The “pro bono” audit of the D.C. tax office by a high-profile law firm is growing less free by the day.
In a letter dated Tuesday to D.C. Council leadership, firm WilmerHale said the city will be on the hook for up to $200,000 in out-of-pocket expenses, from photocopying to bike messengers. WilmerHale was enlisted by the council to lead the investigation into the largest corruption scandal in District government history.
A similar inquiry would cost millions of dollars if billed at standard prices.
“It’s still a lot of money but this situation is serious enough that the council obtaining its [own] expertise is important,” said council member Phil Mendelson. “When you’re talking about at least $20 million and possibly $44 million, you can’t audit enough.”
The council dedicated $250,000 to its investigation into the theft, allegedly carried out by a pair of employees in the Office of Tax and Revenue.
D.C. Chief Financial Officer Natwar Gandhi, meanwhile, established a five-member audit committee on Wednesday to “carefully and completely scrutinize” financial operations within the D.C. government. Gandhi has acknowledged the tax office theft represented a monumental failure on the part of his organization.
The committee, which will meet monthly and report quarterly, will be chaired by Sheldon Cohen, director at Farr, Miller & Washington LLP. John Hill, chief executive office of the Federal City Council, also will sit on the panel.
As for the council’s review, WilmerHale will charge the District 15 cents per page for printing or scanning, 15 cents per page for photocopying and $1 per page for color printing, in addition to separate charges for labeling, velo binding, pagination and oversize copies.
For “after hours support,” WilmerHale will charge $50 per hour. Each Lexis search will cost $45. When the firm uses the Westlaw legal research tool, it will charge $165 per hour. Additional expenses may include couriers, postage, supplies, travel, filing fees, patent/trademark services and trial exhibits, not to mention outside consultants, court and subpoena fees.
