Finding 479724 (2023-002)

Federal agency: Legal Services Corporation (LSC) Federal program title: Basic Field Grant Assistance Listing Number: 09.610090 Pass-Through Agencies: Coast to Coast Legal Aid of South Florida, Inc. Pass-Through Numbers: 610090 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance ; Compliance Finding Criteria or specific requirement: Per the LSC Reporting Requirements and as set forth by the authority of §III-2 of the Audit Guide for Recipients and Auditors, there is a requirement to submit an extension to submit the audit report, due two weeks prior to the audit report due date. The Organization should have internal controls designed to ensure the accuracy and completeness of reporting requirements. Condition: The Organization did not submit the extension to submit the audit report. Questioned costs: None Context: Out of the 7 LSC reporting requirements noted that are applicable for the Organization, there was 1 exception noted related to not submitting an extension to submit the audit report. Cause: In LSC’s Audit Guide that was updated for 2023, there was a new reporting requirement for LSC funds to be considered and tested as a major program, triggering a single audit to be performed over LSC passed through funds. As such, the Organization was unaware of the reporting requirement for submitting an extension to submit the audit report. Effect: The lack of internal control over the reporting compliance requirement provides an opportunity for inaccurate or incomplete information to be provided to LSC, and potential noncompliance with the LSC program. Repeat Finding: No Recommendation: The Organization should implement an internal review process over reporting requirements to become familiar with the authority set forth in LSC’s Audit Guide for Recipients and Auditors, to ensure accuracy and completeness of the reporting compliance requirement for LSC. Views of responsible officials: The Organization has obtained a copy of the new LSC Audit Guide to become familiar with all the requirements. Going forward, an extension to submit the Financial Audit report will be submitted within the time required by the grant, if the extension is necessary.