110 STAT. 1321-59
PUBLIC LAW 104-134—APR. 26, 1996
eral, the following sanctions shall be available to the Corporation
as recommended by the Office of the Inspector General:
(1) The withholding of a percentage of the recipient's funding until the audit is completed satisfactorily.
(2) The suspension of recipient's funding until an acceptable
audit is completed.
(d) The Office of the Inspector General may remove, suspend,
or bar an independent public accountant, upon a showing of good
cause, from performing audit services required by this section.
Any such action to remove, suspend, or bar an auditor shall be
only after notice to the auditor and an opportunity for hearing.
The Office of the Inspector General shall develop and issue rules
of practice to implement this paragraph.
(e) Any independent public accountant performing an audit
under this section who subsequently ceases to be the accountant
for the recipient shall promptly notify the Office of the Inspector
General pursuant to such rules as the Office of the Inspector General shall prescribe.
(f) Audits conducted in accordance with this section shall be
in lieu of the financial audits otherwise required by section 1009(c)
of the Legal Services Corporation Act (42 U.S.C. 2996h(c)).
(g) The Office of the Inspector General is authorized to conduct
on-site monitoring, audits, and inspections in accordance with Federal standards.
(h) Notwithstanding section 1006(b)(3) of the Legal Services
Corporation Act (42 U.S.C. 2996e(b)(3)), financial records, time
records, retainer agreements, client trust fund and eligibility
records, and client names, for each recipient shall be made available
to any auditor or monitor of the recipient, including any Federal
department or agency that is auditing or monitoring the activities
of the Corporation or of the recipient, and any independent auditor
or monitor receiving Federal funds to conduct such auditing or
monitoring, including any auditor or monitor of the Corporation,
except for reports or records subject to the attorney-client privilege.
(i) The Legal Services Corporation shall not disclose any name
or document referred to in subsection (h), except to—
(1) a Federal, State, or local law enforcement official; or
(2) an official of an appropriate bar association for the
purpose of enabling the official to conduct an investigation
of a rule of professional conduct.
(j) The recipient management shall be responsible for expeditiously resolving all reported audit reportable conditions, findings,
and recommendations, including those of sub-recipients.
(k) The Legal Services Corporation shall—
(1) follow up on significant reportable conditions, findings,
and recommendations found by the independent public accountants and reported to Corporation management by the Office
of the Inspector General to ensure that instances of deficiencies
and noncompliance are resolved in a timely manner, and
(2) Develop procedures to ensure effective follow-up that
meet at a minimum the requirements of Office of Management
and Budget Circular Number A-50.
(1) The requirements of this section shall apply to a recipient
for its first fiscal year beginning on or after January 1, 1996.
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