Report 2017-030 All Recommendation Responses

Report 2017-030: The State Bar of California: It Needs Additional Revisions to Its Expense Policies to Ensure That It Uses Funds Prudently (Release Date: June 2017)

Recommendation #1 To: Bar of California, State

To better align its compensation practices with those of comparable agencies, the State Bar should update and formalize its salaries and benefits policies by continuing its negotiations with the union to transition represented employees to an eight-hour workday and a 40-hour workweek, and to implement new salary and job classifications.

1-Year Agency Response

New salary and job classifications, as well as a 40-hour work week for represented employees, were implemented on February 4, 2018.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

As part of the negotiation with its employee union to implement the 40-hour work week for represented employees, the State Bar agreed to a number of compensation and benefit changes. These changes included at least a 3.6 percent increase in salary retroactive to January 1, 2018; offering post-retirement health care benefits; and a cost of living adjustment in 2019 based on the contingency of an increased unrestricted annual licensing fee of $20.

6-Month Agency Response

Labor negotiations are ongoing. While it is not clear when the negotiation process will conclude, the State Bar has proposed implementation of a new market-based classification and compensation structure, as well as a transition to a 40-hour work week, at the bargaining table.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

Labor negotiations are ongoing. While it is not clear when the negotiation process will conclude, the State Bar has proposed implementation of a new market-based classification and compensation structure, as well as a transition to a 40-hour work week, at the bargaining table.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #2 To: Bar of California, State

To better align its compensation practices with those of comparable agencies, the State Bar should update and formalize its salaries and benefits policies by implementing an eight-hour workday and a 40-hour workweek, as well as new salary and job classifications, for its nonrepresented employees by July 2017.

60-Day Agency Response

The Board of Trustees approved implementation of new classification and salary structure and 40-hour work week for non-represented employees in two phases. As an initial step, non-represented employees hired after April 17, 2017, were subject to the new structure and work week requirement. Subsequently, the Board acted to impose the new structure and work week requirement on all existing non-represented employees effective July 17, 2017.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #3 To: Bar of California, State

To better align its compensation practices with those of comparable agencies, the State Bar should update and formalize its salaries and benefits policies by requiring a contribution rate to health care costs for nonrepresented employees that is equal to the contribution rate for represented employees by January 2018.

60-Day Agency Response

In April, 2017, the Board of Trustees modified the State Bar's Executive and Confidential Staff Rules to require health care cost sharing at a rate equal to the contribution rate for represented employees, effective January 1, 2018.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #4 To: Bar of California, State

To better align its compensation practices with those of comparable agencies, the State Bar should update and formalize its salaries and benefits policies for executive employees hired on or after January 1, 2018, to require that contributions to post-retirement health care costs are at a rate equivalent to their contributions during employment at the State Bar.

60-Day Agency Response

In April 2017, the Board of Trustees directed changes to the State Bar's post-retirement benefit plan document and Executive Rules to reflect a requirement that executive employees, hired on or after January 1, 2018, would be responsible for a share of post-retirement health care costs at a rate equivalent to their contribution rate while employed.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #5 To: Bar of California, State

To better align its compensation practices with those of comparable agencies, the State Bar should update and formalize its salaries and benefits policies by developing and adopting a formal policy by December 2017 to regularly compare staff compensation and benefits with those of comparable agencies.

1-Year Agency Response

The State Bar adopted a formal Compensation Policy at its meeting on May 18, 2018.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

As part of its new Compensation Policy, State Bar will work with an outside consultant to conduct a compensation and benefit review every five years, beginning in 2022. The purpose of the review is to ensure that the State Bar's compensation practices are aligned with those of comparable public agencies, and sufficient to recruit and retain a highly qualified workforce.

6-Month Agency Response

The State Bar will develop and adopt a formal policy requiring a compensation and benefits review to be completed on a regular schedule, likely every five years, no later than January 31, 2018.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The State Bar will develop and adopt a formal policy requiring a compensation and benefits review to be completed on a regular schedule, likely every five years, no later than December 31, 2017.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #6 To: Bar of California, State

To assign purchasing cards only to appropriate staff, ensure that the State Bar's records of employees' credit limits reflect those established with the bank, and to verify that staff use purchasing cards only for allowable and necessary expenses, the State Bar should immediately develop a policy that requires justification of the business needs for employees to receive purchasing cards, and use this policy to limit the number of staff issued a purchasing card.

Annual Follow-Up Agency Response From October 2022

A new purchasing card policy was incorporated in Section 6.0 of the State Bar's Procurement Manual as of 2/5/2018, then confirmed in February 2020.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The State Bar revised its policies to require justification of the business need for employees to receive purchasing cards and to include an annual review of the business justification for those purchasing cards. The revised policies also increased controls of credit limits greater than $5,000.

Annual Follow-Up Agency Response From September 2020

Purchasing Card enrollment requires documentation of the business need. The list of cardholders and credit limits is reviewed annually. A copy of the Purchasing Card enrollment form and Procurement Policy Manual have been provided to the Auditor.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

State Bar's revised policies provide increased controls of credit limits more than $5,000. However, State Bar policy 6.02 still allows staff to use the purchasing card for "Meeting rooms and related catering services" and not bill vendors for payment for these purchases, which is the same issue that we had during the audit. State Bar confirmed that it did not see a need to change policy regarding the use of purchasing cards for catered onsite meals.

Annual Follow-Up Agency Response From October 2019

Purchasing limits over $5,000 are currently permitted only for certain expenses related to administration of the California Bar Examination, or for expenses related to facilities management or other support operations. These higher limits are assigned only to specific individuals with responsibility for specific operational areas. As of August 2019, only five (5) cardholders have single purchase limits over $5,000. We are, however, reviewing all Procurement and Finance procedures as we plan the ERP system upgrade, which is scheduled to go live in January 2020. We plan to fully implement the $5,000 limit for all purchases as part of this process.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From August 2019

Purchasing limits over $5,000 are permitted only for certain expenses related to administration of the California Bar Examination, or for expenses related to facilities management or other support operations. These higher limits are assigned only to specific individuals with responsibility for specific operational areas. As of August 2019, only five (5) cardholders have single purchase limits over $5,000. We are, however, reviewing all Procurement and Finance procedures as we plan the ERP system upgrade, which is scheduled to go live in January 2020. Changes and additional restrictions related to purchasing cards may be implemented as part of this process.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

State Bar revised its policy to require justification of the business need for employees to receive purchasing cards and now conducts an annual review of the business justification for those purchasing cards. Although these actions have reduced the number of employees with purchasing authority over $5,000, the State Bar continues to allow some employees to maintain purchasing card limits greater than $5,000 -- including one employee with a limit of $75,000 (monthly) and $25,000 (single purchase). Generally, purchases of this size are not small and recurring expenses, but rather larger purchases that the State Bar should make through the regular procurement process. Moreover, altogether 115 State Bar employees continue to possess purchasing cards, which does not indicate that the State Bar is limiting the number of purchasing card it issues to staff.

Annual Follow-Up Agency Response From October 2018

Fourteen (14) cardholders have monthly limits greater than $5,000; of these, nine (9) have single purchase limits over $5,000. These limits are permitted for expenses related to administration of the California Bar Examination, or for expenses related to facilities management or other support operations, such as our monthly Lexis and Westlaw subscriptions, monthly employee parking charges, monthly off-site storage charges, copier supplies, miscellaneous IT equipment, and group training registrations. They are assigned only to specific individuals with responsibility for specific operational areas. In some cases payment via invoice is not feasible; in others, payment via invoice would be less efficient. The cardholder who had a $95,000 monthly limit has been reduced to $75,000. We will perform our annual review of all cardholders in January 2019 and will further reduce the number of cardholders with limits over $5,000, where feasible.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

State Bar did revise its policy to require justification of the business need for employees to receive purchasing cards and to include an annual review of the business justification for those purchasing cards. However, State Bar continues to allow some State Bar employees to maintain purchasing card limits greater than $5,000 -- including one employee with a limit of $75,000 (monthly). Generally, purchases of this size are not small and recurring expenses, but rather larger purchases that the State Bar should make through the regular procurement process.

1-Year Agency Response

New purchasing card policies have been incorporated in Section 6.0 of the State Bar's Procurement Manual as of 2/5/2018.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

State Bar did revise its policy to require justification of the business need for employees to receive purchasing cards and to include an annual review of the business justification for those purchasing cards. However, State Bar continues to allow some State Bar employees to maintain purchasing card limits greater than $5,000 -- including one employee with a limit of $95,000 (monthly) and $30,000 (single purchase). Generally, purchases of this size are not small and recurring expenses, but rather larger purchases that the State Bar should make through the regular procurement process.

6-Month Agency Response

The State Bar is reviewing its purchasing card policies and will implement this recommendation by January 2018.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The State Bar is reviewing its purchasing card policies and will implement this recommendation by January 2018.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #7 To: Bar of California, State

To assign purchasing cards only to appropriate staff, ensure that the State Bar's records of employees' credit limits reflect those established with the bank, and to verify that staff use purchasing cards only for allowable and necessary expenses, the State Bar should immediately restrict the use of purchasing cards to its original purpose, which was for low-dollar and frequently occurring purchases. For purchases above $5,000, the State Bar should require the vendor to bill for payment.

Annual Follow-Up Agency Response From October 2022

Purchasing Card transactions are limited to $5,000. A copy of the Purchasing Card enrollment form and Procurement Policy Manual were previously provided to the State Auditor.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

The State Bar did revise its policy to require justification of the business need for employees to receive purchasing cards and to include an annual review of the business justification for those purchasing cards. However, State Bar continues to allow some State Bar employees to maintain purchasing card limits greater than $5,000—including one employee with a limit of $50,000 (monthly) and $30,000 (single purchase). Generally, purchases of this size are not small and recurring expenses, rather they are larger purchases that the State Bar should make through the regular procurement process.

Annual Follow-Up Agency Response From September 2020

Purchasing Card transactions are limited to $5,000, except for certain purchases related to facilities operations and the California Bar Examination. Only two cardholders have limits above $5,000, for these designated purposes. A copy of the Purchasing Card enrollment form and Procurement Policy Manual have been provided to the Auditor.

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement

State Bar's revised policies provide increased controls of credit limits more than $5,000. However, State Bar policy 6.02 still allows staff to use the purchasing card for "Meeting rooms and related catering services" and not bill vendors for payment for these purchases, which is the same issue that we had during the audit. State Bar confirmed that it did not see a need to change policy regarding the use of purchasing cards for catered onsite meals.

Annual Follow-Up Agency Response From October 2019

As part of our review of Procurment and Finance policies related to the January 2020 ERP upgrade, we plan to fully implement a $5,000 purchasing card limit, which will also apply to meeting room and catering costs.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From October 2018

With the separation of the Sections effective January 2018, off-site meeting space is used only for the Bar Exam; some charges related to the Bar Exam are more efficiently handled by credit card. Similarly, catering charges for onsite meetings must usually be reserved and paid by credit card.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

State Bar's revised policies provide increased controls of credit limits more than $5,000. However, State Bar policy 6.02 still allows staff to use the purchasing card for "meeting rooms and related catering services" and not bill vendors for payment for these purchases, which is the same issue that we had during the audit.

1-Year Agency Response

New purchasing card policies have been implemented, and are included in Section 6.0 of the State Bar's Procurement Manual as of 2/5/2018.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

State Bar's revised policies provide increased controls of credit limits more than $5,000. However, State Bar policy 6.02 still allows staff to use the purchasing card for "Meeting rooms and related catering services" and not bill vendors for payment for these purchases, which is the same issue that we had during the audit.

6-Month Agency Response

The State Bar is reviewing its purchasing card policies and will, by January 2018, limit purchasing card purchases of $5,000 or more to a more restricted set of expense categories, likely related to facilities and other support operations.

California State Auditor's Assessment of 6-Month Status: Pending

The State Bar provides minimal explanation of the actions it is taking. We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The State Bar is reviewing its purchasing card policies and will, by January 2018, limit purchasing card purchases of $5,000 or more to a more restricted set of expense categories, likely related to facilities and other support operations.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #8 To: Bar of California, State

To demonstrate its commitment to the board's prohibition of all State Bar spending on alcohol, the State Bar should immediately update its procurement manual to reflect this prohibition.

60-Day Agency Response

The procurement manual has been updated to reflect the prohibition on spending on alcohol.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #9 To: Bar of California, State

To ensure that its costs are reasonable and appropriate, the State Bar should update its meal and catering policy to align with the meal policy of the State's Executive Branch and should require individuals attending committee meetings for the State Bar to comply with standard meal per diem rates.

Annual Follow-Up Agency Response From October 2022

The State Bar uses the executive branch per diem rates for both individual employee travel meal reimbursements and onsite catering of board and committee meetings. The State Bar has resumed a limited number of onsite board and committee meetings but has found it is difficult to adhere to the executive branch per diems for every meeting, both due to inflation and given the goals of expanding the pool of catering suppliers to reflect important inclusion objectives. The travel policy requires special approval for offsite meetings, where catering may be more expensive, as the per diem rates are not always feasible for offsite catering

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates, it does not intend to apply this policy to offsite catering events. The State Bar asserts it is not feasible to apply those same per diem rates to all onsite and offsite catering events. However, we noted on page 25 of our report, the intent of our recommendation is to address all catering costs.

Annual Follow-Up Agency Response From October 2019

The State Bar has adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates. Since the separation of the Sections from the State Bar in January of 2018, the only meetings held off-site are related to the California Bar Exam. While every effort is made to arrange for catering at off-site events within these same per diem rates, it is not feasible to require this limitation in every situation.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates, it does not intend to apply this policy to offsite catering events. The State Bar asserts it is not feasible to apply those same per diem rates to offsite catering events and that it holds very few events offsite. However, as noted on page 25 of our report, the intent of our recommendation is to address all catering costs, not just those incurred on-site.

Annual Follow-Up Agency Response From August 2019

The State Bar has adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates. Since the separation of the Sections from the State Bar in January of 2018, the only meetings held off-site are related to the California Bar Exam. While every effort is made to arrange for catering at off-site events within these same per diem rates, it is not feasible to require this limitation in every situation.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates, it does not intend to apply this policy to offsite catering events. The State Bar asserts it is not feasible to apply those same per diem rates to offsite catering events and that it holds very few events offsite. However, as noted on page 25 of our report, the intent of our recommendation is to address all catering costs, not just those incurred on-site.

Annual Follow-Up Agency Response From October 2018

The State Bar has adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates. Since the separation of the Sections from the State Bar in January of this year, very few off-site meetings are held. While every effort will be made to arrange for catering at off-site events within these same per diem rates, it is not feasible to require this limitation in every situation.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates, it does not intend to apply this policy to offsite catering events. The State Bar asserts it is not feasible to apply those same per diem rates to offsite catering events and that it holds very few events offsite. However, as we noted on page 25 of our report, the intent of our recommendation is to address all catering costs, not just those incurred on-site.

1-Year Agency Response

On July 10, 2017 the State Bar adopted Executive Branch per diem limits for onsite catering expenditures and modified its travel and expense policy accordingly.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

Although the State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates, it does not intend to apply this policy to offsite catering events. The State Bar asserts it is not feasible to apply those same per diem rates to offsite catering events and that it holds very few events offsite. However, as noted on page 25 of our report, the intent of our recommendation is to address all catering costs, not just those incurred on-site.

6-Month Agency Response

On July 10, 2017 the State Bar adopted Executive Branch per diem limits for onsite catering expenditures and modified its travel and expense policy accordingly.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

The State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates. However, its action does not fully address our recommendation because State Bar confirmed that it does not intend to impose the same per diem limits on offsite catering, citing that it has few offsite events. The intent of our recommendation is to address all catering costs, not just those incurred on-site. As we indicate on page 25 of our report, the State Bar should limit the costs of catering at off-site events to the State's meal per diem rates.

60-Day Agency Response

On July 10, 2017 the State Bar adopted Executive Branch per diem limits for onsite catering expenditures and modified its travel and expense policy accordingly.

California State Auditor's Assessment of 60-Day Status: Will Not Implement

The State Bar adopted a travel and business-related expense policy that requires individual employee travel meal reimbursements and onsite catering costs to match the State's Executive Branch per diem rates. However, its action does not fully address our recommendation because State Bar confirmed that it does not intend to impose the same per diem limits on offsite catering, citing that it has few offsite events. The intent of our recommendation is to address all catering costs, not just those incurred on-site. As we indicate on page 25 of our report, the State Bar should limit the costs of catering at off-site events to the State's meal per diem rates.

Recommendation #10 To: Bar of California, State

To make certain that the costs for sections events are reasonable and prudent, the State Bar should require that the sections follow the State Bar's meal per diem and lodging rates, and require the sections to limit expenses for events to only those activities that are reasonable and necessary. For off-site events, the State Bar should require the sections to follow the State Bar's existing policy of providing written justification of a significant business need to hold the event off-site and obtain approval from the executive director or chief operating officer.

6-Month Agency Response

Given that the State Bar expects the Sections to be separated from the Bar by 1/1/18, the State Bar does not feel that the recommended actions are needed. The State Bar remains committed to ensuring that no State Bar funds are being used to support any Sections activities.

California State Auditor's Assessment of 6-Month Status: Resolved

We consider this recommendation resolved with the legislative action to remove the sections from the State Bar. Senate Bill 36 (2017-18 State Bar Fee Bill) amended state law and established the sections as a private, nonprofit corporation (separate from the State Bar). The law further provides that it shall be a voluntary association and shall not be part of the State Bar or funded in any way through mandatory State Bar dues.

60-Day Agency Response

Given that the State Bar expects the Sections to be separated from the Bar by 1/1/18, the State Bar does not feel that the recommended actions are needed. The State Bar remains committed to ensuring that no State Bar funds are being used to support any Sections activities.

California State Auditor's Assessment of 60-Day Status: Will Not Implement

We disagree with the State Bar's response and stand by our recommendation. As we indicate on page 27 of our report, regardless of whether the sections separate from the State Bar, we believe it is reasonable for sections to implement controls to ensure a prudent use of funds. Based on the questionable expenses we observed in this audit, a more prudent use of funds would allow sections to host events for as many of its members as possible.

Recommendation #11 To: Bar of California, State

To ensure that its lobbying expenses are reasonable and cover only allowable activities, the State Bar should revise the terms of its pending lobbying contract to require that the lobbyists provide sufficiently detailed invoices that support the amounts they bill for their services.

60-Day Agency Response

Recently executed lobbying contracts require detailed invoices which will support the amounts billed for services.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Although the State Bar's lobbying contracts will continue to pay the lobbyists a flat monthly fee, the revised contracts require that the lobbyist's monthly invoice must include an itemized list of activities performed and deliverables produced during the invoiced period, and require that the invoiced items tie to the contract scope of services. As a result, the State Bar should receive documentation sufficient to ensure that its lobbying expenses are reasonable and cover only allowable activities.

Recommendation #12 To: Bar of California, State

To ensure that it contracts only for appropriate and necessary services from outside law firms at a prudent rate, the State Bar should put its informal practice into a written policy regarding its assessment of the need for outside counsel, including whether the State Bar's attorneys can provide the specified legal services.

1-Year Agency Response

Policies governing requirements for legal services contracts have been incorporated as Section 11.10 in the State Bar's Procurement Manual as of 2/5/18.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The informal practice continues to be in place; formal codification will occur as part of a larger set of revisions to the State Bar's procurement manual, to be completed by January 2018.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The informal practice continues to be in place; formal codification will occur as part of a larger set of revisions to the State Bar's procurement manual, to be completed by January 2018

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #13 To: Bar of California, State

To ensure that it contracts only for appropriate and necessary services from outside law firms at a prudent rate, the State Bar should put its informal practice into a written policy regarding its evaluation of the State Bar's past experiences with the law firms being considered.

1-Year Agency Response

Policies governing requirements for legal services contracts have been incorporated as Section 11.10 in the State Bar's Procurement Manual as of 2/5/18.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The informal practice continues to be in place; formal codification will occur as part of a larger set of revisions to the State Bar's procurement manual, to be completed by January 2018.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The informal practice continues to be in place; formal codification will occur as part of a larger set of revisions to the State Bar's procurement manual, to be completed by January 2018

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #14 To: Bar of California, State

To ensure that it contracts only for appropriate and necessary services from outside law firms at a prudent rate, the State Bar should put its informal practice into a written policy regarding its process to select the outside legal firms, including documentation of proposals from other prospective law firms and the costs it considers reasonable for the legal services.

1-Year Agency Response

Policies governing requirements for legal services contracts have been incorporated as Section 11.10 in the State Bar's Procurement Manual as of 2/5/18.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The informal practice continues to be in place; formal codification will occur as part of a larger set of revisions to the State Bar's procurement manual, to be completed by January 2018.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The informal practice continues to be in place; formal codification will occur as part of a larger set of revisions to the State Bar's procurement manual, to be completed by January 2018

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #15 To: Bar of California, State

To reduce its reliance on outside legal counsel, the State Bar should continue its efforts to hire staff to fill its remaining vacant attorney positions.

Annual Follow-Up Agency Response From October 2019

The Office of General Counsel executed a written protocol in its procedures manual to undertake robust recruitment efforts to fill vacant staff attorney positions in order to reduce the State Bar's use of outside legal counsel. A copy of this protocol has been provided to the State Auditor.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From October 2018

The Office of General Counsel (OGC) has fully implemented protocols for recruiting for all attorney positions as soon as a vacancy arises. OGC notifies Human Resources (HR) as soon as it becomes aware of a vacancy, and works with HR to recruit for and fill the vacancy in a timely manner. While this protocol has not been reduced to a written policy, it has been in effect since the beginning of this year.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

As part of its response, State Bar provided evidence of recent attorney hires and its posting for attorney vacancies. However, State Bar confirmed that it does not have a documented protocol to fill all attorney vacancies.

1-Year Agency Response

As of January 2018, OGC has implemented a protocol to fill all attorney vacancies as they occur. OGC is currently recruiting to fill two attorney vacancies.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

As part of its response, State Bar provided evidence of recent attorney hires and its posting for attorney vacancies. However, State Bar confirmed that it does not have a documented protocol to fill all attorney vacancies.

6-Month Agency Response

The State Bar continues to actively recruit for all vacant positions, including vacant attorney positions.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

The State Bar continues to actively recruit for all vacant positions, including vacant attorney positions.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #16 To: Bar of California, State

To increase transparency, the State Bar should disclose annually to the board a list of all contracts with outside law firms—including a description of the services provided, the need for such contracts, and the value and length of the contracts.

1-Year Agency Response

Policies governing requirements for legal services contracts have been incorporated as Section 11.10 in the State Bar's Procurement Manual as of 2/5/18. The Office of General Counsel will report to the Board of Trustees annually at its regular January meeting on the use of outside counsel for the prior calendar year. See the January 2018 report for 2017.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

Staff will bring the a report containing a list of all contracts with outside law firms, including a description of the services provided, the need for such contracts, and the value and length of the contracts, to the Board of Trustees annually at its January planning meetings.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

Staff will bring the a report containing a list of all contracts with outside law firms, including a description of the services provided, the need for such contracts, and the value and length of the contracts, to the Board of Trustees annually at its January planning meetings.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #17 To: Bar of California, State

To better measure how well its attorney discipline program is meeting the State Bar's core mission to protect the public from attorney misconduct, the State Bar should, by December 2017, identify key goals and metrics for the attorney discipline system.

Annual Follow-Up Agency Response From August 2019

The State Bar has adopted detailed metrics for all operational areas, including the discipline system. The Executive Director's report to the Board of Trustees at each meeting includes a Metrics Report. The January Metrics Report, presented at the March 2019 meeting of the Board of Trustees, has been provided to the California State Auditor.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From October 2018

The Board of Trustees approved discipline metrics at its meeting on September 14, 2018. Supporting documentation has been provided.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the State Bar provided its attorney discipline goals for operational areas that are involved directly in processing discipline cases, it indicated that it still needs to evaluate data and propose standards for benchmarks.

Annual Follow-Up Agency Response From October 2018

The Board of Trustees approved discipline metrics at its meeting on September 14, 2018.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although the State Bar provided its attorney discipline goals for operational areas that are involved directly in processing discipline cases, it indicated that it still needs to evaluate data and propose standards for benchmarks.

1-Year Agency Response

The State Bar has undertaken the following activities related to developing goals and metrics for the attorney discipline system:

-Pilot tested client satisfaction/procedural justice measures; working to improve response rate and develop similar measures for respondent attorneys;

-Identified metrics for Office of the Chief Trial Counsel, State Bar Court, Office of Probation, Lawyer Assistance Program, and Client Security Fund;

-Working on data extraction, transformation and loading to produce reports on identified metrics;

-Working on changing State Bar rules to facilitate data sharing among State Bar divisions.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

State Bar staff is working with the Board of Trustees' Committee on Regulation and Discipline to develop key goals and metrics for the attorney discipline system.

California State Auditor's Assessment of 6-Month Status: Pending

We look forward to the State Bar providing a more complete description of its actions to implement our recommendations, as well as evidence of those actions, at its one-year response in June 2018.

60-Day Agency Response

State Bar staff is working with the Board of Trustees' Committee on Regulation and Discipline to develop key goals and metrics for the attorney discipline system.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2017-030

Agency responses received are posted verbatim.