Author Topic: Smithsonian Head's Expenses 'Lavish,' Audit Says  (Read 7232 times)

BayGBM

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #25 on: May 17, 2007, 02:51:26 PM »
This guy earned more than the President of the USA for working at the Smithsonian?  >:( :o

BayGBM

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #26 on: June 20, 2007, 10:07:29 AM »
Report Slams Small's Tenure
Smithsonian Had 'Ill-Suited' Leader
By James V. Grimaldi, Washington Post Staff Writer

Former Smithsonian secretary Lawrence M. Small took nearly 10 weeks of vacation a year during seven years running the vast museum complex and was absent from his job 550 workdays while earning $5.7 million on outside work, according to an independent commission report to be released today.

The Smithsonian's second-ranking official, Sheila P. Burke, was absent from her job as deputy secretary for 400 days while earning $10 million over six years on non-museum work.

The report, obtained yesterday by The Washington Post, concluded that Small "created an imperialistic and insular culture" that discouraged dissent, kept secrets and limited the flow of information to the Board of Regents, whose job it was to hire and oversee Small.

"Mr. Small's management style -- limiting his interaction to a small number of Smithsonian senior executives and discouraging those who disagreed with him -- was a significant factor in creating the problems faced by the Smithsonian today," the report concluded. "His attitude and disposition were ill-suited to public service and to an institution that relies so heavily, as the Smithsonian does, on federal government support."

The report also found that Small's fundraising ability, which earlier had been used to justify his salary and housing allowance, was less effective than that of his predecessor, I. Michael Heyman, who raised more money his last year on the job than Small did in 2006. The report found that fundraising declined and business revenues dropped during Small's tenure, "making the Smithsonian more reliant on federal appropriations and grants."

The 108-page executive report to be released today was prepared by an independent panel led by former U.S. comptroller general Charles A. Bowsher with the assistance of the Williams & Connolly and Arnold & Porter law firms. The panel investigated lavish spending and management at the nationally revered 160-year-old institution, which encompasses 18 museums and the National Zoo.

Roger Sant, chairman of the regents' executive committee, said in a statement last night that the regents were "sobered by the findings on executive compensation, financial controls and ineffective policies. We take all the findings very seriously. . . . We have identified and are learning from our mistakes. We are now turning the corner."

The review committee was formed by the regents following reports about unauthorized expenditures, including charges for chartered jet travel, Small's wife's trip to Cambodia, luxury car service, hotel rooms and expensive gifts. On Monday, in anticipation of the report, the regents announced management reforms.

Small, while taking substantial time off, earned his full salary -- $915,568 his last year on the job -- because he was permitted unlimited leave. Burke, who also had no restrictions on leave, earned $400,000 in her last year on the job. The terms of Burke's employment were known in most instances only to Small and Burke. Information about Burke's outside employment and activities on more than a dozen nonprofit boards and commissions was not shared with the Board of Regents, the report found.

Small resigned in March and Burke announced her resignation on Monday on the eve of the independent review report.

The investigators found that "Mr. Small placed too much emphasis on his compensation and expenses." Small's compensation far exceeded that of prior Smithsonian secretaries -- 42 percent higher than his predecessor's when he began in 2000 and 250 percent higher when he left seven years later.

Small "aggressively guarded each and every element of what he viewed as his rightful compensation package," including his $150,000-a-year housing allowance. Small's contract stated that the allowance was meant to compensate Small for his use of his home for job-related entertainment, but the review board determined that it was "simply additional salary."

Earlier this year, the Smithsonian inspector general wrote a confidential report, later obtained by The Post, finding that Small had $90,000 in unauthorized expenses. When two top institution officials attempted to modify the terms of his contract, Small objected.

"I'm not willing to discuss giving up one iota of what the institution agreed to provide me before I came to work," Small wrote in an e-mail. "It would represent the highest form of naiveté to think . . . I would entertain some form of 'give up.' "

Small further demanded that the Smithsonian pay his attorney's fees if he needed legal counsel and suggested that if he lost his first-class travel he would demand an increase in his housing allowance. He also insisted that the two officials, James Hobbins, his executive secretary, and John Huerta, the general counsel of the Smithsonian, not disclose the discussions to the Board of Regents or to Sant, who also chairs the board's audit committee.

"I do not want any of my comments passed along to Roger," Small wrote in an e-mail. "We shouldn't go to Roger until we are completely comfortable that any proposed amendment is good for the institution, good for me, is economically equivalent to the existing arrangement and . . . protects everyone from adverse consequences."

The independent committee criticized Small's hiring by "a very small group of regents." That group included Chief Justice William Rehnquist, former senator Howard Baker (R-Tenn.), Rep. Barber B. Conable Jr. (R-N.Y.) and Wesley S. Williams Jr., a former partner at Covington & Burling law firm.

The report stated that there was little review of Small's salary demands or of his subsequent increases. In 2001, for example, Small requested that his salary be placed at the 75th percentile of what Smithsonian management had chosen as comparable institutions, while other senior staff received salaries at the 50th percentile.

The independent committee also called on the Smithsonian to audit all expenditures by Small. The report said that "Mr. Small and his staff exercised sole discretion in determining which expenses would be charged to the Smithsonian."

Smithsonian officials had defended Small's salary and housing allowance earlier this year by saying that Small had been a prolific fundraiser, "personally" raising about $1 billion. However, the independent review committee found that many of the largest gifts in Small's tenure had been initiated by predecessor Heyman.

While Small helped bring in three large donations totaling $155 million, "those donations originated from the work of others," the report stated.

The committee found that Small, who received a $1.1 million housing allowance for making his home available for institution fundraising, rarely did so. Small entertained 47 donors at 18 fundraising events at his home from 2000 to 2007, mostly in the early years of his tenure.

"Calculated as a per person venue fee for fund-raising, this works out to be over $25,000 per potential donor or almost $70,000 per fund-raising event," the report said.

bigdumbbell

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #27 on: June 20, 2007, 12:27:42 PM »
Some white supremist dude would probably rape him too, along with a northern mexican. There, are you happy now?  ;D
LOL  some members of GB are sooooooo politically correct

BayGBM

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #28 on: August 01, 2007, 05:13:36 PM »
Smithsonian Replaces Business Chief
By James V. Grimaldi and Jacqueline Trescott
Wednesday, August 1, 2007; 4:10 PM

The Smithsonian Institution today replaced Gary M. Beer as chief executive of the museum complex's embattled business unit after an inspector general's report found that he had abused his institution-issued credit card and billed $95,000 in expenditures that were unauthorized or lacked evidence of a business purpose.

Acting Smithsonian Secretary Cristián Samper named Tom Ott, president of Smithsonian Publishing, as the acting chief executive of Smithsonian Business Ventures. Ott, 48, immediately replaces Beer, the founding chief executive of the unit who had announced he would remain on the job until September when his contract ended. The early departure was "by mutual agreement," Samper said. "We wanted to turn that page."

Samper said today he would direct Beer to reimburse the Smithsonian $30,000 for unauthorized expenses and those that were deemed "unsupported," or lacking documents to justify them as reasonable business expenses. Samper also said the Smithsonian would reclassify about $65,000 in inadequately substantiated expenses as reportable income, meaning Beer might have to pay additional income taxes.

Smithsonian policy was violated when Beer used his credit card for personal expenses and when Beer's credit card bills were paid by the Smithsonian directly instead of Beer paying them himself and seeking reimbursement after justifying his expenses, Smithsonian Inspector General A. Sprightley Ryan found in a report released today.

Beer's attorney, Leslie Berger Kiernan, said a nine-page letter to the Smithsonian that Beer had done nothing wrong. She blasted the inspector general's 16-month investigation of Beer and the business unit, saying the probe had "devolved into an inquisition" and the final report "falsely and publicly smears Mr. Beer and the institution itself."

"This is a case about misplaced records, not misappropriated funds," Kiernan said. "There is no evidence that any of the expenses at issue were incurred for Mr. Beer's personal benefit and all evidence that is now available show that they were incurred during routine business travel, for business dinners and other obvious business purposes."

In a congressional hearing today, Rep. Doris Matsui (D-Calif.), a member of the Smithsonian's governing board, said the situation at the business ventures unit "is something where we believe we found gross problems. I would call it a misadventure."

Beer, a former executive of the Sundance Institute, came to the Smithsonian in 1999 shortly after the institution created the separate business unit to run museum shops, theaters, concessions and publications and forge new business ventures. At the time, outside consultants predicted the stores would make twice as much money. But Smithsonian Business Ventures profits fell 14 percent, from $27.9 million in 1999 to $23.9 million in 2006.

The review of Beer's expenses from 2000-2005 also found that a subordinate routinely approved Beer's expenses, although the unit followed no written expense-account policy.

"Such practices do not set the proper tone, especially for an entity that is part of a nonprofit organization," Ryan said.

The investigation found that Beer used a limousine service about 160 times, costing $30,000. While deemed to be unauthorized under Smithsonian policy, Ryan did not recommend that he reimburse most of that amount because she determined it would be impractical to calculate which uses of car service were appropriate and which were not.

Beer contended that a car service was more efficient and that the unwritten Smithsonian Business Ventures policy permitted use of a car service. Ryan noted that other Smithsonian executives knew that he was using chauffeured cars.

Samper ordered a review of the Smithsonian travel regulations to comport with Federal Travel Regulations and said he would review policies regarding the use of car services. He also said he had appointed a task force to review the structure of the eight-year-old business unit.

The investigation of Beer's compensation and expenses has been mired in controversy since it was launched in March 2006. Ryan's predecessor, Debra S. Ritt, launched the investigation, but resigned after then-Secretary Lawrence M. Small called her and asked her not to conduct the review.

In January, Ryan completed a review of Smithsonian and business-unit compensation, but filed a separate memo, she stamped "confidential," regarding $90,000 in unauthorized expenses. Details of that confidential report appeared in The Washington Post in February and March, and Small resigned March 24.

The Beer report had been due in the spring. But, in recent months, Ryan has been battling with Kiernan, a white-collar criminal and ethics specialist of Zuckerman Spaeder LLP. Kiernan said that Beer first received a draft of the inspector general's report in May. When Beer voiced objections, Ryan told Kiernan that she would "further review" her draft, Kiernan said. Ryan then provided another draft of the report on July 9. Kiernan said the final draft "changed course again."

Ryan said that documents kept by Smithsonian Business Ventures, which Beer oversaw, were a mess, making the investigation "protracted and difficult."

Kiernan said it was Smithsonian Business Ventures' fault for the disarray of documents, most of which are filed away in 800 cardboard boxes in storage. The inspector general's "recommendations rest on the legally unsupportable premise that Mr. Beer should be held personally responsible for the Smithsonian's failure to locate years-old accounting records."

The inspector general also found that Smithsonian Business Ventures did not have a written policy regarding business expenses. Beer told the inspector general that the unit did have a policy, but it was not written and was different from Smithsonian policy. The policy, according to the inspector general, "consisted of the controller reviewing the CEO's travel card statements and other expense documentation for reasonableness."

The Smithsonian travel office warned Smithsonian Business Ventures that Beer's personal use and local use of his Smithsonian-issued Citibank card were improper, but never canceled the card or imposed sanctions for repeated violations because the business unit "claimed not to be subject to the rules," the inspector general said.

"We believe it was inconsistent with reasonable business practice for an organization with annual revenues exceeding $150 million not to have a written expenses policy," Ryan wrote.

Beer also was not required to submit formal vouchers or expense-account reports required by other Smithsonian Business Ventures employees, the controller, Robert Schelin, told the inspector general.

Beer's attorney submitted to the investigators a sworn declaration from Schelin asserting that "in his view all expenses submitted were reasonable, in furtherance of SBV's mission and supported contemporaneously by adequate documentation."

The inspector general found a repeated practice of paying advances on Beer's credit card -- so much so that the card carried a credit for 36 of the 60 months reviewed. Ryan pointed to a memo sent by Beer's assistant to the controller in December 2004. "The balance due on [the] account is 7,237.09, which is due by Jan. 6, 2005. Do you want to issue a check for $10,000?" The controller responded with a handwritten note, "Approved for Payment; Bills to be reconciled."

BayGBM

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #29 on: August 09, 2007, 07:24:59 AM »
Smithsonian Official Quits After Records Destroyed
Hobbins Had Key Role In Hiring and Upkeep Of Ex-Secretary Small
By James V. Grimaldi
Washington Post Staff Writer
Wednesday, August 8, 2007; C01


A top Smithsonian official has resigned after he destroyed records from a key Smithsonian Board of Regents meeting.

James M. Hobbins, 64, executive assistant to the secretary of the Smithsonian, has acknowledged destroying transcripts from a meeting in January when regents discussed then-Secretary Lawrence M. Small's compensation, housing allowance and travel expenses among other things, according to people who insisted on remaining anonymous because of the sensitivity of the case.

The sources said the documents were destroyed after Smithsonian General Counsel John Huerta sent a memo to employees in March to retain documents. The directive came after the Senate Finance Committee began investigating the Smithsonian in early February and an independent review committee established by the regents later that month specifically requested the minutes and other records from meetings.

"I can't comment on this particular case," Huerta said, "but copies have been preserved. A complete set was provided to the independent review committee" that investigated alleged abuses at the institution.

Hobbins declined requests for an interview. His attorney, Thomas Sawyer, said the transcripts were "transitional documents. They were intended for the purpose of assisting in the preparation of minutes of the board meeting.

"Jim regrets the current situation with respect to the Smithsonian," Sawyer said. "That's why he voluntarily stepped down after 40 years, and his deep personal commitment to the institution will continue. He's resigned because he is putting the interests of the Smithsonian first." The transcript of the January meeting included discussion about how to respond to a confidential report from the Smithsonian Inspector General's Office that Small had run up nearly $90,000 in unauthorized expenses from 2000 to 2005, minutes obtained by The Post show.

At the meeting, the regents retroactively approved spending for Small's air travel, car service, gifts and his wife's unauthorized trip to Cambodia. The regents also retroactively approved an unauthorized bonus Small had awarded to Hobbins.

Sawyer said it was standard procedure for Hobbins to destroy the transcripts after minutes of the meeting were compiled. "This is a practice that has been regularly followed since the middle 1980s."

A court reporter's service has been used over the years to transcribe regents' meetings. The transcripts were used to compile the minutes. Neither the minutes nor the transcripts are made public.

Smithsonian officials said they would not discuss personnel matters. Officials who asked not to be named said that because of his years of service, Hobbins was permitted to retire.

"Jim Hobbins is a great guy -- as dedicated to the Smithsonian as anyone I've ever met," said Roger Sant, chairman of the regents' executive committee. "His record over 40 years was filled with acts of complete devotion to the institution and the people he served. He never shunned a task, regardless of the time of day or his personal circumstances. He loved the place and we already miss him greatly."

Destroying documents requested by congressional investigators could be a crime, depending on the circumstances, but Huerta and Smithsonian Inspector General A. Sprightley Ryan declined to say whether the matter was being investigated.

Sen. Charles E. Grassley (R-Iowa), who initiated the Senate Finance Committee's investigation, said, "It's hard to see how someone could have destroyed records after getting explicit instructions to preserve them for a congressional investigation. That makes you think there was something to hide. I intend to get a full explanation from the Smithsonian about why this happened, whether the Smithsonian handled it adequately, and whether it merits external review. I also want assurances that it won't happen again."

Minutes from the January meeting, obtained by The Post earlier this year, include three pages summarizing the executive committee's report on compensation of senior executives and changes made to Small's employment agreement but do not include comments from regents. The minutes are labeled "for administrative purposes only."

Hobbins played a key role at the Smithsonian. He was the primary liaison between the Smithsonian secretary and the Board of Regents, the body established by Congress to oversee what has become the world's largest museum complex. Federal funds and grants provide about three-quarters of the Smithsonian's $1 billion budget.

Hobbins shepherded many aspects of Small's employment through the bureaucracy. Many of those actions were sternly criticized by the independent review committee. In 1999, he drafted Small's initial employment agreement after the former Fannie Mae banker was selected to be the institution's 11th secretary. In 2000 and 2001, Hobbins gave Small signed, blanket travel authorizations, filling in the spot for "traveler's supervisor." Hobbins also was the official who was notified by Small in 2000 that a hypothetical mortgage payment would be used to collect a $150,000-a-year housing allowance. (Small had no mortgage payments because he owned his house outright.)

After the inspector general began her review, Hobbins was one of the officials in the secretary's office who said that Small had the right to waive any policy that applied to the secretary. Ryan and the independent panel found no authority for Small to do so.

Hired as a historian in 1967, Hobbins worked as assistant to the secretary for S. Dillon Ripley, Robert McCormick Adams, I. Michael Heyman and Small. He also briefly worked for acting Secretary Cristián Samper, who announced Hobbins's retirement in an e-mail to employees two weeks ago.

Hobbins was known for his loyalty to the office of the Smithsonian secretary, and the secretaries frequently acknowledged his dedication. In 1999, Heyman gave him an award with a citation that read, "Jim Hobbins has served the Smithsonian with enormous dedication, discretion, fair-mindedness and good will, acting as the Secretary's chief advisor, confidant, and institutional memory."

The inspector general's review found the unauthorized $4,800 bonus that Small gave Hobbins six months into Small's tenure. Ryan said the bonus did not qualify under Smithsonian policy for either "cash awards for sustained superior performance" or "special acts or services." At the January meeting, the regents found that the bonus, "while technically unauthorized, was justified."

Hobbins's salary under Small increased from about $138,000 in 2000 to $190,000 in 2006, a 38 percent increase over seven years. The inspector general's report on compensation said that the base pay for a Cabinet secretary in 2006 was $183,500.

Hobbins was instrumental in selecting Small, according to the independent review committee. Hobbins supported "a very small group of regents" in recruiting and hiring Small. "The record shows the agreement was drafted by Mr. Hobbins (who is not a lawyer), and provided to the General Counsel [Huerta] and other lawyers in the General Counsel's office before it was finalized, but after the terms had been worked out with Mr. Small," the independent panel said.

The review panel called the agreement "inadequate at best, with key terms and provisions both vague and internally contradictory."

Early this year, Huerta proposed changes to Small's contract to make clear that the housing allowance was additional income. Small replied that the negotiations were to be with Huerta and Hobbins only -- and that Sant was not to be notified.

"I do not want any of my comments passed along to Roger," Small told Hobbins and Huerta in an e-mail. "This is strictly a discussion that you, Jim and I are having."

BayGBM

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #30 on: December 28, 2007, 06:43:48 AM »
Indian Museum Director Spent Lavishly on Travel
By James V. Grimaldi and Jacqueline Trescott

The founding director of the Smithsonian's National Museum of the American Indian spent more than $250,000 in institution funds over the past four years on first-class transportation and plush lodging in hotels around the world, including more than a dozen trips to Paris.

In that time, W. Richard West Jr. was away from Washington traveling for 576 days on trips that included speaking engagements, fundraising and work for other nonprofit groups, according to a review of travel vouchers for West's trips obtained by The Washington Post.

West's travel often took him far from American Indian culture: Auckland and Wellington, New Zealand; Athens; Bali, Indonesia; Sydney and Brisbane; London; Singapore; Florence, Rome and Venice; Paris; Gothenburg, Sweden; Seville, Spain; Seoul; Vienna; and Zagreb, Croatia.

At the time, top Smithsonian officials were allowed unlimited leave with pay. "At all times," West said, "my travel authorizations and reimbursements, and their direct connection to NMAI and Smithsonian business, were reviewed and approved fully by my supervisors.

"There is no point at which these activities were being carried on in anything but an open way and with the approval of the Smithsonian."

Smithsonian officials have been under scrutiny since earlier this year following revelations about spending abuses by then-Secretary Lawrence M. Small. An independent panel sharply criticized Small and Sheila Burke, his top deputy, for taking too much time away from the office.

Small and Burke were West's supervisors. The unlimited-leave policy was changed after the Small scandal. Small resigned in March and Burke left in September.

West said the congressional mandate that established the museum called for him to be a global emissary for the Indian Museum's mission. He said that on occasion the museum was reimbursed for his trips by sponsoring parties.

"Travel was required almost from the get-go," West said in an interview yesterday. He distanced himself from Small and Burke, who both were away for service as corporate directors. "I was not wandering off to corporate board meetings," West said. "I don't sit on any corporate boards. The only boards I sit on are nonprofit."

West has been in charge of museum staff since 1989, when he was hired to oversee planning for the flagship museum. He also supervised the opening of the George Gustav Heye Center in New York five years later and the Cultural Resources Center in Suitland five years after that. In September 2004, West oversaw the opening of the Indian Museum, which covers Native American life and culture from the borders of Canada through South America.

West, a 64-year-old Harvard-trained historian and member of the Cheyenne and Arapaho tribes, led a campaign to raise $155 million in private funds, which helped pay for the museum's construction and the Suitland facility.

Much of West's travel occurred in conjunction with his service on outside boards. He served as chairman of the board of the American Association of Museums from 1998 to 2000 and is a vice president of the International Council of Museums. He is also a trustee at Stanford University, where he earned a law degree in 1971, and serves on the board at the Ford Foundation.

Both Stanford and Ford pay for board members' travel, but West said he billed the Smithsonian for parts of some of those trips because he worked on museum business while traveling.

"Rick was rarely at the museum," said Ann Ruttle, a financial specialist at the museum from 2003 to 2006, and prior to that at the Smithsonian's main offices, where she worked extensively with institutional travel records. "I believe Rick had the most travel of any museum director."

Ruttle said she prepared a report for her superiors in 2002 showing that the Indian Museum had the most travel of any of the Smithsonian's 18 museums. She said West's extensive travel was well known throughout the institution. "I thought his travel would wane once the museum opened, but it didn't," Ruttle said.

West traveled more frequently than Small or Burke. Small was absent 403 days in the past decade and Burke 546 days in the past six years.

West, who recently retired, remains on the payroll until the end of the year. He is on the search committee interviewing candidates to replace Small.

More than two dozen of West's trips included multiple stops. One 23-day trip costing more than $18,000 began in February and stretched into March and included stops in the American Southwest, Australia, New Zealand and Paris.

While some trips had only a peripheral connection to his museum duties, others were in line with Smithsonian business. He traveled to Oklahoma and Florida for memorial services for a former board member and the funeral of the Smithsonian official who ran the museum's fundraising campaign. He visited Opera Omaha and the American Indian Center of Chicago to discuss collaborations, and made trips to visit tribes in Kansas and Montana.

Many of his four dozen trips to New York, for example, were attributed to business related to the Indian Museum's galleries at the George Gustav Heye Center in Manhattan.

Expenses for the New York trips often ran more than $1,000 a night. On one occasion last year he stayed in a $559-a-night room at the W Hotel, and on another he billed the Smithsonian for a $286 meal with filmmaker and photographer Gwendolen Cates during which most of the tab went for alcoholic beverages, including a $75 bottle of Italian wine, a 1997 Barbaresco. West said Cates was an extraordinary filmmaker who premiered a movie about a Native American ballet dancer at the museum.

Other travel authorization forms cited vague reasons. For example, the purpose given for a 15-day, $19,878 trip last year to Athens, Singapore, Australia, New Zealand and Peru was "speeches or presentations."

Also last year, West charged the Smithsonian $6,000 for travel over 33 days from Eugene, Ore., to various destinations, including Albuquerque, New York and San Diego. West's voucher said the purpose of the travel was for "speeches, conferences, teaching." At the time of the trip, West was on a month-long appointment as a visiting chair of law at the University of Oregon. But he remained on the Smithsonian payroll because -- like Small, Burke and other Smithsonian museum directors -- West was allowed unlimited leave with pay.

A University of Oregon spokeswoman said it also paid West: $27,765 in salary for the month and about $4,000 for travel, including a separate check of $265 to the Smithsonian for part of his flight to Eugene.

Smithsonian spokeswoman Linda St. Thomas said West kept up with his Smithsonian duties while he was in Oregon. "During this month," St. Thomas said, "he talked to his museum staff daily and kept up with e-mails and cellphone calls."

St. Thomas said West did not charge the Smithsonian for his initial flight to Oregon and his final trip home.

The Post's review showed that West often charged for trips to New Mexico, where he has said he might move during his retirement.

One excursion to Santa Fe in 2005 included a six-day stopover in Park City, Utah, to attend the Sundance Film Festival, where West dined with Sundance's founder, actor Robert Redford. West and his wife, Mary Beth, billed the Smithsonian $440 per night for lodging during the Sundance trip.

All the trips were authorized by Burke, the institution's chief operating officer, according to St. Thomas, who said she spoke with Burke yesterday. Burke did not return phone calls seeking comment.

West's total compensation as of 2004 was $292,000 a year, according to the institution's tax returns. West's former law partner and longtime friend Kevin Gover, a former Clinton administration appointee, took over as head of the museum on Dec. 3 after West supported his appointment.

"I am grateful," West said, "for at least the past year to have been the highest-paid director of a museum in the Smithsonian. Even at that status I have yet to earn even two-thirds of what I earned as a private attorney in my last year" in private practice.

Stepped-Up Scrutiny
The disclosures about West's travel have come in a year in which Congress and its investigative arm, the Government Accountability Office, have criticized the Smithsonian for permitting a $2.5 billion backlog of physical-plant projects to accumulate, including leaks in the museum's Suitland facility.

Although West's spending continued even after Congress this year stepped up oversight of the Smithsonian, e-mails obtained by The Post show that West and his staff became increasingly wary about how his spending would be perceived if it was made public.

After Small resigned, West and others inside the Smithsonian became more sensitive to the "appropriate concern that recently has been expressed by the Congress over the handling of expenses by the Smithsonian," according to a memo from West to the Smithsonian's general counsel.

An authorized $20,000 West trip to Zagreb was canceled, according to Smithsonian records. West said the trip went forward but was paid for by the State Department. Also, West said some months ago he ceased using chauffeured cars, saying their use "was not appropriate from an appearances standpoint."

West's past trips show a pattern of Smithsonian-paid travel near Palo Alto, Calif., where he served on the Stanford board. He made seven trips to Palo Alto and five to nearby San Francisco -- often stopovers during extensive trips, sometimes overseas. One reason given for one of the California trips, for example, was "donor meetings."

Four of West's most expensive Smithsonian-paid trips were to Venice. The only reason he gave for the first trip in 2003 was to "Attend Development Meeting in Venice." In the interview, West said the purpose was to prepare an entry for the Venice Biennale, an international art show. The $5,200 trip included $2,000 for four nights at the Hotel Londra Palace near St. Mark's Square.

West's travel voucher includes an explanation for the steep cost of the lodging: "Hotel reservation was lost due to hotel error. Traveler had to move to best available hotel, hence additional costs." West said the room provided him with a large enough space to hold a reception, thus saving him the cost of renting a banquet room.

West again traveled to Venice in 2005, leading a party of Indian Museum officials to the Biennale. The museum sponsored an exhibit at the show by Native American artist James A. Luna. In addition to picking up the $13,000 cost for West, the museum also paid $20,000 for at least three other museum officials, including board chairman Dwight Gourneau and his granddaughter. "We wanted one of our trustees to see what it was all about," West said.

Entering the show was part of the museum's strategic plan. "We got all kinds of important press," West said. "I think you actually get far more bang for your buck" from entering an international art show than from putting on a program at the Indian Museum on the Mall.

At least 10 of West's 26 Smithsonian-paid international trips were to attend meetings of the International Council of Museums, records show. The group, which is affiliated with UNESCO -- the United Nations Educational, Scientific and Cultural Organization -- is headquartered in Paris and has members from 140 countries.

In February 2005, West went to an ICOM meeting in Paris, where he spent $580 on limousine service. The Smithsonian-paid $12,700 trip continued on to Bali and Jakarta, Indonesia, where West indicated he went for a Ford Foundation meeting, and then on to Singapore.

West said the purpose of the Jakarta meeting was to help the Indonesian Cultural Ministry find funding for arts programs from groups such as the Ford Foundation.

Last year, in a Post interview, West said he is considering buying land on Bali and would love to live there part of the time. "I love being in context, where it is culturally rich," West said. After that first trip to Bali, he began to travel more frequently to the region, particularly to Singapore, Australia and New Zealand.

In June 2005, West went to Canberra, Australia, as part of his four-nation journey that included stops in Athens, Singapore, and Lima and Cuzco, Peru. The reason cited for the latter trip, which cost the Smithsonian about $20,000, was "Speech or presentation: Travel to Athens and Singapore for meetings with ICOM chiefs, travel to Canberra, Australia, and Lima/Cuzco, Peru for speeches."

Officials with ICOM and the American Association of Museums said the groups do not reimburse for trips. "The institution is a membership association," said Alissandra Cummins, president of ICOM. "It is voluntary. The general rule is the members, when they are seeking election, the responsibility to attend the meetings is their responsibility."

Edward Able Jr., former president of AAM, said West was "in great demand by the international museums" on how to preserve and present the cultures of indigenous peoples.

An independent review committee, formed after Small resigned, recommended that top officials of the Smithsonian should get approval from the regents for "any outside activities, including service on any other professional service boards and teaching and lecturing obligations, weighing carefully the time commitments needed and the benefits to the Smithsonian." The committee also suggested that any compensation received "should not be kept by the individual, but should be turned over to the Smithsonian for the benefit of the Institution."

Beginning in October, the Smithsonian rescinded the unlimited-leave policy and then provided the managers accumulated leave. West got 23 days of leave, which he is taking this month.

In 2005, West attended the ICOM meeting in Vienna, and then went to Paris for an unspecified purpose. One trip, costing more than $16,000, was a 2006 journey to Rome, Paris and Palo Alto for "AAM/ICOM/Stanford."

The Cost of Farewell
Late this year, a series of Smithsonian-sponsored farewell events were held to honor West, including staff lunches in Washington and New York, cocktail receptions in Washington and Los Angeles and a gala dinner at the Indian Museum in September on the third anniversary of its opening. The total cost: $124,000, according to figures provided by the Smithsonian. St. Thomas said about $50,000 was raised to defray those costs.

"It is totally appropriate to thank somebody for public service," said Roger Sant, chairman of the Smithsonian regents' executive committee, adding that he was unaware of how the dinner was funded. "We are trying to watch our expenditures."

The costs raised some qualms inside the Smithsonian, according to sources and e-mails, including those between West and his assistant, Alena Chalan. One of those concerned was Angela Leipold, the museum's assistant director for external affairs.

"Angela is worried about perceptions, given recent SI events," Chalan wrote in an e-mail to West. Leipold recommended West use institution "trust funds," rather than the institution's federally appropriated funds, to avoid causing embarrassment. The trust funds consist of the institution's privately raised money. Smithsonian rules permit the funds to be used with less restrictions. But the independent review committee issued a report that criticized the use of trust funds for lavish parties and travel.

Smithsonian policy permits use of trust funds for farewell parties but "approval must be requested by the director of the organization through the under secretary/dir to the Executive Assistant to the Secretary," according to an e-mail sent from Burke's office to Leipold. All of these events were approved by officials at Smithsonian headquarters.

For West's gala dinner, the trust funds paid for the $37,000 catering bill, which included medallions of prime beef tenderloin seasoned with habanero chiles, and quail glazed with wild plum jam. Federally appropriated funds, however, were used to pay $30,585 for an eight-minute DVD biography of West, which was shown during the dinner and presented to him as a going-away present.

Chalan was apologetic in the e-mail to West and noted that Leipold was only trying to protect West from embarrassment: "Please note, that she is only trying to keep your life Washington Post free for your last two months. *smile*"

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #31 on: March 15, 2008, 09:21:37 AM »
Georgia Tech President to Lead Smithsonian
By ROBIN POGREBIN

A year after the head of the Smithsonian Institution resigned amid financial scandal, prompting a Congressional uproar and an overhaul of the organization’s governance, the museum complex named a new chief on Saturday to set it on course for the future.

G. Wayne Clough, president of the Georgia Institute of Technology, will take over as secretary, or chief executive, of the institution on July 1, officials said at a news conference in Washington.

Mr. Clough, 66, an engineer by training, was selected Friday night in a unanimous vote by the Board of Regents, the institution’s governing body. The other finalist was Cristián Samper, who has served as acting secretary of the Smithsonian since Mr. Small’s resignation last March. Mr. Samper is expected to return to his position as the director of the Smithsonian’s National Museum of Natural History.

Roger Sant, chairman of the Board of Regents, said that Mr. Clough would bring in a new era at the Smithsonian, “bringing a unique combination of academic achievement, talent, leadership skills and experience in public service, science, management and development.”

The new secretary has his work cut out for him. He inherits an institution that has been struggling with how to cover a $2.5 billion shortfall to pay for the maintenance of its buildings, many of which are in dire need of repair. Although the Smithsonian gets 70 percent of its $1 billion operating budget from the federal government, Congress has been pressuring the organization to raise more of its own money.

Moreover, the federal money goes only toward operations and upkeep. The individual Smithsonian organizations have to raise the rest to finance their programming. As a result, the Smithsonian has undertaken the first large-scale private fund-raising effort in the organization’s history, one that Mr. Clough will have to lead.

Mr. Clough has had his fair share of fund-raising experience. At Georgia Tech, he oversaw two capital campaigns that have raised nearly $1.5 billion in private gifts.

Following revelations that Mr. Small was spending Smithsonian money on personal pleasures, like chauffeured cars, private jets and catered meals, the organization has been wrestling with basic questions of board oversight and executive accountability. Two scathing reports described a chief executive run amok, devoting much of his time to service on corporate boards, for which he also drew compensation. (Mr. Small resigned on March 26).

At the Smithsonian’s National Museum of the American Indian, W. Richard West Jr., retired in December as director after The Washington Post reported that he had spent more than $250,000 on travel and hotels during his final four years in office and had paid $48,500 to a New York artist to paint his museum portrait.

Over the last several months, the Smithsonian has established new safeguards involving expenditures. Mr. Clough’s spending and compensation, therefore, will be subject to a whole new level of scrutiny. Mr. Small’s salary soared to more than $900,000 in his seven-year tenure; Mr. Clough will earn $490,000.

Mr. Small, a former president and chief operating officer of Fannie Mae, was widely criticized for what some considered a corporate sensibility that alienated many longtime Smithsonian scientists. In 2006, he was widely criticized for failing to disclose the terms of a deal with Showtime Networks to set up an on-demand cable station whose programming would feature Smithsonian programs and collections.

In January, a 70-page report by a task force established to review these revenue-generating activities found that this operation, known as Smithsonian Business Ventures, had created strains between the Smithsonian’s museums and its business professionals. At the same time, Mr. Small got points for streamlining the organization and for effective fund-raising; bringing in $1 billion in private money, a record for the institution.

Mr. Clough will have to balance financial savvy with academic heft. In his nearly 15 years as president of Georgia Tech, annual research expenditures have increased to $425 million from $212 million; enrollment has increased to more than 18,000 from 13,000; and the university has consistently ranked among the nation’s top 10 public research universities. The school now has campuses in France, Ireland, Singapore and Shanghai.

In addition to improving Georgia Tech’s reputation in science, Mr. Clough has emphasized humanities education, establishing two endowed chairs in poetry, the Smithsonian said. He has also strengthened the university’s commitment to public policy and public service.

In his book “The World is Flat, A Brief History of the 21st Century,” Thomas L. Friedman, the New York Times columnist, describes how Mr. Clough rethought his university’s overall strategy, shifting from an admissions policy that focused so much on engineering that he felt creative pursuits like music and poetry as well as team sports were underemphasized, the Smithsonian said.

The Smithsonian is a behemoth of an organization, with 19 museums and galleries, the National Zoological Park and nine research facilities. It has 6,300 employees, including about 500 scientists and more than 6,500 volunteers. There are also 159 affiliate museums in 39 states, the District of Columbia, Puerto Rico and Panama.

Mr. Clough’s scientific bona fides include serving on the President’s Council of Advisers on Science and Technology and on the National Science Board, the governing body of the National Science Foundation. Both appointments required Senate confirmation. He is also vice chairman of the United States Council on Competitiveness, a nonprofit group focused on making the United States more competitive in the sciences and technology.

In addition, Mr. Clough has been active in the National Academies’ Committee on New Orleans Regional Hurricane Protection Projects, which serves as an advisory committee to the Corps of Engineers.

He has received nine national awards from the American Society of Civil Engineers, most recently the OPAL Lifetime Achievement Award for contributions to education. And Mr. Clough has twice been awarded the Norman Medal, civil engineering’s oldest recognition — in 1992 and 1996.

Prior to becoming Georgia Tech’s president, Mr. Clough — a graduate of the university’s civil engineering program — was provost and vice president of academic affairs at the University of Washington. He served as dean of the College of Engineering at Virginia Polytechnic Institute and State University after being promoted from professor of civil engineering to head of the civil engineering department. He also was an associate professor at Stanford University and Duke University.

Born in Douglas, Ga., Mr. Clough earned his bachelor’s and master’s degrees in civil engineering from Georgia Tech in 1964 and 1965 and his doctorate in civil engineering in 1969 from University of California at Berkeley.

As secretary, Mr. Clough will lead a 17-member board with an unusual preponderance of high government officials. The Regents are appointed by the Congress and include the chief justice of the United States and the vice president as well as three senators and three representatives. The rest of the board is made up of nongovernment members who are nominated by the regents and approved by Congress in a joint resolution signed by the president of the United States.

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Smithsonian Official Resigns After Ethics Violation
« Reply #32 on: April 14, 2008, 05:33:32 PM »
Smithsonian Official Resigns After Ethics Violations
By James V. Grimaldi and Jacqueline Trescott
Washington Post Staff Writers
Monday, April 14, 2008; 5:13 PM

The head of the Smithsonian Latino Center resigned in February after an internal investigation found that she violated a variety of rules and ethics policies by abusing her expense account, trying to steer a contract to a friend and soliciting free tickets for fashion shows, concerts and music awards ceremonies, according to records released by the Smithsonian today.

Pilar O'Leary, who was hired in 2005 by then-Secretary Lawrence M. Small to be the institution's key representative on Latino affairs, billed the Smithsonian "extravagant" and "lavish travel expenses," and repeatedly abused her expense account on such things as outings to the spa and hotel gift shops, the Smithsonian inspector general found.

In a report released this morning in response to a Freedom of Information Act request by The Washington Post, the inspector general said O'Leary violated 14 ethical and conflict-of-interest policies.

"The investigation revealed that O'Leary has not always acted in the best interests of the Smithsonian," the report concluded. "Her conduct has violated the basic ethical rules of the Institution."

O'Leary, 39, could not be reached for comment, but she said in statements attached to the report that she had relied upon authorizations and guidance from the office of then-Deputy Secretary Sheila Burke. Her attorney, John Dowd, had no immediate comment. In an interview with investigators made public with the report, O'Leary said she had never been questioned by superiors regarding her travel expenditures.

Prominent in the Washington social scene, O'Leary appeared on the cover of "Washington Life" magazine as a winner of the magazine's annual "Substance & Style Awards," along with Sen. Barack Obama (D-Ill.) and environmentalist Philippe Cousteau.

O'Leary ran the Latino center, which was established in 1997 to coordinate exhibitions and programs throughout the Smithsonian related to the culture and history of Latinos. O'Leary's annual salary was about $200,000 a year in 2005 and 2006. The Latino center receives a separate appropriation of about $1 million a year.

The inspector general found that O'Leary had solicited and accepted gifts and gratuities from outside companies and contractors, the report said.

O'Leary was found to use limousines frequently, including one trip from the Smithsonian Castle across the Mall to the National Museum of Natural History and another to take her from her Beverly Hills hotel to a movie premiere, wait, and return her to the hotel. O'Leary also sent couriers to fetch medication, clothing and her BlackBerry from her home.

Many of the violations came last year after Small was forced to step down as secretary of the Smithsonian for expense account abuses. Earlier inquiries also questioned use of limousines by Small and former Smithsonian Business Ventures executive Gary M. Beer.

The inspector general's office referred the O'Leary matter to the U.S. attorney's office, which declined to prosecute. O'Leary reimbursed the Smithsonian $2,066, said spokeswoman Linda St. Thomas, for expenses partially incurred during a trip to Spain. Those costs were covered by another organization. O'Leary had to return hotel reimbursements for a trip to Miami and for charging the cost of moving furniture to her home.

When her resignation was announced in an e-mail to staff in January, Richard Kurin, the acting undersecretary for history and culture, did not mention ethical lapses and praised her work developing "partnerships with scores of cultural organizations in the United States and across the hemisphere."

Acting Secretary Cristian Samper said today in a second e-mail to staff that the inspector general's report was being released in response to a Freedom of Information Act request and acknowledged O'Leary had "engaged in behavior that violated our Standards of Conduct and other Smithsonian policies between August 2005 and September 2007."

Samper said that ordinarily such reports are not public. But The Post's documents request resulted in the release, Samper said in the e-mail, because O'Leary "held a position of such significant responsibility and public visibility that disclosure of the report was warranted."

The inspector general's report was heavily blacked out, including sections covering two of the policies that O'Leary had violated. O'Leary traveled frequently to Miami, New York and Los Angeles, staying at four- and five-star hotels.

"O'Leary was very particular about her lodging, normally insisting that she booked at a Conrad, Ritz Carlton or Four Seasons, even if they did not offer a government rate," the report said, citing sources and documents. "There were also times when O'Leary would refuse to stay at a hotel offering the government rate or a comparable rate."

The report found that prices of the hotel rooms were often steep because they had been made at the last minute. When the investigator asked why this occurred, O'Leary said her corporate contacts "often don't realize that we aren't as flexible in making our travel arrangements as they are." She then cited cultural differences, saying that the center's Latino constituency "doesn't operate in the same timeframes everyone else is used to -- in many Latin cultures, arrangements are made at the last minute."

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Re: Smithsonian Head's Expenses 'Lavish,' Audit Says
« Reply #33 on: April 14, 2008, 05:48:52 PM »
Can Democrats and GOP members on this board agree he should be fired? 

Check out his compensation for the last few years.  :o

http://www.washingtonpost.com/wp-dyn/content/custom/2007/02/23/CU2007022300992.html

Yes.

He should also be made to pay back every damn cent.