FFLA’s board of directors recently approved several measures that will effectively increase IOTA funding for grantees and stability for FFLA. Since the 2021 IOTA rule amendment, FFLA has deferred using IOTA funds for our administrative expenses while we created a methodology for calculating those direct expenses.
After Mauldin & Jenkins CPAs & Advisors found that the methodology was accurate, the board approved reimbursement for past administrative expenses and established an operations reserve as allowed by the rule. This reserve is expected to generate meaningful investment income, enabling FFLA to fund its operations budget without depleting the principal.
Perhaps more importantly, it will increase the annual distribution to grantees from 85% of IOTA collections to at least 90%, with flexibility to adjust up to 98%, which is what our board decided to do for the remainder of this fiscal year. This scalable approach maximizes grantee funding while safeguarding FFLA’s financial stability during turbulent economic times.
These proactive financial measures reaffirm FFLA’s commitment to responsible stewardship and our mission of expanding access to justice. By optimizing our operational funding structure, we create a win-win scenario that increases resources for grantees while ensuring our operational sustainability. We look forward to the future and remain dedicated to maximizing the impact of every IOTA dollar in support of legal aid services throughout our state.
