Wisconsin Legislature: 95_11

We have completed a review of the State's use of outside legal counsel and services. Agencies engage private attorneys when the Office of the Attorney General is unable to provide representation and for other purposes, such as consultation, legal advice, and teaching. In fiscal year 1994-95, the State spent an estimated $3.18 million on outside legal counsel and services.

Oversight of the use of private attorneys, as any other contracted service, is essential to ensure that that the contracts are necessary and appropriate and that costs are monitored. Overall, it appears that most agencies have attempted to use private attorneys appropriately, and some costs and contracts are currently monitored by the Office of the Governor and the Department of Justice. However, nearly two-thirds of expenditures are paid directly from agency budgets, and there is significant variation among agencies in interpreting the statutes and procedures that govern the use of private attorneys and the reasons for which they should be engaged.

Based on our review of efforts in the private sector and other states, we have identified a number of steps the State can take to improve the consistency and quality of oversight to prevent potential problems. First, the Governor's office should provide more specific definitions and guidance to executive branch agencies on when and how private attorneys should be engaged. In addition, cost reporting for contracts should be improved. Finally, guidelines for developing standard contracts that stipulate allowable costs, rates, billing formats, and case monitoring should be developed.

We appreciate the courtesy and cooperation extended to us by staff at the Office of the Governor, the Department of Justice, and other agencies that we contacted during the course of the audit. Responses from the Office of the Governor and the Department of Justice are appendices III and IV.

Respectfully submitted,

Dale Cattanach

State Auditor