EIN: 941384659
UEI: NPNLQ8JADSW5
Audited by: CliftonLarsonAllen LLP
Oversight agency: 09 [Legal Services Corporation]
Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 29, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 29, 2026 (62 days from today).
What is a management decision? →During eligibility testing, the auditors identified instances where cases reported as LSC-eligible were not adequately supported by eligibility documentation. In one instance, management indicated the case was incorrectly classified as LSC-eligible, and in another instance, required documentation supporting an asset waiver was not sufficiently maintained. As a result, eligibility determinations for the selected cases were not fully supported in accordance with LSC requirements. Context: The finding arose from a limited number of isolated eligibility documentation issues identified during testing and does not indicate a pervasive breakdown in controls. The exceptions were case-specific and limited in scope relative to the cases reviewed. Accordingly, the prevalence and potential impact of the finding are considered limited. Effect: Failure to consistently document and support eligibility determinations increases the risk that LSC-funded legal assistance may be provided or reported for clients who do not meet eligibility requirements, resulting in noncompliance with LSC regulations and OIG audit requirements. Cause: The condition appears to be caused by a breakdown in controls over case classification and eligibility documentation, including management review of cases reported as LSC-eligible and retention of required documentation supporting asset waivers. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that management strengthen controls over eligibility determinations by ensuring that all cases classified and reported as LSC-eligible include complete and retained documentation supporting financial eligibility, including income exceptions and asset waivers. Management should also implement periodic reviews of case classifications to ensure that only eligible cases are reported as LSC-funded. Management’s Views: See separate corrective action plan.
Show full finding ▾Hide full finding ▴Federal Agency: Legal Services Corporation Federal Program Name: Basic Field Grant Program Assistance Listing Number: 9.805240 Federal Award Identification Year: 2025 Pass-Through Agency: N/A, Direct Award Award Period: 1/1/25-12/31/25 Compliance Requirement Affected: Section 1611 Financial Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Each recipient is required to establish a maximum annual income level for persons to be eligible to receive legal assistance under the LSC Act, which is not to exceed one hundred and twenty-five (125%) of the amounts specified in the current official Federal Poverty Income Guidelines (www.hrsa.gov), (45 C.F.R. § 1611.3(c)(1 )). Condition: During eligibility testing, the auditors identified instances where cases reported as LSC-eligible were not adequately supported by eligibility documentation. In one instance, management indicated the case was incorrectly classified as LSC-eligible, and in another instance, required documentation supporting an asset waiver was not sufficiently maintained. As a result, eligibility determinations for the selected cases were not fully supported in accordance with LSC requirements. Context: The finding arose from a limited number of isolated eligibility documentation issues identified during testing and does not indicate a pervasive breakdown in controls. The exceptions were case-specific and limited in scope relative to the cases reviewed. Accordingly, the prevalence and potential impact of the finding are considered limited. Effect: Failure to consistently document and support eligibility determinations increases the risk that LSC-funded legal assistance may be provided or reported for clients who do not meet eligibility requirements, resulting in noncompliance with LSC regulations and OIG audit requirements. Cause: The condition appears to be caused by a breakdown in controls over case classification and eligibility documentation, including management review of cases reported as LSC-eligible and retention of required documentation supporting asset waivers. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that management strengthen controls over eligibility determinations by ensuring that all cases classified and reported as LSC-eligible include complete and retained documentation supporting financial eligibility, including income exceptions and asset waivers. Management should also implement periodic reviews of case classifications to ensure that only eligible cases are reported as LSC-funded. Management’s Views: See separate corrective action plan.
In order to avoid recurrence of such errors in future years, LSNC is implementing a checklist for integrity reports (a draft of which is attached to this memo) and a mid-year programwide integrity report process to identify and correct errors. The checklist of integrity reports will be used and retained by the executive assistant and the interim executive director to verify that all necessary reports are run and reviewed twice each year. A copy of each report will be retained with the checklist as an additional verification measure. The mid-year review will occur in June or July and will include income and asset eligibility checks on closed cases - using a report of all closed cases that shows the household composition, asset amount and the LSC eligibility selection for each case. The interim executive director and the executive assistant responsible for programwide integrity reports will both review the report and examine any cases that exceed the asset limit for the case household size. Ineligible cases will be corrected to indicate they are not LSC-eligible, meaning that they will not be reported. If LSC funds were used to support the case, those time entries will be changed to charge appropriate funds and staff will prepare revised timesheets. The same review will be repeated at the end of the calendar year, before case data is reported to LSC (and prior to the self-inspection process). This additional review should further strengthen the processes already in place. This process is not time limited. It will be added to LSNC's regular compliance activities. If you have any questions or concerns about LSNC's proposed plan, please contact me at (916) 551-2179 or via email at jaguilar@lsnc.net.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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