Legal services of New York City, which receives $11 million a year to handle civil cases for the poor, has been told by its federal funding agency that its cash grant will be suspended in May because of an impasse in the way an audit should be handled.

In addition to the New York City group, the Legal Aid Bureau in Baltimore has been notified by the federal funding agency, the Legal Services Corporation, that its funding will be cut off in a dispute over what measures need to be taken to protect client confidentiality when a federal audit is conducted.

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