Finding 1208604 (2025-005)

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: LSA did not meet the required 12.5% funding allocation for private attorney involvement (PAI) as mandated by federal regulations.
  • Impacted Requirements: Compliance with Title 45 CFR §1614, which outlines funding obligations for promoting legal assistance through private attorneys.
  • Recommended Follow-up: Increase training and outreach efforts for PAI, and reassess current activities to ensure they qualify under PAI requirements.

Finding Text

Finding 2025-005 – Private Attorney Involvement (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 §1614 requires a recipient to devote an amount of LSC funding equal to at least 12.5% of their annualized LSC basic field award to promoting the involvement of private attorneys, law students, law graduates, or other professionals to provide legal information and legal assistance to eligible clients. Condition/Context: During our testing of PAI expenditures, calculated the required amount of expenditures that should be allocated to private attorney involvement and noted that LSA did not meet the minimum requirement. LSA applied for and received a waiver from LSC, but LSA did not add the correct prior year carryforward amount to the calculation. Cause: LSA failed to add the correct prior year carryforward amount to the PAI calculation. Effect: The Organization did request an adequate waiver amount. Questioned Costs: None reported Recommendation: We recommend the Organization increase efforts to meet the 1614 minimum such as expanding PAI training and education as well as community outreach programs. LSA could also re-evaluate existing activities to determine if activities already being performed could qualify as PAI activities. 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: LSA follows a monthly accounting checklist which includes PAI expenditures reconciliations. LSA will expand the checklist to include detailed year-end procedures and provide training that covers the expanded checklist within 30 days of the audit submission. Additionally, LSA will provide annual accounting training to support year-end accounting activities and processes including PAI carryforward calculations and analysis. In addition, LSA will increase efforts to meet the 1614 minimum by expanding PAI training and education and evaluating activities for qualification as PAI activities. This change will be made within the next 90 days. Contact Person: George Fort, Director of Finance, (334) 223-0251; gfort@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
  • 1208600 2025-004
    Material Weakness Repeat
  • 1208601 2025-005
    Material Weakness Repeat
  • 1208602 2025-005
    Material Weakness Repeat
  • 1208603 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