OIG updated the LSC OIG Audit Guide and Appendices which include the Compliance Supplement for Audits of LSC Recipients (Appendix A). These documents will be effective for audits of LSC recipient fiscal years ending on or after September 30, 2023. Questions about the LSC OIG Audit Guide or Appendices should be sent to OIG at audits@oig.lsc.gov.
- What reports and financial statements should be included in my submission?
The following report components, at a minimum, should be included in the audit report. These components are also listed in the Summary Report Form.
- Financial Statement: Statement of Financial Position
- Financial Statement: Statement of Activities
- Financial Statement: Statement of Functional Expenses
- Financial Statement: Statement of Cash Flows
- LSC Reporting Requirements: Separate Reporting of LSC Funds
- LSC Reporting Requirements: Property Reported Separately from LSC Funds
- LSC Reporting Requirements: Separate Disclosure of PAI Expenditures
- Opinion on the Financial Statements (2 CFR Subpart F §200.515(a))
- GAS Reports on Internal Control and Compliance (2 CFR Subpart F §200.515(b-c))
- Reports on Compliance and Internal Control Over Major Programs (2 CFR Subpart F §200.515(b-c))
- Schedule of Expenditures of Federal Awards (2 CFR Subpart F §200.510(b))
- Schedule of Findings and Questioned Costs (2 CFR Subpart F §200.515(d))
- GAS and Uniform Guidance Reports on Illegal Acts (2 CFR Subpart F §200.516(a))
- Summary Schedule of Prior Audit Findings (2 CFR Subpart F §200.511(b))
- Corrective Action Plan (if findings were reported) (2 CFR Subpart F §200.511(c))
- Management Letter(s), if issued.
Please include a table of contents and write the LSC Grant Recipient number on the cover of the audit report.
- What are 5-day letters?
5-day letters (same as 5-day Special Reports) is a reporting requirement established by Congress in the 1996 LSC Appropriations Acts. They are required when the auditor finds noncompliance with the restrictions listed on page 2 of the LSC OIG Compliance Supplement for Audits of LSC Recipients (“Compliance Supplement” or “Appendix A”), The LSC OIG Audit Guide for Recipients and Auditors includes 5-day letter requirement in section II-1.H, LSC_OIG_Audit_Guide_for_Recipients_and_Auditors_2023.pdf.
- What are some examples of "procedural or administrative items" that should not be included in the 5-day letter?
The regulations marked for inclusion in the 5-day reporting requirement are those related to the practice restrictions and prohibitions created by the 1996 LSC Appropriations Acts. For 5-day reporting, the OIG is interested if an IPA finds actual instances of cases or matters that violate those restrictions and prohibitions. The types of findings that should not be reported in a 5-day letter include issues such as absence of policies and procedures required under the regulations, lack of signatures on forms, and similar procedural problems (unless, as a result of the weakness cited, a grantee participated in an actual case or matter that violated the restrictions and prohibitions).
- Does the IPA have 5-days to notify the recipient of instances of noncompliance?
The IPA must notify the recipient in writing immediately upon obtaining sufficient competent evidential matter to determine that an instance of noncompliance has occurred (See Audit Guide for Recipients and Auditors § II-1.H).
- When does the 5-day reporting requirement begin?
The recipient's 5-day reporting requirement begins with the receipt of the IPAs report on noncompliance found. In the event the recipient does not report to the OIG within the 5-days of receipt of the IPAs report, the IPA's 5-day reporting requirement begins.
- What is the Assistance Listing number for LSC funds?
In lieu of an agency number the Single Audit Clearinghouse has assigned LSC the pseudo code '09'. To create an Assistance Listing number use '09' followed by a period and the 6-digit LSC recipient number. For example, a grantee with an LSC Recipient Number of '757100' would have an Assistance Listing Number = 09.757100.
- Is the Data Collection Form required Uniform Guidance required for LSC funds?
No, not as far as LSC funds are concerned. If a recipient has other federal funds subject to Uniform Guidance, the form may be required. However, if LSC is the only source of funds covered by the Uniform Guidance audit, the Data Collection Form is not required.