Finding Text
2022-001: Material weakness in compliance and internal control over compliance: Allowable Costs/Cost Principles: AL 09.610090 Legal Services Corporation Criteria: The Legal Services Corporation eligible cases or matters may not be charged to LSC. Condition: During the years ended 2021 and 2022, the Organization charged indirect costs to LSC that were applicable to non-LSC eligible cases or matters. Cause: cost allocation. Effect: The Organization overcharged LSC during both 2021 and 2022 for indirect costs that were Recommendation: We recommend that the Organization assess the current level of staff needed by the Finance Department to ensure grant activity is recorded properly and in compliance with the grant requirements. The allocation of indirect expenses should be reviewed on a regular basis to determine the appropriateness of the allocations throughout the year. As a result of the audit process, management has altered the manner in which indirect costs are allocated, and, if applied properly and consistently, this revised method should resolve the issues associated with indirect cost allocations for 2023. Questioned Costs: 2021: $ 120,091