Finding Text
Federal Agency: Legal Services Corporation (LSC)
Federal Program Name: Basic Grant
Assistance Listing Number: 09.331050
Federal Award Identification Number and Year: 2024
Award Period: January 1, 2024 December 31, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or specific requirement:
The Organization is required to obtain and keep on file signed retainer agreements and eligibility forms
for cases requiring such documentation in accordance with 45 C.F.R. Part 1611 of the Legal Services
Corporation's Compliance Supplement. Our audit identified one instance of noncompliance as it relates
to this eligibility requirement.
Condition:
During our testing, we noted a breakdown in internal controls as it relates to the review of case file
documentation.
Questioned costs: None
Context:
During the audit testing of the Organizations case files, one case was identified, out of 60 cases tested,
where the case file was missing a signed retainer agreement and eligibility forms as required by LSC
for this type of case.
Cause:
The Organization has a process in place for the review of case files to determine that all required documentation is collected and maintained in accordance with Legal Services Corporation's guidelines prior to the case being closed. However, there was a breakdown during this internal control process where the review that took place did not identify the missing required documentation.
Effect:
Without a strong review process in place, there is an increased risk that cases missing certain required documentation may not be identified and ultimately result in noncompliance with Legal Services Corporation's guidelines.
Repeat Finding: Not a repeat finding.
Recommendation:
It is recommended that the Organization obtain signed retainer agreements and eligibility forms when required when representation commences, or as soon thereafter as is practicable, and review its policy and process for case file review and strengthen these controls by adding a documented review or checklist to ensure case files contain all required documentation.
View of responsible officials: There is no disagreement with the audit finding