Page:United States Statutes at Large Volume 110 Part 2.djvu/205

 PUBLIC LAW 104-134—APR. 26, 1996 110 STAT. 1321-58 for which the recipient or employee begins to provide legal assistance on or after such date; and (B) beginning August 1, 1996, to all other activities of the recipient or employee during the provision of legal assistance for the case or matter; and (3) the requirements of paragraph (13) of section 504(a)— (A) shall apply beginning on the date of enactment of this Act to the activities of the recipient or employee during the provision of legal assistance for any additional related claim for which the recipient or employee begins to provide legal assistance on or after such date; and (B) shall not apply to all other activities of the recipient or employee during the provision of legal assistance for the case or matter. (c) The Legal Services Corporation shall, every 60 days, submit Reports, to the Committees on Appropriations of the Senate and House of Representatives a report setting forth the status of cases and matters referred to in subsection (b)(2). SEC. 509. (a) An audit of each person or entity receiving finan- Audits, cial assistance from the Legal Services Corporation under this Act (referred to in this section as a "recipient") shall be conducted in accordance with generally accepted government auditing standards and guidance established by the Office of the Inspector General and shall report whether— (1) the financial statements of the recipient present fairly its financial position and the results of its financial operations in accordance with generally accepted accounting principles; (2) the recipient has internal control systems to provide reasonable assurance that it is managing funds, regardless of source, in compliance with Federal laws and regulations; and (3) the recipient has complied with Federal laws and regulations applicable to funds received, regardless of source. (b) In carrying out the requirements of subsection (a)(3), the auditor shall select and test a representative number of transactions and report all instances of noncompliance to the recipient. The recipient shall report in writing any noncompliance found by the auditor during the audit under this section within 5 business days to the Office of the Inspector General and shall provide a copy of the report simultaneously to the auditor. If the recipient fails to report the noncompliance, the auditor shall report the noncompliance directly to the Office of the Inspector General within 5 business days of the recipient's failure to report. The auditor shall not be liable in a private action for any finding, conclusion, or statement expressed in a report made pursuant to this section. (c) The audits required under this section shall be provided for by the recipients and performed by independent public accountants. The cost of such audits shall be shared on a pro rata basis among all of the recipient's funding providers and the appropriate share shall be an allowable charge to the Federal funds provided by the Legal Services Corporation. No audit costs may be charged to the Federal funds when the audit required by this section has not been made in accordance with the guidance promulgated by the Office of the Inspector General. If the recipient fails to have an acceptable audit in accordance with the guidance promulgated by the Office of the Inspector Gen-

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