Finding 1210707 (2025-001)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2025
Accepted
2026-04-28
Audit: 400007
Organization: Legal Aid Chicago (IL)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over tracking PAI time for LSC grants.
  • Impacted Requirements: PAI time must be documented separately to ensure compliance with grant regulations.
  • Recommended Follow-Up: Management should establish a review process for PAI time entries to confirm their accuracy.

Finding Text

Federal Agency: Legal Services Corporation (LSC) Federal Program: LSC Grants Assistance Listing Number: 09.514020 Federal Award Identification Number and Year: 09.514020 - 2025 Award Period: January 1, 2025 to December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PAI time is required to be tracked separately to document compliance with the PAI requirement under the LSC grant. Condition: Not all PAI time entries tested were for eligible PAI time. Questioned costs: None Context: Two of the 60 PAI time entries tested had time coded to PAI despite not being eligible PAI time. Cause: Unknown. Effect: Entering ineligible PAI time leads to a higher risk of noncompliance with regulations. Repeat finding: This finding is a repeat finding. Recommendation: We recommend that management implement a control to review PAI time entries to ensure they are accurate. Views of Responsible Official: There is no disagreement with this finding.

Corrective Action Plan

Recommendation: We recommend that management implement a control to review PAI time entries to ensure they are accurate. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: While issues with PAI time for non-case activity were successfully remediated with the implementation of a required drop-down activity description field in the LegalServer case management system, the two erroneous entries in 2025 involved case time and resulted from cases that were opened as PAI “Yes” due to the intake occurring at a volunteer clinic and the expectation of volunteer attorney involvement that did not ultimately occur. Legal Aid Chicago's Deputy Director/General Counsel has already contacted the employees who made the errors with respect to PAI time and has included their supervisors in the communication to ensure compliance on a forward-looking basis. The Deputy Director/General Counsel will also hold a compliance training for staff covering LSC regulations by the end of Q3 2026. Name of the contact person responsible for corrective action: Teresa Sullivan, Deputy Director / General Counsel Planned completion date for corrective action plan: September 30, 2026

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1210702 2025-001
    Material Weakness Repeat
  • 1210703 2025-001
    Material Weakness Repeat
  • 1210704 2025-001
    Material Weakness Repeat
  • 1210705 2025-001
    Material Weakness Repeat
  • 1210706 2025-001
    Material Weakness Repeat
  • 1210708 2025-002
    Material Weakness Repeat
  • 1210709 2025-002
    Material Weakness Repeat
  • 1210710 2025-002
    Material Weakness Repeat
  • 1210711 2025-002
    Material Weakness Repeat
  • 1210712 2025-002
    Material Weakness Repeat
  • 1210713 2025-002
    Material Weakness Repeat
  • 1210714 2025-003
    Material Weakness Repeat
  • 1210715 2025-003
    Material Weakness Repeat
  • 1210716 2025-003
    Material Weakness Repeat
  • 1210717 2025-003
    Material Weakness Repeat
  • 1210718 2025-003
    Material Weakness Repeat
  • 1210719 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
09.U01 Basic Field Grant - Cook County $7.85M
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $703,821
93.569 COMMUNITY SERVICES BLOCK GRANT $421,500
16.524 LEGAL ASSISTANCE FOR VICTIMS $286,291
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $285,418
16.575 CRIME VICTIM ASSISTANCE $276,985
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $248,426
14.418 PRIVATE ENFORCEMENT INITIATIVES $190,453
09.U06 Pro Bono Innovation Fund - Neighborhood Advocacy Projec $188,354
16.320 Services for Victims of Human Trafficking / TSAP $182,325
09.U02 Migrant Farm Workers - State of Illinois $176,843
21.008 LOW INCOME TAXPAYER CLINICS $136,632
93.307 MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH $104,141
09.U04 Technology Initiative Grant $100,078
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $97,024
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $89,390
64.056 LEGAL SERVICES FOR HOMELESS VETERANS AND VETERANS AT-RISK FOR HOMELESSNESS GRANT PROGRAM $79,104
14.267 CONTINUUM OF CARE PROGRAM $73,664
09.U05 Technology Initiative Grant $63,709
09.U03 Technology Improvement Project $51,195
93.042 SPECIAL PROGRAMS FOR THE AGING, TITLE VII, CHAPTER 2, LONG TERM CARE OMBUDSMAN SERVICES FOR OLDER INDIVIDUALS $40,336
93.667 SOCIAL SERVICES BLOCK GRANT $21,230
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $18,967
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $17,581
93.262 OCCUPATIONAL SAFETY AND HEALTH PROGRAM $10,783
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $7,500