Finding 1208600 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-04-23
Audit: 399572
Organization: Legal Services Alabama, INC (AL)

AI Summary

  • Core Issue: One out of 71 case files lacked a required retainer agreement and client statement for extended legal services.
  • Impacted Requirements: Non-compliance with Title 45 CFR §1611.9 regarding documentation for extended legal services.
  • Recommended Follow-up: Improve policies to ensure all necessary documents are collected and case coding is accurate for extended services.

Finding Text

Finding 2025-004 – Case Requirements (Significant Deficiency and Non-compliance) Information on the Federal Program: Legal Services Corporation (LSC) Basic Field Grant, Disaster Project Grant, Disaster Grant Incurred Cost, and Technology Innovation Grant - FAL # 9.601037 Criteria: Title 45 CFR §1611.9 requires recipients to maintain a written retainer agreement for clients receiving extended legal services, along with a statement identifying the legal problem(s) for which representation is provided. Condition/Context: During our testing of regulations, we examined 71 case files. In one of the 71 files tested, the client file did not include a retainer agreement and client statement of fact as required for extended services by 45 CFR §1611.9. In addition, one case was closed under Code A and one was closed under Code B. Codes A and B represent limited counsel and advice. These cases should have been coded with extended service codes. Cause: Required documentation was not obtained and retained in the client file at the time extended legal services were performed. Effect: The Organization did not accurately report case data and outcomes. Questioned Costs: None reported Recommendation: We recommend the Organization strengthen its policies and procedures to ensure that legal problem codes are correct and required documents are obtained and retained in all client files for extended legal services. Views of Responsible Officials: Management agrees with this finding. See Management’s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Corrective Action: Legal Services Alabama takes this finding seriously and is committed to full compliance with all case documentation and case coding requirements. We recognize the importance of maintaining complete and accurate client files, including ensuring that all required retainers, statements of fact, signatures, and service classifications are properly entered and preserved in LegalServer. As part of Mission 2026, our statewide initiative to strengthen operations and improve consistency across all offices, leadership has been traveling throughout Alabama to meet in person with each office to reinforce expectations, improve cohesion, and emphasize compliance standards. A central component of this effort is the review of random case selections from each office, followed by written feedback identifying areas where improvement is needed, including documentation practices, case coding accuracy, and file completeness. In response to this finding, we will continue targeted training on the distinction between limited service and extended service case closures, reinforce documentation requirements for extended representation, and monitor compliance through periodic file reviews. Legal Services Alabama is fully committed to ensuring that all information maintained in LegalServer is accurate, complete, and supported by the proper documentation in every case file. This change will be made within the next 90 days. Contact Person: Michael Forton, Director of Advocacy, (256) 551-2671; mforton@alsp.org

Categories

Significant Deficiency

Other Findings in this Audit

  • 1208597 2025-004
    Material Weakness Repeat
  • 1208598 2025-004
    Material Weakness Repeat
  • 1208599 2025-004
    Material Weakness Repeat
  • 1208601 2025-005
    Material Weakness Repeat
  • 1208602 2025-005
    Material Weakness Repeat
  • 1208603 2025-005
    Material Weakness Repeat
  • 1208604 2025-005
    Material Weakness Repeat
  • 1208605 2025-006
    Material Weakness Repeat
  • 1208606 2025-006
    Material Weakness Repeat
  • 1208607 2025-006
    Material Weakness Repeat
  • 1208608 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
09.037 Basic Field Grant $9.88M
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $299,494
64.056 LEGAL SERVICES FOR HOMELESS VETERANS AND VETERANS AT-RISK FOR HOMELESSNESS GRANT PROGRAM $298,932
09.037 Disaster Project Grant $143,996
16.589 RURAL DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ASSISTANCE PROGRAM $125,129
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $117,310
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $100,005
21.008 LOW INCOME TAXPAYER CLINICS $100,000
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $80,364
16.575 CRIME VICTIM ASSISTANCE $73,710
09.037 Disaster Grant Incurred Cost $61,010
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $22,414
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $10,187
09.037 Technology Innovation Grant $1,385
64.003 EDUCATION AND TRAINING OF HEALTH SERVICE PERSONNEL $585