FAC Explorer

Finding 47554 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 47563
Organization: Micronesian Legal Services Corporation (MP)
Auditor: Burger Comer and Associates

AI Summary

  • Core Issue: MLSC failed to prepare required statements of facts for 1 out of 94 cases, violating compliance requirements.
  • Impacted Requirements: Non-compliance with 45 C.F.R. ? 1636.2, 1636.3, and 1636.5 regarding documentation before litigation.
  • Recommended Follow-Up: MLSC should enhance monitoring of its policies on client identity and statement of facts to ensure compliance.

Finding Text

Criteria: Per 45 C.F.R. ? 1636.2, 1636.3, 1636.5 compliance requirement. A recipient must, prior to the initiation of litigation or settlement negotiations, prepare for each case in which it files a complaint in a court of law or institutes or participates in litigation against a defendant, or engages in pre-complaint settlement negotiations where the filing of a suit has been authorized by the plaintiff if negotiations fail, a dated written statement (in English and, if necessary, in another language which the plaintiff understands) signed by each plaintiff, enumerating the particular facts known to the plaintiff supporting the complaint. Condition: For 1 or 1% of 94 cases selected for testing, MLSC did not generate statements of facts. 15E-6000380-1 Cause: MLSC established the client identity and statement of facts policy. However, MLSC did not follow the policy. Effect: MLSC is not in compliance with client identity and statement of facts requirements. No questioned cost is presented as the fee incurred is not determinable. Recommendation: MLSC should monitor compliance with its policies over client identity and statement of facts requirements. Views of Responsible Officials: MLSC agrees and describes corrective action in the Corrective Action Plan.

Corrective Action Plan

Management agrees. MLSC will strengthen review procedures as follows: Responsible person: Executive Director Lee Pliscou The objective of this corrective action plan is to address the audit finding related to client statements of fact. Our current policy is to obtain a signed client statement of fact before we file a complaint in a court of law or otherwise initiate or participate in litigation against a defendant or engage in pre-complaint settlement negotiations. While our policy is, we think, compliant with the LSC requirement, in practice it makes it difficult to document compliance particularly for cases where we need to show that a client statement of fact was not required. To correct this, by July 1, 2023, MLSC Deputy Director Barbara Cepeda will develop and implement a policy to obtain a signed client statement of fact coincident with the execution of a retainer agreement with a client. We will do this for all extended service cases. This way, although we will be obtaining client statements of facts in cases where it is not required that we do so, we will be able to document compliance by showing a signed statement of fact, rather than trying to show that none was needed. Anticipated completion date: July 1, 2023.

Categories

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Other Findings in this Audit

  • 623996 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.030 Basic Field Grant $2.76M