Finding Text
2025-003 Retainer Agreement Legal Services Corporation ALN#09.233100 Criteria: Per LSC Reg.# 1611.9(a) When a recipient provides extended service to a client, the recipient shall execute a written retainer agreement with the client. The retainer agreement shall be executed when representation commences or as soon thereafter as is practicable. Such retainer agreement must be in a form consistent with the applicable rules of professional responsibility and prevailing practices in the recipient's service area and shall include, at a minimum, a statement identifying the legal problem for which representation is sought, and the nature of the legal services to be provided. Condition: During testing, we noted that a required retainer agreement was not maintained for one individual receiving services under the program. As a result, the organization was unable to demonstrate the nature of legal services provided. Cause: The policy related to the retainer agreement was not appropriately applied by the organization. Effect: Without a completed retainer agreement, the organization increases the risk that the scope of representation, client rights, and services to be provided are not clearly documented and understood by both the client and the legal services provider. As a result, the organization may be unable to demonstrate compliance with Legal Services Corporation requirements, which could lead to questioned costs, adverse monitoring or audit findings, and increased legal or administrative disputes regarding the nature and extent of representation provided. Additionally, insufficient documentation may impair the organization's ability to support that federally funded legal services were provided in accordance with program requirements. Questioned costs: There are no questioned costs noted. Context: Out of 60 cases selected for testing, one (1) case did not have the proper retainer agreement as specified by LSC Reg. # 1611.9(a). Recommendation: We recommend that Legal Services NYC continue to provide relevant training to employees involved in client intake regarding maintenance of retainer agreements. Views of responsible officials: See corrective action plan.