Finding 1228045 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-27

AI Summary

  • Core Issue: One client was incorrectly classified as financially eligible for LSC assistance, despite not meeting the criteria.
  • Impacted Requirements: Compliance with LSC § 1611.4 (a) regarding financial eligibility for legal assistance.
  • Recommended Follow-Up: Provide ongoing training for staff on financial eligibility to prevent future errors.

Finding Text

2025-001 Financial Eligibility Legal Services Corporation ALN#09.233100 Criteria: Per LSC § 1611.4 (a) Financial Eligibility, a recipient may provide legal assistance supported with LSC funds only to individuals whom the recipient has determined to be financially eligible for such assistance. Nothing in this part, however, prohibits a recipient from providing legal assistance to an individual without regard to that individual's income and assets if the legal assistance is wholly supported by funds from a source other than LSC, and is otherwise permissible under applicable law and regulation. Condition: During the LSC case file testing, we identified one instance, where the program client was not financially eligible for the LSC program but was reported as LSC eligible. Cause: A Legal Services NYC employee mistakenly classified the program client who was not LSC financial eligible as LSC financial eligible in the case system. Effect: Incorrect financial eligibility documentation may lead to the improper inclusion or exclusion of clients from receiving services under the LSC program. Questioned costs: There are no questioned costs noted. Context: Out of 60 cases selected for testing, one (1) case was erroneously reported as LSC eligible. *This is a repeated finding from the prior year. The prior year finding # was 2024-001. Recommendation: We recommend that Legal Services NYC continue to provide relevant training to employees involved in client intake regarding financial eligibility. Views of responsible officials: See corrective action plan.

Corrective Action Plan

The paralegal responsible for this error has received one-on-one training regarding correctly documenting financial override reasons and notes. The Compliance Office has provided in-person training on financial eligibility rules in the borough where this error occurred and is preparing to roll out short training videos on discrete parts of the financial eligibility process (income overrides, assets and asset overrides, household numbers, etc.). In addition, the Compliance Office and the Citywide Director of Intake provide training to new staff and existing staff on financial eligibility throughout the year.

Categories

Eligibility

Other Findings in this Audit

  • 1228046 2025-002
    Material Weakness Repeat
  • 1228047 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
09.233 LEGAL SERVICES CORPORATION $17.51M
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $13.74M
16.575 CRIME VICTIM ASSISTANCE $1.91M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $1.06M
64.056 LEGAL SERVICES FOR HOMELESS VETERANS AND VETERANS AT-RISK FOR HOMELESSNESS GRANT PROGRAM $878,503
14.418 PRIVATE ENFORCEMENT INITIATIVES $505,974
21.008 LOW INCOME TAXPAYER CLINICS $400,000
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $254,028
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $195,637
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $149,999
64.033 VA SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM $128,898
93.569 COMMUNITY SERVICES BLOCK GRANT $124,751
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $54,108
93.778 GRANTS TO STATES FOR MEDICAID $50,357
93.667 SOCIAL SERVICES BLOCK GRANT $10,999
16.524 LEGAL ASSISTANCE FOR VICTIMS $5,000