Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting.MLSC did not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Criteria: Per 45 C.F.R. ? 1636.2, 1636.3, 1636.5 compliance requirement. A recipient must, prior to the initiation of litigation or settlement negotiations, prepare for each case in which it files a complaint in a court of law or institutes or participates in litigation against a defendant, or engages in pre-complaint settlement negotiations where the filing of a suit has been authorized by the plaintiff if negotiations fail, a dated written statement (in English and, if necessary, in another language which the plaintiff understands) signed by each plaintiff, enumerating the particular facts known to the plaintiff supporting the complaint. Condition: For 1 or 1% of 94 cases selected for testing, MLSC did not generate statements of facts. 15E-6000380-1 Cause: MLSC established the client identity and statement of facts policy. However, MLSC did not follow the policy. Effect: MLSC is not in compliance with client identity and statement of facts requirements. No questioned cost is presented as the fee incurred is not determinable. Recommendation: MLSC should monitor compliance with its policies over client identity and statement of facts requirements. Views of Responsible Officials: MLSC agrees and describes corrective action in the Corrective Action Plan.
Criteria: Per 45 C.F.R. ? 1636.2, 1636.3, 1636.5 compliance requirement. A recipient must, prior to the initiation of litigation or settlement negotiations, prepare for each case in which it files a complaint in a court of law or institutes or participates in litigation against a defendant, or engages in pre-complaint settlement negotiations where the filing of a suit has been authorized by the plaintiff if negotiations fail, a dated written statement (in English and, if necessary, in another language which the plaintiff understands) signed by each plaintiff, enumerating the particular facts known to the plaintiff supporting the complaint. Condition: For 1 or 1% of 94 cases selected for testing, MLSC did not generate statements of facts. 15E-6000380-1 Cause: MLSC established the client identity and statement of facts policy. However, MLSC did not follow the policy. Effect: MLSC is not in compliance with client identity and statement of facts requirements. No questioned cost is presented as the fee incurred is not determinable. Recommendation: MLSC should monitor compliance with its policies over client identity and statement of facts requirements. Views of Responsible Officials: MLSC agrees and describes corrective action in the Corrective Action Plan.