Finding Text
Finding 2022-007 ? Special Test and Provisions ? Private Attorney Involvement PAI (Significant Deficiency and Non-compliance) Information on the Federal Program: Legal Services Corporation Basic Field Grant Criteria: 45 CFR 1614 requires recipient of LSC funding to use at least 12.5% of their annual basic field grant to promote the involvement of private attorneys to eligible clients. Activities undertaken to meet this requirement include direct delivery of legal assistance to eligible programs. FRLS has elected to meet this requirement with a significant amount of pro bono work. Condition/Context: During our testing, we selected 20 cases that were tracked for PAI compliance. Of the 20 cases, 2 were not LSC-eligible type cases. In addition, FRLS records the donated services based on hours and billable rate provided by the outside attorney. We noted that the value of these donated services was not properly calculated. Cause: FRLS valued the services for some cases at a discounted rate rather than the fair market value of the services provided. Two cases were not types of cases allowable under LSC guidelines. Effect: FRLS is not in compliance with PAI compliance requirements. Questioned Costs: None reported. Recommendation: We recommend FRLS strengthen its policies and procedures surrounding monitoring of PAI compliance to ensure pro bono hours are properly recorded and only allowable cases are accepted. We also recommend the addition of a reduced fee program to facilitate outside involvement. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.