Proposed Revisions to Accounting Guide for LSC Recipients, 5351-5353 [2010-2160]

Download as PDF 5351 Federal Register / Vol. 75, No. 21 / Tuesday, February 2, 2010 / Notices APPENDIX—TAA PETITIONS INSTITUTED BETWEEN 12/7/09 AND 12/11/09 TA–W 73028 73029 73030 73031 73032 73033 73034 73035 73036 73037 73038 73039 73040 73041 73042 73043 73044 73045 73046 73047 73048 73049 73050 73051 73052 73053 73054 73055 73056 73057 73058 73059 73060 73061 73062 73063 73064 73065 73066 73067 73068 73069 73070 73071 73072 73073 73074 73075 73076 73077 73078 73079 73080 73081 ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ Location TRW Automotive (Wkrs) ....................................................... Faurecia Exhaust Systems, Inc. (Comp) ............................. Apex Systems (s) ................................................................. Bruckner Supply Company, Inc. (Wkrs) ............................... JM Producs, Inc. (State) ....................................................... Fujifilm (State) ...................................................................... Alfs Manufacturing Company (State) ................................... Brown Corporation of America (Wkrs) ................................. Assurant Specialty Property (State) ..................................... Top Fashion 947, Inc. (Wkrs) ............................................... Vaquero Services, Inc. (Wkrs) ............................................. Oce North America (Wkrs) ................................................... Thyssenkrupp Presta Steering Group (State) ...................... Pilkington, North America (USW) ......................................... American Express (Wkrs) ..................................................... I-Level Weyerhaeuser Trucking Operation (State) .............. Avaya (Wkrs) ........................................................................ Techline USA (Wkrs) ............................................................ Quality Logic, Inc. (Wkrs) ..................................................... Keewatin Taconite Plant, U.S. Steel Corporation (State) .... Mohawk Flush Door (UBC) .................................................. Vertafore, Inc. (Rep) ............................................................. United Southern (Wkrs) ........................................................ Maco, Inc. (Comp) ................................................................ Fabric Processing Center (FPC) (Comp) ............................. Homes Servicing (Wkrs) ....................................................... Spririt AeroSystems, Inc. (SPEEA) ...................................... Nuart, Inc. (Comp) ................................................................ Curtiss-Wright (Comp) .......................................................... Lamjen, Inc. (Wkrs) .............................................................. Honeywell International, Inc. (Comp) ................................... Honeywell International, Inc. (Comp) ................................... Harly-Davidson Motor Company (Comp) ............................. Honeywell International, Inc. (Comp) ................................... Maggy London (Wkrs) .......................................................... Bank of America (Wkrs) ....................................................... Hoerbiger Drivetech USA, Inc. (Comp) ................................ Domtar Paper Company (Comp) ......................................... Nortel (Wkrs) ........................................................................ Slash Support (Comp) .......................................................... Grede Foundries. Inc., Vassar Foundry (Wkrs) ................... Allen Edmonds (Wkrs) .......................................................... Oakley Industries (Union) ..................................................... Arvin Meritor (Union) ............................................................ Android Industries (Union) .................................................... Ventra Belvidere, LLC (Union) ............................................. Johnson Controles (Union) ................................................... ABB, Inc. (Wkrs) ................................................................... TRI–DIM Filter Corp. (Union) ............................................... Grupo Antolin (Union) ........................................................... HSBC (Wkrs) ........................................................................ Leviton Manufacturing Company (Wkrs) .............................. ATK Space Systems (Wkrs) ................................................. Paramount Pictures Corporation (Wkrs) .............................. Galesville, WI ........................ Troy, OH ............................... Denver, CO ........................... Port Washington, NY ............ Little Rock, AR ...................... Valhalla, NY .......................... Sioux City, IA ........................ Ionia, MI ................................ Orange, CA ........................... Brooklyn, NY ......................... Godley, TX ............................ Trumbull, CT ......................... Ladson, SC ........................... Lathrop, CA ........................... Salt Lake City, UT ................. Albany, OR ............................ Coppell, TX ........................... Waunakee, WI ...................... Boise, ID ............................... Keewatin, MN ........................ South Bend, IN ..................... Bothell, WA ........................... Forest City, NC ..................... Shelby, NC ............................ Florence, SC ......................... Boone, NC ............................ Wichita, KS ........................... Bedford Park, IL .................... Long Beach, CA .................... Erie, PA ................................. Spring Valley, IL .................... Pawtucket, RI ........................ York, PA ................................ Springfield, IL ........................ New York, NY ....................... Concord, CA ......................... Auburn, AL ............................ Plymouth, NC ........................ Research Triangle Park, NC South Jordan, UT .................. Vassar, MI ............................. Lewiston, ME ........................ Belvidere, IL .......................... Belvidere, IL .......................... Belvidere, IL .......................... Belvidere, IL .......................... Sycamore, IL ......................... Auburn Hills, MI .................... Belvidere, IL .......................... Belvidere, IL .......................... Elmhurst, IL ........................... West Jefferson, NC ............... Corinne, UT ........................... Hollywood, CA ...................... [FR Doc. 2010–2099 Filed 2–1–10; 8:45 am] mstockstill on DSKH9S0YB1PROD with NOTICES BILLING CODE 4510–FN–P LEGAL SERVICES CORPORATION Proposed Revisions to Accounting Guide for LSC Recipients Legal Services Corporation. Notice and Request for Comments. AGENCY: ACTION: VerDate Nov<24>2008 Date of institution Subject firm (petitioners) 16:52 Feb 01, 2010 Jkt 220001 SUMMARY: The Legal Services Corporation (‘‘LSC’’) intends to revise the Accounting Guide for LSC Recipients to reflect changes that have occurred since the last publication of the Accounting Guide in 1997 and is soliciting public comment on the proposed changes. The proposed revisions incorporate: (1) New internal control provisions for electronic banking transactions; (2) financial oversight concepts from the Sarbanes PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 12/07/09 12/07/09 12/07/09 12/07/09 12/07/09 12/07/09 12/07/09 12/07/09 12/07/09 12/07/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/08/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/10/09 12/11/09 12/11/09 12/11/09 12/11/09 Date of petition 10/11/09 12/07/09 12/03/09 11/25/09 12/03/09 11/27/09 12/03/09 11/15/09 12/04/09 12/05/09 11/25/09 11/26/09 12/01/09 12/02/09 12/02/09 12/04/09 12/07/09 09/01/24 12/03/09 12/07/09 12/07/09 12/02/09 12/08/09 11/30/09 12/08/09 12/08/09 12/03/09 12/08/09 12/07/09 12/07/09 11/18/09 11/12/09 12/07/09 11/18/09 09/14/09 08/03/09 12/10/09 12/03/09 12/09/09 10/28/09 12/08/09 12/08/09 12/09/09 12/09/09 12/09/09 12/09/09 12/09/09 12/04/09 12/09/09 12/09/09 11/23/09 12/10/09 12/10/09 11/30/09 Oxley Act of 2002; (3) references to the accounting standards codification by the Financial Standards Accounting Board (FASB) released on July 1, 2009; (4) key practices to enhance fraud prevention; (5) provisions in other LSC policies, including the LSC Property Acquisition and Management Manual and LSC Program Letters; (6) revisions to accounting procedures and internal controls to reflect current best practices; (7) updated and new references to other E:\FR\FM\02FEN1.SGM 02FEN1 mstockstill on DSKH9S0YB1PROD with NOTICES 5352 Federal Register / Vol. 75, No. 21 / Tuesday, February 2, 2010 / Notices sources of information; and (8) other changes to clarify existing provisions. The proposed revisions to the Accounting Guide for LSC Recipients (2010 edition), in redline format indicating the proposed changes to the current Accounting Guide (1997), can be located by accessing LSC’s Web site at http://www.lsc.gov/pdfs/ proposed_revisions_to_accounting _guide_for_lsc_recipients.pdf. DATES: Please submit comments by March 19, 2010. ADDRESSES: Interested persons are invited to submit written comments on the proposed revisions to the Accounting Guide for LSC Recipients (2010 edition) by mail, fax or e-mail to Chuck Greenfield, Program Counsel, Legal Services Corporation, 3333 K St., NW., Washington, DC 20007; 202–295– 1549 (phone); 202–337–6813 (fax); or AccountingGuide@lsc.gov (e-mail). FOR FURTHER INFORMATION CONTACT: Chuck Greenfield, Program Counsel, Legal Services Corporation, 3333 K St., NW., Washington, DC 20007; greenfieldc@lsc.gov (e-mail), (212) 295– 1549 (phone) or (212) 337–6813 (fax). SUPPLEMENTARY INFORMATION: Under the Legal Services Corporation Act, as amended, LSC ‘‘is authorized to require such reports as it deems necessary from any recipient, contractor or person or entity receiving assistance’’ 42 U.S.C. 2996g(a). LSC is also ‘‘authorized to prescribe the keeping of records with respect to funds provided by grant or contract and shall have access to such records’’ 42 U.S.C. 2996g(b). Further, LSC ‘‘shall conduct or require each recipient, contractor, person or entity receiving financial assistance * * * to provide for an annual financial audit.’’ 42 U.S.C. 2996h(c)(1). In addition, ‘‘funds received by any recipient from a source other than the Corporation * * * shall be accounted for and reported as receipts and disbursements separate and district from Federal funds’’ 42 U.S.C. 2996i(c). Under authority of the Legal Services Corporation Act, LSC published the Accounting Guide for LSC Recipients. The Guide sets forth LSC’s accounting, financial management and reporting guidelines. In general, LSC requires recipients and subrecipients of its funding to: (1) manage LSC and nonLSC funds in a stewardship manner and pursuant to the cost standards and procedures of 45 CFR 1630; and (2) record transactions in accounting records and prepare annual financial statements in accordance with generally accepted accounting principles (GAAP). The current version of the Accounting Guide was last updated in 1997. VerDate Nov<24>2008 16:52 Feb 01, 2010 Jkt 220001 In an effort to update the Accounting Guide to reflect more current accounting and financial oversight practices, as well as to respond to grantee financial issues mentioned in a Government Accountability Office (GAO) report, and as a result of the recommendations of the LSC Fiscal Advisory Group, LSC developed a number of proposed revisions to the Guide. The revisions are in the following eight categories: (1) New internal control provisions for electronic banking transactions. The current Accounting Guide does not discuss in detail electronic banking. Electronic banking arrangements and transactions are now common. Many recipients of LSC funding conduct a significant portion of their financial transactions electronically. LSC itself transmits funds electronically to all recipients. The proposed revisions add a new section on electronic banking to the Fundamental Criteria and include sections on the authorization process for electronic banking activities, the authorization process for employees that initiate and transmit electronic fund transactions, review and approval procedures for electronic banking transactions, supporting documentation for electronic banking transactions, recording electronic banking transactions in the general ledger, bank reconciliations and safeguards. Section 3–5.15. New sections on electronic transactions have also been added to the Accounting Procedures and Internal Control Checklist in Appendix VII. Sections G2, G3, and M of Appendix VII. (2) Financial oversight concepts from the Sarbanes Oxley Act of 2002. While only limited provisions of the Sarbanes Oxley Act of 2002 are required of non profit corporations, LSC has determined that certain financial oversight concepts found in Sarbanes Oxley are appropriate for recipients of LSC funds. An example is the current Accounting Guide requirement that recipients of LSC funds have a financial oversight committee of their board of directors, but not a separate audit committee. The proposed revisions require that recipients must have a financial oversight committee that engages in all the activities of an audit committee, including: hiring the auditor; setting the auditor’s compensation; overseeing the auditor’s activities; setting rules and processes for complaints about accounting practices and internal control practices; reviewing the annual IRS Form 990 for completeness, accuracy, and on-time filing; providing assurances of compliance to the full board; risk assessment; governance; and ethics reviews. Section 1–7. In addition, PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 the proposed revisions consider it a best practice for the board of directors to have an audit committee separate from the finance committee and for the board to have at least one member who is a financial expert or for the board to have access to a financial expert. Section 1– 7. It should be noted the LSC Board of Directors at its January 30, 2010 meeting will consider the possibility of engaging in rulemaking to require recipients to have separate audit committees on their board of directors. Should there be a regulatory change requiring recipients to have a separate audit committee, there would be a subsequent change to section 1–7 (Responsibilities of the Financial Oversight Committee or Committees) of the Accounting Guide (2010 edition.) (3) References to the accounting standards codification by the Financial Standards Accounting Board (FASB). FASB released a new codification of its accounting standards on July 1, 2009. The standards, an authoritative listing of generally accepted accounting principles (GAAP), are referred to in numerous sections of the Accounting Guide. All references to the accounting standards in the Accounting Guide have been updated and new references have been inserted to reflect new section numbers in the FASB accounting standards codification. (4) Key practices to enhance fraud prevention. While the current Accounting Guide lists the elements of an adequate accounting and financial reporting system, including the use of specific internal controls and risk assessment, there is no separate section on fraud prevention. The proposed revisions add a fraud prevention section that details key practices to help prevent fraud. Section 3–6. (5) Provisions in other LSC policies, including the LSC Property Acquisition and Management Manual and LSC Program Letters. Subsequent to the publication of the Accounting Guide in 1997, LSC issued other guidelines for recipients of LSC funds that impact on the Accounting Guide. For example, the LSC Property Acquisition and Management Manual (PAMM), issued in 2001, requires recipients to capitalize and depreciate all nonexpendable property with a cost in excess of $5,000 and a useful life of more than one year. However, the current Accounting Guide uses $1,000 as the capitalization and depreciation threshold. The proposed revisions to the Accounting Guide change the threshold to $5,000 to be consistent with the PAAM. Appendix IV, Section 1. In addition, LSC has issued Program Letters 08–2 (March 20, 2008), 08–3 (December 18, 2008) and E:\FR\FM\02FEN1.SGM 02FEN1 Federal Register / Vol. 75, No. 21 / Tuesday, February 2, 2010 / Notices 09–3 (December 17, 2009) that contain guidance to recipients on compliance and fiscal management issues. Those Program Letters have been referenced in the proposed revisions to the Accounting Guide. Section 2–3.1. Also, the LSC Board of Directors at its January 30, 2010 meeting will consider the possibility of engaging in rulemaking to modify or eliminate 45 CFR Part 1642 (attorneys’ fees) to reflect changes contained in the Consolidated Appropriations Act of 2010, P.L. 111– 117. Should there be a regulatory change to 45 CFR Part 1642 there would be a subsequent change to section 2–2.6 (Court-Awarded Attorney Fees) of the Accounting Guide (2010 edition.) (6) Revisions to accounting procedures and internal controls to reflect current best practices. Appendix VII of the current Accounting Guide (1997) contains a checklist of accounting procedures and internal controls. The proposed revisions update the checklist to reflect current best practices. (7) Updated and new references to other sources of information. The Accounting Guide (1997) contains numerous references to other sources of information. The proposed revisions update and make new references where appropriate. (8) Other changes to clarify existing provisions. The proposed revisions clarify existing sections to make the provisions easier to understand. LSC invites public comment on the proposed revisions to the Accounting Guide. Interested parties may submit comments to LSC by March 19, 2010. The proposed revisions to the Accounting Guide for LSC Recipients (2010 edition), in redline format indicating the proposed changes to the current Accounting Guide (1997), can be located by accessing LSC’s Web site at http://www.lsc.gov/pdfs/ proposed_revisions_to_accounting _guide_for_lsc_recipients.pdf. Dated: January 27, 2010. Mattie Cohan, Senior Assistant General Counsel, Legal Services Corporation. BILLING CODE 7555–01–P NATIONAL TRANSPORTATION SAFETY BOARD BILLING CODE 7050–01–P Sunshine Act Meeting mstockstill on DSKH9S0YB1PROD with NOTICES NATIONAL SCIENCE FOUNDATION Proposal Review Panel for Chemistry; Notice of Meeting In accordance with the Federal Advisory Committee Act (Pub. L. 92– 463 as amended), the National Science Foundation announces the following meeting: 16:52 Feb 01, 2010 Jkt 220001 Dated: January 28, 2010. Susanne Bolton, Committee Management Officer. [FR Doc. 2010–2113 Filed 2–1–10; 8:45 am] [FR Doc. 2010–2160 Filed 2–1–10; 8:45 am] VerDate Nov<24>2008 Name: Site visit of the Centers for Chemical Innovation (CCI) at The Georgia Institute of Technology and The University of Massachusetts, Proposal Review Panel for Chemistry (#1191). Dates and Times: March 8, 2010; 6 p.m.–9 p.m. March 9, 2010; 8 a.m.–3:30 p.m. March 10, 2010; 8 a.m.–8 p.m. Places: Department of Chemistry, Georgia Institute of Technology, Atlanta, GA 30332. Department of Chemistry, The University of Massachusetts, Amherst, MA 01002. Type of Meeting: Part-open. Contact Person: Dr. William Brittain, Program Director, Chemistry Centers Program, Division of Materials Research, Room 1055, National Science Foundation, 4201 Wilson Boulevard, Arlington, VA 22230, Telephone (703) 292–5039. Purpose of Meeting: To provide advice and recommendations concerning Phase II funding. Agenda: Monday, March 8, 2010 (Atlanta, GA). 6 p.m.–7 p.m. Closed—Panel Briefing. 7 p.m.–9 p.m. Open—Dinner. Tuesday, March 9, 2010 (Atlanta, GA). 8:30 a.m.–12 p.m. Open—CCI Presentation. 12 p.m.–1:30 p.m. Closed—Executive Session/Lunch. 1:30 p.m.–2:30 p.m. Open—CCI Presentation. 2:30 p.m.–3:30 p.m. Closed—Executive Session. Wednesday, March 10, 2010 (Amherst, MA). 8:30 a.m.–12 p.m. Open—CCI Presentation. 12 p.m.–1:30 p.m. Closed—Executive Session/Lunch. 1:30 p.m.–2:30 p.m. Open—CCI Presentation. 2:30 p.m.–3:30 p.m. Closed—Executive Session. 4:30 p.m.–8:30 p.m. Closed—Executive Session. Reason for Closing: The work being reviewed may include information of a proprietary or confidential nature, including technical information; financial data, such as salaries and personal information concerning individuals associated with the proposals. These matters are exempt under 5 U.S.C. 552 b(c), (4) and (6) of the Government in the Sunshine Act. TIME AND DATE: 9:30 a.m., Thursday, February 18, 2010. PLACE: NTSB Conference Center, 429 L’Enfant Plaza, SW., Washington, DC 20594. STATUS: The One item is open to the public. MATTER TO BE CONSIDERED: PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 5353 5300J Most Wanted List Transportation Safety Improvements, February 2010 Progress Report and Update on Federal Issues. NEWS MEDIA CONTACT: Telephone: (202) 314–6100. The press and public may enter the NTSB Conference Center one hour prior to the meeting for set up and seating. Individuals requesting specific accommodations should contact Rochelle Hall at (202) 314–6305 by Friday, February 12, 2010. The public may view the meeting via a live or archived webcast by accessing a link under ‘‘News & Events’’ on the NTSB home page at http:// www.ntsb.gov. FOR FURTHER INFORMATION CONTACT: Candi Bing, (202) 314–6403. Dated: January 29, 2010. Candi R. Bing, Federal Register Liaison Officer. [FR Doc. 2010–2259 Filed 1–29–10; 4:15 pm] BILLING CODE 7533–01–P NUCLEAR REGULATORY COMMISSION [NRC–2010–0029; Docket No. 50–397] Energy Northwest; Notice of Receipt and Availability of Application for Renewal of Columbia Generating Station Facility Operating License No. NPF–21 for an Additional 20-Year Period The U.S. Nuclear Regulatory Commission (NRC or Commission) has received an application, dated January 19, 2010, from Energy Northwest (EN), filed pursuant to Section 103 of the Atomic Energy Act of 1954, as amended, and Title 10 of the Code of Federal Regulations Part 54 (10 CFR part 54), to renew the operating license for the Columbia Generating Station (CGS). Renewal of the license would authorize the applicant to operate the facility for an additional 20-year period beyond the period specified in the current operating license. The current operating license for CGS (NPF–21), expires on December 20, 2023. CGS is a boiling-water reactor designed by Burns & Roe. CGS is located 12 miles north of Richland, WA. The acceptability of the tendered application for docketing, and other matters, including an opportunity to request a hearing, will be the subject of subsequent Federal Register notices. Copies of the application are available to the public at the Commission’s Public Document Room (PDR), located at One White Flint North, 11555 Rockville Pike, Rockville, MD 20852 or through E:\FR\FM\02FEN1.SGM 02FEN1

Agencies

[Federal Register Volume 75, Number 21 (Tuesday, February 2, 2010)]
[Notices]
[Pages 5351-5353]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2160]


=======================================================================
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LEGAL SERVICES CORPORATION


Proposed Revisions to Accounting Guide for LSC Recipients

AGENCY: Legal Services Corporation.

ACTION: Notice and Request for Comments.

-----------------------------------------------------------------------

SUMMARY: The Legal Services Corporation (``LSC'') intends to revise the 
Accounting Guide for LSC Recipients to reflect changes that have 
occurred since the last publication of the Accounting Guide in 1997 and 
is soliciting public comment on the proposed changes. The proposed 
revisions incorporate: (1) New internal control provisions for 
electronic banking transactions; (2) financial oversight concepts from 
the Sarbanes Oxley Act of 2002; (3) references to the accounting 
standards codification by the Financial Standards Accounting Board 
(FASB) released on July 1, 2009; (4) key practices to enhance fraud 
prevention; (5) provisions in other LSC policies, including the LSC 
Property Acquisition and Management Manual and LSC Program Letters; (6) 
revisions to accounting procedures and internal controls to reflect 
current best practices; (7) updated and new references to other

[[Page 5352]]

sources of information; and (8) other changes to clarify existing 
provisions. The proposed revisions to the Accounting Guide for LSC 
Recipients (2010 edition), in redline format indicating the proposed 
changes to the current Accounting Guide (1997), can be located by 
accessing LSC's Web site at http://www.lsc.gov/pdfs/proposed_revisions_to_accounting_guide_for_lsc_recipients.pdf.

DATES: Please submit comments by March 19, 2010.

ADDRESSES: Interested persons are invited to submit written comments on 
the proposed revisions to the Accounting Guide for LSC Recipients (2010 
edition) by mail, fax or e-mail to Chuck Greenfield, Program Counsel, 
Legal Services Corporation, 3333 K St., NW., Washington, DC 20007; 202-
295-1549 (phone); 202-337-6813 (fax); or AccountingGuide@lsc.gov (e-
mail).

FOR FURTHER INFORMATION CONTACT: Chuck Greenfield, Program Counsel, 
Legal Services Corporation, 3333 K St., NW., Washington, DC 20007; 
greenfieldc@lsc.gov (e-mail), (212) 295-1549 (phone) or (212) 337-6813 
(fax).

SUPPLEMENTARY INFORMATION: Under the Legal Services Corporation Act, as 
amended, LSC ``is authorized to require such reports as it deems 
necessary from any recipient, contractor or person or entity receiving 
assistance'' 42 U.S.C. 2996g(a). LSC is also ``authorized to prescribe 
the keeping of records with respect to funds provided by grant or 
contract and shall have access to such records'' 42 U.S.C. 2996g(b). 
Further, LSC ``shall conduct or require each recipient, contractor, 
person or entity receiving financial assistance * * * to provide for an 
annual financial audit.'' 42 U.S.C. 2996h(c)(1). In addition, ``funds 
received by any recipient from a source other than the Corporation * * 
* shall be accounted for and reported as receipts and disbursements 
separate and district from Federal funds'' 42 U.S.C. 2996i(c).
    Under authority of the Legal Services Corporation Act, LSC 
published the Accounting Guide for LSC Recipients. The Guide sets forth 
LSC's accounting, financial management and reporting guidelines. In 
general, LSC requires recipients and subrecipients of its funding to: 
(1) manage LSC and non-LSC funds in a stewardship manner and pursuant 
to the cost standards and procedures of 45 CFR 1630; and (2) record 
transactions in accounting records and prepare annual financial 
statements in accordance with generally accepted accounting principles 
(GAAP). The current version of the Accounting Guide was last updated in 
1997.
    In an effort to update the Accounting Guide to reflect more current 
accounting and financial oversight practices, as well as to respond to 
grantee financial issues mentioned in a Government Accountability 
Office (GAO) report, and as a result of the recommendations of the LSC 
Fiscal Advisory Group, LSC developed a number of proposed revisions to 
the Guide. The revisions are in the following eight categories:
    (1) New internal control provisions for electronic banking 
transactions. The current Accounting Guide does not discuss in detail 
electronic banking. Electronic banking arrangements and transactions 
are now common. Many recipients of LSC funding conduct a significant 
portion of their financial transactions electronically. LSC itself 
transmits funds electronically to all recipients. The proposed 
revisions add a new section on electronic banking to the Fundamental 
Criteria and include sections on the authorization process for 
electronic banking activities, the authorization process for employees 
that initiate and transmit electronic fund transactions, review and 
approval procedures for electronic banking transactions, supporting 
documentation for electronic banking transactions, recording electronic 
banking transactions in the general ledger, bank reconciliations and 
safeguards. Section 3-5.15. New sections on electronic transactions 
have also been added to the Accounting Procedures and Internal Control 
Checklist in Appendix VII. Sections G2, G3, and M of Appendix VII.
    (2) Financial oversight concepts from the Sarbanes Oxley Act of 
2002. While only limited provisions of the Sarbanes Oxley Act of 2002 
are required of non profit corporations, LSC has determined that 
certain financial oversight concepts found in Sarbanes Oxley are 
appropriate for recipients of LSC funds. An example is the current 
Accounting Guide requirement that recipients of LSC funds have a 
financial oversight committee of their board of directors, but not a 
separate audit committee. The proposed revisions require that 
recipients must have a financial oversight committee that engages in 
all the activities of an audit committee, including: hiring the 
auditor; setting the auditor's compensation; overseeing the auditor's 
activities; setting rules and processes for complaints about accounting 
practices and internal control practices; reviewing the annual IRS Form 
990 for completeness, accuracy, and on-time filing; providing 
assurances of compliance to the full board; risk assessment; 
governance; and ethics reviews. Section 1-7. In addition, the proposed 
revisions consider it a best practice for the board of directors to 
have an audit committee separate from the finance committee and for the 
board to have at least one member who is a financial expert or for the 
board to have access to a financial expert. Section 1-7. It should be 
noted the LSC Board of Directors at its January 30, 2010 meeting will 
consider the possibility of engaging in rulemaking to require 
recipients to have separate audit committees on their board of 
directors. Should there be a regulatory change requiring recipients to 
have a separate audit committee, there would be a subsequent change to 
section 1-7 (Responsibilities of the Financial Oversight Committee or 
Committees) of the Accounting Guide (2010 edition.)
    (3) References to the accounting standards codification by the 
Financial Standards Accounting Board (FASB). FASB released a new 
codification of its accounting standards on July 1, 2009. The 
standards, an authoritative listing of generally accepted accounting 
principles (GAAP), are referred to in numerous sections of the 
Accounting Guide. All references to the accounting standards in the 
Accounting Guide have been updated and new references have been 
inserted to reflect new section numbers in the FASB accounting 
standards codification.
    (4) Key practices to enhance fraud prevention. While the current 
Accounting Guide lists the elements of an adequate accounting and 
financial reporting system, including the use of specific internal 
controls and risk assessment, there is no separate section on fraud 
prevention. The proposed revisions add a fraud prevention section that 
details key practices to help prevent fraud. Section 3-6.
    (5) Provisions in other LSC policies, including the LSC Property 
Acquisition and Management Manual and LSC Program Letters. Subsequent 
to the publication of the Accounting Guide in 1997, LSC issued other 
guidelines for recipients of LSC funds that impact on the Accounting 
Guide. For example, the LSC Property Acquisition and Management Manual 
(PAMM), issued in 2001, requires recipients to capitalize and 
depreciate all nonexpendable property with a cost in excess of $5,000 
and a useful life of more than one year. However, the current 
Accounting Guide uses $1,000 as the capitalization and depreciation 
threshold. The proposed revisions to the Accounting Guide change the 
threshold to $5,000 to be consistent with the PAAM. Appendix IV, 
Section 1. In addition, LSC has issued Program Letters 08-2 (March 20, 
2008), 08-3 (December 18, 2008) and

[[Page 5353]]

09-3 (December 17, 2009) that contain guidance to recipients on 
compliance and fiscal management issues. Those Program Letters have 
been referenced in the proposed revisions to the Accounting Guide. 
Section 2-3.1. Also, the LSC Board of Directors at its January 30, 2010 
meeting will consider the possibility of engaging in rulemaking to 
modify or eliminate 45 CFR Part 1642 (attorneys' fees) to reflect 
changes contained in the Consolidated Appropriations Act of 2010, P.L. 
111-117. Should there be a regulatory change to 45 CFR Part 1642 there 
would be a subsequent change to section 2-2.6 (Court-Awarded Attorney 
Fees) of the Accounting Guide (2010 edition.)
    (6) Revisions to accounting procedures and internal controls to 
reflect current best practices. Appendix VII of the current Accounting 
Guide (1997) contains a checklist of accounting procedures and internal 
controls. The proposed revisions update the checklist to reflect 
current best practices.
    (7) Updated and new references to other sources of information. The 
Accounting Guide (1997) contains numerous references to other sources 
of information. The proposed revisions update and make new references 
where appropriate.
    (8) Other changes to clarify existing provisions. The proposed 
revisions clarify existing sections to make the provisions easier to 
understand.
    LSC invites public comment on the proposed revisions to the 
Accounting Guide. Interested parties may submit comments to LSC by 
March 19, 2010. The proposed revisions to the Accounting Guide for LSC 
Recipients (2010 edition), in redline format indicating the proposed 
changes to the current Accounting Guide (1997), can be located by 
accessing LSC's Web site at http://www.lsc.gov/pdfs/proposed_revisions_to_accounting_guide_for_lsc_recipients.pdf.

    Dated: January 27, 2010.
Mattie Cohan,
Senior Assistant General Counsel, Legal Services Corporation.
[FR Doc. 2010-2160 Filed 2-1-10; 8:45 am]
BILLING CODE 7050-01-P