Audit 36954

Finding 2022-001: Case File Documentation/CFDA 09.634032 Criteria: (Regulation 1611.9) Case files must contain an executed retainer agreement when extended service representation commences or as soon thereafter as is practicable. No written retainer agreement is required when the recipient is merely providing advice and counsel or brief service, or when legal services are being provided by a private attorney. Condition: Documentation of an executed retainer agreement could not be located for eight selected case files for which extended service had been performed. Cause: Procedures are in place regarding documentation requirements but were not properly followed. Effect: In the cases where retainers were required but missing, the clients to whom we provided extended service representation did not have clear expectations regarding the extent of our services. While these cases were reportable, they were non-compliant with LSC regulation 1611.9, which requires a written retainer agreement be executed when a recipient provides extended service to a client. Questioned Costs: None to report. Context: 8 of 151 LSC eligible case files (or 5.3%) selected at random from 9 service locations did not adequately document a retainer determination. Events of noncompliance were noted in 4 of the 9 service locations sampled. Our sample was a statistically valid sample. Recommendation: We recommend that management re-emphasize the importance of maintaining adequate documentation of retainer determination for all LSC eligible cases. Periodic reviews of case files should be performed to ensure compliance. Views of responsible officials and planned corrective actions: The largest number of errors were discovered in one office, which office has a relatively new managing attorney. Legal Aid of North Carolina, Inc.?s Compliance Officer will provide compliance training targeted to this manager and her staff, emphasize compliance in new hire onboarding training, and train managers and supervisors promoted to new leadership roles. Additionally, all advocacy staff (attorneys and paralegals) will have mandatory annual refresher training on when and how to execute retainers. The training will also include a review of LSC Regulation 1611.9, Retainer Agreements. To strengthen the compliance process and assure requirements are met, Legal Aid of North Carolina, Inc. will perform semi-annual internal self-inspections to include retainer monitoring. We also plan to perform retainer monitoring of field offices that this audit and future self-inspections identify as missing required case documentation, including retainer agreements. Finally, our case management system will be evaluated for opportunities to more systematic alert case closing approvers or report on potential missing required documents.

Finding 2022-001: Case File Documentation/CFDA 09.634032 Criteria: (Regulation 1611.9) Case files must contain an executed retainer agreement when extended service representation commences or as soon thereafter as is practicable. No written retainer agreement is required when the recipient is merely providing advice and counsel or brief service, or when legal services are being provided by a private attorney. Condition: Documentation of an executed retainer agreement could not be located for eight selected case files for which extended service had been performed. Cause: Procedures are in place regarding documentation requirements but were not properly followed. Effect: In the cases where retainers were required but missing, the clients to whom we provided extended service representation did not have clear expectations regarding the extent of our services. While these cases were reportable, they were non-compliant with LSC regulation 1611.9, which requires a written retainer agreement be executed when a recipient provides extended service to a client. Questioned Costs: None to report. Context: 8 of 151 LSC eligible case files (or 5.3%) selected at random from 9 service locations did not adequately document a retainer determination. Events of noncompliance were noted in 4 of the 9 service locations sampled. Our sample was a statistically valid sample. Recommendation: We recommend that management re-emphasize the importance of maintaining adequate documentation of retainer determination for all LSC eligible cases. Periodic reviews of case files should be performed to ensure compliance. Views of responsible officials and planned corrective actions: The largest number of errors were discovered in one office, which office has a relatively new managing attorney. Legal Aid of North Carolina, Inc.?s Compliance Officer will provide compliance training targeted to this manager and her staff, emphasize compliance in new hire onboarding training, and train managers and supervisors promoted to new leadership roles. Additionally, all advocacy staff (attorneys and paralegals) will have mandatory annual refresher training on when and how to execute retainers. The training will also include a review of LSC Regulation 1611.9, Retainer Agreements. To strengthen the compliance process and assure requirements are met, Legal Aid of North Carolina, Inc. will perform semi-annual internal self-inspections to include retainer monitoring. We also plan to perform retainer monitoring of field offices that this audit and future self-inspections identify as missing required case documentation, including retainer agreements. Finally, our case management system will be evaluated for opportunities to more systematic alert case closing approvers or report on potential missing required documents.