Financial Guide for Grantees, 71288-71290 [2021-27178]

Download as PDF 71288 Federal Register / Vol. 86, No. 238 / Wednesday, December 15, 2021 / Notices TABLE 1—LIST OF APPROPRIATE TEST STANDARDS FOR INCLUSION IN QPS’S NRTL SCOPE OF RECOGNITION Test standard UL UL UL UL UL UL UL UL UL UL UL Test standard title 60079–0 ...... 60079–1 ...... 60079–2 ...... 60079–7 ...... 60079–11 .... 60079–15 .... 60079–18 .... 60079–25 .... 60079–26 .... 60079–28 .... 60079–31 .... Explosive Explosive Explosive Explosive Explosive Explosive Explosive Explosive Explosive Explosive Explosive Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part Atmospheres—Part khammond on DSKJM1Z7X2PROD with NOTICES OSHA’s recognition of any NRTL for a particular test standard is limited to equipment or materials for which OSHA standards require third-party testing and certification before using them in the workplace. Consequently, if a test standard also covers any products for which OSHA does not require such testing and certification, a NRTL’s scope of recognition does not include these products. The American National Standards Institute (ANSI) may approve the test standard listed above as an American National Standard. However, for convenience, OSHA may use the designation of the standards-developing organization for the standard as opposed to the ANSI designation. Under the NRTL Program’s policy (see OSHA Instruction CPL 01–00–004, Chapter 2, Section VIII), only standards determined to be appropriate test standards may be approved for NRTL recognition. Any NRTL recognized for an appropriate test standard may use either the proprietary version of the test standard or the ANSI version of that standard. Contact ANSI to determine whether a test standard is currently ANSI-approved. A. Conditions In addition to those conditions already required by 29 CFR 1910.7, QPS must abide by the following conditions of the recognition: 1. QPS must inform OSHA as soon as possible, in writing, of any change of ownership, facilities, or key personnel, and of any major change in its operations as a NRTL, and provide details of the change(s); 2. QPS must meet all the terms of its recognition and comply with all OSHA policies pertaining to this recognition; and 3. QPS must continue to meet the requirements for recognition, including all previously published conditions on QPS’s scope of recognition, in all areas for which it has recognition. Pursuant to the authority in 29 CFR 1910.7, OSHA hereby expands the scope VerDate Sep<11>2014 17:04 Dec 14, 2021 Jkt 256001 0: Equipment—General Requirements. 1: Equipment Protection by Flameproof Enclosures ‘‘d’’. 2: Equipment Protection by Pressurized Enclosure ‘‘p’’. 7: Equipment Protection by Increased Safety ‘‘e’’. 11: Equipment Protection by Intrinsic Safety ‘‘i’’. 15: Equipment Protection by Type of Protection ‘‘n’’. 18: Equipment Protection by Encapsulation ‘‘m’’. 25: Intrinsically Safe Electrical Systems. 26: Equipment for Use in Class I, Zone 0 Hazardous (Classified) Locations. 28: Protection of Equipment and Transmission Systems Using Optical Radiation. 31: Equipment Dust Ignition Protection by Enclosure ‘‘t’’. of recognition of QPS, subject to the limitations and conditions specified above. III. Authority and Signature Douglas L. Parker, Assistant Secretary of Labor for Occupational Safety and Health, 200 Constitution Avenue NW, Washington, DC 20210, authorized the preparation of this notice. Accordingly, the agency is issuing this notice pursuant to 29 U.S.C. 657(g)(2), Secretary of Labor’s Order No. 8–2020 (85 FR 58393, September 18, 2020) and 29 CFR 1910.7. Signed at Washington, DC, on December 7, 2021. Douglas L. Parker, Assistant Secretary of Labor for Occupational Safety and Health. [FR Doc. 2021–27120 Filed 12–14–21; 8:45 am] BILLING CODE 4510–26–P LEGAL SERVICES CORPORATION Financial Guide for Grantees Legal Services Corporation. Request for comments. AGENCY: ACTION: The Legal Services Corporation (‘‘LSC’’) is updating its Financial Guide (‘‘Guide’’) for grantees. LSC previously sought comment on the revised Guide and is now seeking additional comments on discrete changes to the Guide. DATES: All comments and recommendations must be received on or before the close of business on January 31, 2022. 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 may not consider written comments sent via any other method or received after the end of the comment period. Email: financialguide@lsc.gov. Please include ‘‘Financial Guide Comment’’ in the subject line of the message. SUMMARY: PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 Fax, U.S. Mail, Hand Delivery, or Courier: Please call 202–295–1563 for instructions if you need to send materials by one of these methods. FOR FURTHER INFORMATION CONTACT: Stefanie K. Davis, Senior Assistant General Counsel, (202) 295–1563, or sdavis@lsc.gov. SUPPLEMENTARY INFORMATION: The Legal Services Corporation (LSC) has 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 believes that the format of the Accounting Guide no longer best serves grantees or LSC. LSC has restructured the document and renamed it the Financial Guide. The new draft Financial Guide removes outdated or inapplicable materials, improves materials directly related to LSC-specific issues, and adds clarity about both required and recommended financial practices. The draft 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. Overall, the draft Financial Guide conforms to existing LSC and grantee practices and requirements. Additionally, in some places, the draft Financial Guide sets out requirements that previously have not been published for comment. 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 (July 7, 2020). LSC received 38 unique comments on the draft Financial Guide from five grantees and the National Legal Aid and Defender Association 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. E:\FR\FM\15DEN1.SGM 15DEN1 Federal Register / Vol. 86, No. 238 / Wednesday, December 15, 2021 / Notices LSC conducted a thorough review of the entire draft and all comments. In most cases, LSC agreed with the comments and changed 17 proposed requirements into recommendations. Additionally, LSC removed five requirements related to audits and accounting. These changes align with the new scope of the Financial Guide to focus on providing guidance related to LSC rules and regulations—including those pertaining to internal controls— and not technical audit and accountingspecific requirements. LSC also added clear definitions that ‘‘must’’ and ‘‘shall’’ state requirements, but ‘‘should’’ states a strong recommendation. For all required items, grantees can opt to use different methods of reaching the goal, subject to LSC’s determination that the alternatives are sufficient. OCE also identified several current requirements that had not appeared in the prior version of the Financial Guide that was published for comment. These are requirements that LSC has been applying through required corrective actions and most, perhaps all, grantees have already implemented. OCE also added some requirements and recommendations related to ‘‘high-risk’’ areas, such as cost allocation and employee expense reimbursements. LSC has published the revised draft Financial Guide for comment on the Matters for Comment page at www.lsc.gov. LSC is seeking comment only on the areas identified below as new requirements or substantive revisions to the version of the Financial Guide for which LSC sought comment in 2020. khammond on DSKJM1Z7X2PROD with NOTICES Newly Identified Requirements 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 new section also contains a statement that ‘‘Any policies and procedures implementing the requirements of this Guide must be written and approved by the recipient’s governing body.’’ LSC already requires grantees to obtain governing body approval of their policies and procedures through policy reviews during competitive assessments and required corrective actions after a fiscal review. The following sections are all affected by this requirement: Section 2.1.1.a—Accounting System Capabilities Section 2.2.2—Payroll Section 2.2.3—Reconciliations VerDate Sep<11>2014 17:04 Dec 14, 2021 Jkt 256001 71289 Section 2.3.1—Document Integrity Section 2.5.3—Electronic Data Processing and Cybersecurity (Board approval of policy is new) Section 3.1.4—Derivative Income Section 3.2.1—Bank Accounts Section 3.2.2—Cash Receipts Section 3.2.3—Investments (if applicable) Section 3.2.4—Cash Disbursements Section 3.2.6—Client Trust Accounts Section 3.4—PAI. This section now clearly states that the financial accounting of the 12.5% expenditure for the PAI requirement must be in policies and procedures that are written and board approved, the same as other financial policies and procedures. Section 3.5.1—Procurement and Contracting (Board approval of policy is new) Section 3.6—Property and equipment Section 3.7—Cost Principles (Board approval of policy is new) Section 3.8—Subgrants. The grantee’s policies and procedures regarding the financial accounting for subgrants must be written and board approved. For subrecipients, it now states that ‘‘Recipients must ensure that subrecipients have written policies and procedures consistent with applicable LSC requirements, including this Guide.’’ Part 1627 provides flexibility for subrecipients’ financial accounting to reflect the amount of the subgrant and capacity of the subrecipient. The relationship between the recipient and subrecipient will determine the proper method of financial reporting following generally accepted accounting principles. 45 CFR 1627.4(f)(1)(i). purpose, authorized signatory, custodian, opening date, and closing date) within the last three years. Section 2.1.1—General Accounting System Requirements Section 3.2.4—Cash Disbursements This section now provides more specifics about the general accounting system requirements. Most, if not all, grantees already meet these requirements, which are items that LSC already requires grantees to adopt in required corrective actions after a fiscal review. 2.2.2—Time and Attendance (Payroll) This section now provides more specific requirements for formal payroll policies and procedures including time and attendance records, use of a payroll register, and review of payroll before processing and payment. 3.2.1—Bank Accounts This section now explicitly requires documentation and tracking of all bank accounts opened and closed (e.g., PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 3.2.1.b—Electronic Banking This section now requires recipients to conduct a risk assessment of electronic banking policies and procedures, with Board oversight, to identify areas requiring additional safeguards. 3.2.4.a—Employee Expense Reimbursements This new section requires grantees to have written and well-defined expense reimbursement policies and procedures. It also provides a number of recommendations for those policies. 3.2.5—Petty Cash This section now explicitly requires a monthly reconciliation of all petty cash funds and identification of all required supporting documentation. Also, the section now requires that policies describe all allowable uses of petty cash. 3.6.3—Disposal of Property and Equipment This new section references the Part 1631 requirements for disposal of real and personal property. It also requires that the grantee’s policies include ‘‘disposal procedures, controls, and documentation requirements.’’ New Recommendations Section 2.3.2—Document Destruction This section ‘‘strongly encourages recipients to develop and implement a policy (in accordance with their record retention policy) to address the proper destruction of documents and data.’’ This section now states that ‘‘Recipients may consider additional control measures related to higher risk disbursements (e.g., require a second check signer for amounts over a certain threshold).’’ Significant Clarifications LSC reorganized several sections to group items together more logically, provide clearer explanations, and better identify areas of risk. The following sections had notable updates. 2.1.1.a—Accounting System Capabilities This section now provides a detailed bullet list of basic capabilities of an adequate accounting system involving collecting, allocating, tracking, documenting, and reporting financial information. E:\FR\FM\15DEN1.SGM 15DEN1 71290 Federal Register / Vol. 86, No. 238 / Wednesday, December 15, 2021 / Notices 3.7.1—Cost Allocation This section now provides a detailed bullet list of basic requirements for cost allocation policies to better illustrate the cost allocation requirements proposed in the published draft Financial Guide. 2.5.3—Security for Data and Records Including Electronic Data Processing and Cybersecurity This section combines information from scattered sections in the previous draft to more clearly require grantees to ‘‘have written security policies and procedures for physical and digital assets including all financial data and records in any form (e.g., electronic data processing (EDP) and cybersecurity policies and procedures).’’ Furthermore, LSC recommends in this section that ‘‘These policies and practices should be part of an overall data and records security policy and an annual overall risk-assessment process.’’ Finally, LSC provides in this section a bullet list of issues that these policies must address, including a risk assessment at least annually and resolution of risk findings or conclusions. Dated: December 10, 2021. Stefanie Davis, Senior Assistant General Counsel. [FR Doc. 2021–27178 Filed 12–14–21; 8:45 am] BILLING CODE 7050–01–P NATIONAL AERONAUTICS AND SPACE ADMINISTRATION [Notice (21–087)] Notice of Intent To Grant an Exclusive, Co-Exclusive or Partially Exclusive Patent License National Aeronautics and Space Administration. ACTION: Notice of intent to grant exclusive, co-exclusive or partially exclusive patent license. AGENCY: NASA hereby gives notice of its intent to grant an exclusive, coexclusive or partially exclusive patent license to practice the inventions described and claimed in the patents and/or patent applications listed in SUPPLEMENTARY INFORMATION below. DATES: The prospective exclusive, coexclusive or partially exclusive license may be granted unless NASA receives written objections including evidence and argument, no later than December 30, 2021 that establish that the grant of the license would not be consistent with the requirements regarding the licensing of federally owned inventions as set forth in the Bayh-Dole Act and khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 17:04 Dec 14, 2021 Jkt 256001 implementing regulations. Competing applications completed and received by NASA no later than December 30, 2021 will also be treated as objections to the grant of the contemplated exclusive, coexclusive or partially exclusive license. Objections submitted in response to this notice will not be made available to the public for inspection and, to the extent permitted by law, will not be released under the Freedom of Information Act. Objections and Further Information: Written objections relating to the prospective license or requests for further information may be submitted to Agency Counsel for Intellectual Property, NASA Headquarters at Email: hq-patentoffice@mail.nasa.gov. Questions may be directed to Phone: (202) 358–3437. ADDRESSES: NASA intends to grant an exclusive, coexclusive, or partially exclusive patent license in the United States to practice the inventions described and claimed in: U.S. Patent No. 10,369,767 titled ‘‘Blocking/Deblocking Resin Systems for Use as a ‘Co-Cure-Ply’ in the Fabrication of Large-scale Composite Structure’’; and U.S. Patent No. 10,549,516 titled ‘‘Off-Set Resin Formulations and Blocking/Deblocking Resin Systems for Use as a ‘Co-Cure-Ply’ in the Fabrication of Large-Scale Composite Structure’’ to Paradigm Materials, LLC, having its principal place of business in Bothell, Washington. The fields of use may be limited. NASA has not yet made a final determination to grant the requested license and may deny the requested license even if no objections are submitted within the comment period. This notice of intent to grant an exclusive, co-exclusive or partially exclusive patent license is issued in accordance with 35 U.S.C. 209(e) and 37 CFR 404.7(a)(1)(i). The patent rights in these inventions have been assigned to the United States of America as represented by the Administrator of the National Aeronautics and Space Administration. The prospective license will comply with the requirements of 35 U.S.C. 209 and 37 CFR 404.7. Information about other NASA inventions available for licensing can be found online at http:// technology.nasa.gov. SUPPLEMENTARY INFORMATION: Helen M. Galus, Agency Counsel for Intellectual Property. [FR Doc. 2021–27112 Filed 12–14–21; 8:45 am] BILLING CODE 7510–13–P PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION [Notice (21–088)] Notice of Intent To Grant an Exclusive, Co-Exclusive or Partially Exclusive Patent License National Aeronautics and Space Administration. ACTION: Notice of intent to grant exclusive, co-exclusive or partially exclusive patent license. AGENCY: NASA hereby gives notice of its intent to grant an exclusive, coexclusive or partially exclusive patent license to practice the inventions described and claimed in the patents and/or patent applications listed in SUPPLEMENTARY INFORMATION below. DATES: The prospective exclusive, coexclusive or partially exclusive license may be granted unless NASA receives written objections including evidence and argument, no later than December 30, 2021 that establish that the grant of the license would not be consistent with the requirements regarding the licensing of federally owned inventions as set forth in the Bayh-Dole Act and implementing regulations. Competing applications completed and received by NASA no later than December 30, 2021 will also be treated as objections to the grant of the contemplated exclusive, coexclusive or partially exclusive license. Objections submitted in response to this notice will not be made available to the public for inspection and, to the extent permitted by law, will not be released under the Freedom of Information Act. ADDRESSES: Objections and Further Information: Written objections relating to the prospective license or requests for further information may be submitted to Agency Counsel for Intellectual Property, NASA Headquarters at email: hq-patentoffice@mail.nasa.gov. Questions may be directed to Phone: (202) 358–3437. SUPPLEMENTARY INFORMATION: NASA intends to grant an exclusive, coexclusive, or partially exclusive patent license in the United States to practice the inventions described and claimed in: U.S. Patent No. 8,167,204 B2 for an invention titled ‘‘Wireless Damage Location Sensing System,’’ NASA Case Number LAR–17593–1; U.S. Patent No. 7,086,593 B2 for an invention titled ‘‘Magnetic Field Response Measurement Acquisition System,’’ NASA Case Number LAR–16908–1; U.S. Patent No. 7,159,774 B2 for an invention titled ‘‘Magnetic Field Response Measurement Acquisition System,’’ NASA Case Number LAR–17280–1; U.S. Patent No. SUMMARY: E:\FR\FM\15DEN1.SGM 15DEN1

Agencies

[Federal Register Volume 86, Number 238 (Wednesday, December 15, 2021)]
[Notices]
[Pages 71288-71290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27178]


=======================================================================
-----------------------------------------------------------------------

LEGAL SERVICES CORPORATION


Financial Guide for Grantees

AGENCY: Legal Services Corporation.

ACTION: Request for comments.

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

SUMMARY: The Legal Services Corporation (``LSC'') is updating its 
Financial Guide (``Guide'') for grantees. LSC previously sought comment 
on the revised Guide and is now seeking additional comments on discrete 
changes to the Guide.

DATES: All comments and recommendations must be received on or before 
the close of business on January 31, 2022.

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 may not consider written 
comments sent via any other method or received after the end of the 
comment period.
    Email: [email protected]. Please include ``Financial Guide 
Comment'' in the subject line of the message.
    Fax, U.S. Mail, Hand Delivery, or Courier: Please call 202-295-1563 
for instructions if you need to send materials by one of these methods.

FOR FURTHER INFORMATION CONTACT: Stefanie K. Davis, Senior Assistant 
General Counsel, (202) 295-1563, or [email protected].

SUPPLEMENTARY INFORMATION: The Legal Services Corporation (LSC) has 
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 believes that the format of the 
Accounting Guide no longer best serves grantees or LSC. LSC has 
restructured the document and renamed it the Financial Guide. The new 
draft Financial Guide removes outdated or inapplicable materials, 
improves materials directly related to LSC-specific issues, and adds 
clarity about both required and recommended financial practices. The 
draft 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. Overall, 
the draft Financial Guide conforms to existing LSC and grantee 
practices and requirements. Additionally, in some places, the draft 
Financial Guide sets out requirements that previously have not been 
published for comment.
    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 (July 7, 2020). LSC received 38 unique comments on 
the draft Financial Guide from five grantees and the National Legal Aid 
and Defender Association 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.

[[Page 71289]]

    LSC conducted a thorough review of the entire draft and all 
comments. In most cases, LSC agreed with the comments and changed 17 
proposed requirements into recommendations. Additionally, LSC removed 
five requirements related to audits and accounting. These changes align 
with the new scope of the Financial Guide to focus on providing 
guidance related to LSC rules and regulations--including those 
pertaining to internal controls--and not technical audit and 
accounting-specific requirements. LSC also added clear definitions that 
``must'' and ``shall'' state requirements, but ``should'' states a 
strong recommendation. For all required items, grantees can opt to use 
different methods of reaching the goal, subject to LSC's determination 
that the alternatives are sufficient.
    OCE also identified several current requirements that had not 
appeared in the prior version of the Financial Guide that was published 
for comment. These are requirements that LSC has been applying through 
required corrective actions and most, perhaps all, grantees have 
already implemented. OCE also added some requirements and 
recommendations related to ``high-risk'' areas, such as cost allocation 
and employee expense reimbursements.
    LSC has published the revised draft Financial Guide for comment on 
the Matters for Comment page at www.lsc.gov. LSC is seeking comment 
only on the areas identified below as new requirements or substantive 
revisions to the version of the Financial Guide for which LSC sought 
comment in 2020.

Newly Identified Requirements

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 new 
section also contains a statement that ``Any policies and procedures 
implementing the requirements of this Guide must be written and 
approved by the recipient's governing body.'' LSC already requires 
grantees to obtain governing body approval of their policies and 
procedures through policy reviews during competitive assessments and 
required corrective actions after a fiscal review. The following 
sections are all affected by this requirement:

Section 2.1.1.a--Accounting System Capabilities
Section 2.2.2--Payroll
Section 2.2.3--Reconciliations
Section 2.3.1--Document Integrity
Section 2.5.3--Electronic Data Processing and Cybersecurity (Board 
approval of policy is new)
Section 3.1.4--Derivative Income
Section 3.2.1--Bank Accounts
Section 3.2.2--Cash Receipts
Section 3.2.3--Investments (if applicable)
Section 3.2.4--Cash Disbursements
Section 3.2.6--Client Trust Accounts
Section 3.4--PAI. This section now clearly states that the financial 
accounting of the 12.5% expenditure for the PAI requirement must be in 
policies and procedures that are written and board approved, the same 
as other financial policies and procedures.
Section 3.5.1--Procurement and Contracting (Board approval of policy is 
new)
Section 3.6--Property and equipment
Section 3.7--Cost Principles (Board approval of policy is new)
Section 3.8--Subgrants. The grantee's policies and procedures regarding 
the financial accounting for subgrants must be written and board 
approved. For subrecipients, it now states that ``Recipients must 
ensure that subrecipients have written policies and procedures 
consistent with applicable LSC requirements, including this Guide.'' 
Part 1627 provides flexibility for subrecipients' financial accounting 
to reflect the amount of the subgrant and capacity of the subrecipient. 
The relationship between the recipient and subrecipient will determine 
the proper method of financial reporting following generally accepted 
accounting principles. 45 CFR 1627.4(f)(1)(i).

Section 2.1.1--General Accounting System Requirements

    This section now provides more specifics about the general 
accounting system requirements. Most, if not all, grantees already meet 
these requirements, which are items that LSC already requires grantees 
to adopt in required corrective actions after a fiscal review.

2.2.2--Time and Attendance (Payroll)

    This section now provides more specific requirements for formal 
payroll policies and procedures including time and attendance records, 
use of a payroll register, and review of payroll before processing and 
payment.

3.2.1--Bank Accounts

    This section now explicitly requires documentation and tracking of 
all bank accounts opened and closed (e.g., purpose, authorized 
signatory, custodian, opening date, and closing date) within the last 
three years.

3.2.1.b--Electronic Banking

    This section now requires recipients to conduct a risk assessment 
of electronic banking policies and procedures, with Board oversight, to 
identify areas requiring additional safeguards.

3.2.4.a--Employee Expense Reimbursements

    This new section requires grantees to have written and well-defined 
expense reimbursement policies and procedures. It also provides a 
number of recommendations for those policies.

3.2.5--Petty Cash

    This section now explicitly requires a monthly reconciliation of 
all petty cash funds and identification of all required supporting 
documentation. Also, the section now requires that policies describe 
all allowable uses of petty cash.

3.6.3--Disposal of Property and Equipment

    This new section references the Part 1631 requirements for disposal 
of real and personal property. It also requires that the grantee's 
policies include ``disposal procedures, controls, and documentation 
requirements.''

New Recommendations

Section 2.3.2--Document Destruction

    This section ``strongly encourages recipients to develop and 
implement a policy (in accordance with their record retention policy) 
to address the proper destruction of documents and data.''

Section 3.2.4--Cash Disbursements

    This section now states that ``Recipients may consider additional 
control measures related to higher risk disbursements (e.g., require a 
second check signer for amounts over a certain threshold).''

Significant Clarifications

    LSC reorganized several sections to group items together more 
logically, provide clearer explanations, and better identify areas of 
risk. The following sections had notable updates.

2.1.1.a--Accounting System Capabilities

    This section now provides a detailed bullet list of basic 
capabilities of an adequate accounting system involving collecting, 
allocating, tracking, documenting, and reporting financial information.

[[Page 71290]]

3.7.1--Cost Allocation

    This section now provides a detailed bullet list of basic 
requirements for cost allocation policies to better illustrate the cost 
allocation requirements proposed in the published draft Financial 
Guide.

2.5.3--Security for Data and Records Including Electronic Data 
Processing and Cybersecurity

    This section combines information from scattered sections in the 
previous draft to more clearly require grantees to ``have written 
security policies and procedures for physical and digital assets 
including all financial data and records in any form (e.g., electronic 
data processing (EDP) and cybersecurity policies and procedures).'' 
Furthermore, LSC recommends in this section that ``These policies and 
practices should be part of an overall data and records security policy 
and an annual overall risk-assessment process.'' Finally, LSC provides 
in this section a bullet list of issues that these policies must 
address, including a risk assessment at least annually and resolution 
of risk findings or conclusions.

    Dated: December 10, 2021.
Stefanie Davis,
Senior Assistant General Counsel.
[FR Doc. 2021-27178 Filed 12-14-21; 8:45 am]
BILLING CODE 7050-01-P