Finding Text
Major Federal Program: 09.744050 ? Legal Services Corporation ? Basic Field Grant Compliance Requirements: Allowable Activities Criteria: The Compliance Supplement for Audits of LSC Recipients and LSC Regulations 45 CFR? 1620.6 require that all staff who handle cases or matters, or make decisions about which cases to accept, are required to sign an agreement indicating that the staff has read and understands the priorities established by the governing body of the entity; has read and understands the definition of an emergency situation and the procedures for dealing with an emergency that falls outside of the entity?s established priorities; and will not undertake any case or matter for the recipient that is not a priority or an emergency. Audit procedures revealed that these signed agreements were not adequately reviewed and retained for all employees for the year ended December 31, 2022. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context: Of 40 staff selected for testing, signed agreements were unable to be located for 4 individuals. Effect and Questioned Costs: Ineligible cases or matters could be undertaken outside of the entity?s established priorities, and may result in materially misstating cases or matters served both for grant compliance and financial reporting. Questioned costs were indeterminable. Recommendation: We recommend that files for all employees who handle cases or matters be thoroughly reviewed, to ensure timely completeness and signing of agreements in order to be in compliance with grant requirements. We also recommend review procedures be put in place to ensure the agreements are signed appropriately and timely. Response: See Corrective Action Plan