Finding 1076708 (2023-006)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: A capital improvement purchase of $31,350 was made without the required prior approval from LSC, violating LSC Reg. 1630.6.
  • Impacted Requirements: Any expenditure of $25,000 or more on personal property, services, or capital improvements must receive LSC's prior written approval.
  • Recommended Follow-Up: Legal Services NYC should ensure LSC approval is obtained before any future purchases of $25,000 or more using LSC funds.

Finding Text

2023-006 Costs requiring LSC prior approval Legal Services Corporation ALN#09.233100 Criteria: Per LSC Reg. 1630.6 Prior Approval: a recipient may not expend $25,000 or more of LSC funds on any of the following without LSC's prior written approval, (i) A single purchase or single lease of personal property; (ii) A single contract for services; (iii) A single combined purchase or lease of personal property and contract for services; and (iv) Capital improvements. Condition: One capital improvement purchase, amounting to $31,350, charged to the LSC funding did not receive the required prior approval as stipulated by LSC Reg. 1630.6. Cause: The expense was charged to the LSC program when the finance team performed the program cost allocation during their year-end closing process. However, the necessary LSC approval should have been obtained prior to charging this cost to the program. Effect: LSC could determine this to be an unallowed cost and could initiate a request for the return of funding. Context: We identified one capital improvement purchase that costs $25,000 or more out of the entire purchase population. Questioned costs: $31,350. Recommendation: We recommend that Legal Services NYC obtain LSC approval prior to making a purchase of $25,000 or more with the LSC funds in accordance with the LSC Reg. 1630. Views of responsible officials: See corrective action plan.

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 500263 2023-003
    Significant Deficiency Repeat
  • 500264 2023-004
    Significant Deficiency Repeat
  • 500265 2023-005
    Significant Deficiency
  • 500266 2023-006
    Significant Deficiency
  • 500267 2023-007
    Significant Deficiency
  • 1076705 2023-003
    Significant Deficiency Repeat
  • 1076706 2023-004
    Significant Deficiency Repeat
  • 1076707 2023-005
    Significant Deficiency
  • 1076709 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.223 Legal Services Corporation $16.06M
93.558 Temporary Assistance for Needy Families $8.46M
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.01M
16.575 Crime Victim Assistance $2.02M
93.914 Hiv Emergency Relief Project Grants $1.10M
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $564,516
14.418 Private Enforcement Initiatives $400,702
93.569 Community Services Block Grant $313,351
21.008 Low Income Taxpayer Clinics $265,388
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $238,716
16.588 Violence Against Women Formula Grants $149,999
64.033 Va Supportive Services for Veteran Families Program $137,500
93.667 Social Services Block Grant $100,468
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $60,999
93.778 Medical Assistance Program $56,769
14.408 Fair Housing Initiatives Program $14,491
16.524 Legal Assistance for Victims $1,516