Fraud Corner: Complying with LSC Banking and Investment Guidelines
In light of recent bank failures, the Legal Services Corporation (LSC) Office of Inspector General (OIG) is providing this article, outlining steps to be taken should your grantee funds on deposit exceed the Federal Deposit Insurance Corporation’s (FDIC's) $250,000 deposit insurance limit.
Fraud Corner: Personally Identifiable Information
In a continuing effort to assist grantees and subgrantees in preventing cyber threats, the Office of Inspector General for the Legal Services Corporation is providing the following guidance to assist grantees in protecting personal data from a cyber-attack.
Hotline Advisory: StopRansomware.gov — Ransomware Threat Resource
In a continuing effort to assist Legal Services Corporation grantees and subgrantees in preventing cyberattacks, the Office of Inspector General is issuing a Hotline Advisory to notify grantees of a U.S. Government resource and initiative aimed at protecting American businesses and communities from ransomware attacks.
Summary Results of Quality Control Reviews (QCRs) for FY2020 and FY2021 Financial Statement Audits
The information presented is a summary of the results of QCRs of Fiscal Year 2020 and Fiscal Year 2021 financial statement audits conducted by IPAs. We encourage IPAs and Executive Directors to use the summary information in planning and conducting audits of LSC grantees.
Arrest of Former Chief Administrative Officer of Legal Services of Eastern Michigan
On December 16, 2022, a criminal complaint was filed and an arrest warrant was issued for Teresa Trantham, former Chief Administrative Officer, Legal Services of Eastern Michigan (LSEM). The complaint is based on a joint investigation conducted by the Office of Inspector General (OIG), United States Department of Housing and Urban Development (HUD), and the OIG for the Legal Services Corporation (LSC).
The Public Comment Period Ended on February 6, 2023, for Draft Audit Guidance posted to the Federal Register
The Office of Inspector General has updated the Audit Guide for Recipients and Auditors and its appendices. The appendix that has majority of the updates is Appendix A (The Compliance Supplement for Audit of LSC Recipients). The appendix designations have also changed to Appendices A-E.
Hotline Advisory: Recent Phishing Attacks — Intuit QuickBooks Alert
As part of its Hotline Advisory Alerts, the Office of Inspector General (OIG) for the Legal Services Corporation (LSC) is notifying grantees with the following information on recent phishing/malware attacks on businesses that use Intuit QuickBooks. We understand that some LSC grantees use QuickBooks.
Security notices from Intuit advised of several cybercrime phishing schemes against QuickBooks users. In a notice dated May 25, 2022, Intuit warns of one scheme where the user is told by the perpetrator that a temporary hold was placed on their account pending verification of account information. In a notice dated April 28, 2022, Intuit warns of another scheme where the perpetrator confirms receipt of payment by the user for a fake invoice. The messages then direct the account holder to click on a link or to complete verification, resulting in the downloading of malware or offer a phone number where scammers are prepared to extract valuable personal or financial data from the caller.
Inspector General Jeffrey E. Schanz Retires
After 14 years of service, supporting the mission of equal access to justice through independent, objective oversight, Inspector General Jeffrey E. Schanz retired in March. Mr. Schanz joined the Legal Services Corporation (LSC) Office of Inspector General (OIG) after nearly 32 years in the federal IG community. His contributions to LSC and our OIG, and his years of dedicated public service, are much appreciated.
Hotline Advisory: Outside Employment During Remote Work
The Office of Inspector General (OIG) for the Legal Services Corporation (LSC) is informing you of a recent case involving an attorney who was employed simultaneously (full-time) at two different LSC funded programs. The attorney did not disclose the dual employment to either grantee in violation of grantee policies.
FBI Warns “Ransomware Attacks Straining Local US Governments and Public Services”
On March 30, 2022, the Federal Bureau of Investigation (FBI) warned local governments and public services of continued ransomware attacks that have resulted in a disruption of operational services, risks to public safety, and financial losses. The FBI urges local governments and public services to take steps to prevent and recover from ransomware attacks. The OIG also believes that ransomware has been and will continue to be a threat to LSC grantees. As a result, the risks identified by the FBI in the Private Industry Notification (PIN) apply equally to other organizations such as nonprofit businesses. Please review this alert and the FBI warning to ensure that your program has taken the steps necessary to minimize operational disruptions in the event of a ransomware attack.