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FINDING: 2022-002 Private Attorney Involvement (PAI) U.S. Congress via Legal Services Corporation (ALN 09.U01.339080) Statement of Condition: During our audit, we noted that LASP did not meet the adjusted PAI requirement of $203,603. Criteria: Under the Code of Federal Regulations (45 CFR ?? 1614.1, 1614.3, 1614.4, 1614.5 and 1614.6), LSC recipients are required to devote an amount of LSC and/or non-LSC funds equal to at least 12.5 percent of their annualized LSC basic field award to promoting the involvement of private attorneys, law students, law graduates, or other professionals in the delivery of legal information and legal assistance to eligible clients. The recipient is to demonstrate compliance with this Part by using financial systems and procedures and maintaining supporting documentation to identify and account separately for costs related to the PAI effort. Cause: Although procedures were in place, the procedures did not produce an accurate estimate of the potential shortfall in order to request an adequate wavier. LASP encountered challenges recruiting pro bono volunteers during the pandemic. Effect of the Condition: The PAI expenses were $155,663 which is a $47,940 shortfall of the 2022 adjusted PAI requirement. This $47,940 shortfall will be added to the 2023 PAI requirement. Recommendation: We recommend LASP review its procedures to ensure compliance with the requirements of 45 CFR ? 1614. Views of responsible officials and planned corrective action: Management will update the procedures to ensure compliance with the requirements of 45 CFR ? 1614. LASP hired a new Pro Bono Director in December 2021, a newly created position. Her hire will assist in ensuring that LASP will meet LSC PAI requirements going forward.