[Federal Register Volume 83, Number 63 (Monday, April 2, 2018)]
[Notices]
[Pages 14047-14060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06532]


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LEGAL SERVICES CORPORATION


Notice of Revisions to Performance Area Four of LSC's Performance 
Criteria

AGENCY: Legal Services Corporation.

ACTION: Notice of revisions to guidelines.

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SUMMARY: To provide grantees with the most effective guidance, in 2018 
the Legal Services Corporation revised Performance Area Four to refine 
and expand the areas of inquiry to focus on those criteria for which 
LSC has found the most deficiencies, particularly Criteria 1 (Board 
Governance), 4 (Financial Administration), and 7 (General Resource 
Development). The 2018 revisions codify the work of LSC staff with 
numerous grantees and provide evidence-based guidance to recipients on 
how to run a high-performing nonprofit organization.

FOR FURTHER INFORMATION CONTACT: Lynn Jennings, Vice President for 
Grants Management, Legal Services Corporation, 3333 K Street NW, 
Washington, DC 20007, (202) 295-1645, [email protected].

SUPPLEMENTARY INFORMATION: LSC's Performance Criteria indicate that 
legal services programs should be led and managed effectively with 
high-quality governance, administrative systems, procedures, and 
policies. Good leadership and strong internal operations increase the 
likelihood of effective program services for clients.
    Over the past several years, LSC has observed some areas of 
weakness in grantee governance through performance quality visits, 
compliance reviews, and Office of Inspector General (OIG) visits. The 
2018 revisions codify the work of LSC staff with numerous grantees and 
provide evidence-based guidance to recipients on how to run a high-
performing nonprofit organization.
    Since 2010, LSC's Office of Program Performance has conducted 133 
Program Quality Visits of 124 grantees. LSC issued 1,901 Tier One \1\ 
recommendations across the reports summarizing those visits. Of the 
1,901 Tier One recommendations, 695 recommendations--36.5%, the most of 
any performance area--pertained to Performance Area 4. From 2011 to 
2016, LSC's Office of Compliance and Enforcement conducted 111 
Compliance Reviews of 106 grantees. LSC issued more than 1,200 Required 
Corrective Actions (RCAs) related to both regulatory and fiscal issues. 
Approximately 25% of the RCAs identified deficiencies in the grantees' 
financial administration. Additionally, OIG conducted 41 A-50 reviews 
between June 2012 and September 2017. As a result of those reviews, the 
OIG made 160 referrals to OCE. The referrals covered issues related to 
timekeeping, deficiencies in policies and procedures, cost allocation, 
and internal controls.
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    \1\ According to LSC's Office of Program Performance Procedure 
Manual:
     Tier One Recommendations are those recommendations that 
are determined to be significant and will be included in the next 
Request for Proposal to the grantee.
     Tier One Recommendations are those that if addressed, 
have the potential for significantly improving program quality and/
or program performance within the short term, i.e., two years.
    A Tier One Recommendation must:
     be stated in simple straightforward terms such that 
there is no doubt by the program that a response is required; and
     have an objective, the value of which equals or 
outweighs any additional burden that the recommendation imposes on 
the program (does not apply to statutory or regulatory 
requirements).
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    This is the background against which LSC evaluated the existing 
criteria for Performance Area 4. The statistics above gave LSC valuable 
information about which areas of grantee administration, leadership, 
and governance needed more rigorous evaluation.
    These Performance Criteria are guidelines for ensuring high program 
quality. They are not requirements. They reflect best practices to 
which programs should aspire and which they should, to the extent 
possible and consistent with program resources, attempt to achieve. 
These revisions do not reflect a change in the purposes of the 
Performance Criteria stated in the Introduction to the 2007 revised 
version. The purposes of the Performance Criteria are twofold. First, 
the Performance Criteria ``guide LSC's assessments of program 
performance generally and in the competitive grants process.'' Second, 
the Performance Criteria serve as a ``useful framework for internal 
program self-evaluations, planning, and program development, as well as 
external peer reviews and expert assessments by other funding 
sources.''
    LSC will begin using the revised Performance Area 4 on June 1, 
2018. LSC management recognizes that it may take time, guidance, and 
experience for all grantees to adjust to the revisions. LSC will, 
therefore, provide training and forums to discuss the implementation of 
the changes. When conducting program assessments, LSC staff will take 
the scope of the revisions and each program's capacity into 
consideration when making recommendations.
    As the table below indicates, LSC reorganized the order of the 
Performance Criteria. The current Criterion 3--Overall Management and 
Administration--includes a limited review of a grantee's technology 
infrastructure and administration. To more accurately reflect the role 
technology plays in the daily operations of an organization and in 
providing efficient and effective client services, LSC proposed 
creating a separate, new technology criterion, Criterion 3: Technology 
Infrastructure and Administration. The criterion for Overall 
Administration and Management would now be Criterion 6, with Internal 
Communication being folded into the proposed Criterion 6.

[[Page 14048]]



                 Performance Area 4: Criterion Ordering
------------------------------------------------------------------------
 Current ordering of Performance    2018 Revised ordering of Performance
         Area 4 Criteria                      Area 4 Criteria
------------------------------------------------------------------------
Criterion 1: Board Governance....  Criterion 1: Board Governance
Criterion 2: Leadership..........  Criterion 2: Leadership
Criterion 3: Overall Management    Criterion 3: Technology
 and Administration.                Infrastructure and Administration
Criterion 4: Financial             Criterion 4: Financial Administration
 Administration.
Criterion 5: Human Resources       Criterion 5: Human Resources
 Administration.                    Administration
Criterion 6: Internal              Criterion 6: Overall Management and
 Communication.                     Administration
Criterion 7: General Resource      Criterion 7: General Resource
 Development and Maintenance.       Development and Maintenance
------------------------------------------------------------------------

    Criterion 1. Board Governance. The program articulates a clear 
mission for the organization. Each board member demonstrates commitment 
to the program and its mission through consistent engagement in Board 
activities that involve all other board members. The board effectively 
engages in strategic organizational planning with program leadership 
and staff. It is responsible for major policy decisions, while holding 
organizational management accountable for effective performance of 
their responsibilities. The board assists with or oversees, as 
appropriate, the organization's efforts to develop and maintain 
resources. The board also promotes public awareness of the program in 
the community in a manner that aims to enhance the program's overall 
effectiveness and influence.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
                   Board Composition, Size and Tenure
------------------------------------------------------------------------
As a whole, the board is         Is the board membership diverse
 appropriately diverse and       and representative of the service area?
 representative of the various   Is the board either composed of
 geographical areas and low-     an appropriate mix of members that are
 income populations served by    sufficiently expert in areas applicable
 the program.                    to the program's operations and
                                 achievement of overall goals related to
                                 the mission--e.g. non-profit
                                 management, financial oversight,
                                 fundraising, community engagement--or
                                 has it taken steps to ensure that such
                                 expertise is available to the board on
                                 a consistent basis?
                                 Does the board adhere to LSC
                                 regulations regarding board
                                 composition?
The size of the board is         Is there evidence that the
 conducive to effective          board's size facilitates the
 oversight.                      effectiveness of its operation?
When determining board tenure,   What is the tenure of each of
 the board struck a balance      the board members, including the board
 between longevity and board     chair(s)?
 experience and the need for     Does the organization impose
 new ideas and insights.         term limits on board membership?
                                 If so, what are the term
                                 limits?
                                 Does the board have a policy or
                                 practice regarding length of service on
                                 the board and on its Executive
                                 Committee?
                                 If the board imposes term
                                 limits, how does the organization avoid
                                 the loss of the experience and
                                 expertise of valued directors?
                                 Is there a process for removing
                                 board members?
The board has processes and      Does the board have and follow
 procedures for recruiting and   established policies and practices
 orienting new board members.    regarding recruitment, qualification
                                 and retention and engagement of new
                                 members?
                                 Is there a job description for
                                 board members explaining their role and
                                 duties?
                                 Is the job description provided
                                 to board members?
                                 Is there an onboarding process
                                 for new members?
                                 Are board members given
                                 appropriate orientation and continuing
                                 training, including: training on the
                                 role of the board, potential conflicts
                                 of interest, and on fiscal, fiduciary,
                                 and other responsibilities?
                                 Is there training on the LSC
                                 Act, LSC regulations, LSC performance
                                 criteria, and other best practices?
------------------------------------------------------------------------
                            Board Committees
------------------------------------------------------------------------
The board's committees           What is the board's committee
 structure promotes effective    structure?
 oversight of the organization.  What is the composition of each
                                 committee?
                                 Does each committee have
                                 clearly defined responsibilities that
                                 are documented in written form?
                                 If so, is there periodic review
                                 and updating of the documents?
                                 Is there a committee
                                 responsible for assessing the
                                 performance of the board?
                                 Is there an executive
                                 committee, and, if so, what is its
                                 composition?
                                 How often does the executive
                                 committee meet?
                                 What is the scope of business
                                 usually conducted?
                                 Is there a separate Finance or
                                 Audit Committee?
                                 Does a member of the audit or
                                 finance committee have a financial
                                 background?
                                 If not, does the committee
                                 engage sufficient assistance from non-
                                 board sources to provide consistent and
                                 competent guidance on financial
                                 matters?
                                 Is there a separate fundraising
                                 committee?
------------------------------------------------------------------------

[[Page 14049]]

 
                    Board Meetings and Deliberations
------------------------------------------------------------------------
The board fulfills the meeting   The board of directors meets at
 requirements of LSC             least four times a year.
 regulations.                    There is public notice of
                                 meeting and meetings are public.
The board has quorum             Is the board required to reach
 requirements that are adhered   a membership attendance quorum before
 to                              it can take formal action?
                                 What is the percentage or
                                 number requirement for a quorum?
                                 How many times within the past
                                 two years has the board tried to meet
                                 but has not had a quorum?
                                 If there is no quorum, what
                                 percentage of the board attended each
                                 meeting?
                                 Does the organization permit
                                 its board to act through virtual
                                 meetings such as email voting, in
                                 addition to remote participation by
                                 teleconferences or videoconference?
                                 Are there guidelines or a
                                 protocol for virtual meetings?
The board and committee          Are there pre-circulated
 meetings are well planned and   agendas for all board and committee
 focused to ensure that the      meetings?
 board and its committees can    If so, who sets the agenda?
 carry out their oversight       Do the board chair or committee
 function.                       chair and the executive officer
                                 contribute to the agenda?
Meeting materials.............   Do individual members feel that
                                 the board packets distributed in the
                                 board and committee meetings provide
                                 them with useful information about the
                                 program and equip them to participate
                                 meaningfully in the board or committee
                                 meeting?
                                 What is the quality of the
                                 materials?
                                 How far in advance is board
                                 information circulated?
                                 Do board materials contain
                                 updated financial information?
Executive session.............   Do board meetings include an
                                 executive session without any staff
                                 (including the executive director)?
The board members are engaged    What is the level of attendance
 and regularly attend and        at board and committee meetings?
 participate in board and        Do individual members prepare
 committee meetings.             for and participate in meetings?
                                 Are client board members
                                 actively engaged in board meetings and
                                 decisions?
Board and committee decisions    Are board decisions
 are appropriately documented.   appropriately documented in board
                                 minutes?
                                 Minutes of full board and
                                 committee meetings are prepared,
                                 reviewed and approved by the board at
                                 least by the next scheduled meeting.
                                 Who prepares the meeting
                                 minutes?
                                 Apart from minutes of board
                                 meetings, does the board maintain a
                                 separately indexed chronological record
                                 of resolutions that reference their
                                 initial date of adoption and subsequent
                                 actions?
------------------------------------------------------------------------
                  Board Transparency and Accountability
------------------------------------------------------------------------
The board and members            Is the board supportive of the
 individually, are committed     program?
 to the program and its          Does the board have a policy or
 mission. The board properly     practice that effectively deals with
 discloses and manages any       conflicts of interest or potential
 organizational or personal      conflicts of interest?
 conflicts.                      Is the policy or practice in
                                 writing?
                                 Are organizational or
                                 individual conflicts addressed quickly
                                 and effectively?
------------------------------------------------------------------------
                Board Engagement with Strategic Planning
------------------------------------------------------------------------
The board ensures that the       Does the board adopt a mission
 program establishes and         statement, that has been
 adheres to effective            collaboratively developed with
 strategic planning.             management?
                                 Does the board establish a
                                 vision for the future?
                                 Does the board approve
                                 strategic goals?
                                 Does the board articulate core
                                 values/principles?
                                 What is the board's role in
                                 developing the strategic plan?
                                 Does the board work in close
                                 partnership with the management to
                                 ensure a successful planning process?
                                 Does the board regularly review
                                 progress in accomplishing the goals of
                                 the strategic plan and take appropriate
                                 action to ensure implementation?
                                 Does it periodically discuss
                                 progress toward strategic goals with
                                 program management?
------------------------------------------------------------------------
            Board Oversight of the Organization--Programmatic
------------------------------------------------------------------------
The board is involved in major   How are major policy decisions
 policy decisions, aware of      made?
 issues in and performance of    Do board members understand and
 the program, while leaving      adhere to clear distinctions between
 day-to-day management of        board governance and program
 program operations to program   management?
 management personnel.           Do board members understand the
                                 major issues at stake for the program?
                                 How does the board exercise its
                                 oversight of program operations?
                                 Does the board receive regular
                                 reports providing objective data on
                                 program performance?
                                 Monitoring: Does the board
                                 receive periodic information on the
                                 work of the program?
                                 Evaluating: Does the board seek
                                 information to evaluate the
                                 effectiveness of the program's
                                 services?
------------------------------------------------------------------------

[[Page 14050]]

 
             Board Oversight of the Organization--Financial
------------------------------------------------------------------------
The board exercises effective    Are board members aware of and
 financial oversight.            accurate in their perception have a
                                 general understanding of the
                                 requirements of the program's funding
                                 sources.
                                 What systems and procedures
                                 does the board have to ensure effective
                                 financial oversight?
Ensure funds are used for        How often does the board review
 intended charitable purposes,   financial statements and do they
 and funds are appropriately     understand what the financial
 accounted for.                  statements say?
                                 Do they have experience in or
                                 guidance from board members or other
                                 advisors in interpreting the financial
                                 statements?
                                 Is there a finance and/or audit
                                 committee to select the independent
                                 auditor?
                                 Is the Form 990 presented to
                                 the board and management team prior to
                                 or after it is filed with the IRS?
                                 Are there opportunities for the
                                 CFO/Controller or highest ranking
                                 financial officer to confer with the
                                 board, or members of the board?
                                 Has the board established
                                 budget guidelines?
The board safeguards             Are policies in place to
 investments.                    evaluate the organization's investment
                                 decisions and performance?
                                 Are policies in place to
                                 safeguard the organization's assets and
                                 tax-exempt status?
------------------------------------------------------------------------
                  Evaluation of the Executive Director
------------------------------------------------------------------------
The board effectively            What is the process for
 evaluates the chief executive   evaluating the Executive Director and
 officer or executive director.  other top officers in the organization?
                                 Do they employ a 360
                                 evaluation?
                                 Who is involved in the
                                 evaluation process?
                                 How frequently does the board
                                 evaluate the chief executive officer or
                                 executive director?
                                 What, if any, are the criteria
                                 used for evaluating the Executive
                                 Director?
The boards practices             Is there a process for
 appropriate oversight over      reviewing and setting executive
 the Executive Director's        compensation?
 Compensation plan.              If so, what is the process?
                                 Who is involved in this
                                 process?
                                 Are all board members aware of
                                 the Executive Director's entire
                                 compensation package?
                                 Is the Executive Director's
                                 compensation based on market data?
                                 Is there contemporaneous
                                 substantiation of the board's
                                 deliberation and decision on the
                                 Executive Director's compensation?
------------------------------------------------------------------------
             Board's Role as Ambassador for the Organization
------------------------------------------------------------------------
The board effectively promotes   Do individual members,
 and expands the reach and       including client members, speak on
 influence of the program in     behalf of the organization to external
 the communities it serves.      audiences at appropriate opportunities?
                                 Is there a protocol for who
                                 speaks on behalf of the board and the
                                 organization?
                                 Does everyone know the
                                 ``elevator speech?''
                                 Do individual members represent
                                 the community to the organization by
                                 bringing back concerns, ideas,
                                 suggestions and compliments when they
                                 have merit or possibility?
------------------------------------------------------------------------
                  Board's Role in Resource Development
------------------------------------------------------------------------
The board effectively promotes   Do board members assist
 and expands the reach and       effectively in fundraising and
 influence of the program in     development activity?
 the communities it serves,      Does the board consult and
 and develops additional         communicate with the Executive Director
 resources for the program.      to identify and, where appropriate,
                                 pursue all types of needed resources?
                                 Determines how board members
                                 will participate in fundraising from
                                 sources where they have knowledge or
                                 influence, such as the private bar?
                                 Does the board receive regular
                                 reports on staff fundraising activity?
The board ensures that the       Has the organization adopted
 program is in compliance with   policies to ensure compliance with
 state and local laws related    federal/state laws on solicitation of
 to solicitation.                funds?
                                 Are solicitation materials
                                 accurate?
The board ensures donations      Donations are properly recorded
 comply with LSC Requirements.   pursuant to LSC regulations
------------------------------------------------------------------------
                   Continuous Learning and Assessment
------------------------------------------------------------------------
The board is committed to        Does the organization maintain
 continuous improvement.         and provide its board members with an
                                 up-to-date board handbook or on-line
                                 resources?
                                 Do members keep up with issues
                                 that affect the functioning and future
                                 of the organization?
                                 Does the board engage in
                                 periodic formal or informal self-
                                 assessment processes?
------------------------------------------------------------------------

[[Page 14051]]

 
                    General Good Governance Practices
------------------------------------------------------------------------
The board ensures legal and      Does the board adopt and
 ethical integrity and           regularly evaluate a code of ethics
 maintains accountability.       that describes behaviors it wants to
                                 encourage and behavior it wants to
                                 discourage?
                                 Did the board adopt a policy
                                 for handling employee and client
                                 complaints?
                                 Are there established
                                 procedures for employees to report
                                 financial impropriety or misuse of the
                                 organization's resources?
                                 Does the organization have a
                                 whistleblower policy?
                                 Does the board periodically
                                 review the bylaws to ensure that the
                                 organization is in compliance with its
                                 governing documents and relevant laws?
                                 Does the board have policies
                                 establishing standards for document
                                 retention and destruction?
                                 Does the organization keep
                                 books and records relevant to its tax-
                                 exempt status and IRS filings for
                                 appropriate time periods?
The board ensures transparency   Are the program's Form 990 and
 and accountability by making    annual report reported on its public
 information available to the    website? Are these documents available
 public on the program's         to the public upon request?
 mission, activities, finance
 and governance.
The members of the board        Is there evidence that board members
 exercise independent judgment   engage in independent analysis of
 in general board decision-      materials and information provided to
 making.                         them?
------------------------------------------------------------------------

    Criterion 2. Leadership. The program has effective leadership that 
establishes and maintains a shared sense of vision and mission. Program 
leadership means a commitment to and achievement of the program's goals 
and objectives according to a model that emphasizes teamwork, 
transparency, excellence, effectiveness, efficiency, and innovation.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
                           General Leadership
------------------------------------------------------------------------
Key program staff, starting      Starting with the chief
 with the executive director     executive officer, are there
 or chief executive officer,     recognized, positive, and effective
 are respected and recognized    leaders in the program?
 as the program leaders.         Do board members, community
                                 leaders, clients and the legal
                                 community express confidence in the
                                 program's leadership?
Program leaders hold             What specific leadership and
 themselves accountable for      professional development training and
 motivating staff, and for       activities has the program provided?
 promoting an environment that   What are the outcomes of these
 embraces mentoring and the      efforts?
 professional development of     What opportunities are afforded
 all staff, helping them to      staff to develop and exercise
 achieve their fullest           leadership skills?
 potential.                      Do staff see themselves as
                                 valued members of the program's team?
                                 Do program leaders model and
                                 encourage teamwork?
                                 Do program leaders delegate
                                 effectively?
Key staff are appropriately      Does the program's leadership
 involved in decision-making     seek the opinions and input of staff
 processes.                      and other stakeholders in its decision-
                                 making processes?
The program's leadership         Beginning with the executive
 demonstrates strong,            director or chief executive officer, is
 effective communication         there evidence that the leadership of
 skills and the capacity to      the program communicates effectively
 engage in positive conflict     with the board, staff and community
 resolution.                     stakeholders?
                                 Do program leaders effectively
                                 address challenges and issues that
                                 impede the program's progress in
                                 accomplishing its mission?
                                 Starting with the executive
                                 director or chief executive officer, is
                                 there evidence that program leadership
                                 effectively models, motivates and
                                 inspires creativity, innovation,
                                 excellence, and achievement?
------------------------------------------------------------------------
                           Mission and Vision
------------------------------------------------------------------------
Program leaders frame a vision   Is there a shared sense of
 and mission.                    vision and mission?
                                 Is it expressed in written
                                 form?
                                 Are staff aware of it?
Program leaders model a high     What mechanisms does the
 level of energy, commitment     program's leadership use to measure
 and integrity in carrying out   program effectiveness and adherence to
 the program's mission.          the mission and vision?
                                 In what ways does the program's
                                 stated mission and vision guide the
                                 program's planning and decision-making?
------------------------------------------------------------------------
                                Diversity
------------------------------------------------------------------------
Starting with the executive      In what ways does the program
 director or chief executive     and its leadership demonstrate
 officer, the program values     inclusion and an appreciation for
 and embraces diversity and      diversity?
 provides opportunities for      Is the program's leadership and
 the development of a diverse    management diverse, and, is there
 group of leaders.               evidence that diversity and inclusion
                                 are valued by the program?
------------------------------------------------------------------------

[[Page 14052]]

 
                             Succession Plan
------------------------------------------------------------------------
The program has a leadership     Does the program have a clear
 succession plan that            and reasonable succession plan?
 addresses preserving            Is it written?
 institutional knowledge and
 strong leadership across all
 levels of program management.
------------------------------------------------------------------------

    Criterion 3. Technology infrastructure and administration. The 
program provides a stable and secure technology infrastructure 
sufficient for staff to work efficiently and effectively in the 
delivery of legal services and to support the operations of the 
organization. It devotes appropriate resources to provide the 
capacities outlined in LSC's ``Technologies That Should Be in Place in 
a Legal Aid Office Today.''

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
Technology planning is ongoing   Who is involved in technology
 and integrated into the         planning?
 overall strategic plan of the   Does the program get input from
 program, includes staff         staff on technology needs?
 input, and is reviewed and      Has the program ever had an
 updated at least annually.      outside technology audit?
                                 How often is the technology
                                 plan reviewed and updated?
                                 Does the plan include deadlines
                                 for implementation?
The program has competent IT     What type of network does the
 staff and/or consultants with   program have?
 appropriate training and        Are there appropriate
 certifications to properly      firewalls?
 maintain and support its        Are servers hosted on-site, off-
 technology systems.             site, cloud-based?
                                 If on-site, where are they and
                                 how are they secured (locked office,
                                 server room, appropriate A/C)?
                                 What is the program's IT
                                 security program, its policies, user
                                 security training and are the servers,
                                 computers and devices patched and kept
                                 up to on a regular schedule? Is the
                                 network scanned for IT vulnerabilities
                                 regularly?
The grantee informs employees    Does the grantee have a warning
 of their rights when using      banner that appears while employees are
 grantee-owned computers.        logging on and notifies employees of
                                 their rights when using their grantee-
                                 owned computer?
The program devotes              What is the internet bandwidth
 appropriate resources to        in each office (any redundant
 establish and maintain its      connection available)?
 technological infrastructure,   Do offices have Wi-Fi available
 including planning and          (is it password protected)?
 budgeting appropriately for
 ongoing replacement/upgrades
 of its technology systems.
The program has a proper         Is server equipment kept in a
 written IT security program     secure environment with appropriate
 to include robust IT security   ventilation and cooling? Are IT systems
 policies and procedures         currently patched and updated?
 regarding protecting client     Is there a disaster recovery
 and case data, ensuring the     plan (that includes periodic testing)
 security and integrity of       for mission critical technology
 passwords, use of the           systems?
 Internet and social media,      Are there security policies and
 policies for the use of         procedures for protecting client and
 mobile devices, and if staff    case data, sensitive personal and
 can bring their own devices     personnel data, and all communications
 (BYOD) to access work           from loss or unauthorized intrusion?
 documents. Staff are familiar   Are there security policies and
 with and follow such policies   procedures for use of the Internet and
 and procedures.                 social media, content security on all
                                 devices, and integrity of passwords,
                                 retention and deletion of data?
                                 Are employees given notice
                                 concerning prohibited uses of their
                                 computer equipment including a warning
                                 banner that notifies employees of their
                                 rights (including no expectation of
                                 privacy) when using their grantee-owned
                                 computer?
                                 Is there routine IT security
                                 training for staff?
                                 Is the user's system access
                                 granted based on roles and
                                 responsibilities?
The program has sufficient       What are the backup procedures?
 procedures to back up its       Are test restores done
 data and has testing            periodically from the backups?
 protocols to demonstrate that
 data recovery/protection
 policies work in practice.
The program stays informed of    What is the replacement cycle
 new technology developments     for technology equipment (desktops/
 and how it can make better      laptops, servers, printers, scanners,
 use of technology to meet its   copiers, telephones, etc.)?
 mission.                        What type of phone system does
                                 the program use?
                                 How old is it?
                                 When was the last upgrade?
                                 What reports can it provide?
                                 Who maintains it?
------------------------------------------------------------------------
   Extent to Which Technology Enhances Program Operations and Service
                                Delivery
------------------------------------------------------------------------
Maximum use of technology is     Does the program use technology
 made to facilitate and          effectively to enhance the efficiency
 enhance internal                of program operations and service
 communication.                  delivery?
                                 How does the program use
                                 technology to facilitate and enhance
                                 communication?
                                 Does the program's website
                                 effectively follow the Ernst and Young
                                 Best Practices (http://webassessment.lsc.gov/report/)?
------------------------------------------------------------------------

[[Page 14053]]

 
                             Staff Training
------------------------------------------------------------------------
Program staff are provided       Does the program have a policy
 with appropriate training on    for the secure use of its technology,
 the use of technology.          including protecting data (including
                                 Personally Identifiable Information),
                                 use of the Internet and social media,
                                 password policies and if/when staff can
                                 bring their own devices?
                                 Do staff understand and follow
                                 the policy?
                                 What software does the program
                                 use, including case management system
                                 manufacturer and version?
                                 Are staff provided with ongoing
                                 training in its use?
------------------------------------------------------------------------

    Criterion 4. Financial administration. The program has and follows 
financial policies, procedures, and practices that comport with 
Generally Accepted Accounting Principles (GAAP), requirements of the 
program's funding sources, and comply with federal, state and local 
government regulations. The program has established sound internal 
controls and conducts effective budget planning and oversight.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
                        Fiscal Policies and Staff
------------------------------------------------------------------------
The program has detailed         Is the program's accounting
 written policies and            manual current and updated as
 procedures describing its       appropriate?
 financial operations which
 comply with all applicable
 requirements. The program
 follows such policies and
 procedures.
The program has sufficient,      How many financial staff does
 capable, trained and            the program have?
 effective staff dedicated to    Does the program have competent
 financial administration.       financial personnel?
                                 What is the training and
                                 background of the financial staff?
                                 The job descriptions of
                                 personnel are clear and lay out the
                                 roles and responsibilities of each
                                 position.
                                 Is periodic training given to
                                 program staff, management, and the
                                 governing body regarding LSC
                                 regulations and accounting guide, as
                                 applicable?
Top management and the           Is the budget consistent with
 governing body are actively     the program's mission, goals, and
 involved in the budgeting       objectives?
 process. The budget is          Does the program effectively
 updated periodically and        adhere to its budget?
 changes/variances are           Is the budget updated monthly
 reviewed. The program engages   (or at least quarterly), based on
 in financial planning beyond    changes in revenues or expenditures?
 the current year.               Does the program engage in
                                 financial planning beyond the current
                                 year?
The program maintains LSC        Does the recipient adhere to
 funds held for immediate        LSC Investment Guidelines?
 operating expenses in
 federally-insured bank
 accounts.
------------------------------------------------------------------------
                           Board of Directors
------------------------------------------------------------------------
The recipient's governing body   Has the board established a
 has fulfilled its fiduciary     financial oversight committee or
 responsibility to the program   committees that perform the roles of a
 through the establishment of    finance committee and an audit
 a financial oversight           committee?
 committee or committees. The    Does the financial oversight
 financial oversight             committee collectively possess the
 committee(s) has at least one   knowledge to set the strategic,
 member who is a financial       financial course for the recipient and
 expert or the board has         oversee management in execution of the
 access to a financial expert.   strategy?
                                 Does the financial oversight
                                 committee have the leadership of
                                 individual well-versed in non-profit
                                 GAAP, COSO Internal Control Framework,
                                 and other relevant standards and
                                 guidelines?
                                 Does the financial oversight
                                 committee meet on a regular basis?
                                 Does the committee have a
                                 charter or governing document and
                                 fulfill the responsibilities outlined
                                 therein?
                                 Does the financial oversight
                                 committee set the strategic direction
                                 of the recipient for financial and
                                 audit related matters?
The governing body regularly     Does a governing body set and
 determines the compensation     review the compensation of the
 of the program's Executive      Executive Director using an independent
 Director.                       compensation consultant, comparable pay
                                 studies from other nonprofit
                                 organizations, and/or a compensation
                                 survey?
The Executive Director's         Are there procedures in place
 expenses are approved by a      that require approval of the Executive
 member of the board.            Director's expenses by a member of the
                                 governing body?
------------------------------------------------------------------------
                      Audited Financial Statements
------------------------------------------------------------------------
The program issues accurate      Are the audited financial
 financial statements on a       statements submitted to LSC in
 timely basis.                   accordance with the LSC Audit Guide for
                                 Recipients and Auditors?
                                 Has the program submitted their
                                 audited financial statements in a
                                 timely manner over the last 3 years?
Executed one-time grants, such   Are executed one-time grants,
 as TIG and PBIF awards, are     such as TIG and PBIF awards, reported
 reported separately in the      either as a supplemental schedule of
 program's audited financial     related revenue and expense or a
 statements in accordance with   separate column within the financial
 45 CFR 1628.3(e).               statement?

[[Page 14054]]

 
Annual program audits do not     Do past audits or outside
 reveal any significant          reports and evaluations reflect
 problems or issues; where       problems?
 such items have been            Have any such problems been
 identified, the program         addressed?
 addresses them effectively      Is there any evidence of
 and promptly.                   failure to comply with applicable
                                 funder or governmental requirements?
                                 What type of auditor's report
                                 did the IPA issue regarding the
                                 financial statements? Unmodified or
                                 modified? If modified, why?
                                 What type of auditor's report
                                 did the IPA issue regarding Federal
                                 Awards? Unqualified or Qualified? If
                                 qualified, why?
                                 Did the IPA issue findings in
                                 the audited financial statements? What
                                 were the findings? Have they been
                                 addressed?
                                 Did the IPA issue a management
                                 letter? What did it contain? Has the
                                 recipient addressed the issues?
                                 Are audit findings repeated
                                 from one fiscal year end to the next in
                                 the audited financial statements?
                                 Does the recipient adequately
                                 address audit findings by performing
                                 the corrective actions outlined in the
                                 audited financial statements?
------------------------------------------------------------------------
                            Internal Controls
------------------------------------------------------------------------
The recipient has established    There is sufficient segregation
 and maintains adequate          of duties.
 accounting records and          Do the accounting policies and
 internal control procedures.    procedures require an appropriate level
 which is designed to provide    of supervisory review and adequate
 reasonable assurance of         checks and balances to ensure the
 achieving the following         accuracy, completeness and timeliness
 objectives: (1) Safeguarding    of transaction processing?
 of assets against               The recipient has established
 unauthorized use or             and adheres to an adequate system of
 disposition; (2) reliability    internal control following the
 of financial information and    principles of the COSO Integrated
 reporting; and (3) compliance   Internal Control Framework.
 with regulations and laws
 that have a direct and
 material effect on the
 program.
------------------------------------------------------------------------
                               Contracting
------------------------------------------------------------------------
The program has a contracting    Does the program have a
 policy to prevent abuse,        contracting policy?
 limit waste of scarce funds,    Does the policy identify the
 and prevent possible            contracting procedures for the various
 questioned cost proceeding.     types of contracts, dollar thresholds,
                                 and competition requirements?
                                 Is the process used for each
                                 contract action fully documented and is
                                 the documentation maintained in a
                                 central file?
                                 Is the required approval level
                                 (including items that need to be
                                 approved by LSC) established for each
                                 contract type and dollar threshold,
                                 including when the board of directors
                                 should be notified and/or give
                                 approval?
                                 Do policies include procedures
                                 for documenting and deviating from the
                                 approved contracting process, such as
                                 when sole-source contracts are
                                 executed?
                                 Is each contract or agreement
                                 executed with a price, time-period, and
                                 services to be performed?
------------------------------------------------------------------------
                            Fraud Prevention
------------------------------------------------------------------------
The program has robust           Assess the organization's
 policies and safeguards in      segregation of duties.
 place to prevent fraud.         Who has access to the program's
                                 bank accounts?
                                 How are permissions and
                                 authorizations assigned?
                                 Does the program have
                                 Whistleblower and Conflict of Interest
                                 Policies?
                                 Is the program's IT
                                 infrastructure adequately secure?
                                 Is the physical and logical
                                 access to the program's computer
                                 network adequately secure?
                                 Does the program's governance
                                 and management of IT resources promote
                                 effective operations and provide a
                                 robust system of internal control?
                                 Do the program's computer
                                 applications incorporate and facilitate
                                 a robust system of internal control?
                                 Have thorough and well
                                 documented hiring practices and
                                 procedures?
                                 Are staff periodically trained
                                 or reminded of the Whistleblower and
                                 Conflict of Interest Policies?
                                 Does the program employ
                                 computer banners on all servers,
                                 computers and devices to inform
                                 employees of prohibited use activities
                                 and no right to privacy of grantee
                                 equipment?
------------------------------------------------------------------------
                           Cash Disbursements
------------------------------------------------------------------------
The program's disbursements      Are procedures adequate to
 are approved in writing by an   provide that salary and wage rates are
 authorized individual.          approved by an authorized individual
                                 and employees are paid in accordance
                                 with approved wage and salary plans?
                                 Were invoices properly
                                 approved, with dates, before
                                 disbursement checks were processed?
                                 Do policies and procedures for
                                 disbursements address unallowable
                                 expenses, purchase approvals, securing
                                 and approving new vendors, segregation
                                 of purchasing duties, and duplicate
                                 payment controls?

[[Page 14055]]

 
The program's criteria and       Is there a procedure for proper
 procedures for purchases are    payment and approval of expenditures at
 documented.                     an appropriate level of management?
------------------------------------------------------------------------
                              Cash Receipts
------------------------------------------------------------------------
The program has established      Is initial accountability for
 internal control procedures     cash established as soon as a cash item
 related to cash receipts.       is received?
                                 Do the accounting records
                                 adequately identify all cash receipts
                                 as to source and purpose?
                                 Is an effective chain of
                                 custody in place for cash receipts?
The program maintains a client   Has the program established a
 trust fund and accounting       method to determine the balance for
 system to account for funds     each client trust account?
 held on the client's behalf.    Does the program have a process
                                 to ensure that dormant funds are
                                 escheated to the state in compliance
                                 with state requirements?
------------------------------------------------------------------------
                       Asset and Property Records
------------------------------------------------------------------------
A physical inventory of          Is a physical inventory
 property purchased with LSC     conducted at least once every two (2)
 funds is conducted at least     years?
 once every two (2) years and    Are any differences between the
 the results are reconciled      physical inventory and the accounting
 with property records.          records reconciled?
The program has established      Is there a surprise count of
 adequate internal controls to   petty cash conducted periodically?
 safeguard its petty cash        Are the petty cash and client
 funds.                          trust funds secured in locked location?
                                 Are all petty cash
                                 disbursements supported by an original
                                 receipt or appropriate supporting
                                 documentation?
------------------------------------------------------------------------
                                Subgrants
------------------------------------------------------------------------
The program has established      Does the subgrant agreement or
 adequate procedures related     contract with the sub recipient specify
 to the subgranting of LSC       financial reporting responsibility?
 funds to ensure compliance      Where a relationship with a sub
 and proper fiscal oversight.    recipient exists, do the notes to the
                                 financial statements of the recipient
                                 and subrecipient fully disclose the
                                 nature of that relationship?
------------------------------------------------------------------------
                          Bonding of Recipients
------------------------------------------------------------------------
The program maintains fidelity   Does the program carry at least
 bond coverage at a minimum      the minimum level of fidelity bond
 level of at least ten (10)      coverage for fraud and employee
 percent of the program's        dishonesty as described in 45 CFR Part
 annualized LSC funding level    1629?
 for the previous fiscal year,
 or of the initial grant or
 contract.
The program carries adequate     Does the program carry fidelity
 fidelity bond coverage for      bond coverage for all staff required to
 all staff required to be        be bonded: Every director, officer,
 bonded.                         employee and agent of a program who
                                 handles funds?
------------------------------------------------------------------------
                           Accounting Software
------------------------------------------------------------------------
The program's accounting         Does the program use up-to-date
 software is appropriate to      technology to enhance efficient
 support the operations and      financial operation?
 financial oversight of the      Is the software appropriate to
 organization.                   support the operations of the
                                 organization?
                                 Does the accounting software
                                 incorporate adequate internal controls?
                                 Is the recipient effectively
                                 using the software to ensure internal
                                 controls are in place?
The program limits access to     Does the program limit access
 its accounting software.        to its accounting software?
                                 Does each user have his/her own
                                 password security based on their fiscal
                                 functions and are accounting software
                                 passwords changed periodically?
                                 Is a user's system access
                                 granted based on roles and
                                 responsibilities?
------------------------------------------------------------------------

    Criterion 5. Human resources administration. The program promotes 
organizational excellence through the recruitment, management, and 
retention of a high-performing, diverse workforce consistent with its 
mission and goals. The program develops and communicates sound policies 
and procedures that ensure compliance with applicable federal, state, 
and local laws and has a knowledgeable, accessible, and professional 
staff to the program in the areas of recruitment and retention, 
training, professional development, compensation and benefits, 
performance appraisal, and organizational governing personnel 
development.

[[Page 14056]]



------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
             Human Resources Staffing and Workplace Policies
------------------------------------------------------------------------
The program has sufficient,      Who is responsible for the
 capable, trained, and           human resources functions within the
 effective professional staff    program?
 assigned to human resources     If responsibilities are shared,
 administration.                 how are duties defined?
                                 What is the background,
                                 experience and training of staff
                                 responsible for handling human
                                 resources?
                                 What is the interaction between
                                 the human resources and finance staff?
The program has an employment    Does the program have an
 handbook or manual with         employment handbook or manual with
 policies on hiring,             human resources policies?
 supervision, promotion,         Does the handbook or manual
 compensation, and termination   include Conflict of Interest and
 that are in compliance with     Whistleblower policies?
 applicable federal, state,      Does the handbook or manual
 and local laws.                 include an ethics policy?
                                 What is the program's plan to
                                 maintain HR's knowledge of best
                                 practices?
The program engages in human     How often are the policies
 resources planning and          reviewed and updated?
 policies are reviewed
 periodically.
The program maintains accurate   Where are personnel files kept?
 and timely personnel files      Are they paper or electronic?
 and protects the                Who is responsible for
 confidentiality of personnel    maintaining personnel files?
 records as required by          Are there procedures to control
 applicable law and contract.    access to personnel files and protect
                                 the confidentiality of employees?
The program has a document       Does the program have a
 retention policy for            document retention policy for personnel
 personnel files and that        files?
 policy is adhered to by         How long are they kept?
 managers.                       Where are they stored after
                                 employees separate from the
                                 organization?
------------------------------------------------------------------------
              Program Staffing, Recruitment, and Retention
------------------------------------------------------------------------
The program has a capable,       What is the current composition
 culturally competent, and       of the staff?
 diverse staff.                  Is the current composition of
                                 the program staff diverse in terms of
                                 experience, gender, race, and
                                 disability status?
                                 Does management create and
                                 sustain an environment that values and
                                 supports a diverse workforce?
                                 Has the program adopted a
                                 disability inclusion plan?
The program has a                What are the program's
 comprehensive recruitment       recruitment practices?
 strategy that employs a         What recruitment methods and
 variety of methods and          sources are used? (e.g., online
 sources to recruit highly       employment sites, job boards,
 qualified candidates.           referrals, social media, search firms)?
                                 Are the job descriptions up-to-
                                 date and do they accurately explain job
                                 functions and separate essential from
                                 nonessential functions?
                                 Are there job descriptions for
                                 all positions?
The program has a formal         Is there a new hire orientation
 orientation process for all     and is the orientation period defined?
 new hires.
The program is able to           What is the rate of turnover in
 forecast and determine its      the program?
 human resource needs and        Does the program evaluate
 tracks fluctuations in the      internal and external factors related
 workforce, including turnover   to turnover?
 rates.                          What is the average length of
                                 time an employee stays with the
                                 organization, by position type and
                                 category?
                                 Does the program experience a
                                 high level of employee grievances?
                                 Does the program have an
                                 effective plan to develop and retain
                                 new attorneys and paralegals (e.g.
                                 professional advancement along a
                                 defined career path)?
                                 Are individual development
                                 plans created for each employee?
------------------------------------------------------------------------
                    Compensation & Benefits Policies
------------------------------------------------------------------------
The program has a compensation   What are the program's fringe
 and benefits structure that     benefits and retention policies, such
 promotes staff recruitment,     as a loan repayment assistance program,
 retention and professional      retirement plans, health insurance, and
 development.                    other financial and non-financial
                                 benefits?
The program periodically         Does the program regularly
 assesses salaries, employee     review its compensation structure and
 benefits, bonuses and COLAs.    benefits?
                                 Does that review include
                                 assessing market-based compensation
                                 studies?
------------------------------------------------------------------------
                      Staff Evaluation and Training
------------------------------------------------------------------------
The program conducts regular     Does the program conduct
 and effective evaluations of    performance evaluations or appraisals?
 all staff.                      If yes, how often?
                                 Does the program use a
                                 performance evaluation instrument?
                                 Is this evaluation linked to
                                 the program's goals, vision, or
                                 strategic initiatives?
                                 Do such evaluations include
                                 setting goals for staff?
                                 Does the program foster an
                                 environment that emphasizes continuous
                                 learning, constructive feedback,
                                 improvement and excellence?
The program leverages its        What training is available to
 budget appropriately for        staff?
 training opportunities that     Do all staff members have
 would benefit its entire        access to training opportunities?
 staff.

[[Page 14057]]

 
The program conducts ongoing     Is there a formal, ongoing
 training for all staff on       training for employees and managers
 program policies, procedures,   (e.g., procedures, policies,
 technology, and in              technology, substantive legal areas)?
 substantive legal areas and     Who is responsible for planning
 advocacy skills.                and conducting training of existing
                                 employees?
                                 Does the program ensure all
                                 staff receive regular training on the
                                 LSC Code of Conduct and LSC's Grant
                                 Terms and Compliance requirements?
                                 Does the program have a policy
                                 highlighting the importance of alerting
                                 the Office of Inspector General (OIG)
                                 to potential indicators of fraud,
                                 waste, and abuse of program funds and
                                 the requirement to do so promptly for
                                 loss over $200?
                                 Does the program have a policy
                                 for identifying compliance concerns?
                                 Does the program train staff on the
                                 policy and reporting compliance
                                 concerns?
The program provides effective   Does the program provide
 training for management and     effective leadership and management
 administrative staff.           training and support to mid-level
                                 supervisors and personnel engaged in
                                 administration and management?
The program regularly conducts   Is there cultural competency
 cultural competency training    training for all staff?
 for all staff.                  Have they attended?
------------------------------------------------------------------------
                   Staff Morale and Workplace Climate
------------------------------------------------------------------------
To the extent that there are     What is the recent history and
 or have been serious morale     current status of staff morale?
 or other internal personnel     Does LSC's employee survey
 problems, the program is        indicate significant leadership
 addressing or has addressed     challenges?
 them effectively, and is        Does LSC's employee survey
 taking or has taken             indicate friction among staff members?
 appropriate steps to prevent
 their recurrence.
The program has developed a      Does the program have a process
 process to address internal     accepting and resolving employee
 complaints, suggestions, and    grievances?
 feedback.
Program offices are              Are program offices
 professional and provide        professional?
 adequate space for conducting   Do they provide adequate space
 the program's work.             for conducting the program's work,
                                 provide appropriate privacy?
                                 Does the program provide
                                 adequate maintenance services?
------------------------------------------------------------------------

    Criterion 6. Overall management and administration. The program is 
well managed and administered: Including management structure; 
processes and systems to ensure compliance with all funder requirements 
and state and federal law; capacity to address problems quickly and 
effectively, robust intra-staff and staff-management communications; 
effective administrative procedures; allocation of appropriate 
resources to management functions; and periodic evaluations of 
administrative operations.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
                         Allocation of Resources
------------------------------------------------------------------------
The program devotes              Does the program devote an
 appropriate resources to        appropriate level of resources to
 management.                     management and administration?
                                 What is the span of control in
                                 each division (i.e. what is the
                                 management to direct reporting ratios
                                 within the organization)?
The program has a management     How many middle managers are
 structure that effectively      there?
 uses middle managers.
The mix of program staff         Has the program made considered
 (managers, case handlers, and   choices regarding the proportionality
 administrative staff)           of non-advocacy staff as compared to
 maximizes program resources     case handlers, consistent with program
 to ensure the effective and     resources, number of case handlers, and
 efficient delivery of client    type of work?
 services.                       Has the program established a
                                 risk management program/group to review
                                 and mitigate management systems risks?
                                 Such risks could include: Performance
                                 management (failure to achieve
                                 performance goals including
                                 implementation of the Strategic Plan);
                                 human capital management (failure to
                                 attract, motivate, and retain high
                                 quality staff); information management
                                 (failure to collect and share vital
                                 operational data and inability to
                                 support stable and safe IT operations,
                                 including the case management system);
                                 acquisitions management (higher
                                 contract costs and possible fraud,
                                 waste, and abuse risks).
The program allocates            Does the program have a
 appropriate resources to        compliance officer (or someone who
 internal compliance.            serves in that role) to ensure
                                 compliance concerns are reported and
                                 managed effectively and efficiently?
------------------------------------------------------------------------
                        Decision Making Processes
------------------------------------------------------------------------
The program makes major          What is the program's decision
 decisions in a way that         making process?
 incorporates relevant           Is decision making authority
 information and input.          clear when delegated?
                                 Is decision making timely and
                                 effective?
                                 Do staff members know whom to
                                 go to for decisions?

[[Page 14058]]

 
The program has procedures for   Do staff feel that their input
 obtaining input on              is sought on significant decisions?
 significant decisions, and      Do staff feel that decisions
 for resolving complaints and    are quickly and effectively
 problems effectively and        communicated to all who are affected?
 timely.                         Does the program resolve
                                 employee complaints and problems
                                 effectively and timely?
The program's administrative     Is there any evidence of non-
 structure, processes, and       compliance with state and federal laws,
 systems support compliance      rules, and regulations?
 with state and federal laws,
 rules, and regulations.
The program's administrative     Is there any evidence of non-
 structure, processes, and       compliance with funder requirements?
 systems support compliance
 with funder requirements.
------------------------------------------------------------------------
                        Continuity of Operations
------------------------------------------------------------------------
The program has developed and    Does the program have a plan in
 regularly updates an            the event of an emergency or disaster?
 emergency plan to maintain      If yes, does the plan include:
 operations and to minimize     --The preservation of files, equipment,
 disruption in the event of an   and computer data bases;
 emergency.                     --A process for communication between
                                 staff and management;
                                --For the relocation of the program's
                                 work sites?
                                 Does the program attempt to
                                 coordinate with state/local emergency
                                 response and preparedness entities?
The program has a plan for       Does the program have a plan
 providing client services in    for providing client services in the
 the event of a disaster or      event of a disaster or emergency
 emergency affecting its         affecting the client population?
 client community.
------------------------------------------------------------------------

    Criterion 7. General resource development. Consistent with the 
program's mission, the program seeks to maintain and expand its base of 
funding with the goal of enhancing program services and organizational 
sustainability. The program implements a strategy designed to identify 
funding sources to advance the mission and goals of the program.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
                                Staffing
------------------------------------------------------------------------
The program has attempted to     Who are the program's other
 develop, and to the extent      major funders?
 possible, has effective         What percentage of non-LSC
 relationships with other        funding does the program receive?
 major institutional resources   How many of the funders have
 in the service area that are    funded before or made multi-year
 involved or might be able to    commitments?
 provide some support in the
 provision of legal assistance
 to eligible clients, as well
 as help in expanding program
 funding.
The program has sufficient,      Who is responsible for the
 capable, trained, and           resource development efforts within the
 effective staff dedicated to    program?
 resource development, or uses   Is the number of staff assigned
 consultant(s) or other          to resource development appropriate
 organizations to supplement     given the size of the program and level
 or lead that effort.            of funding?
                                 What are the duties for the
                                 person(s) responsible for these
                                 efforts?
                                 How are those responsible for
                                 resource development evaluated for this
                                 work?
The program has delineated       How are the resource
 responsibilities for resource   development activities integrated with
 development staff and           the program's external communication
 communication (if applicable)   efforts?
 staff.                          Does the program employ a
                                 separate staff person to handle the
                                 program's communications?
The program has engaged the      Are staff and board actively
 board and staff in resource     engaged around resource development
 development and has provided    efforts?
 adequate training.              Have staff and/or board members
                                 received training on resource
                                 development or fundraising?
                                 If yes, who conducted the
                                 training?
                                 Does the program have an
                                 advisory board that focuses on resource
                                 development, or does the board have a
                                 resource development committee focused
                                 on such activities?
                                 Does the program's governing
                                 body involve non-members with expertise
                                 in resource development?
------------------------------------------------------------------------
               Resource Development Plan & Implementation
------------------------------------------------------------------------
The program has a written plan   Does the program have a written
 describing its strategy to      resource development plan, and is
 ensure that the program is      resource development a part of its
 supported by sufficient         overall strategic plan?
 financial resources             Does the plan identify possible
 consistent with its mission.    funding sources and specific and
                                 realistic fundraising goals?
                                 How often is this plan reviewed
                                 by management? By the board?
                                 Does the program employ social
                                 media as a tool for increasing program
                                 revenue?
The program has a diverse        Has the program achieved
 funding stream and              diversity in funding: federal, state,
 continually explores            local governments; individual donors;
 opportunities for increased     law firms; foundations; bar campaigns,
 funding.                        restricted/unrestricted gifts?
                                 What is the percentage of each
                                 funder type of the current budget?

[[Page 14059]]

 
The program is innovative in     What tools does the program
 trying to develop new sources.  employ to engage new and existing
                                 donors?
                                 How are new and existing donors
                                 cultivated?
                                 How are donors acknowledged?
                                 Has the program conducted a
                                 feasibility study to determine the
                                 benefits and risks associated with its
                                 funding efforts?
                                 Does the program have an
                                 endowment?
                                 If yes, what are the
                                 permissible uses of the endowment?
The program uses former and      Does the program engage former
 existing clients and former     clients in its funding efforts?
 board members as a part of      Does the program engage former
 its funding efforts.            board members in fundraising and
                                 encourage them to contribute
                                 themselves?
The program sponsors events      Does the program host donor
 and activities to recognize     recognition and cultivation events? How
 its individual donors and       often?
 supporters.
------------------------------------------------------------------------
                        Monitoring and Evaluation
------------------------------------------------------------------------
The resource development plan    Is the cycle of organizational
 has been approved by the        budgeting in line with the resource
 board, is reviewed annually,    development plan?
 and is consistent with the
 program's budget.
The program has a process to     How does the program evaluate
 evaluate cost effectiveness     the cost effectiveness?
 of resource development
 activities.
The program has carefully        How does the program decide the
 evaluated whether the           priorities for funding?
 requirements of prospective
 funding sources are
 consistent with the program's
 mission, goals, priorities,
 objectives, and strategies.
The program has developed a      How does the program track
 system to track donor gifts     gifts from donors and other funding
 and other funding. This         sources?
 system is integrated with       Does the program use
 other systems including the     fundraising or donor software?
 accounting software.            If so, which one?
The program monitors its         What efforts does the program
 efforts to ensure that its      make to ensure that its mission is
 mission is being communicated   being communicated accurately and
 accurately and clearly to       clearly to the potential donors and
 potential donors and funders.   funders?
The program seeks both           What is the mix of support the
 monetary and in-kind support    grantee receives from various donors?
 from donors, corporations,
 and other funders.
------------------------------------------------------------------------

    Criterion 8. Coherent and comprehensive delivery structure. 
Overall, the program management maintains a delivery structure and 
approach that effectively utilizes and integrates staff, private 
attorneys, and other components; emphasizes innovation and creativity 
in delivery; is informed by current information concerning delivery 
research; is well-suited to meeting the most pressing legal needs of 
the service area; and, given available resources, constitutes an 
effective and economical balancing of expenditures on the various 
functions and activities described in the four Performance Areas.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
The program has a reasonable,    Does the program have in place
 thoughtful and effective        and regularly use systems to gauge the
 overall delivery system,        efficiency and effectiveness of its
 which utilizes and integrates   overall delivery system?
 staff, private attorneys,       Is there evidence of actual
 volunteers, branch offices,     assessment of efficiency and
 outreach, and alternative       effectiveness?
 delivery methods, and which     Is there evidence of change as
 strikes an effective balance    a result of that assessment?
 on key issues such as           Is there evidence of
 specialization, experience of   experimentation and innovation?
 staff, use of attorneys and
 paralegals, and other major
 design choices.
The program's choices about
 allocation of resources to
 competing activities and
 functions are reasonable and
 balanced, and consistent with
 its mission, goals,
 priorities, objectives, and
 strategies.
------------------------------------------------------------------------

    Criterion 9. Participation in an integrated legal services delivery 
system. The program participates in, and seeks to expand and improve, 
statewide (and regional if relevant) legal assistance delivery systems 
to achieve equal access to justice and to meet the civil legal needs 
for low-income persons in the state.

------------------------------------------------------------------------
          Indicators                        Areas of inquiry
------------------------------------------------------------------------
The program participates in      Is the program engaged in
 statewide (and regional if      statewide efforts (and regional efforts
 relevant) efforts to provide    if relevant) to achieve the
 low-income persons in the       availability of a full range of civil
 state with equal access to a    legal assistance in all available
 full range of civil legal       forums?
 assistance services in all      Does the program participate in
 forums.                         statewide (and regional if relevant)
                                 oversight activities to achieve an
                                 integrated statewide delivery system?
                                 Is the program engaged in
                                 statewide efforts (and regional efforts
                                 if relevant) to eliminate barriers to
                                 access and provide meaningful services
                                 to low-income persons in the state?

[[Page 14060]]

 
The program participates in      Is the program engaged in
 local, statewide (and           statewide efforts (and regional efforts
 regional if relevant) efforts   if relevant) to utilize existing
 to maximize the effective use   financial and human resources
 of available human and          effectively and efficiently?
 financial resources and to      Is the program engaged in
 increase such resources to      statewide efforts (and regional efforts
 better address the civil        if relevant) to increase potential
 legal needs of the state's      sources of funding, including financial
 low-income populations.         resources, volunteer and in-kind
                                 resources?
The program coordinates with     Is the program engaged in
 other providers, the bar, law   statewide efforts (and regional efforts
 schools, and other relevant     if relevant) to provide support to
 entities in seeking to ensure   advocates and managers, including
 that support is provided to     training, dissemination and exchange of
 advocates and managers,         information, and communication and
 including training,             coordination among practitioners in key
 dissemination and exchange of   areas of law and practice?
 information, and
 communication and
 coordination among
 practitioners in key areas of
 law and practice.
The program participates in      As part of its efforts to
 statewide planning and          expand access, provide a full range of
 oversight activities to         services, maximize resources, and
 achieve an integrated           ensure support within the state, does
 statewide delivery system,      the program coordinate and collaborate
 and coordinates and             with other civil legal aid providers,
 collaborates with other civil   private attorneys, government and
 legal aid providers, private    corporate attorneys, the organized bar,
 attorneys, government and       courts and court personnel, law
 corporate attorneys, the        schools, and other public and private
 organized bar, courts and       entities that provide legal and social
 court personnel, law schools,   services to low-income persons?
 and other public and private
 entities that provide legal
 and other social services to
 low-income persons.
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    Dated: March 27, 2018.
Stefanie K. Davis,
Assistant General Counsel.
[FR Doc. 2018-06532 Filed 3-30-18; 8:45 am]
 BILLING CODE P