Finding Text
Finding: 2022-003 ALN and Title: 09.829050 ? Legal Services Program Cluster Name: N/A Federal Agency: Office of Inspector General ? Legal Services Corporation Passthrough Entity: N/A Type of Finding: Significant Deficiency Compliance Requirement: N. Special Tests and Provisions ? Compliance Supplement for Audits of LSC Recipients Part 1611 Criteria: The Compliance Supplement for Audits of LSC Recipients Part 1611 states, ?The recipient must execute a retainer agreement with each client when extended service representation commences or as soon thereafter as is practicable.? Condition: During testing procedures over a sample of case files, it was noted that NLS had not executed a retainer with a client that had extended service representation. Cause: The Organization had a change in staffing during the year under audit and the Organization did not have adequate internal controls to ensure that through transitions, a retainer is executed with a client when one is required. Effect: A retainer was not executed in a timely manner. At the time of testing the case had been closed. Questioned costs: N/A Context: A nonstatistical sample was utilized. Out of 60 case files tested, one file did not have an executed retainer when it was required. Recommendation: It is recommended that the Organization implement adequate controls to ensure a retainer is always executed and included in the client?s case file when required. Views of Responsible Officials: Management agrees with this recommendation. See auditee prepared corrective action plan for details.