Finding 396416 (2023-003)

Legal Services Corporation FFAL #09-542026 Legal Services Corporation – Basic Field Grant Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 45 CFR 1644.4 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: One instance where a case was improperly entered into Legal Server as no application was completed. Cause: There was not a full understanding of when a case would be considered an open case within Legal Server. Effect: Lack of compliance with designed internal controls over case files could result in the Organization using funds for cases that are not eligible for reimbursement. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 62 cases out of more than 250 cases opened during 2023 were selected for eligibility testing. Repeat Finding from Prior Year: No Recommendation: We recommend management review the internal control process to ensure cases are entered within Legal Server when the case is considered an open case. Views of Responsible Officials: Management is in agreement.