Audit 40917

2022-003 Legal Services Corporation Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Basic Field Grant Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Technology Improvement Grant Activities Allowed and Allowable Costs Material Weakness in Internal Control over Compliance Criteria: 45 CFR 1630 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Total hours and LSC hours worked used to drive monthly allocation of indirect expenses by grant did not agree to total hours and LSC hours worked in the Organization?s timekeeping software for eight of the twelve months. Additionally, one instance identified in which the rate of pay paid to an employee did not agree to the approved rate of pay. Cause: There was a lapse in oversight of the internal control process ensuring total hours used to allocate indirect expenses by grant reconciled to total hours worked out of the Organization?s timekeeping software. There was a clerical error in revising the pay rate for an employee that was undetected by the payroll review process. Effect: The Organization?s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Organization could submit disallowed costs under the federal award. Questioned Costs: None reported. The error resulted in the federal award being undercharged. Context/Sampling: Total hours and LSC hours worked within the fiscal year was tested in total. A nonstatistical sample of 6 out of 26 pay periods was selected for internal control testing over the compliance requirement. Repeat Finding from Prior Year: No Recommendation: We recommend the Organization to review policies and procedures to ensure total hours used to allocate monthly indirect expenses reconcile to hours worked per the Organization?s timekeeping software. Additionally, we recommend the Organization to review policies and procedures to ensure employee?s rate of pay paid agrees to their approved rate of pay. Views of Responsible Officials: Management is in agreement.

2022-003 Legal Services Corporation Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Basic Field Grant Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Technology Improvement Grant Activities Allowed and Allowable Costs Material Weakness in Internal Control over Compliance Criteria: 45 CFR 1630 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Total hours and LSC hours worked used to drive monthly allocation of indirect expenses by grant did not agree to total hours and LSC hours worked in the Organization?s timekeeping software for eight of the twelve months. Additionally, one instance identified in which the rate of pay paid to an employee did not agree to the approved rate of pay. Cause: There was a lapse in oversight of the internal control process ensuring total hours used to allocate indirect expenses by grant reconciled to total hours worked out of the Organization?s timekeeping software. There was a clerical error in revising the pay rate for an employee that was undetected by the payroll review process. Effect: The Organization?s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Organization could submit disallowed costs under the federal award. Questioned Costs: None reported. The error resulted in the federal award being undercharged. Context/Sampling: Total hours and LSC hours worked within the fiscal year was tested in total. A nonstatistical sample of 6 out of 26 pay periods was selected for internal control testing over the compliance requirement. Repeat Finding from Prior Year: No Recommendation: We recommend the Organization to review policies and procedures to ensure total hours used to allocate monthly indirect expenses reconcile to hours worked per the Organization?s timekeeping software. Additionally, we recommend the Organization to review policies and procedures to ensure employee?s rate of pay paid agrees to their approved rate of pay. Views of Responsible Officials: Management is in agreement.

2022-003 Legal Services Corporation Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Basic Field Grant Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Technology Improvement Grant Activities Allowed and Allowable Costs Material Weakness in Internal Control over Compliance Criteria: 45 CFR 1630 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Total hours and LSC hours worked used to drive monthly allocation of indirect expenses by grant did not agree to total hours and LSC hours worked in the Organization?s timekeeping software for eight of the twelve months. Additionally, one instance identified in which the rate of pay paid to an employee did not agree to the approved rate of pay. Cause: There was a lapse in oversight of the internal control process ensuring total hours used to allocate indirect expenses by grant reconciled to total hours worked out of the Organization?s timekeeping software. There was a clerical error in revising the pay rate for an employee that was undetected by the payroll review process. Effect: The Organization?s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Organization could submit disallowed costs under the federal award. Questioned Costs: None reported. The error resulted in the federal award being undercharged. Context/Sampling: Total hours and LSC hours worked within the fiscal year was tested in total. A nonstatistical sample of 6 out of 26 pay periods was selected for internal control testing over the compliance requirement. Repeat Finding from Prior Year: No Recommendation: We recommend the Organization to review policies and procedures to ensure total hours used to allocate monthly indirect expenses reconcile to hours worked per the Organization?s timekeeping software. Additionally, we recommend the Organization to review policies and procedures to ensure employee?s rate of pay paid agrees to their approved rate of pay. Views of Responsible Officials: Management is in agreement.

2022-003 Legal Services Corporation Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Basic Field Grant Federal Financial Assistance Listing #09-542026 Legal Services Corporation ? Technology Improvement Grant Activities Allowed and Allowable Costs Material Weakness in Internal Control over Compliance Criteria: 45 CFR 1630 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Total hours and LSC hours worked used to drive monthly allocation of indirect expenses by grant did not agree to total hours and LSC hours worked in the Organization?s timekeeping software for eight of the twelve months. Additionally, one instance identified in which the rate of pay paid to an employee did not agree to the approved rate of pay. Cause: There was a lapse in oversight of the internal control process ensuring total hours used to allocate indirect expenses by grant reconciled to total hours worked out of the Organization?s timekeeping software. There was a clerical error in revising the pay rate for an employee that was undetected by the payroll review process. Effect: The Organization?s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Organization could submit disallowed costs under the federal award. Questioned Costs: None reported. The error resulted in the federal award being undercharged. Context/Sampling: Total hours and LSC hours worked within the fiscal year was tested in total. A nonstatistical sample of 6 out of 26 pay periods was selected for internal control testing over the compliance requirement. Repeat Finding from Prior Year: No Recommendation: We recommend the Organization to review policies and procedures to ensure total hours used to allocate monthly indirect expenses reconcile to hours worked per the Organization?s timekeeping software. Additionally, we recommend the Organization to review policies and procedures to ensure employee?s rate of pay paid agrees to their approved rate of pay. Views of Responsible Officials: Management is in agreement.