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Committee for Public Counsel Services

OCTOBER 29, 1999 · Read the full official report (PDF) ↗

Published OCTOBER 29, 1999 Audit covers July 1, 1996 – June 30, 1997 Under A. Joseph DeNucci · 1987–2011

In plain English
The auditor found CPCS was generally following rules, but still had important problems with verifying eligibility, preventing overbilling, and budgeting for legal-service costs.
source
“Based on our review, we have concluded that, except as noted in the Audit Results section of this report, CPCS had proper internal administrative controls to ensure the appropriateness and accuracy of all financial activity, and complied with all applicable rules, laws, and regulations.”
Read the plain-English breakdown
What is this?

This is a state audit of the agency that provides lawyers for people who cannot afford them when the law requires representation.

“Chapter 211D established CPCS as the sole state agency responsible for providing legal services to indigent persons who are entitled by law to be represented by legal counsel.”
Why was it audited?

Auditors checked whether CPCS had proper controls over spending, bills, budgets, and whether it fixed problems found in an earlier audit.

“Our audit was conducted to determine whether proper internal administrative controls were in place to ensure the appropriateness and accuracy of all expenditures, review budgeting and bill paying practices, and conduct a follow-up review of corrective action taken on prior audit results.”
Why it matters

This matters because CPCS was spending hundreds of millions of public dollars on legal representation, court costs, and administration.

“Our follow-up review revealed that, during fiscal years 1997 through 1999, CPCS spent approximately $251 million for private criminal, private noncriminal, public defender administration, and court costs to represent the indigent, as follows:”
What's in it for me?

For taxpayers, the issue is whether public money is going only to people who qualify and whether bills are checked before payment.

“To ensure that only individuals who are entitled to receive legal services from CPCS are in fact receiving these services, CPCS should work with the Emergency Task Force on Indigency Verification to establish procedures to establish a control system for the provision of legal services.”
The bottom line

CPCS made some improvements after the earlier audit, but the report still found unresolved eligibility controls, one major overbilling case, and recurring need for extra funding.

“Our follow-up review indicated that CPCS had taken some action to address these issues.”
What happens next

The report recommends stronger billing checks, yearly attorney evaluations, better eligibility controls, better court-cost controls, and more timely billing information.

“In order to more accurately estimate its budget needs, CPCS should:”
Why it's significant

The audit highlights a basic public-accountability problem: CPCS pays for court-assigned legal services, but courts decide who gets them and billing information can arrive late.

“Although CPCS is responsible for providing legal counsel to indigent individuals, it is the court, not CPCS, that determines who is entitled to receive legal representation from CPCS.”
Jargon, unpacked

CPCS means the Committee for Public Counsel Services; “indigent” means a person judged unable to afford counsel; NAC forms record court assignments; RFPs and Telebills are lawyer billing methods.

“All cases assigned to CPCS by a court are recorded on a Notice of Assignment of Counsel (NAC) form.”

12 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

CPCS still needed stronger verification controls for private attorney bills.
internal controlsrecordkeeping/documentationvendor oversight

Why it matters: CPCS lacked adequate assurance that bill detail hours equaled total hours and that all payments were accurate.

2 recommendations
  • Enter all hours for bills submitted on RFPs into the computer so that the accuracy of detail hours can be verified to total hours.agency: already implemented
  • Follow through with plans to assess an interest charge on attorneys who overbill CPCS in accordance with CPCS interest rate policy.agency: already implemented
Agency response & Auditor reply
Agency: "In its response CPCS indicated that it has implemented these recommendations."
CPCS had not annually evaluated all Public Counsel Division legal staff.
internal controlsrecordkeeping/documentation

Why it matters: CPCS risked not ensuring competent representation for indigent clients.

Standard: Section 10 of Chapter 211D of the General Laws; Section VIII of CPCS’s Hiring Policies and Procedures for the Public Counsel Division ( Section 10 of Chapter 211D of the General Laws; Section VIII of CPCS’s Hiring Policies and Procedures for the Public Counsel Division )

1 recommendation
  • Ensure that all legal staff for its Public Counsel Division are evaluated at least annually.
Agency response & Auditor reply
Agency: "CPCS responded that evaluations are now ongoing throughout the year."
No procedures ensured that only eligible people received state-funded legal counsel.
eligibility determinationinternal controlsgrants management

Why it matters: CPCS lacked assurance that state-funded legal services were provided only to eligible indigent clients.

Standard: Chapter 211D of the General Laws; SJC Rule 3:10 ( Chapter 211D of the General Laws; SJC Rule 3:10; Chapter 194, Section 346, of the Acts of 1998 )

1 recommendation
  • Work with the Emergency Task Force on Indigency Verification to establish procedures to establish a control system for the provision of legal services.
Agency response & Auditor reply
Agency: "The task force is functioning with CPCS’s complete involvement, and the statistics would indicate that some success is already being achieved."
CPCS was overbilled by a private investigator paid for indigent court cost investigations.
internal controlsvendor oversightfraud/theft

Why it matters: Inadequate internal controls may have contributed to overbillings and delayed OSA review when the loss was not immediately reported.

Standard: Chapter 261, Sections 27A to 27G, of the General Laws; Chapter 647 of the Acts of 1989 ( Chapter 261, Sections 27A to 27G, of the General Laws; Chapter 261, Section 27G, of the General Laws; Chapter 647 of the Acts of 1989 )

4 recommendations
  • Establish internal controls over the payment of court costs.
  • Conduct periodic compliance review of these internal controls.
  • Have Chapter 261, Section 27G, amended to have CPCS make payments of court costs instead of the Chief Administrative Justice.
  • Notify the OSA immediately in the event of future unaccounted-for variances, losses, shortages, or thefts.agency: agreed
Agency response & Auditor reply
Agency: "In addition to the court cost payment internal controls acknowledged in the draft audit, CPCS also: thoroughly reviews each bill for any inappropriate factors; requires the Chief Counsel’s personal approval of any bill of $5,000 or more; and prepares an annual year-to-year comparison by vendor to pinpoint any abnormal increase in billing amounts."
CPCS repeatedly needed supplemental appropriations to pay legal service bills.
internal controlsreporting timelinessgrants management

Why it matters: CPCS could not accurately estimate budget needs because it lacked timely financial liability information and received many bills after fiscal year-end.

2 recommendations
  • Require the courts to submit NAC forms in a more timely fashion.agency: agreed
  • Implement a billing system whereby bills would be received more regularly during the year (e.g., monthly billing).
Agency response & Auditor reply
Agency: "We agree that the courts must submit NACs in a more timely manner; indeed we have worked for years in pursuit of this goal, with only modest success."

Prior findings revisited

Being worked on
"Our follow-up review indicated that CPCS had taken some action to address these issues."
Being worked on
"Although these steps taken by CPCS should decrease the amount of overcharging, additional verification steps could be taken to further improve the accuracy of bills being paid."
Being worked on
"Our follow-up review revealed that staff attorney evaluations, except for attorney-in-charge evaluations, were being performed."
Still a problem
"While studies of indigency and legislative initiatives have been made, no procedures have been put in place to ensure that only eligible people are being provided state-funded legal counsel."

More audits of this entity

Other Office of the State Auditor reports on Committee for Public Counsel Services , including the prior audits referenced above.

See this entity's page with all 4 audits →