Audit 400007

Federal Agency: Legal Services Corporation (LSC) Federal Program: LSC Grants Assistance Listing Number: 09.514020 Federal Award Identification Number and Year: 09.514020 - 2025 Award Period: January 1, 2025 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PAI time is required to be tracked separately to document compliance with the PAI requirement under the LSC grant. Condition: Not all PAI time entries tested were for eligible PAI time. Questioned costs: None Context: Two of the 60 PAI time entries tested had time coded to PAI despite not being eligible PAI time. Cause: Unknown. Effect: Entering ineligible PAI time leads to a higher risk of noncompliance with regulations. Repeat finding: This finding is a repeat finding. Recommendation: We recommend that management implement a control to review PAI time entries to ensure they are accurate. Views of Responsible Official: There is no disagreement with this finding.

Federal Agency: Legal Services Corporation (LSC) Federal Program: LSC Grants Assistance Listing Number: 09.514020 Federal Award Identification Number and Year: 09.514020 - 2025 Award Period: January 1, 2025 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Cases involving representation are required to have a retainer agreement signed by the client and an authorized Legal Aid Chicago staff member. Condition: Not all cases involving representation had a complete signed retainer agreement. Questioned costs: None Context: Two out of the 60 cases selected for testing, did not have a retainer agreement in case file. Cause: Unknown. Effect: Cases for which a retainer agreement is not maintained results in noncompliance with LSC’s outlined requirements for determining case eligibility. Repeat finding: This finding is a repeat finding. Recommendation: We recommend that management implement a control to ensure complete documentation is maintained for all cases that require a retainer agreement. Views of Responsible Official: There is no disagreement with this finding.

Federal Agency: Legal Services Corporation (LSC) Federal Program: LSC Grants Assistance Listing Number: 09.514020 Federal Award Identification Number and Year: 09.514020 - 2025 Award Period: January 1, 2025 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: LSC is required to be notified with a certification of accessibility for new leases and purchases prior to entering into any new leases or purchase contracts. Condition: LSC was not notified of the certification of accessibility prior to entering the lease contract. Questioned costs: None Context: Reporting requirement was not met due to failure to notify LSC with the certification of accessibility prior to entering the lease contract. Cause: Unknown. Effect: Noncompliance with LSC’s outlined requirements per reports contingent on the occurrence of certain events. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend that management notify LSC prior to entering into any lease with an accessibility certification. Views of Responsible Official: There is no disagreement with this finding.