Audit of the Massachusetts Legal Assistance Corporation (June 16, 2023)
June 16, 2023 · Massachusetts Legal Assistance Corporation · Read the full official report on mass.gov ↗
Published June 16, 2023 Audit covers July 1, 2019 – June 30, 2021 Under Diana DiZoglio · 2023–present
source
“MLAC conducted a peer review of only one of its LAOs per year.”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of the Massachusetts Legal Assistance Corporation, which funds civil legal aid programs for low-income residents.
“The Massachusetts Legal Assistance Corporation (MLAC), created in 1983 under Chapter 221A of the Massachusetts General Laws, oversees and funds civil legal aid programs in Massachusetts.”
Auditors checked whether MLAC followed grant rules, reviewed the legal aid groups it funds, awarded statewide funding properly, and updated its controls for COVID-19.
“In this performance audit, we determined the following:”
MLAC distributes large amounts of public and other legal aid funding, so weak oversight can make it harder to know whether funded organizations are using resources well.
“By not performing multiple peer reviews per year, MLAC cannot ensure that the resources provided to the LAOs are used in the most effective and efficient manner.”
If you are a Massachusetts resident with very low income, MLAC-funded organizations may help with civil legal matters, not criminal cases.
“LAOs offer legal advice and representation for civil legal matters to Massachusetts residents whose incomes are in the lowest income bracket.”
The audit found MLAC met some major grant requirements, but fell short on its own peer review process and on updating its internal control plan for COVID-19.
“Below is a list of our audit objectives, indicating each question we intended our audit to answer; the conclusion we reached regarding each objective; and, if applicable, where each objective is discussed in the audit findings.”
The auditor recommended that MLAC do several peer reviews each year and keep its internal control plan updated when major changes happen.
“Moving forward, MLAC should perform several peer reviews of LAOs each year to help ensure accountability.”
The report matters because it concerns oversight of an organization that received tens of millions of dollars and awarded more than $32.6 million in grants in fiscal year 2020 and more than $44.4 million in fiscal year 2021.
“In fiscal year 2021, MLAC received a state appropriation of $29 million, IOLTA funds of over $6.5 million, and grants and other revenue totaling over $13.7 million, and MLAC awarded over $44.4 million in grants.”
A peer review is MLAC’s way of having outside legal aid experts assess whether funded organizations are meeting performance standards.
“MLAC uses a peer review model to assess the performance of local and statewide LAOs.”
What the Auditor checked
- Complied Did MLAC award at least 80% of its General Support Grant funds to local legal aid organizations (LAOs) based on the number of eligible clients in the service area in accordance with Section 9 of Chapter 221A of the General Laws?
- Did not comply Did MLAC conduct peer reviews in accordance with its monitoring process?
- Complied Did MLAC award statewide funding in accordance with its grant awarding process?
- Did not comply Did MLAC update its internal control plan (ICP) to address the impact of the 2019 coronavirus (COVID-19), as required by the Office of the Comptroller of the Commonwealth’s (CTR’s) “COVID-19 Pandemic Response Internal Controls Guidance”?
What the Auditor found
Why it matters: MLAC cannot ensure that resources provided to legal aid organizations are used effectively and efficiently.
Standard: MLAC’s “Monitoring Process” document requires monitoring several of its sixteen grantees each year. ( MLAC’s “Monitoring Process” document )
1 recommendation
- MLAC should perform several peer reviews of LAOs each year to help ensure accountability.
Agency response & Auditor reply
Agency: "MLAC is now back on track with its peer review schedule."
Auditor: "Based on its response, MLAC is taking measures to address our concerns on this matter."
Why it matters: The absence of an up-to-date internal control plan may hinder MLAC’s effective and efficient achievement of its mission and objectives.
Standard: Office of the Comptroller of the Commonwealth’s “COVID-19 Pandemic Response Internal Controls Guidance,” issued September 30, 2020. ( CTR’s “COVID-19 Pandemic Response Internal Controls Guidance” )
1 recommendation
- MLAC should establish policies and procedures, including a monitoring component, to ensure that its ICP is updated when significant changes occur.
Agency response & Auditor reply
Agency: "Moving forward MLAC will update its internal control plan annually to reflect any changes made to internal control procedures and note when the internal control plan was updated."
Auditor: "Based on its response, MLAC is taking measures to address our concerns on this matter."
Why it matters: MLAC is exposed to a higher risk of cyberattacks that may result in financial and/or reputation losses.
Standard: Executive Office of Technology Services and Security’s Information Security Risk Management Standard IS.010. ( Executive Office of Technology Services and Security’s Information Security Risk Management Standard IS.010 )
1 recommendation
- MLAC should follow the Executive Office of Technology Services and Security’s policies and procedures as a best practice.
Agency response & Auditor reply
Agency: "In [fiscal year 2022] and [fiscal year 2023] all MLAC employees completed the cyber security training by March 31; MLAC retains those records and will continue to ensure full compliance moving forward."
Auditor: "Based on its response, MLAC is taking measures to address our concerns on this matter."
More audits of this entity
Other Office of the State Auditor reports on Massachusetts Legal Assistance Corporation .
- Massachusetts Legal Assistance CorporationOther · July 7, 2016