Terms of Reference - Ministry of Justice

1 Terms of Reference Quality and Value Audits Quality and Value audit Terms of Reference Version July 2015 2 Table of Contents SECTION 1 | General 3 | Introduction 3 | Statutory authority 3 | Purpose and Scope 4 SECTION 2 | Methodology 6 | The audit programme 6 | Selecting providers for audit 6 |Overview of the audit process 6 | Appointing an auditor 7 | Selecting files for audit 7 | Assessment of files 8 SECTION 3 | audit ratings and risk factors 10 | Rating scale 10 | Key risk factors 10 SECTION 4 | audit criteria 12 | General criteria 12 | Specific criteria | Civil /Criminal/Family/ [select one]

2 13 | Value 14 SECTION 5 | Reporting and timeframe 16 | Reporting 16 | Follow up from audit report 16 SECTION 6 | Legal Obligations 18 | Integrity of process and auditing standards 18 | Compliance with audit 18 | Legal professional privilege 18 | Disclosure of information 19 Appendix A | Auditing principles 20 Appendix B | Rating scales Quality and value of services 21 Quality of services 21 Value of services 23 Quality and Value audit Terms of Reference Version July 2015 3 SECTION 1 | General | Introduction This document sets out the standard Terms of Reference (TOR) for an audit of the quality and value of legal services provided by a person approved to provide legal aid or specified legal services (provider).

3 Audits of providers are a key way to ensure that quality legal services are provided to legal aid clients. The TOR broadly sets out the purpose, scope, methodology, criteria and process for quality and value audits. The TOR: provides an outline of the key criteria against which approved providers are audited and by which performance is measured; gives providers an outline of the Ministry s quality and value requirements; and provides guidance for | Statutory authority Section 68 (1) of the Legal Services Act 2011 (the Act) sets out the following functions of the Secretary for Justice (Secretary): (a) Establish, maintain and purchase high-quality legal services in accordance with this Act.

4 (b) To perform any functions that are conferred or imposed on the Secretary by or under this Act; (c) To perform any other functions relating to legal services that are conferred or imposed on the Secretary by or under any other Act. The audit process is governed by sections 91, 92 and 113 of the Act. These provisions outline the powers, functions and duties of the Secretary to conduct audits of approved providers of legal aid services or specified legal services: section 91 (1) of the Act enables the Secretary to audit providers at any time.

5 2 1 More detailed guidance on the policy can be found in the Appendix to the Provider Manual Part 3 Auditing and Monitoring of the online Provider Manual available online 2 This includes the providers who were previously listed/approved with the Ministry or former Legal Services Agency Quality and Value audit Terms of Reference Version July 2015 4 section 91 (2) of the Act requires audits to be conducted by an auditor, a person employed or appointed by the Secretary for the purpose of conducting examinations or audits, or both ; and section 113 of the Act makes the failure to comply with an audit /auditor an offence where that failure is to such a degree that the auditor is unable to satisfactorily conclude the examination or audit .

6 | Purpose and Scope We audit legal services provided under grants of aid made by the Legal Services Commissioner. The purpose of the audit is to assess and review the quality and value of the services provided by a Provider under a grant of legal aid. Audits: provide assurance to clients, the public, and key stakeholders about the quality of services provided; enable a provider to improve his or her performance; and enable the Secretary to take remedial action as necessary. Audits assess the: legal advice and representation provided to the aided person (including the conduct of hearings and/or trials); management of cases, including the adequacy of documentation; compliance with the conditions of the grant of legal aid and any amendments to it; and the justification of expenditure of legal aid funds; and provider s service delivery systems.

7 This is to: ensure that the legally aided person has received a satisfactory standard of advice and representation; ensure that legal aid or specified legal services are provided in an effective, efficient and ethical manner; ensure legal aid funds are properly managed and are value for money services; assess the reasonableness of the time and amounts claimed by the provider in relation to the nature and complexity of the file; ensure providers are compliant with the Act, Regulations, the Contract for Services with the Secretary, Practice Standards, and the Ministry s policies and procedures; ensure providers have systems, processes and controls in place to enable providers to be compliant with legislative, contractual, and professional obligations, as well as Practice Standards, policies and procedures.

8 Quality and Value audit Terms of Reference Version July 2015 5 ensure providers are compliant with any conditions imposed on their approval/s; enhance the performance of providers of legal services through guidance and clarification, and outlining expectations; investigate complaints, trends or particular conduct of providers; identify concerns in a timely manner and monitor conduct of providers so that remedial action can be taken or action can be taken to prevent breaches and protect the needs of legal aid clients; and to assess practise standards and trends for providers generally.

9 Quality and Value audit Terms of Reference Version July 2015 6 SECTION 2 | Method | The audit programme The Annual audit Programme (the programme) as noted in the Ministry s Statement of Intent, provides that audits that are to be performed over a twelve month period coinciding with the Ministry s financial year of 1 July 30 June. | Selecting providers for audit Providers are selected for audit at random, by an assessment of risk profile, or other form of profiling. Risk profiles are determined by looking at: the total amount paid to a provider in the previous financial year (attained by ratings of high, medium or low)- o over $200,000 high, $ $100,000 to $199,000 medium, and less than $100,000 low; the number of legal aid files assigned during a financial year; the percentage increase in fees or number of legal aid files over two consecutive years; o over 25% high, 10-24% medium, under 10% low; the number of substantiated complaints over a five year period.

10 Any adverse judicial comments; recent progression in Provider Approval Level or approval in a new area of law; and specific concerns identified as a result of a previous audit report, assurance checking or as a result of the complaints management process. |Overview of the audit process Once a provider has been selected for an audit , we will inform the provider: o the reason for the audit ( risk profile information); o the scope of the audit ; o the timeframe for the audit ; o the audit process; and o request client files from the provider and after the audit return client files to the provider.