FAC Explorer

Finding 556016 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-04-28
Audit: 354747
Organization: Legal Aid Chicago (IL)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Some cases lacked a signed retainer agreement, which is required for compliance with LSC regulations.
  • Impacted Requirements: All representation cases must have a retainer agreement signed by both the client and an authorized staff member.
  • Recommended Follow-Up: Management should establish controls to ensure all necessary documentation is completed for cases requiring a retainer agreement.

Finding Text

Federal Agency: Legal Services Corporation (LSC) Federal Program: LSC Grants Assistance Listing Number: 09.514020 Federal Award Identification Number and Year: 09.514020 - 2024 Award Period: January 1, 2024 to December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Cases involving representation are required to have a retainer agreement signed by the client and an authorized Legal Aid Chicago staff member. Condition: Not all cases involving representation had a complete signed retainer agreement. Questioned costs: None Context: For one of the 60 cases selected for testing, the case did not have a retainer agreement signed by an authorized Legal Aid Chicago Staff member. Cause: Unknown. Effect: Cases for which a retainer agreement is not maintained results in noncompliance with LSC’s outlined requirements for determining case eligibility. Repeat finding: This finding is not a repeat finding. Recommendation: We recommend that management implement a control to ensure complete documentation is maintained for all cases that require a retainer agreement. Views of Responsible Official: There is no disagreement with this finding.

Corrective Action Plan

Recommendation: We recommend that management implement a control to ensure complete documentation is maintained for all cases that require retainer agreement. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: Our Deputy Director/General Counsel contacted the person who had failed to sign the retainer that was missing the staff signature to remind them of that requirement. She also held a training on LSC requirements in Q1 2025 in which she reminded staff of the retainer requirement. Name of the contact person responsible for corrective action: Teresa Sullivan, Deputy Director / General Counsel Planned completion date for corrective action plan: Already implemented

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 556015 2024-001
    Significant Deficiency Repeat
  • 1132457 2024-001
    Significant Deficiency Repeat
  • 1132458 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
09.U00 Legal Services Corporation $8.64M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.31M
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $1.02M
21.023 Emergency Rental Assistance Program $875,860
16.575 Crime Victim Assistance $463,276
93.569 Community Services Block Grant $421,500
14.418 Private Enforcement Initiatives $407,635
93.914 Hiv Emergency Relief Project Grants $386,596
16.320 Services for Trafficking Victims $328,107
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $222,111
16.524 Legal Assistance for Victims $189,801
64.056 Legal Services for Veterans Grants $183,279
14.267 Continuum of Care Program $121,031
21.008 Low Income Taxpayer Clinics $100,000
21.026 Homeowner Assistance Fund $81,341
93.052 National Family Caregiver Support, Title Iii, Part E $71,116
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $65,442
14.241 Housing Opportunities for Persons with Aids $56,900
93.262 Occupational Safety and Health Program $55,363
93.667 Social Services Block Grant $22,969
93.747 Elder Abuse Prevention Interventions Program $2,991
93.307 Minority Health and Health Disparities Research $642