Finding Text
2022-005 Legal Services Corporation CFDA #09-742018 Legal Services Corporation ? Basic Field ? General CFDA #09-742018 Legal Services Corporation ? Basic Field ? Native American Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 45 CFR 1644.4 establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. For each case filed in court by the auditee?s attorneys on behalf of a client, case disclosure information is required to be reported to Legal Services Corporation. Condition: One instance identified in which the Grant Compliance Checklist wasn?t completed as required by DPLS policy. Additionally, one instance identified in which Form 1644 Disclosure of Case Information was not completed timely, resulting in the case information not being reported to the Corporation. Cause: There was a lapse in oversight of the internal control process ensuring case files include the required documentation to ensure cases are in compliance with the applicable federal standards. Effect: Lack of compliance with designed internal controls over case files could result in DPLS using funds for cases that are not eligible for reimbursement. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 62 case files. Repeat Finding from Prior Year: Yes. 2021-005 reported a similar finding over eligibility. Recommendation: We recommend DPLS review policies and procedures with applicable employees and remind them of the importance of established review and monitoring processes. Views of Responsible Officials: Management is in agreement.