Social Security's Regional Management Conference at the Arizona Biltmore last July led to adverse press attention for the agency. Senator Charles Grassley, the Ranking Minority Member of the Senate Finance Committee, asked for a report by Social Security's Office of Inspector General (OIG) on the conference. Here are some excerpts from the recently released report:
In general, we found most of the approximately $675,000 in costs incurred at the Training Forum was properly supported and in compliance with Agency guidance and applicable laws and regulations (see cost breakout in the table below). However, we question whether approximately $13,400 spent on reception refreshments was allowable, since the reception did not meet the established criteria for such refreshments. We also found the Region accepted gifts and donations from outside sources for the conference, which may be inconsistent with ethical guidelines and other policies. In addition, we found that regional staff could have maintained better contract procurement documentation related to the trainers. ...The Training Forum was held at the Arizona Biltmore Hotel, which was selected as part of a competitive bidding process. The Region contracted with a private firm representing the Hotel to supply the necessary space as well as meals and refreshments. The bid related to the Hotel stated it had 738 guest accommodations and restaurants on-site as well as proximity to off-site restaurants, shopping, and airport shuttle transportation.
The Hotel charged $85.51 per room per night, which was below the Government per diem of $96 per room per night. ...
A number of non-governmental organizations donated items to the conference (see Appendix F) that were later used as free employee door prizes. We believe the Agency’s acceptance of such donations was inappropriate for a number of reasons. First, we believe the acceptance of outside donations may be mistaken for SSA’s endorsement of a product. For example, Blue Cross/Blue Shield donated small items, such as pens, dental floss, and key chains with flashlights. Since Blue Cross/Blue Shield is one of many companies that provide health insurance to SSA employees, the acceptance and distribution of such items to SSA employees may be interpreted as SSA’s endorsement of this company’s product. ...
The Region also accepted a donation of the services of a disc jockey from the San Francisco Region Management Association (SFRMA) at the opening night reception, a service that regional managers estimated would have cost about $1,200. The receipt of such services appears to violate the voluntary services prohibition of the Antideficiency Act.
Office of Inspector General (OIG),used the words,in general,and from reading this excerpt,it seems oig done a fair or impartial report.
ReplyDeletePersonally,when i originally heard this story,i did not like it.
I won an Oakland A's T-shirt. I won't give it back. Thankfully I no longer have the Blue Cross dental floss. There may be a warrant out for my arrest.
ReplyDeleteFrom the report:
ReplyDelete"Blue Cross/Blue Shield donated small items, such as pens, dental floss, and key chains with flashlights. Since Blue Cross/Blue Shield is one of many companies that provide health insurance to SSA employees, the acceptance and distribution of such items to SSA employees may be interpreted as SSA’s endorsement of this company’s product. ..."
Suppose it could be interpreted that way, especially if'n one was inclined to question any relationship a government entity might have with a company as dubious.
Suppose, though, it could also be interpreted as a sign of fidelity and goodwill on the part of BCBS as a partner of SSA. Dental floss and pens and flashlights are nice to have, welcoming, one might say, when staying at a conference.
So it's ok for government money to pay for employees' premiums to BCBS, but it's not ok for BCBS to volunteer to give back to a client with some small, welcoming trinkets at a conference?
This is not even about whether there were legal or ethical violations--the whole thing was just a huge waste of taxpayers' money from start to finish. There was no legitimate justification for the whole junket, period.
ReplyDeleteIt's a CYA...they give SSA a pass on the conference itself and worry about the meaningless giveaways. Somehow I don't think giving away pens means widespread Government corruption.
ReplyDeleteOne good thing-maybe they'll eliminate those ridiculous diversity conferences, which are truly a waste of money.
I went to training conference for front line employees in Long Beach California and I don't recall receiving a Oakland A's T - shirt. I guess ethical guidelines are only for the little guys. Someone should be suspended for wasting taxpayers money!
ReplyDeleteA disc jockey for free. It must have been Boogie Wonderland.
ReplyDeleteOh come on, folks. This is the standard-across-government regional meeting. They got a good rate at a good conference center. There's nothing remotely unusual or unethical about any of it.
ReplyDeleteIn regards to the disc jockey the report states, SSA did not provide any evidence of a document agreement for gratuitous services. Do we have discogate on our hands? Finally, $13 ,400 for hors d'oeuvres? Sounds good!
ReplyDelete