The audit found that DOJ had few internal controls to limit the expense of conference planning and food and beverage costs at DOJ conferences. We identified several conference expenditures that were allowable but appeared to be extravagant. (DOJ Inspector General - Audit Report 11-43 | September 2011)The Inspector General released an accounting report on Tuesday after reviewing 10 conferences held by the Department of Justice between 2008 and 2009. The study showed the DOJ exceeded cost thresholds set for food items served at conferences. Some of the items listed in the report included the following:
$ 5.00 - Swedish Meatballs (per piece)
$ 5.57 - Soda
$ 7.32 - Beef Wellington Appetizer
$ 8.24 - Coffee
$10.00 - Cookies
$16.00 - Muffins
$32.00 - Snack Pack - Cracker Jack, Popcorn and Candy
$41.00 - Breakfast
$58.00 - Dinner at Mt. Vernon Inn (per attendee)
$65.00 - Dinner with General Mukasey (per attendee)
$76.00 - Mission Dolores lunch (per attendee)
A search for the possible reasons for the abuse of taxpayer's money led to the following statement, which could be interpreted as meaning the procurement guidelines are not clear to the event handlers. In fact, it states that the system of procurement is discretionary.
We also found that even though JMD established food and beverage cost thresholds in April 2008 – no more than 150 percent of the GSA per diem meal allocation – DOJ guidelines still provide conference hosts with a large amount of discretion over the food and beverages served at their events. (DOJ Inspector General - Audit Report 11-43 | September 2011 - Page vi)CLICK TO VIEW ALLOWED MEAL ALLOCATION TABLE
The Phd’s and JD's at the Inspector General's Office produced a set of recommendations that will now have to be executed by the appropriate officials at the DOJ and future event handlers. Based on the reading we can only hope that the recipients of the recommendations are also Phd’s and JD's. If they are not, the system will remain exactly that - discretionary. But, isn’t that another word for the “old boys network?”
Recommendations:
We recommend that JMD:1. Work in cooperation with OJP, the OVW, and other awarding components to ensure that conference cost reports include all salaries, benefits, and other costs charged to the government by all associated funding recipients.
We recommend that OJP and the OVW:
2. Require that award recipients using DOJ funds to plan conferences track time and activities performed to plan conferences.
3. Update guidance provided to award recipients to ensure that recipients report all costs associated with time spent planning conferences, including salaries and benefits.
4. Demonstrate that a training and technical assistance provider offers the most cost-effective logistical services before awarding a cooperative agreement that supports conference planning to such a firm.
We recommend that OJP:
5. Remedy $3,454 in questioned costs, and ensure that event planners in the future attempt to minimize consultant travel costs, as applicable, by soliciting bids for sub-awards from entities that are closer to anticipated conference venues.
6. Remedy $29,365 by justifying the need for costs associated with travel, lodging, and food and beverages for attendees at this planning meeting.
7. Ensure that external event planners justify the need for travel, lodging, and food and beverage costs associated with future conference planning meetings.
8. Remedy $102,622 in questioned costs and work with the event planner to approve a future indirect cost rate or allocation plan.
Recommendations
We recommend that JMD:
9. Require that components and their event planners conduct a cost-benefit analysis whenever they justify ordering food and beverages to obtain free meeting space for their conferences.
We recommend that OJP and the OVW:
10. Establish and implement guidelines on conference food and beverage limits for conferences supported with cooperative agreement funds congruent with DOJ-wide rules.We recommend that OJP and the OVW:2. Require that award recipients using DOJ funds to plan conferences track time and activities performed to plan conferences.3. Update guidance provided to award recipients to ensure that recipients report all costs associated with time spent planning conferences, including salaries and benefits.4. Demonstrate that a training and technical assistance provider offers the most cost-effective logistical services before awarding a cooperative agreement that supports conference planning to such a firm.
We recommend that OJP:
5. Remedy $3,454 in questioned costs, and ensure that event planners in the future attempt to minimize consultant travel costs, as applicable, by soliciting bids for sub-awards from entities that are closer to anticipated conference venues.
6. Remedy $29,365 by justifying the need for costs associated with travel, lodging, and food and beverages for attendees at this planning meeting.
7. Ensure that external event planners justify the need for travel, lodging, and food and beverage costs associated with future conference planning meetings.
8. Remedy $102,622 in questioned costs and work with the event planner to approve a future indirect cost rate or allocation plan.
Recommendations
We recommend that JMD:
9. Require that components and their event planners conduct a cost-benefit analysis whenever they justify ordering food and beverages to obtain free meeting space for their conferences.
We recommend that OJP and the OVW:
10. Establish and implement guidelines on conference food and beverage limits for conferences supported with cooperative agreement funds congruent with DOJ-wide rules.We recommend that OJP:5. Remedy $3,454 in questioned costs, and ensure that event planners in the future attempt to minimize consultant travel costs, as applicable, by soliciting bids for sub-awards from entities that are closer to anticipated conference venues.6. Remedy $29,365 by justifying the need for costs associated with travel, lodging, and food and beverages for attendees at this planning meeting.7. Ensure that external event planners justify the need for travel, lodging, and food and beverage costs associated with future conference planning meetings.8. Remedy $102,622 in questioned costs and work with the event planner to approve a future indirect cost rate or allocation plan.
Recommendations
We recommend that JMD:
9. Require that components and their event planners conduct a cost-benefit analysis whenever they justify ordering food and beverages to obtain free meeting space for their conferences.
We recommend that OJP and the OVW:
10. Establish and implement guidelines on conference food and beverage limits for conferences supported with cooperative agreement funds congruent with DOJ-wide rules.RecommendationsWe recommend that JMD:9. Require that components and their event planners conduct a cost-benefit analysis whenever they justify ordering food and beverages to obtain free meeting space for their conferences.
We recommend that OJP and the OVW:
10. Establish and implement guidelines on conference food and beverage limits for conferences supported with cooperative agreement funds congruent with DOJ-wide rules.We recommend that OJP and the OVW:10. Establish and implement guidelines on conference food and beverage limits for conferences supported with cooperative agreement funds congruent with DOJ-wide rules.
