Southern Minnesota Regional Legal Services

What it reported doing in 2024

Southern Minnesota regional legal services, inc. (smrls or the organization) was formed in 1909 in st. Paul as a branch of associated charities to provide legal advice and representation to low-income people. In 1977, smrls expanded its services to 32 additional counties in the southern third of the state and to migrant farm workers in Minnesota and North Dakota. In 2016, the definition of clients eligible to be served through the migrant program was broadened to agricultural workers and that program has been renamed.a significant portion of smrls' operations is funded through grants from the legal services corporation (lsc), a private, not-for-profit corporation established by congress in 1974 to assure equal access to justice under the law for all americans. Lsc is headed by a bipartisan board of directors appointed by the president of the united states and confirmed by the united states senate.during 2024, smrls served 11,939 clients (33,722 household members) with more than 13,610 legal matters. In addition, approximately 6,630 families and individuals benefit from smrls' preventative law and community education work and approximately 51,061 people accessed the website.smrls employs 68 attorneys and 57 non-attorney staff. Smrls currently has offices in st. Paul, mankato, rochester, winona, albert lea, worthington and moorhead, as well as within several community organizations including medical-legal partnerships at a hospital and community clinics. Smrls has gained national recognition for its tradition of sound management and innovative approaches to provide legal services for low-income people. Smrls' nationally respected comprehensive needs assessment process, and its diversity and leadership development work, have resulted in an effective, community-based and collaborative law practice.in june 2024, the smrls board of directors adopted a plan for the next stage of smrls' strategic development, 2024+ beyond strategic framework. The strategic plan will focus on 5 key points. To improve smrls' ability to respond to the new needs of the client population in our services area. To make effort and keep smrls a diverse, adept, and responsive law firm to focus legal work on racial justice. To be viewed as the statewide leader in legal aid. To create a cultural vibrancy in supporting professional development, work/life balance and personal wellness for its staff. To retain financial stability on existing funding while actively cultivating new funding sources.smrls has strong working relationships with statewide local bar associations, lawyers, the state legislature, business and governmental entities and client groups. Through a series of innovative urban and rural volunteer attorney programs, 80 volunteer attorneys donated approximately 1,543 hours of case representation time to eligible clients in 2024.

Financial Efficiency

• Mission deployment rate: 75.5%; rating input score 75
• Program expense ratio: 81.5%; rating input score 81
• Fundraising efficiency: $34.21 raised per $1 spent on fundraising; rating input score 69; 69th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
• Pay-setting controls: 2 of 6 controls in place; rating input score 33
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 66th percentile among comparable filings
• Governance controls: 7 of 9 controls in place; rating input score 78
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 7.7%; rating input score 62; 62nd percentile among comparable filings
• Total-asset coverage ratio: 0.58; rating input score 19; 19th percentile among comparable filings
• Liabilities to assets ratio: 0.45; rating input score 33; 33rd percentile among comparable filings
• Officer compensation ratio: 6.9%; rating input score 36; 36th percentile among comparable filings

Growth

• Program expense growth: 6% per year; rating input score 100; 49th percentile among comparable filings
• Revenue growth: 5.3% per year; rating input score 100; 46th percentile among comparable filings
• Asset growth: 3.6% per year; rating input score 100; 27th percentile among comparable filings