Finding Text
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 PAI requirement of $246,992 for the current year and did not spend the carryover from the prior year. A waiver was not requested timely for the shortfall. 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: The procedures in place did not result in a timely request for a waiver. PAI waivers must be requested by the end of the fiscal year June 30. LASP requested a waiver during August of 2023 which was approved by LSC. Effect of the Condition: The PAI expenses were $165,785 which is a shortfall of $81,207 for the current year. This is a repeat finding. 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: LASP will monitor PAI through quarterly meetings and request a timely waiver if needed.