Massachusetts Legal Assistance Corporation
July 7, 2016 · Read the full official report (PDF) ↗
Published July 7, 2016 Audit covers July 1, 2013 – June 30, 2015 Under Suzanne M. Bump · 2011–2023
source
“Below is a summary of our findings and recommendations, with links to each page listed.”
Read the plain-English breakdown
This is a state performance audit of the Massachusetts Legal Assistance Corporation, a nonprofit-like public corporation that funds civil legal aid programs for low-income Massachusetts residents.
“The Massachusetts Legal Assistance Corporation (MLAC) is a not-for-profit corporation that gives financial support to legal-service programs providing services in connection with noncriminal proceedings to low-income individuals in Massachusetts who otherwise could not afford such services.”
The State Auditor reviewed MLAC to see whether it followed laws, rules, policies, procedures, and state contract requirements during the audit period.
“We reviewed MLAC’s activities to determine its compliance with applicable laws, regulations, policies, and procedures, as well as the terms and conditions of its state contracts, in the areas reviewed.”
MLAC helps fund legal help for people who may not be able to afford a lawyer, so errors in funding decisions, reporting, or risk controls can affect public accountability and access to services.
“MLAC makes grants to civil legal aid programs and nonprofit legal-service organizations (LSOs) that in turn provide free legal advice and assistance to indigent or disadvantaged Massachusetts residents with civil (noncriminal) legal problems.”
If you are a Massachusetts resident with low income, elderly, or otherwise eligible, MLAC-funded programs may help with civil legal issues such as housing, benefits, and family law.
“To qualify for assistance, clients must be elderly or have incomes below 125% of the federal poverty line.”
The auditor recommended that MLAC use current data for grant funding, file required reports on time, and improve its risk assessment and internal controls.
“MLAC should perform a comprehensive risk assessment and develop an updated ICP based on current best practices for risk management.”
MLAC said it had filed the missing reports and would file future reports on time; it also said its board would review its internal control plan and risk-assessment approach.
“MLAC has now filed the required reports, and will continue to do so in a timely manner.”
The audit matters because state-supported legal aid funding is supposed to be distributed fairly based on eligible clients, reported to state leaders on time, and managed with enough risk controls to protect the program’s mission.
“Without a comprehensive ICP, including a risk assessment, MLAC may not be able to achieve its mission and objectives effectively; efficiently; and in compliance with applicable laws, rules, and regulations.”
“Civil legal aid” means free help with noncriminal legal problems, such as housing, income support, and family law, for people who qualify.
“According to MLAC, approximately 200 attorneys and 50 paralegals at MLAC-funded programs closed 24,225 cases in fiscal year 2014 and 23,231 in fiscal year 2015, primarily in the areas of housing, income maintenance, and family law (see Appendix).”
1 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Did MLAC ensure that grantees tracked client eligibility and case acceptance?
- Partially Did MLAC annually ensure that grantees covered all geographic areas of the Commonwealth?
- Did not comply Did MLAC file a report of its activities with the Legislature and the Governor within 90 days after the end of each fiscal year?
- Complied Did MLAC review grant recipients each year to ensure that they complied with its performance standards for agencies?
- Complied Did MLAC review subgrantees each year to ensure that they complied with its performance standards for agencies?
What the Auditor found
Why it matters: Some local programs were overfunded while others were underfunded, affecting proportional distribution of grant funds.
Standard: Section 9 of Chapter 221A of the Massachusetts General Laws requires at least 80% of financial assistance to be distributed to local programs proportionate to eligible clients in their service areas. ( Section 9 of Chapter 221A of the Massachusetts General Laws )
1 recommendation
- MLAC should base its funding distributions on the most current data available.agency: agreed
Agency response & Auditor reply
Agency: "The Board of the Massachusetts Legal Assistance Corporation (Board) appropriately exercised its discretion when deciding which set of census data to use in allocating general support funding for FY2014 and FY2015."
Auditor: "However, we believe that MLAC should base its funding distributions on the most current data available."
Why it matters: The Legislature and Governor may not have been adequately informed of MLAC’s activities, which could affect funding decisions.
Standard: Section 10 of Chapter 221A of the General Laws requires MLAC to submit a complete and detailed report of activities within 90 days after the fiscal year ends. ( Section 10 of Chapter 221A of the General Laws )
1 recommendation
- MLAC should file its statutorily required reports on time with the clerk of the House of Representatives, the clerk of the Senate, and the Governor.agency: agreed
Agency response & Auditor reply
Agency: "MLAC staff was remiss in not submitting required annual reports to the Governor and the Legislature on time."
Why it matters: MLAC may not be able to achieve its mission and objectives effectively, efficiently, and in compliance with applicable requirements.
Standard: The Office of the State Comptroller’s Internal Control Guide and COSO-based best practices call for internal controls to be prioritized and summarized based on a risk assessment. ( Office of the State Comptroller’s Internal Control Guide )
1 recommendation
- MLAC should perform a comprehensive risk assessment and develop an updated ICP based on current best practices for risk management.
Agency response & Auditor reply
Agency: "While we appreciate that risk assessment helps an organization to be more effective and efficient, the ICP MLAC uses to assess risk provides appropriate benefit to the organization."
Auditor: "However, in the opinion of the Office of the State Auditor, these processes do not obviate the need for a comprehensive risk assessment, as provided for in OSC’s Internal Control Guide."
More audits of this entity
Other Office of the State Auditor reports on Massachusetts Legal Assistance Corporation .
- Audit of the Massachusetts Legal Assistance Corporation (June 16, 2023)Other · June 16, 2023