Answer

Most of the AG opinions on proper billing practices have to do with attorneys billing clients through a retainer or a flat rate. But the concept is the same for any professional service paid for through a retainer or a flat fee. The AG has said that for such contracts to be lawful and not violate Art. 7 Section 14 of the Louisiana Constitution, payments should not be made prior to the work being performed, and the work must be actually performed every month (AG Opinion No. 91-0589-A). Reiterating AG Opinion No. 06-0155, the AG said: "In order for a flat rate contract to be lawful, the municipality can only pay for legal services which are actually rendered, and may not pre-pay for future services. Therefore, in the situation described, where there is no advance payment and the work is actually performed each month, such a contract would be valid and the payments made under such contract would be constitutional." Simply put, a public entity can only pay for actual work performed. Some method of substantiation must be provided to show the work was actually performed and the time that was actually used to perform the work; otherwise it is a violation of Article 7, Section 14. Louisiana Legislative Auditor website: 07/16/2025 03:36:51 AM