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Federal Document Clearing House Congressional Testimony

March 23, 2000, Thursday

SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 1254 words

HEADLINE: TESTIMONY March 23, 2000 GEORGE W. GEKAS CHAIRMAN HOUSE APPROPRIATIONS COMMERCE - JUSTICE STATE APPROPRIATIONS COMMERCE-JUSTICE STATE APPROPRIATIONS

BODY:
Statement of the Honorable George W. Gekas, Chairman, Subcommittee on Commercial and Administrative Law Committee on the Judiciary Before the Subcommittee on Commerce, Justice, State, and the Judiciary Committee on Appropriations March 23, 2000 Thank you Mr. Chairman for allowing me to address you and your esteemed colleagues today. First, I want to preface my remarks by acknowledging the herculean efforts that your chair, Mr. Rogers, has expended in overseeing the operations of the Legal Services Corporation in what is a difficult job of ensuring that the poor of this country have the most effective legal assistance possible within the constraints of available resources. As everyone knows, I have always supported the right of the poor to have access to our country's legal system. Although in previous Congresses I have suggested a somewhat different approach, the Legal Services Corporation is with us and we must make it the best it can be. To that end, the Subcommittee on Commercial and Administrative Law -- which controls the Corporation's authorization and which I chair -- held a comprehensive hearing last September that examined into certain widely reported abuses within the Legal Services Corporation and its grantees that cried out for examination and reform. Specifically, we looked into the matter of case over- reporting by the Corporation and related data reports. The hearing -- at the very least -- uncovered rampant, systemic case over- reporting problems throughout the program that were documented by the GAO and, ultimately, acknowledged by the Corporation's management and inspector general. Our hearing also disclosed a potential credibility issue with respect to the Corporation's obligation to inform Congress of these problems. The failure to account for the number of cases reported to Congress calls into question the very credibility of the Corporation. If we cannot rely on its case statistics, what can we believe? While we recognize that the Corporation's appropriations are not per se dependent on the number of cases its grantees handle, this information is very relevant to any analysis of the Corporation's effectiveness, cost-efficiency, administrative controls, and compliance with Congressional restrictions. If nothing else, our hearing revealed that the Corporation and its grantees have extensive accountability problems regarding their ability to supply accurate case reporting statistics. We understand that the Corporation is undertaking some ameliorative measures to address these concerns. Unfortunately, we continue to hear of other problems, such as grantees refusing to allow the Corporation's Inspector General to have access to their files. In fact, we've recently been made aware that at least two grantees have denied access to their own independent public accountants, professionals who are retained by the grantees themselves to conduct independent audits of their operations. Without the ability to review grantees' operations, absolutely no one can assess the accuracy of the information the grantees provide to the Corporation and, ultimately, to Congress. We also note that the Corporation is apparently not subject to the Government Performance Results Act ("GPRA"). Nevertheless, a clear statutory mandate requiring the Corporation to comply with GPRA would ensure that it had a strategic plan with performance criteria that could objectively be used to analyze and measure the Corporation's actual performance. We urge you -- given the extent and gravity of these problems -- to require the Corporation, as part of its fiscal year 2001 appropriation, to provide Congress with accurate case reporting statistics -- perhaps on a quarterly basis -- and that it include a mandate that the Corporation better account for its compliance with Congressional restrictions. Further, we would suggest that grantees be strongly encouraged to comply with audits conducted by the Corporation's Inspector General and independent public accountants retained by these grantees. Again, I want to stress how deeply I am committed to providing legal services to the poor. But I must also stress that I am just as dedicated to the principle of accountability by all Federally- funded programs.

LOAD-DATE: March 31, 2000, Friday




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