What Are Quality Control Reviews?
Quality Control Reviews (QCRs) are critical evaluations conducted to ensure the integrity, accountability, and transparency of LSC recipients. Each recipient is required to undergo annual financial statement audits by an Independent Public Accounting (IPA) firm. The OIG oversees this process and contracts with a Certified Public Accounting firm to perform QCRs on selected IPAs. These reviews help to ensure that audits comply with established standards and OIG guidance. The standards and guidance include Government Auditing Standards, American Institute of Certified Public Accountants standards, Uniform Guidance, and the Audit Guide for Recipients and Auditors which includes the Compliance Supplement for Audits of LSC Recipients.
Who Performs Quality Control Reviews?
McBride Lock & Associates LLC, a Certified Public Accounting Firm, currently conducts our QCRs. With experience in the performance of over 1,000 reviews for LSC OIG, the Department of Health and Human Services and other organizations, McBride Lock and Associates LLC brings extensive expertise to the process. These reports are reviewed and issued by the OIG and any requested IPA follow up must be sent to the OIG for evaluation.
How Are IPAs Selected for a Quality Control Review?
LSC OIG uses a risk-based methodology to select IPAs for a QCR. All grantee audits are eligible for review, regardless of whether the IPA audits multiple grantees. Selection factors include the time elapsed since the previous review and its outcome, the length of the IPA’s service with the grantee, and other factors. Typically, we aim to review each grantee at a minimum of once every four years.
What Are Common Issues Identified in QCRs?
For insights into common issues identified in recent QCRs, please refer to our QCR advisories. These advisories highlight the most frequently observed findings and provide recommendations for proactively addressing these and other potential issues.
What Are the Consequences for Failing to Comply with Audit Standards and OIG Audit Guidance?
While most issues identified in QCRs are resolved by IPAs providing additional documentation to the OIG, in extreme circumstances, the OIG may initiate proceedings pursuant to 45 C.F.R. § 1641 to debar, suspend, or remove IPAs who have failed significantly to comply with government auditing standards and/or OIG audit guidance.
LSC OIG Quality Control Review Presentations
Enhancing Grantee Audits (11/20/2024)
Download the Enhancing Grantee Audits Video Slides
Download the Enhancing Grantee Audits Video Transcript