Finding Text
FINDING: 2024-002 Private Attorney Involvement (PAI)
Significant Deficiency
U.S. Congress via Legal Services Corporation (ALN 09.U01.339141)
Statement of Condition: During our audit, we noted that LASP did not meet the adjusted PAI requirement of $278,524.
Criteria: Under the Code of Federal Regulations (45 CFR §§ 1614.1, 1614.3, 1614.4, 1614.5 and 1614.6), LSC recipients are required to devote an amount of LSC and/or non-LSC funds equal to at least 12.5 percent of their annualized LSC basic field award to promoting the involvement of private attorneys, law students, law graduates, or other professionals in the delivery of legal information and legal assistance to eligible clients. The recipient is to demonstrate compliance with this Part by using financial systems and procedures and maintaining supporting documentation to identify and account separately for costs related to the PAI effort.
Cause: Although procedures were in place, the procedures did not produce an accurate estimate of the potential shortfall in order to request an adequate wavier.
Effect of the Condition: The PAI requirement for 2024 of $278,524, consists of the current year amount of $247,311 calculated by multiplying the base grant by 12.5% plus the prior year shortfall of $81,213. The 2024 PAI actual amount spent was $204,348 resulting in a shortfall of $74,176 and therefore will be added to the 2025 PAI requirement.
Recommendation: We recommend LASP review its procedures to ensure compliance with the requirements of 45 CFR § 1614.
Views of responsible officials and planned corrective action: Management agrees with the finding, see corrective action plan.