Finding 398400 (2023-001)

Finding 2023-001 Major Federal Program: 09.744050 – Legal Services Corporation – Basic Field Grant Compliance Requirements: Allowable Costs and Cost Principles Criteria: The Compliance Supplement for Audits of LSC Recipients and LSC Regulations 45 CFR§ 1631.3 requires that any capital improvements using more than $25,000 of LSC Funds have documented requests for LSC approval and that approval has been granted within 30 days. Audit procedures revealed that capital improvements of $45,000 related to roof repairs were not approved by LSC. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context: Capital improvements of $45,000 related to roof repairs were not approved by LSC within 30 days of occurring under exigent circumstances. Effect and Questioned Costs: Repair costs of $45,000, although not approved in accordance with LSC guidelines, were expended on allowable costs. Likely Questioned costs were indeterminable. Recommendation: We recommend review procedures be put in place to ensure the all capital improvements are approved appropriately prior to purchase or within 30 days of occurring under exigent circumstances. Response: See Corrective Action Plan.