Finding 1151182 (2024-003)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2024
Accepted
2025-08-27

AI Summary

  • Core Issue: The Organization misallocated $4,925 in attorney's fees to a non-LSC fund, violating LSC requirements.
  • Impacted Requirements: This misallocation breaches the allocation and recordation rules set by 45 C.F.R. § 1609.4 (b).
  • Recommended Follow-up: Revise the fee allocations and implement a thorough review process to ensure compliance with regulatory guidance.

Finding Text

Criteria: Legal Services Corporation (LSC) grant recipients for fee generating cases are required to compile with the allocation and recordation requirements of 45 C.F.R. § 1609.4 (b). Attorneys' fees received by a recipient or an employee of a recipient for representation supported in whole or in part with funds provided by LSC shall be allocated to the fund in which the recipient's LSC grant is recorded in the same proportion that the amount of LSC funds expended bears to the total amount expended by the recipient to support the representation. Condition/Context: The Organization incorrectly allocated attorney's fees totaling $4,925 back to a non-LSC fund in four of four cases selected in the sample. The sample was not a statistically valid sample. Cause: The Organization did not properly review the allocation of attorneys' fees due to turnover. Effect: Improper allocation could result in the Organization administering the LSC Grant out of compliance with the Guide. Questioned Costs: N/A Recommendation: It is recommended that the Organization revise the allocation for those noted above, and ensure proper review of allocation to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s finding and will take immediate action to revise the attorney fees allocation. The Director of Finance will work directly with the Accounting team to ensure proper review of allocation of attorney fees.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 574739 2024-002
    Significant Deficiency Repeat
  • 574740 2024-003
    Significant Deficiency
  • 574741 2024-004
    Significant Deficiency
  • 574742 2024-005
    Significant Deficiency
  • 574743 2024-002
    Significant Deficiency Repeat
  • 574744 2024-003
    Significant Deficiency
  • 574745 2024-004
    Significant Deficiency
  • 574746 2024-005
    Significant Deficiency
  • 574747 2024-002
    Significant Deficiency Repeat
  • 574748 2024-003
    Significant Deficiency
  • 574749 2024-004
    Significant Deficiency
  • 574750 2024-005
    Significant Deficiency
  • 574751 2024-002
    Significant Deficiency Repeat
  • 574752 2024-003
    Significant Deficiency
  • 574753 2024-004
    Significant Deficiency
  • 574754 2024-005
    Significant Deficiency
  • 1151181 2024-002
    Significant Deficiency Repeat
  • 1151183 2024-004
    Significant Deficiency
  • 1151184 2024-005
    Significant Deficiency
  • 1151185 2024-002
    Significant Deficiency Repeat
  • 1151186 2024-003
    Significant Deficiency
  • 1151187 2024-004
    Significant Deficiency
  • 1151188 2024-005
    Significant Deficiency
  • 1151189 2024-002
    Significant Deficiency Repeat
  • 1151190 2024-003
    Significant Deficiency
  • 1151191 2024-004
    Significant Deficiency
  • 1151192 2024-005
    Significant Deficiency
  • 1151193 2024-002
    Significant Deficiency Repeat
  • 1151194 2024-003
    Significant Deficiency
  • 1151195 2024-004
    Significant Deficiency
  • 1151196 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.U02 Basic Field and Pai Grants $2.13M
09.U04 2023 Carryover Funds $680,896
14.418 Private Enforcement Initiatives $195,043
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $168,845
09.U03 Migrant Grant $139,903
09.U05 Technology Improvement Grant $81,290
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $24,331
14.169 Housing Counseling Assistance Program $7,267
16.575 Crime Victim Assistance $1,604