Finding Text
Finding 2023-004 – Allowable Costs (Material Weakness and Non-compliance)
Information on the Federal Program: Legal Services Corporation Basic Field Grant, Award No.
09.610020
Criteria: 45 CFR 1630 requires that costs are incurred, reasonable and necessary, allocable to the
grant, adequately documented, and consistent with accounting policies and procedures.
Condition/Context: We selected 50 disbursements for testing. Of those 50, 25 were for payroll and
25 were non-payroll disbursements. Of the 25 payroll items, 2 employees did not have an approved
pay rate. Of the 25 non-payroll disbursements, 2 did not have proper supporting documentation such
as an invoice and 8 were not properly approved for payment.
Cause: Expenses allocated to the LSC grant were not properly supported and approved.
Effect: The Organization did not comply with allowable cost documentation requirements.
Questioned costs: $10,790
Recommendation: We recommend the Organization strengthen its policies and procedures
surrounding the disbursement process to ensure the Organization is in compliance with all required
documentation and disclosure requirements.Views of Responsible Officials: See Management’s View and Corrective Action Plan included at
the end of the report.