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Copyright 1999 Globe Newspaper Company  
The Boston Globe

June 26, 1999, Saturday ,City Edition

SECTION: NATIONAL/FOREIGN; Pg. A6

LENGTH: 454 words

HEADLINE: US audit finds double-counting in biggest legal-aid programs

BYLINE: By Karen Gullo, Associated Press

BODY:

   WASHINGTON - Two months after the Legal Services Corp. conceded that a few regional offices overstated their workloads, government auditors found that the five largest offices also reported 75,000 cases they could not document.

The Baltimore and New York City offices of the federal program, which provides free legal help to low-income Americans, reported twice as many legal cases as they should have, according to a General Accounting Office draft report released to lawmakers yesterday.

Congress uses case reports when deciding how much money the agency should receive. Republican critics of Legal Services said the GAO report shows case-reporting problems are more serious than the agency initially suggested. "The fact that the GAO has confirmed our suspicions of the significance and pervasiveness of the problem underscores the need to question whether they were hiding this from Congress," said Representative Tom Latham, Republican in Iowa, a member of the House Appropriations subcommittee that oversees Legal Services.

Agency officials said that even with the new findings, the number of overstated cases is small compared to the total number of poor people - more than 1.7 million - who have been helped. They denied that the agency was hiding anything and said that case reporting practices have been changed to correct the problem.

Legal Services affiliates in Baltimore, Chicago, Los Angeles, New York, and Puerto Rico overstated the number of cases they handled by 75,000 in 1997, according to a summary of the GAO report.



That represents one-third of the 221,000 cases that the groups said they handled. Cases were double-counted, cases that should have been closed were counted as open, and cases paid for from nonfederal sources were included with the federal count, the summary said.

The GAO also found that some programs had no records to verify their clients' income and citizenship eligibility. Such documentation is required.

The agency is doing an internal review of case-reporting problems and is investigating whether any provided legal aid to ineligible clients, said John McKay, Legal Services president.

"LSC is completely committed to ensuring all congressional restrictions and laws are followed," McKay said in a statement.

Last year Legal Services handed out $283 million in federal money to about 260 local affiliates to finance legal help for low-income Americans with civil cases such as tenant problems or court protection from domestic violence.



Republican lawmakers asked the GAO to look into Legal Service's case reporting after The Associated Press reported in April that the agency overstated tens of thousands of cases handled in 1997.

LOAD-DATE: June 29, 1999




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