Notice2022-26523

Notice of Proposed Revisions to the Audit Guide for Recipients and Auditors, the Compliance Supplement (Appendix A), and Appendices B-E

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Published
December 7, 2022

Issuing agencies

Legal Services Corporation

Abstract

The Legal Services Corporation (LSC) Office of Inspector General (OIG) drafted revisions to its Audit Guide for Recipients and Auditors, (Audit Guide), the Compliance Supplement (Appendix A) and Appendices B-E. LSC OIG seeks comments on the draft Audit Guide, the draft Compliance Supplement (Appendix A), and Appendices B-E.

Full Text

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<title>Federal Register, Volume 87 Issue 234 (Wednesday, December 7, 2022)</title>
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[Federal Register Volume 87, Number 234 (Wednesday, December 7, 2022)]
[Notices]
[Page 75068]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-26523]


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LEGAL SERVICES CORPORATION


Notice of Proposed Revisions to the Audit Guide for Recipients 
and Auditors, the Compliance Supplement (Appendix A), and Appendices B-
E

AGENCY: Office of Inspector General, Legal Services Corporation.

ACTION: Notice.

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SUMMARY: The Legal Services Corporation (LSC) Office of Inspector 
General (OIG) drafted revisions to its Audit Guide for Recipients and 
Auditors, (Audit Guide), the Compliance Supplement (Appendix A) and 
Appendices B-E. LSC OIG seeks comments on the draft Audit Guide, the 
draft Compliance Supplement (Appendix A), and Appendices B-E.

DATES: Comments must be received by February 6, 2023.

ADDRESSES: You may submit comments by any of the following methods.
    Instructions: Electronic submissions are preferred via email with 
attachments in Acrobat PDF format. LSC OIG may not consider written 
comments sent via email after the end of comment period or comments 
sent via U.S. Mail not postmarked on or before the end of the comment 
period.
    Email: <a href="/cdn-cgi/l/email-protection#b5d4c0d1dcc1c6f5dadcd29bd9c6d69bd2dac3"><span class="__cf_email__" data-cfemail="7a1b0f1e130e093a15131d54160919541d150c">[email&#160;protected]</span></a>. Please include ``Audit Guide Comment'' 
or ``Appendix X Comment'' in the subject line of the message.
    Fax, U.S. Mail, Hand Delivery, or Courier: Please call (202) 295-
1671 for instructions if you need to send materials by one of these 
methods.

FOR FURTHER INFORMATION CONTACT: Grace Nyakoe, Audit Director at 202-
295-1662 or <a href="/cdn-cgi/l/email-protection#593e37203832363c1936303e77352a3a773e362f"><span class="__cf_email__" data-cfemail="84e3eafde5efebe1c4ebede3aae8f7e7aae3ebf2">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: The Legal Services Corporation Office of 
Inspector General (LSC OIG) has conducted a comprehensive review of the 
Audit Guide, the Compliance Supplement, and Appendices B-E:

<bullet> Appendix A--Compliance Supplement
<bullet> Appendix B--Summary Report Form on Noncompliance with Laws and 
Regulations, Questioned Costs and Reportable Conditions (Summary Report 
Form or SRF)
<bullet> Appendix C--The Recipient 5-Day Letter to the OIG of the 
Independent Public Accountants (IPA) ``Special Report on Noncompliance 
with Laws and Regulations'' (Recipient 5-Day Letter)
<bullet> Appendix D--The Auditor 5-Day Letter to the OIG of the IPA's 
``Special Report on Noncompliance with Laws and Regulations'' not 
Reported by Recipient (Auditor 5-Day Letter)
<bullet> Appendix E--The Auditor Notification on Cessation of Services

    The LSC Audit Guide was published in December 1996 and is outdated. 
Aside from one Audit Bulletin issued in 1997, it has not been updated 
since then. Appendix A, Compliance Supplement for Audits of LSC 
Recipients was updated April 2016. The Audit Guide and appendices 
require revision to incorporate changes to LSC regulations, auditing 
standards, or other guidelines that have changed. The changes are to 
enhance clarity to guidance and suggested audit procedures.
    Updating the Audit Guide, Compliance Supplement and appendices is 
essential in fulfilling the OIG's responsibility for oversight. The 
Audit Guide and appendices provide a uniform approach for audits of LSC 
recipients and describes recipients' responsibilities with respect to 
such audits. Audits of recipients are to be performed in accordance 
with this Audit Guide and Compliance Supplement (Appendix A), among 
other criteria. The Audit Guide gives auditors guidance in planning and 
performing audits to accomplish audit objectives.
    Significant changes include eliminating the requirement to classify 
LSC recipients as High-Risk; adding a requirement to consider all LSC 
funds as major programs regardless of spending threshold; and revisions 
to suggested audit procedures for changes to 45 CFR part 1635--
Timekeeping Requirement. The appendix designations have changed because 
we eliminated the appendices addressing a Sample Audit Agreement and 
Guide for Procurement of Audit Services. Information on these topics is 
readily available from other sources.
    LSC OIG has published the draft Audit Guide, the Compliance 
Supplement (Appendix A) and Appendices B-E for comment on the 
``Overview of Audit Guidance'' page at <a href="https://www.oig.lsc.gov/ipa-resources/audit-guidance">https://www.oig.lsc.gov/ipa-resources/audit-guidance</a>. LSC OIG seeks comments on these documents. 
LSC OIG will review the comments and, if possible, implement the Audit 
Guide and the appendices with appropriate revisions before December 31, 
2023. Once a final Audit Guide and appendices are published, the OIG 
will offer training to LSC grantees and their auditors.

(Authority: 42 U.S.C. 2996g(e))

    Dated: December 1, 2022.
Stefanie Davis,
Senior Associate General Counsel.
[FR Doc. 2022-26523 Filed 12-6-22; 8:45 am]
BILLING CODE 7050-01-P


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Indexed from Federal Register on December 7, 2022.

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