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GAO-04-618R 1 (2004-04-30)

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  SGAO

       Accountability * Integrity  Reliability
United States General Accounting Office
Washington, DC 20548


         April 30, 2004

         The Honorable Charles E. Grassley
         Chairman
         The Honorable Max Baucus
         Ranking Minority Member
         Committee on Finance
         United States Senate

         Subject: HHS OIG: Allegations of Misspending Were Unsubstantiated

         The Department of Health and Human Service's (HHS) Office of Inspector General
         (OIG) plays a vital role in auditing and investigating allegations of fraud and abuse in
         federal health and welfare programs. Because it independently evaluates various
         programs, activities, and functions, the OIG must act with integrity at all times. In the
         fall of 2003, anonymous allegations charged that certain officials in the HHS OIG's
         Office of Evaluation and Inspections (OEI) sponsored training and management
         meetings for nonwork purposes and improperly renovated a regional office.

         The allegations primarily focused on the actions of the Acting OEI Deputy Inspector
         General in relation to specific events that took place from July through September
         2003. The allegations charged that she (1) sponsored training at a Florida resort to
         facilitate vacation time for staff, (2) scheduled several follow-up training meetings as
         a way of providing staff with leisure time, and (3) held a managers' meeting in New
         York as a pretext for participants to attend a retirement celebration for one of OEI's
         managers. A fourth allegation charged that the Acting OEI Deputy Inspector General,
         along with an Acting OEI Regional Inspector General, improperly renovated and
         refurnished office space in one of OEI's regions. At your request, this report
         examines these allegations.

         To perform our work, we examined documentation-such as meeting agendas,
         approval documents, and travel vouchers-related to the allegations; conducted
         interviews with OIG officials, including managers and participants in events related
         to the allegations; and reviewed relevant HHS and OIG conference planning and
         procurement policies and the General Services Administration (GSA) office
         renovation guidelines.' We determined OEI officials' rationale for their decisions,
         steps taken to plan or approve various events, and the extent of involvement by those
         accused of wrongdoing. Our work assessed the allegations that meetings were held


         'GSA is responsible for managing federal property and procurements and promulgating guidance and
         regulations for both activities.


GAO-04-618R Review of Allegations at HHS OIG

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