Key Programs, Work Efforts, and Studies

Implementing BAPCPA
The bankruptcy system continues to adjust to the sweeping changes of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Pub. L. No. 109-8) (BAPCPA), parts of which took effect in October 2005. A third wave of major changes took effect during fiscal year 2007.

Matching Staffing to Workload. Over the last five years, bankruptcy clerks have reduced staffing by more than 900 employees, with over 200 leaving in fiscal year 2007,

So far, the system has been successful in staffing to avoid disruption of court services to the public and meeting requirements of the amended bankruptcy code, while responding to the fluctuating bankruptcy filings—especially in the face of the nation's changing economy.

Rules and Forms. The AO provided substantial support to the Advisory Committee on Bankruptcy Rules as it worked to develop permanent rules implementing BAPCPA. The Committee addressed issues voiced by its members and 60 comments raised about the published draft amendments and new rules and forms. After thorough Conference Committee review, amendments to the rules were submitted to the Supreme Court, and the Conference approved 22 new or amended bankruptcy forms.

Accuracy and Veracity Require-ment. Bankruptcy administrators who administer cases in the six judicial districts of North Carolina and Alabama have many new duties under BAPCPA. The AO and bankruptcy administrators worked closely to ensure random, independent audits in Chapter 7 and 13 cases. This effort is in response to Section 603, which requires the Judicial Conference to "establish procedures in bankruptcy administrator districts to determine the accuracy, veracity, and completeness of petitions, schedules, and other information that the debtor is required to provide." Work also began on a BAPCPA requirement to audit petitions that disclose expenses or income exceeding a specified range.

GAO Studies. The AO responded to a number of studies undertaken by the Government Accountability Office, either specified by BAPCPA or requested by members of Congress; those studies are described on page 36.

Bankruptcy CM/ECF. AO and bankruptcy clerks, as well as court advisory and working groups devoted substantial time during FY 2007 to ensuring that bankruptcy courts' future electronic case management requirements, and especially chambers-related needs, are met by bankruptcy CM/ECF or a successor system.

U.S. Trustee Request. The AO, the Bankruptcy Committee, and especially its Automation Subcommittee, intensely studied the impact of a request from the Executive Office of the U.S. Trustees that the Judicial Conference consider requiring courts to accept, with limited exceptions, only data-enabled bankruptcy forms. That request, if approved, would require hundreds of data elements contained in 19 bankruptcy forms to be tagged for automated retrieval. Several policy and practical concerns are being analyzed, including issues of neutrality of the Judiciary, cost and access to the courts by debtors and attorneys, and various technical standards issues.

Bankruptcy Noticing Center (BNC)
The AO further assisted the bankruptcy court system in creating efficiencies and cost savings through its management of the BNC, which centralizes and automates the printing, addressing, batching, and mail processing of bankruptcy notices. In fiscal year 2007, the BNC produced and mailed approximately 105 million bankruptcy notices. It was the 14th year of operation for the program, which has enabled the Judiciary to meet its

It was the 14th year of operation for the BNC program, which has enabled the Judiciary to meet its noticing responsibilities at a cost that is $67 million less than a court-based noticing system.

Aggregate and Capital Goods Allotment Formulas Update
At the request of the Budget Committee of the Judicial Conference, Administrative Office staff and the Budget and Finance Advisory Council collaborated in fiscal year 2007 to update two important allotment formulas used to determine non-salary funding for each court unit. The aggregate allotment formula funds annual recurring operational expenses (e.g., training, office supplies, local telephone expenses, etc.). Likewise, the capital goods formula funds capital expenditures including furniture, copiers, and office equipment.

Together, these two funding formulas totaled $130 million at full requirements in fiscal year 2007. The result of this update is a savings of $9.2 million annually based on more current historical court spending patterns. In approving the updated formulas, the Budget Committee endorsed a two-year phase-in of the new formulas to give courts an opportunity to adjust to the lower funding formulas. Thus, the interim plan for fiscal year 2008 includes the initial phase in of the new funding formulas.

The updated funding formulas

• Provide a more credible and accurate assessment of court funding requirements to help explain budget requests to Congress;
• Redistribute funding in accord with actual use by court programs;
• Identify the need to explore other funding issues such as tenant alterations funding.

AO Aligns Financial Accounting System With Courts
Procurement Automation Initiative. As of October 1, 2007, the AO adopted a new web-based financial management system, FAS4T, which combines acquisitions management with a financial management system. The new system expands capabilities for electronic requisitioning of goods and services, and generates contracts and purchase orders that comply with the Judiciary Procurement Program Procedures (JP3) regulations. This change is another step toward a single financial management system for the entire Judiciary. The new procurement functionalities are available to requisitioners and contracting officers at the Administrative Office, the Court of International Trade, the Court of Appeals for the Federal Circuit, the United States Court of Federal Claims, the Sentencing Commission, and the Judicial Panel on Multi-District Litigation. Server hosting for the system is located at the same facility.

Procurement Improvements
Administrative Services Methods Analysis Program (ASMAP). An Administrative Services Methods Analysis Program (ASMAP) Steering Group with representation from across the Judiciary was established to identify more cost effective and efficient methods for providing administrative support to the courts without reducing the level of service. A group of 23 court subject matter experts was assembled to identify better practices in the procurement area, specifically working with AO procurement staff to focus on small purchases, including GSA contract purchases, blanket purchase orders, and open market procurement. From the ASMAP review, final best practices were developed and will be posted on the J-Net for court review and voluntary implementation.

National Conference Attorney Telecommunication System Contract. In November 2006, following a thorough evaluation by AO staff with court participation, the AO awarded three blanket purchase orders (BPAs) for teleconferencing equipment. The BPAs meet a requirement from the appellate court conference attorneys to replace existing systems that were no longer meeting the courts' technological needs. The BPAs were well received by the appellate courts, and two circuits procured equipment immediately following the award.

Changes to General Procurement Delegation Authorities. In May 2007, the AO Director increased the general delegations of procurement authorities for chief judges and federal public defenders, following widespread completion of the Contracting

	Innovations planning for the long-term health of the Judiciary Reductions in the Judiciary's rent payments because of an extensive effort to scrutinize rent bills from the General Services Administration; Changes to Judiciary space requirements in the U.S. Courts Design Guide to lower future rental costs without adversely impacting court functionality; Development of benchmark job descriptions and the completion of labor market research to assist in considering potential changes to court classification and compensation systems; Business process re-engineering support to help clerks' offices identify and adopt more efficient practices; and Evaluation and testing of alternative information technology service-delivery mechanisms, including server consolidation where a high level of service can be maintained.

COTR Training. The Contracting Officers' Technical Representative (COTR) Certification Program was converted from an instructor-led format to online training for user convenience and efficiency. This course provides an overview of the roles and responsibilities of the COTR as a participant in the Judiciary procurement/contracting process as defined in Judiciary Procurement Program Procedures (JP3)7.2. COTRs monitor Judiciary contractor performance and serve as the technical liaison between the contractor and the contracting officer. Fifty employees were certified as Judiciary COTRs by year's end, while an additional 125 are in training.

Civil Criminal Accounting Module (CCAM) and Cash Receipting. Use of the Civil/Criminal Accounting Module (CCAM) to support civil and criminal accounting and cash receipting functions grew to 43 courts in fiscal year 2007, with six additional courts scheduled to implement the new system early in FY 2008. CCAM, which has been adjusted to reflect lessons learned from early implementer experience, provides consistency and accuracy in courts' financial data, reduces risks associated with aging and unsupported hardware, and strengthens internal controls over financial processes.

Federal Rules of Practice and Procedure
The Rules Committees approved a comprehensive restyling of the Federal Rules of Civil Procedure and Illustrative Civil Forms to make them clearer, simpler, and easier to understand, without changing substantive meaning. The style revisions to the Civil Rules, which took effect on December 1, 2007, follow the restyling of the Federal Rules of Appellate Procedure in 1998 and Federal Rules of Criminal Procedure in 2002. The restyled Civil Rules were well received and in June 2007 the Standing and Civil Rules Committees were awarded the prestigious Burton Awards for Legal Achievement - Reform in Law Award.

Improving An Essential Tool

With court and staff user input, the Judiciary has begun the enormous task of making its primary policy and procedures manual easier to reference online.

Time-Computation Rules Amendments
In 2007, the Rules Committees approved for publication proposed amendments to over 90 time-computation provisions found in the Appellate, Bankruptcy, Civil, and Criminal Rules. The changes were proposed with a view toward simplifying the provisions, eliminating inconsistencies in the computation of time periods under the procedural rules, and making time calculations more efficient for practitioners. Under the proposed rules, virtually all short time deadlines would be extended to offset any impact that the new time-counting provisions may have in calculating time. Comment on the proposed amendments was invited in August 2007 and is possible through February 15, 2008.

Guide to Judiciary Policies and Procedures Redesign
Redesign of the Guide to Judiciary Policy and Procedures continues with ongoing court input. Once completed, policy guidance to the courts will be written in simplified language and organized for more efficient information searches.

Management Reviews and Finding Best Practices
Management reviews are a cooperative effort between the Administrative Office and the courts to provide an objective evaluation of court operations. The AO coordinates on-site court management assistance and program reviews in the courts at the request of chief judges and court managers. Reviews may cover jury administration, court reporting, program operations and management, human resources management, property management, procurement, information technology operations, security, and continuity of operations plans and disaster preparedness. Review procedures generally include observations of office operations, interviews with key staff, and the evaluation of appropriate court records and files. An exit interview to discuss preliminary findings and recommendations is usually held with either the chief judge or the court unit executive, and a detailed written report of findings and recommendations is provided to the court.

During fiscal year 2007, the AO District Court Administration Division completed seven management reviews in the district courts. The Appellate Court and Circuit Administration Division conducted a major court review in one of the court of appeals clerk's office. Requested by the chief judge, this review focused on the major operational areas of the clerk's office, including case management, motions processing, and calendaring.

Juror Utilization
The Judiciary continued its efforts to improve juror management practices and make better use of jurors. Since 2004, the number of jurors reporting for jury service but not selected, serving, or challenged (NSSC), has been generally declining. After peaking at 40 percent for fiscal year 2003, the percentage of jurors NSSC has continued to fluctuate between 36 and 38 percent. For the 12 months ended June 30, 2007, the percentage of jurors NSSC was 38 percent. The Judicial Conference and the Administrative Office consider efficient juror utilization to be a high priority for the Judiciary.

Court Interpreting
In fiscal year 2007, there was a 17 percent increase in the number of events requiring the use of interpreters in the courts. District courts reported that they used interpreters in 246,037 events, compared to 210,336 events reported in fiscal year 2006. The number of languages requiring interpretation rose from 111 in 2006 to 115 in 2007. Spanish (234,462 events) remains the most-used language for interpreters in the courts, accounting for 95 percent of all reported events, followed by Mandarin (1,547 events). Other frequently used languages in fiscal year 2007 were Vietnamese (1,054 events), Russian (1,052), Cantonese (836), Arabic (747), Korean (704), Portuguese (623), Haitian Creole (504), and Foochow (418).

Interpreter Certification. In fiscal year 2007, a record 459 candidates took the oral examination component of the Spanish/English Federal Court Interpreter Certification Examination, and 77 candidates passed the exam and received certification. The written examination was offered in August 2006 in 33 locations nationwide, and will be offered again in fiscal year 2008. Those who pass the written examination are eligible to take the oral examination, which will be offered in fiscal year 2009.

National Court Interpreter Database. In fiscal year 2007, certified interpreters were offered the opportunity to update their contact information in the web-based National Court Interpreter Database (NCID). At the end of fiscal year 2007, the database contained the names of 891 active certified interpreters and 2,187 otherwise qualified interpreters in 187 languages. The number of otherwise qualified interpreters listed in the NCID grew by 358 in fiscal year 2007.

Telephone Interpreting. The Judiciary's Telephone Interpreting Program (TIP) provides remote interpretation in short proceedings where certified or otherwise qualified court interpreters are not locally available. In fiscal year 2007, the Judiciary's TIP services were used in more than 3,684 events in 38 languages, with Spanish used for 90 percent of events. In total, 48 district courts used the Judiciary's TIP services. There were eight provider courts this year: the Central District of California, District of New Mexico, Northern District of Illinois, Southern District of Florida, District of Columbia, Southern District of California, District of Nebraska, and the District of Rhode Island. Staff interpreters handled 72 percent of the Judiciary's telephone interpreting proceedings, and the other 28 percent of the proceedings were handled by contract interpreters. The Judiciary's TIP saved an estimated $1.1 million in interpreter travel and contract costs in fiscal year 2007, and $5.8 million over the life of the program. More importantly, it ensured that qualified interpreters were available for defendants in court proceedings.

Court Interpreting Fiscal year 2007 events requiring the use of an interpreter

234,462 Spanish 1,547 Mandarin 1,054 Vietnamese 1,052 Russian 836 Cantonese 747 Arabic 704 Korean 623 Portuguese 504 Haitian Creole 418 Foochow

Long-Range Planning
Since becoming planning coordinator for the Judicial Conference's Executive Committee in December 2005, Judge Charles R. Breyer has sought to enhance the Judiciary's ability to identify, communicate, and consider matters of strategic importance to the Judiciary across committee jurisdictional lines.

At the March 2007 long-range planning meeting, committee chairs discussed a range of issues and topics that affect the entire Judiciary over the next 10 years and how to plan for them, including interbranch communication, facilities program developments, technology changes, and staffing trends. All Conference committee chairs were invited to participate.

Ideas generated at the September long-range planning meeting, planning recommendations made by the National Academy of Public Administration, and an assessment of planning approaches used by other organizations will help the AO and the Executive Committee consider changes to the long-range planning process. Underway is an assessment of the 1995 Long Range Plan for the Federal Courts—what has been achieved by the Judiciary in following its recommendations, which recommendations remain unfulfilled, and what trends or developments have not occurred as forecast in the Plan.

Government Accountability Office Studies
The Administrative Office coordinates with Judicial Conference committees and the courts to respond to the GAO's requests for information on behalf of Congress, and to review and comment on GAO draft reports. Fiscal year 2007 was a very active year for GAO studies, especially in the bankruptcy arena. The GAO conducted 18 studies involving the federal Judiciary, eight of which pertained to the impact and effects of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), on the bankruptcy system. Study topics included:

• Costs of implementing BAPCPA
• Bankruptcy Data Collection and Reporting Issues
• Transferring Debtor Information to Child Support Enforcement Agencies
• Effects of the Legislation on Collecting Child Support Obligations
• Bankruptcy Reaffirmations
• Credit Card Penalties and Fees and their Effects on Bankruptcy Filings
• Effects of Corporate Bankruptcies on Employee and Retiree Benefits
• Credit Counseling for Consumers Before Filing for Bankruptcy
• Treatment of Crime Victims in the Federal Court System
• The American Samoa Judicial System
• Challenges Facing the U.S. Asylum System

Other studies included: Audit of Independent Counsel Expenditures; and Provisions on Providing Records with Social Security Numbers to State and Local Public Record Keepers.

Audits
The Administrative Office conducts financial audits, program audits to promote effective and economical business practices in AO and court operations. The AO's Office of Audit administers a comprehensive program of financial audits covering all court units, Judiciary funds, and financial systems. Court audits are conducted on a four-year cycle for most courts, and on a 30-month cycle for larger courts.

In 2007, the Administrative Office issued final reports for 97 cyclical financial audits of the courts. It completed 73 other financial audits, including audits of Chapter 7 trustees, Criminal Justice Act grantees, and audits in response to a change of clerk and to follow-up on prior reviews. One hundred thirty-four debtor audits were conducted in 2007, under BAPCPA Section 603 requirements for Chapter 7 and Chapter 13 debtors, as described elsewhere in this report.