Finding Text
Finding 2024-004 – Allowable Costs (Significant Deficiency and Non-compliance)(Repeat
finding)
Information on the Federal Program: Legal Services Corporation Basic Field Grant, Award No.
09.610020
Criteria: 45 CFR 1630 requires that costs are incurred, reasonable and necessary, allocable to the
grant, adequately documented, and consistent with accounting policies and procedures.
Condition/Context: We selected 25 payroll disbursements for testing. Of those 25, one payroll
expense was not properly allocated. The payroll disbursement tested was a paid time off buyback
allocated 100% to LSC and supporting documentation did not agree to this allocation.
Cause: Supporting documentation supported an allocation of 87% of the paid time off buyback but
the whole expense was charged to LSC.
Effect: The Organization did not comply with allowable cost allocation requirements.
Questioned costs: $625
Recommendation: We recommend the Organization strengthen its policies and procedures
surrounding the disbursement process to ensure the Organization is in compliance with all required
documentation and allocation requirements.
Views of Responsible Officials: Management agrees with this finding. See Management’s View
and Corrective Action Plan included at the end of the report.