Where can I find guidance on LSC's accounting and financial reporting requirements?
Guidance on LSC's accounting and financial reporting requirements can be found in the Legal Services Corporation Accounting Guide for LSC Recipients (2010 Edition) Questions relating to the Accounting Guide and Statement of Financial Accounting Standards (SFAS) 116 and 117 implementation should be directed to The Office of Compliance and Enforcement at 202-295-1506.
May LSC recipients use LSC funds for fundraising activities?
LSC management has advised the OIG that recipients may use reasonable amounts of LSC funds for fundraising activities.
How should grantees classify future fiscal year grant funds received in the current grant period in their financial statements?
LSC management has advised that Section 2-2.1 of the Accounting Guide for LSC Recipients (2010 Edition) requires that LSC grant and contract support be recognized and classified as temporarily restricted revenue. Temporarily restricted LSC net assets can be reclassified as unrestricted when eligible expenses are incurred. The revenue recognition policy must be disclosed in the notes to financial statements. In addition, the components of LSC support and net assets balances must be disclosed in the notes and/or supplemental schedules to the financial statements. Funds received for future grant periods should not be used in the calculation of excess fund balance pursuant to 45 CFR Part 1628, Recipient Fund Balances, PAI expenditure requirement, or included in the financial information reported on the Summary Report Form.