FAC Explorer

Finding 561191 (2024-002)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-05-21
Audit: 356803
Organization: Montana Legal Services Association Grantee 927000 (MT)
Auditor: Kcoe Isom LLP

AI Summary

  • Core Issue: MLSA's board does not meet the grant requirement of having at least 60% attorney members; currently, only 53% are attorneys.
  • Impacted Requirements: The grant stipulates that a minimum of 60% of board members must be attorneys, which MLSA is not fulfilling.
  • Recommended Follow-Up: No immediate action needed, as MLSA will comply with the new requirement of 33% attorney members starting January 1, 2025.

Finding Text

Legal Services Corporation Grants, AL No. 09.927 Condition: We noted MLSA has not complied with the condition of its grant award regarding general grant requirements. 8 of 15 positions currently filled are attorney members. There are 15 potential board positions, of which 9 should be filled by attorney members. MLSA has not complied with the reporting requirements related to this condition. Criteria: MLSA’s grant award includes a condition that at least 60% of its board membership be comprised of attorney members. MLSA’s current board membership does not comply with this requirement. Effect: There is insufficient attorney member representation on MLSA’s Board of Trustees. Costs: No questioned costs were observed as a result of this condition. Cause: MLSA management is aware of the requirement. MLSA was also aware of the changing requirements of board composition noted in LSC Program Letter 24-3 reducing the portion of attorney s required from 60% to 33% effective January 1, 2025. Recommendation: We have no recommendation for future years, as they are complying at January 1, 2025. Management Response: See Corrective Action Plan.

Corrective Action Plan

Auditors Finding: We noted MLSA under reported subgrant revenues and expenses due a reconciling difference. Managements Response: Contact: Alison Paul, Executive Director MLSA concurs with this finding. Managements Corrective Action Plan: Management will hold an accounting team training to explain the accounting error and how to prevent this in the future. Management will continue quarterly reconciliations and review of expenses including refreshing the reconciliation if late journal entries are recorded. Management will continue to require the review and posting of journal entries under the current criteria. Periodic review and monitoring of revenue and expense accounts will be implemented to include, but not be limited to, reviewing abnormal entries in revenue and expense accounts.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $2.30M
16.596 Trible Justice Assistance $407,591
16.582 Crime Victim Assistance/discretionary Grants $307,741
94.006 Americorps State and National 94.006 $238,669
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $225,637
16.815 Tribal Civil and Criminal Legal Assistance Grants, Training and Technical Assistance $208,329
21.027 Coronavirus State and Local Fiscal Recovery Funds $199,866
14.537 Eviction Protection Grant Program $190,954
16.524 Legal Assistance for Victims $117,357
94.021 Americorps Volunteer Generation Fund 94.021 $96,930
09.927 Legal Services Corporation/lsc Technology Grants $62,177
64.033 Va Supportive Services for Veteran Families Program $46,653
16.588 Violence Against Women Formula Grants $31,359
14.267 Continuum of Care Program $26,491
64.056 Legal Services for Veterans Grants $25,201
16.320 Services for Trafficking Victims $13,804
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $12,478
14.169 Housing Counseling Assistance Program $6,323
93.647 Social Services Research and Demonstration $3,921