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Audit of the Division of Administrative Law Appeals (DALA)

April 7, 2021 · Division of Administrative Law Appeals · Read the full official report on mass.gov ↗

Published April 7, 2021 Audit covers July 1, 2017 – December 31, 2019 Under Suzanne M. Bump · 2011–2023

In plain English
The auditor found DALA made some progress since the last audit, but still needs written case-management procedures, a compliant internal control plan, complete annual reports, and better documentation in special education hearing cases.
source
“The issues that still need improvement are developing written procedures and implementing controls for case management, completing a compliant ICP, and submitting a compliant annual report to the Legislature.”
Read the plain-English breakdown
What is this?

This is a Massachusetts State Auditor performance audit of the Division of Administrative Law Appeals, covering July 1, 2017 through December 31, 2019.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2017 through December 31, 2019.”
Why was it audited?

Auditors checked whether DALA fixed problems found in an earlier audit and whether its special education hearing work followed legal timeline rules.

“In this performance audit, we followed up on issues identified in our Audit Report No. 2014-0345-7S, which covered the period June 1, 2009 through September 30, 2013 and was issued September 23, 2015.”
Why it matters

If DALA lacks written rules and controls, cases may be handled inconsistently, inefficiently, or out of compliance with the law.

“Without formal written case-management policies and procedures, DALA does not have documented controls to ensure that case-management activities are performed consistently, effectively, efficiently, and in compliance with applicable laws and regulations.”
What's in it for me?

For residents involved in state administrative appeals or special education disputes, this audit is about whether the hearing process is organized, documented, and timely.

“Parties to these proceedings may include parents, school districts, private schools, the Department of Education and other state agencies.”
The bottom line

The auditor issued five findings: DALA needs stronger written procedures, internal controls, annual reporting, and BSEA needs better documentation for postponements and added hearing days.

“Below is a summary of our findings and recommendations, with links to each page listed.”
What happens next

DALA said it is working on the problems, including written procedures, improved reporting, and better monitoring of BSEA documentation.

“We will continue to address this aspect of DALA’s operation.”
Why it's significant

This matters because the audit found repeated problems from the prior audit were still not fully fixed, especially around procedures, controls, and reporting to the Legislature.

“The lack of a compliant ICP impedes DALA from identifying vulnerabilities that could prevent it from achieving organizational goals and objectives and expose it to heightened risks in its operations.”
Jargon, unpacked

DALA is the state office that handles administrative appeal hearings; GJU handles general administrative cases, BSEA handles special education disputes, and an ICP is an internal control plan meant to manage risks and guide operations.

“Currently, DALA consists of two units: the General Jurisdiction Unit (GJU) and the Bureau of Special Education Appeals (BSEA).”

What the Auditor checked

What the Auditor found

DALA lacked written policies and procedures for case-management activities.
recordkeeping/documentationinternal controls

Why it matters: Without documented controls, case-management activities may not be performed consistently, effectively, efficiently, or in compliance with applicable laws and regulations.

Standard: The Office of the Comptroller of the Commonwealth’s Internal Control Guide requires agencies to develop policies, procedures, techniques, and mechanisms that enforce management directives. ( Office of the Comptroller of the Commonwealth’s Internal Control Guide )

1 recommendation
  • DALA should develop written policies and procedures for all of its case-management activities.
Agency response & Auditor reply
Agency: "DALA’s GJU is working toward developing formal written policies and procedures and has made progress toward that objective."
Auditor: "Based on its response, DALA is taking measures to address our concerns on this matter."
DALA did not have a compliant internal control plan.
internal controls

Why it matters: The lack of a compliant internal control plan impedes DALA from identifying vulnerabilities that could prevent it from achieving organizational goals and objectives and expose it to heightened operational risks.

Standard: CTR’s 2015 Internal Control Guide requires internal control plans based on comprehensive risk assessments and requires review and updates at least annually. ( CTR’s 2015 Internal Control Guide )

2 recommendations
  • The chief administrative magistrate should prioritize the completion of a compliant ICP by properly documenting the internal environment and a risk response that includes all aspects of DALA’s business operations.
  • After completing the ICP, DALA should review and update it whenever significant changes occur in objectives, risks, management structure, or program scope, but at least annually.
Agency response & Auditor reply
Agency: "DALA seeks to meet all its reporting requirements in a timely manner and we are addressing the inadequacies of our Internal Control Plan (ICP)."
Auditor: "Based on its response, DALA is taking measures to address our concerns on this matter."
DALA’s annual reports did not include all required information.
recordkeeping/documentationreporting timeliness

Why it matters: Without sufficient information, the Legislature cannot develop a complete assessment of DALA’s case-management process.

Standard: Section 4H of Chapter 7 of the Massachusetts General Laws requires DALA’s annual report to contain specified case information including parties, disposition, simplified hearings, processing time, and bases for cases older than six months. ( Section 4H of Chapter 7 of the Massachusetts General Laws )

5 recommendations
  • DALA should record all the listed parties in Time Matters when there is more than one petitioner and/or respondent and include them in the annual report.
  • DALA should specify in the report how cases were disposed of (decision, settlement, withdrawal, or dismissal).
  • DALA should report the total number of simplified hearings in its annual report.
  • DALA should report the length of time it takes to process each case.
  • DALA should include in the report an explanation for all cases that require more than six months to resolve.
Agency response & Auditor reply
Agency: "DALA prepared its annual reports and provided information that was intended to comply with the Legislature’s requirements."
Auditor: "Based on its response, DALA is taking measures to address our concerns on this matter."
BSEA hearing officers did not consistently document case postponements.
recordkeeping/documentationinternal controls

Why it matters: Without proper documentation related to postponements, BSEA cannot ensure that they have been issued for good cause.

Standard: Rule III.A.3 and Rule IX.E of the revised BSEA Hearing Rules for Special Education Appeals require written requests and rulings for postponements and closing-argument extensions. ( Rule III.A.3 of the revised BSEA Hearing Rules for Special Education Appeals; Rule IX.E of the revised BSEA Hearing Rules for Special Education Appeals )

2 recommendations
  • BSEA should ensure that hearing officers are properly trained on documentation requirements.
  • BSEA management should monitor case progress to ensure that hearing officers document all postponements.
Agency response & Auditor reply
Agency: "The BSEA does its best to meet all OSEP directives and will develop a more consistent approach to the supervision and monitoring of form usage for postponement requests and responsive orders."
Auditor: "Based on its response, DALA is taking measures to address our concerns on this matter."
BSEA hearing officers did not consistently document requests and orders to add days to hearing schedules.
recordkeeping/documentationinternal controls

Why it matters: Without proper documentation of the extension process, BSEA cannot ensure that extensions are properly authorized and justified.

Standard: Title 34 CFR Section 300.515(c), Rule III.A.3 of the revised BSEA Hearing Rules for Special Education Appeals, and BSEA’s Postponement Order Form process require specific documentation for extensions. ( Section 300.515(c) of Title 34 of the Code of Federal Regulations; Rule III.A.3 of the revised BSEA Hearing Rules for Special Education Appeals )

3 recommendations
  • BSEA hearing officers should consistently use the Postponement Order Form for requesting and granting additional hearing days.
  • BSEA should revise its Hearing Rules for Special Education Appeals to provide a process for requesting and granting additional days for a hearing once the hearing has already begun.
  • BSEA should provide training to the hearing officers on the process for requesting and granting additional days for a hearing, including the use of the Postponement Order Form.
Agency response & Auditor reply
Agency: "The requirement for completion of written forms, memorializing (or re-memorializing what may already appear in the formal record of the proceeding) the scheduling of additional dates for hearing will be reinforced with hearing officers and monitored going forward."
Auditor: "We also agree with the plan to reinforce and monitor the scheduling of additional days for hearings by the hearing officers."

Prior findings revisited

Still a problem
"The issues that still need improvement are developing written procedures and implementing controls for case management, completing a compliant ICP, and submitting a compliant annual report to the Legislature."
Fixed
"During our current audit, we found that DALA had developed a system for obtaining feedback on its performance and conducted hearings at alternative sites."

More audits of this entity

Other Office of the State Auditor reports on Division of Administrative Law Appeals , including the prior audits referenced above.

See this entity's page with all 3 audits →