Finding Text
2023 – 005: Retention of LSC Case File Retainer Agreement
Federal Agency: Legal Services Corporation (LSC)
Federal Program Name: LSC Grants
Assistance Listing Number: 09.706060
Federal Award Identification Number and Year: 09-706060 - 2023
Award Period: January 1, 2023 – December 31, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other Matters
Criteria or specific requirement: Federal regulations (45 CFR 1611.9) state that federal award recipients must execute a retainer agreement with each client when extended service representation commences or as soon thereafter as is practicable. The agreement must include a statement identifying the legal problem for which representation was sought and the nature of the legal services to be provided. The recipient must maintain copies of all retainer agreements executed. No written retainer agreement is required when the recipient is only providing advice and counsel or brief service, or when legal services are being provided by a private attorney per the private attorney involvement provisions of 45 CFR 1614.
Condition: During our testing we were unable to see evidence of the required retainer agreement for a case file tested.
Questioned costs: None.
Context: This single instance was noted during testing of 60 case files.
Cause: The Organization’s case file review internal controls did not detect and prevent noncompliance with this requirement.
Effect: The Organization’s case file review internal controls may not detect and prevent noncompliance with this requirement.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the Organization review its case file review internal controls to ensure that they are designed in a manner to detect and prevent noncompliance with this requirement.
Views of responsible officials: There is no disagreement with the audit finding