurately reported as assets. These assets should be excluded when assessing financial eligibility in accordance with LSC Reg.#1611.2(d). Effect: Incorrect financial eligibility documentation may lead to the improper inclusion or exclusion of clients from receiving services under the LSC program. Questioned costs: There are no questioned costs noted. Context: Out of 60 cases selected for testing, two (2) cases included assets that did not align with the asset definition as specified by LSC Reg. # 1611.2(d). *This is a repeated finding from the prior year. The prior year finding # was 2023-004. Recommendation: We recommend that Legal Services NYC continue to provide relevant training to employees involved in client intake regarding maintenance of asset ceiling waiver approvals. Views of responsible officials: See corrective action plan.
Finding 2024-001
2024-001 Financial Eligibility Legal Services Corporation ALN#09.233100 Criteria: Per LSC § 1611.4 (a) Financial Eligibility, a recipient may provide legal assistance supported with LSC funds only to individuals whom the recipient has determined to be financially eligible for such assistance. Nothing in this part, however, prohibits a recipient from providing legal assistance to an individual without regard to that individual's income and assets if the legal assistance is wholly supported by funds from a source other than LSC, and is otherwise permissible under applicable law and regulation. Condition: During the LSC case file testing, we identified two instances, where the program clients were not financially eligible for the LSC program but were reported as LSC eligible. Cause: Certain Legal Service NYC employees mistakenly classified the program clients who were not LSC financial eligible as LSC financial eligible in the case system. Effect: Incorrect financial eligibility documentation may lead to the improper inclusion or exclusion of clients from receiving services under the LSC program. Questioned costs: There are no questioned costs noted. Context: Out of 60 cases selected for testing, two (2) cases were erroneously reported as LSC eligible. Recommendation: We recommend that Legal Services NYC continue to provide relevant training to employees involved in client intake regarding financial eligibility. Views of responsible officials: See corrective action plan.
Finding 2024-002
2024-002 Financial Eligibility – Assets Definition Legal Services Corporation ALN#09.233100 Criteria: Per LSC Reg.# 1611.2(d) Definition of Assets, “Assets” means cash or other resources of the applicant or members of the applicant’s household that are readily convertible to cash, which are currently and actually available to the applicant Condition: The recorded assets considered for client financial eligibility determination for two (2) cases did not meet the asset definition as per the LSC regulation. Cause: Certain assets including a primary residence were inaccurately reported as assets. These assets should be excluded when assessing financial eligibility in accordance with LSC Reg.#1611.2(d). Effect: Incorrect financial eligibility documentation may lead to the improper inclusion or exclusion of clients from receiving services under the LSC program. Questioned costs: There are no questioned costs noted. Context: Out of 60 cases selected for testing, two (2) cases included assets that did not align with the asset definition as specified by LSC Reg. # 1611.2(d). *This is a repeated finding from the prior year. The prior year finding # was 2023-004. Recommendation: We recommend that Legal Services NYC continue to provide relevant training to employees involved in client intake regarding maintenance of asset ceiling waiver approvals. Views of responsible officials: See corrective action plan.