Finding Text
2023-006 Costs requiring LSC prior approval
Legal Services Corporation ALN#09.233100
Criteria: Per LSC Reg. 1630.6 Prior Approval: a recipient may not expend $25,000 or more of LSC funds on any of the following without LSC's prior written approval,
(i) A single purchase or single lease of personal property;
(ii) A single contract for services;
(iii) A single combined purchase or lease of personal property and contract for services; and
(iv) Capital improvements.
Condition: One capital improvement purchase, amounting to $31,350, charged to the LSC funding did not receive the required prior approval as stipulated by LSC Reg. 1630.6.
Cause: The expense was charged to the LSC program when the finance team performed the program cost allocation during their year-end closing process. However, the necessary LSC approval should have been obtained prior to charging this cost to the program.
Effect: LSC could determine this to be an unallowed cost and could initiate a request for the return of funding.
Context: We identified one capital improvement purchase that costs $25,000 or more out of the entire purchase population.
Questioned costs: $31,350.
Recommendation: We recommend that Legal Services NYC obtain LSC approval prior to making a purchase of $25,000 or more with the LSC funds in accordance with the LSC Reg. 1630.
Views of responsible officials: See corrective action plan.