Finding 1151192 (2024-005)

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

AI Summary

  • Core Issue: The Organization failed to provide necessary support for expense allocations on 10 out of 40 sampled expenses.
  • Impacted Requirements: This non-compliance with 45 C.F.R. § 1630.5 (a) raises concerns about the use of LSC funds for unallowable activities.
  • Recommended Follow-Up: Implement procedures for better retention of expense allocation documentation to meet regulatory standards.

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. § 1630.5 (a). expenditures are allowable under an LSC grant or contract only if the recipient can demonstrate that the cost was allocable to the grant or contract. Condition/Context: The Organization was unable to provide support for expense allocations for 10 expenses of 40 expenses included in the sample. The sample was not a statistically valid sample. Cause: The Organization did not properly retain expense allocation support due to improper review and turnover. Effect: LSC funds could be utilized for unallowable activities. Questioned Costs: N/A Recommendation: It is recommended that the Organization ensure proper retention of expense allocation documentation to align with the regulatory guidance. Views of Responsible Officials: Management agrees with the auditor’s findings and will take immediate action to ensure the expense allocations are recorded properly. The Director of Finance (Vannam Khen) will work directly with the Finance staff to develop procedures to ensure expense allocations are recorded properly.

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
  • 1151182 2024-003
    Significant Deficiency
  • 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
  • 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