LSC inspector general outlines audit priorities; board approves rulemaking proposal and consolidated 2026 budget
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Summary
Inspector General Tom summarized audit and investigative priorities and said the FY2026 funding increase allows restarting paused work; the board was asked to approve rulemaking for rules 16-30 and 16-31 and the finance committee asked adoption of the consolidated operating budget for 2026.
Inspector General Tom presented a performance summary and identified six areas of sustained focus for audits and investigations: board governance and engagement, cybersecurity, contracting and procurement, student loan repayment assistance programs, proper allocation of LSC funds for allowable purposes, and outside practice of law and outside employment. He said a slight FY2026 funding increase will allow the office to resume paused audits and restart other oversight activities.
Tom also noted a temporary cash-flow problem late last year resulting from delays in Treasury payments after enactment of appropriations; management is reviewing procedures and contingency steps (including temporary furlough procedures) to handle similar situations.
Separately, the ops and regs committee asked the board to approve rulemaking on rule 16-30 (cost standards and procedures) and rule 16-31 (purchasing and property management), which would clarify amounts requiring prior approval and allow grantees to raise funds subject to future reimbursement. The finance committee presented a consolidated operating budget for 2026 and asked the board to adopt it; the chair indicated both items were approved in committee and presented to the full board for action.
The transcript records voice approvals for committee recommendations but does not show a roll-call vote with named tallies in the public portion of the meeting.
