Finding 47258 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-05-07
Audit: 46426
Organization: Legal Aid of Northwest Texas (TX)

AI Summary

  • Core Issue: Some staff agreements confirming understanding of case priorities were missing, risking non-compliance with grant requirements.
  • Impacted Requirements: Compliance with LSC regulations mandates that all relevant staff must sign agreements regarding case handling and emergency procedures.
  • Recommended Follow-Up: Review and ensure all staff agreements are signed and retained; implement procedures for timely compliance checks.

Finding Text

Major Federal Program: 09.744050 ? Legal Services Corporation ? Basic Field Grant Compliance Requirements: Allowable Activities Criteria: The Compliance Supplement for Audits of LSC Recipients and LSC Regulations 45 CFR? 1620.6 require that all staff who handle cases or matters, or make decisions about which cases to accept, are required to sign an agreement indicating that the staff has read and understands the priorities established by the governing body of the entity; has read and understands the definition of an emergency situation and the procedures for dealing with an emergency that falls outside of the entity?s established priorities; and will not undertake any case or matter for the recipient that is not a priority or an emergency. Audit procedures revealed that these signed agreements were not adequately reviewed and retained for all employees for the year ended December 31, 2022. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context: Of 40 staff selected for testing, signed agreements were unable to be located for 4 individuals. Effect and Questioned Costs: Ineligible cases or matters could be undertaken outside of the entity?s established priorities, and may result in materially misstating cases or matters served both for grant compliance and financial reporting. Questioned costs were indeterminable. Recommendation: We recommend that files for all employees who handle cases or matters be thoroughly reviewed, to ensure timely completeness and signing of agreements in order to be in compliance with grant requirements. We also recommend review procedures be put in place to ensure the agreements are signed appropriately and timely. Response: See Corrective Action Plan

Corrective Action Plan

Major Federal Program: 09.744050 ? Legal Services Corporation ? Basic Field Grant Compliance Requirements: Allowable Activities Response: The LANWT Board of Directors reviews and adopts case and matter priorities as guidance to LANWT staff for the delivery of legal services and advocacy to eligible applicants seeking assistance. LANWT?s current protocol regarding case and matter priorities, adopted in 2022, provides that the Case & Matter Priority Policy (Policy) is given to employees several different times during their onboarding with the firm and then again each year thereafter. Employees first receive a copy of the Policy from LANWT Human Resources (HR) during New Employee Orientation (NEO). The employee signs an acknowledgement confirming they have received the Policy and they will review it. HR retains the signed acknowledgement from each employee in the employee?s personnel file. Employees train on the Policy during the Branch NEO with their manager. The managers use the Branch NEO Checklist (Checklist) during their training to identify important policies and procedures. The branch NEO training consists of reviewing the Policy with the employee, ensuring they know the location of the Policy for future reference, what defines a priority case and matter, what an emergency is and the procedure for handling an emergency. Upon completing the training, employees sign the Branch NEO Checklist acknowledging they have received and reviewed the Policy. HR places the signed Checklist in each employee?s personnel file. During Onboard Training with employees, facilitated by the Directors of Litigation, the Policy is provided, reviewed and any questions answered. Any updated Case & Matter Priority Policy is published to employees for review and use. To ensure ongoing compliance with the regulation, LANWT supervising and managing attorneys attend case staffing and supervise the acceptance of cases pursuant to the Policy. Managers submit written confirmation to LANWT?s Chief Executive Officer (CEO) that their staff have complied with the Policy on a quarterly basis. LANWT will: 1. Review and revise the acknowledgement documentation for its Case & Matter Priority Policy within 30 days; 2. Provide guidance to managers and relevant administrative staff on completion and retention of the documentation during NEO process and during any other relevant times determined by LANWT; and 3. Provide the revised acknowledgement documentation to all intake staff, advocates and those staff having authority to make case selection decisions and have them sign within 60 days. Date of Completion: July 7, 2023 Person Responsible to Ensure Completion: Maria Thomas-Jones, CEO

Categories

Eligibility Material Weakness Reporting Significant Deficiency

Other Findings in this Audit

  • 623700 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.U01 Basic Field Grant $10.96M
21.023 Emergency Rental Assistance Program $770,534
21.027 Coronavirus State and Local Fiscal Recovery Funds $602,157
14.218 Community Development Block Grants/entitlement Grants $218,095
09.U01 Pro Bono Innovation Fund $156,611
21.008 Low Income Taxpayer Clinics $100,000
09.U01 Lsc Supplemental Disaster $86,910
16.582 Crime Victim Assistance/discretionary Grants $35,977
16.524 Legal Assistance for Victims $26,559
93.568 Low-Income Home Energy Assistance $19,964
16.575 Crime Victim Assistance $8,799
64.033 Va Supportive Services for Veteran Families Program $7,586