Finding Text
Finding 2022-002 ? Case Requirements (Significant Deficiency and Non-compliance) Information on the Federal Program: Legal Services Corporation Basic Field Grant, Disaster Project Grant, Disaster Grant Incurred Cost, and Technology Grant Criteria: 45 CFR Section 1626 and 1636 requires additional documentation such as a signed retainer, US citizen statement and statement of fact for cases where extended service is provided. 45 CFR 1611 establishes financial eligibility guidelines. Recipients adopt guidelines to establish a maximum annual income level for persons to be eligible to receive legal aid, not to exceed 125% of the Federal Poverty Income Guidelines. If the applicant?s income exceeds the threshold, there are certain factors that can be considered: current income prospects, unreimbursed medical expenses, fixed debts and obligations, and other expenses such as dependent care, transportation, expenses for employment, etc. Condition/Context: During our testing of controls, we examined 71 case files. In one case the client exceeded the 125% income limit, but no documentation of exceptions met were in the case file and one case was closed under an incorrect problem code. Cause: The assigned attorney did not obtain the required income and exemption documentation for the file and failed to properly close the case resulting in inaccurate case data and outcomes. Effect: LSA is not in compliance with case requirements. Questioned Costs: None reported Recommendation: We recommend LSA strengthen its policies and procedures surrounding the process of opening and closing case files to ensure 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.