Notice2022-11988
Issuance of Updated Financial Guide for Grantees
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 3, 2022
Effective
January 1, 2023
Issuing agencies
Legal Services Corporation
Abstract
The Legal Services Corporation (LSC) updated its Financial Guide ("Guide") for grantees.
Full Text
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<title>Federal Register, Volume 87 Issue 107 (Friday, June 3, 2022)</title>
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[Federal Register Volume 87, Number 107 (Friday, June 3, 2022)]
[Notices]
[Pages 33835-33836]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11988]
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LEGAL SERVICES CORPORATION
Issuance of Updated Financial Guide for Grantees
AGENCY: Legal Services Corporation.
ACTION: Notice of issuance of final Financial Guide.
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SUMMARY: The Legal Services Corporation (LSC) updated its Financial
Guide (``Guide'') for grantees.
DATES: The guide will become effective January 1, 2023.
FOR FURTHER INFORMATION CONTACT: Stuart Axenfeld, Deputy Director for
Fiscal Compliance, Legal Services Corporation, 3333 K St. NW,
Washington, DC 20007; (202) 295-1539; <a href="/cdn-cgi/l/email-protection#503128353e36353c3423103c23337e373f26"><span class="__cf_email__" data-cfemail="04657c616a6261686077446877672a636b72">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: In 2018, LSC conducted a comprehensive
review of the Accounting Guide for LSC Recipients, 2010 Edition. Based
on input from LSC grantees and LSC's fiscal compliance analysts, LSC
determined the format of the Accounting Guide no longer best serves
grantees or LSC. The new Financial Guide removes outdated or
inapplicable materials, improves guidance directly related to LSC-
specific issues, and adds clarity about both required and recommended
financial practices. The new Financial Guide also addresses areas that
were previously identified as problematic or complex, such as cost
allocation, and assists grantees in the financial management of LSC
grants. LSC removed sections that provided general accounting and
financial guidance because neither LSC nor grantees found these
sections useful.
Overall, the new Financial Guide reflects existing LSC and grantee
practices and requirements. Additionally, in some places, the new
Financial Guide sets out requirements that previously had not been
published for comment. These are requirements that LSC has been
applying through required corrective actions and most, perhaps all,
grantees have already implemented.
LSC originally sought comment on the comprehensive revisions to the
Financial Guide via a notice published in the Federal Register on July
7, 2020. 85 FR 40688. LSC received 38 unique comments on the draft
Financial Guide from five grantees and the National Legal Aid and
Defender Association (NLADA) on behalf of itself and its LSC grantee
members. Generally, the commenters suggested clarifications and
requested that LSC make many of the proposed requirements into
recommendations to accommodate the diversity of grantee sizes, fiscal
sophistication, and resources.
On December 15, 2021, LSC sought additional comments on discrete
changes to the Financial Guide. 86 FR 71288, Dec. 15, 2021. LSC later
extended the comment period to February 15, 2022. 87 FR 2638, Jan. 18,
2022. LSC received six unique comments from one grantee, NLADA, and
Management Information Exchange.
LSC will publish the Financial Guide on LSC's website at <a href="https://www.lsc.gov/lsc-financial-guide">https://www.lsc.gov/lsc-financial-guide</a>. The Financial Guide will become
effective on January 1, 2023. LSC will announce training opportunities
at a later date.
LSC's Response to Comments
LSC considered all comments and made the changes described below in
response. The Financial Guide adds clear definitions that ``must'' and
``shall'' state requirements, but ``should'' states a strong
recommendation. For all required items, grantees may opt to use
different methods of reaching the goal, subject to LSC's determination
that the alternatives are sufficient.
Revised sections include:
Section 1.3--Recipient Responsibility
This new section contains general statements moved from other
sections that grantees must keep their financial policies and
procedures up to date with accounting standards and changes to LSC
requirements (such as regulations, the Audit Guide, etc.).
This section also reinforces the requirement for grantee Board
approval of grantee written policies, which many recipient
organizations already practice. Additionally, LSC revised the Financial
Guide to clarify that both grantee policies and procedures should be
written.
Section 2.2.2--Time and Attendance (Payroll)
LSC revised the language related to the timing of payroll or the
execution of payroll to focus on the review of time and attendance
records to ensure they are authorized, complete, and accurate. Also,
LSC clarified that grantees may develop an alternative report to
maintain the components of a labor cost distribution report.
Section 2.5.3--Electronic Data Processing and Cybersecurity
LSC considered the increasing level of electronic threats and the
significant risk those threats pose to the financial security of
grantees. LSC is requiring grantees to gauge the risk to their
organizations. Risk assessment procedures will vary by grantee.
However, at a minimum, the process should:
<bullet> Identify the physical and digital assets susceptible to
cyberattacks;
<bullet> identify risks to those assets (risks should be evaluated
annually for changes);
<bullet> evaluate the risks (e.g., high, medium, or low) based on
likelihood and impact; and
<bullet> document the results of the risk assessment, including the
development and implementation of appropriate controls.
Section 3.5--Procurement and Contracting
LSC added suggestions on how recipients should customize their
policy requirements based on levels of risks.
Authority: 42 U.S.C. 2996(g)(e).
[[Page 33836]]
Dated: May 31, 2022.
Stefanie Davis,
Senior Associate General Counsel.
[FR Doc. 2022-11988 Filed 6-2-22; 8:45 am]
BILLING CODE 7050-01-P
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