FAC Explorer

Audit 46426

FY End
2022-12-31
Total Expended
$17.89M
Findings
2
Programs
12
Organization: Legal Aid of Northwest Texas (TX)
Year: 2022 Accepted: 2023-05-07
Auditor: Weaver and Tidwell LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47258 2022-001 Significant Deficiency - A
623700 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
09.U01 Basic Field Grant $10.96M Yes 1
21.023 Emergency Rental Assistance Program $770,534 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $602,157 - 0
14.218 Community Development Block Grants/entitlement Grants $218,095 - 0
09.U01 Pro Bono Innovation Fund $156,611 Yes 0
21.008 Low Income Taxpayer Clinics $100,000 - 0
09.U01 Lsc Supplemental Disaster $86,910 Yes 0
16.582 Crime Victim Assistance/discretionary Grants $35,977 - 0
16.524 Legal Assistance for Victims $26,559 - 0
93.568 Low-Income Home Energy Assistance $19,964 - 0
16.575 Crime Victim Assistance $8,799 Yes 0
64.033 Va Supportive Services for Veteran Families Program $7,586 - 0

Contacts

Name Title Type
VGNQLASS2ZG6 Kristin Horzen Auditee
8173395339 Jackie Gonzalez Auditor
No contacts on file

Notes to SEFA

Title: Indirect Cost Rate Accounting Policies: The Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the Schedules) include the federal and state grant activity of Legal Aid of NorthWest Texas (LANWT) under programs of the federal and state government for the year ended December 31, 2022. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of Legal Aid of NorthWest Texas, they are not intended to and do not present the financial position, changes in net assets, or cash flows of LANWT.The Schedules are presented using the accrual basis of accounting. The expenditures are reported based on LANWTs year-end. Expenditure reports to funding agencies are prepared based on award periods. See Note 1 of the Notes to the Financial Statements for LANWT's significant accounting policies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Uniform Guidance allows non-federal entities, such as LANWT, to elect to charge a de minimis rate of ten percent of modified direct costs as its indirect cost rate that may be used indefinitely. LANWT chose not to utilize the de minimis rate.
Title: Changes in Grant Management Standards Accounting Policies: The Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the Schedules) include the federal and state grant activity of Legal Aid of NorthWest Texas (LANWT) under programs of the federal and state government for the year ended December 31, 2022. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of Legal Aid of NorthWest Texas, they are not intended to and do not present the financial position, changes in net assets, or cash flows of LANWT.The Schedules are presented using the accrual basis of accounting. The expenditures are reported based on LANWTs year-end. Expenditure reports to funding agencies are prepared based on award periods. See Note 1 of the Notes to the Financial Statements for LANWT's significant accounting policies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. In December 2021, the Texas Comptroller published the Texas Grant Management Standards (TxGMS) which replaces Uniform Grant Management Standards (UGMS). TxGMS applied to state grants or contracts that begin on or after January 1, 2022.
Title: Basis of Presentation Accounting Policies: The Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the Schedules) include the federal and state grant activity of Legal Aid of NorthWest Texas (LANWT) under programs of the federal and state government for the year ended December 31, 2022. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of Legal Aid of NorthWest Texas, they are not intended to and do not present the financial position, changes in net assets, or cash flows of LANWT.The Schedules are presented using the accrual basis of accounting. The expenditures are reported based on LANWTs year-end. Expenditure reports to funding agencies are prepared based on award periods. See Note 1 of the Notes to the Financial Statements for LANWT's significant accounting policies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (the Schedules) include the federal and state grant activity of Legal Aid of NorthWest Texas (LANWT) under programs of the federal and state government for the year ended December 31, 2022. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The information in the Schedule of Expenditures of State Awards is presented in accordance with the requirements of the Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of Legal Aid of NorthWest Texas, they are not intended to and do not present the financial position, changes in net assets, or cash flows of LANWT.The Schedules are presented using the accrual basis of accounting. The expenditures are reported based on LANWTs year-end. Expenditure reports to funding agencies are prepared based on award periods. See Note 1 of the Notes to the Financial Statements for LANWTs significant accounting policies.

Finding Details

Finding 2022-001
Major Federal Program: 09.744050 ? Legal Services Corporation ? Basic Field Grant Compliance Requirements: Allowable Activities Criteria: The Compliance Supplement for Audits of LSC Recipients and LSC Regulations 45 CFR? 1620.6 require that all staff who handle cases or matters, or make decisions about which cases to accept, are required to sign an agreement indicating that the staff has read and understands the priorities established by the governing body of the entity; has read and understands the definition of an emergency situation and the procedures for dealing with an emergency that falls outside of the entity?s established priorities; and will not undertake any case or matter for the recipient that is not a priority or an emergency. Audit procedures revealed that these signed agreements were not adequately reviewed and retained for all employees for the year ended December 31, 2022. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context: Of 40 staff selected for testing, signed agreements were unable to be located for 4 individuals. Effect and Questioned Costs: Ineligible cases or matters could be undertaken outside of the entity?s established priorities, and may result in materially misstating cases or matters served both for grant compliance and financial reporting. Questioned costs were indeterminable. Recommendation: We recommend that files for all employees who handle cases or matters be thoroughly reviewed, to ensure timely completeness and signing of agreements in order to be in compliance with grant requirements. We also recommend review procedures be put in place to ensure the agreements are signed appropriately and timely. Response: See Corrective Action Plan
Finding 2022-001
Major Federal Program: 09.744050 ? Legal Services Corporation ? Basic Field Grant Compliance Requirements: Allowable Activities Criteria: The Compliance Supplement for Audits of LSC Recipients and LSC Regulations 45 CFR? 1620.6 require that all staff who handle cases or matters, or make decisions about which cases to accept, are required to sign an agreement indicating that the staff has read and understands the priorities established by the governing body of the entity; has read and understands the definition of an emergency situation and the procedures for dealing with an emergency that falls outside of the entity?s established priorities; and will not undertake any case or matter for the recipient that is not a priority or an emergency. Audit procedures revealed that these signed agreements were not adequately reviewed and retained for all employees for the year ended December 31, 2022. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context: Of 40 staff selected for testing, signed agreements were unable to be located for 4 individuals. Effect and Questioned Costs: Ineligible cases or matters could be undertaken outside of the entity?s established priorities, and may result in materially misstating cases or matters served both for grant compliance and financial reporting. Questioned costs were indeterminable. Recommendation: We recommend that files for all employees who handle cases or matters be thoroughly reviewed, to ensure timely completeness and signing of agreements in order to be in compliance with grant requirements. We also recommend review procedures be put in place to ensure the agreements are signed appropriately and timely. Response: See Corrective Action Plan