Finding 27981 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-27
Audit: 28162
Organization: Legal Aid of Arkansas (AR)

AI Summary

  • Core Issue: The Organization failed to meet the required 12% expenditure on Private Attorney Involvement as outlined in the grant agreement.
  • Impacted Requirements: The grant agreement mandates that at least 12% of funds be allocated to Private Attorney Involvement, which was not achieved.
  • Recommended Follow-Up: Emphasize the need for staff to actively recruit private attorneys and foster strong relationships to ensure ongoing support for pro bono cases.

Finding Text

Legal Services Corporation 2022-1 The Private Attorney Involvement did not exceed the 12 ?% requirement. Condition and Criteria: Under the terms of the grant agreement, the Organization is required to expend 12 ?% of the Legal Services Corporation grant on Private Attorney Involvement. The Organization did not meet this 12 ?% requirement. Effect: The Organization did not meet the 12 ?% requirement of Private Attorney Involvement. Cause: The primary cause of the shortage was the pro bono project director position was unfilled for a period during the year. A secondary cause is a lack of private attorneys to take on pro bono cases in the Organization?s service area. Recommendation: It should be stressed to the staff of the Organization the importance of finding private attorneys to help with these matters and to maintain good working relationships with the private attorneys to continue to keep their services in the future.

Corrective Action Plan

Name: Legal Aid of Arkansas Recipient: 604020 Audit firm: Yoakum, Lovell and Company, PLC Audit period: Fiscal Year Ended December 31, 2022 Section I ? Internal Control Review None Section II ? Compliance Review A. Comments on Findings and Recommendations Legal Aid of Arkansas concurs with audit finding 2022-1 on the Schedule of Findings and Questioned Costs. B. Actions Taken or Planned Legal Aid of Arkansas did not request a timely waiver as contemplated in 45 CFR ? 1614 because projections showed the project on track to meet the 12.5% requirement. The primary causation of the shortage was the pro bono project director took another position and there was a gap until a replacement was found, leaving budgeted salary for pro bono services unused. A secondary cause is the lack of private attorneys to take pro bono cases in the Legal Aid services area. Arkansas remains near or at the bottom in the number of attorneys per capita nationally, and that statistic is magnified in the rural areas of North Arkansas. C. Future planning and monitoring Legal Aid requests that we be allowed to carry forward the unused portion of the 12.5% requirement to 2023, when we project to spend 13.17% on PAI delivery. We now have four dedicated pro bono staff, including one pro bono coordinator who transitioned over from our now finished PBIF grant and a new part-time coordinator for our Medical-Legal Partnership at Arkansas Children?s Hospital. The current PAI budget is $280,926.50. Instead of quarterly PAI reports, we will calculate PAI expenses monthly starting in April 2023, to assure we are on track for compliance.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
09.604 Legal Services Corporation - Basic Field $1.92M
14.416 Education and Outreach Initiatives $358,198
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $339,570
16.575 Crime Victim Assistance $301,293
09.604 Legal Services Corporation - Pro Bono Innovation $176,359
14.416 Education and Outreach Initiatives - American Rescue Plan $175,000
21.008 Low Income Taxpayer Clinics $70,000
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $69,125
09.604 Legal Services Corporation - Disaster Funds $64,400
14.418 Private Enforcement Initiatives $62,500