Finding Text
2023-007 Standards governing allowability of costs under LSC grants or contracts
Legal Services Corporation ALN#09.233100
Criteria: Per LSC Reg. 1630.5 Standards governing allowability of costs under LSC grants or contracts, allowable expenditures have to be the cost that were actually incurred in the performance of the grant or contract and the recipient was liable for payment.
Condition: Two (2) expenditure items totaling $10,167 incurred in 2024 were incorrectly recorded in the financial system as 2023 expenses and were improperly charged to the LSC 2023 funding.
Cause: The expenses were inadvertently recorded in the incorrect period, resulting in an improper charge to the LSC 2023 funding.
Effect: LSC could determine this to be an unallowed cost and could initiate a request for the return of funding.
Context: Out of sixty (60) expenditure items selected for testing, two (2) items totaling $10,167 were charged to the LSC 2023 grant, despite not having been incurred in that year.
Questioned costs: $10,167
Recommendation: We recommend that the finance department implement an effective review process to ensure that expenses are recorded in the proper period.
Views of responsible officials: See corrective action plan.