1 Use of Outside Legal Counsel Wisconsin Technical College System Legislative Audit Bureau September 2005

2 Overview of Outside Legal Counsel u 16 Technical College Districts spent $8.2 million from FY through FY u Bond counsel and lobbying services are not included in our analysis u Two firms received over 60 percent of all payments in FY

3 Technical College Districts with In-House Legal Counsel

4 Expenditures for Outside Legal Counsel

5 Outside Legal Services Provided (FY )

6 Concerns with Retainer Agreements u Milwaukee Area and Gateway have entered into retainer agreements for legal counsel u Direct billing would have been less costly than retainer agreements u The retainer agreement negotiated by Gateway may result in additional tax liabilities for the District

7 Concerns Specific to the Gateway Retainer Agreement u Agreement was negotiated with an attorney while the attorney was employed by the District u Agreement included family health, dental, and life insurance beyond the term of the agreement u Agreement included a non-performance clause to continue benefit payments regardless of the attorney’s performance

8 Use of Outside Legal Counsel Wisconsin Technical College System Legislative Audit Bureau September 2005