Homeland Security wasted thousands, report says

WASHINGTON – The Homeland Security Department wasted hundreds of thousands of dollars last year on iPods, dog booties, beer-making equipment and designer jackets, congressional investigators have concluded.

More than 100 laptop computers and a dozen boats also bought by Homeland Security employees are missing, the investigators found.

Poor training, lax oversight and rampant confusion over what employees are allowed to buy with government-issued purchase cards left Homeland Security “vulnerable to fraud, waste and abuse,” according to a draft report by the Government Accountability Office, Congress’ investigative and auditing arm.

The report was to be released today by a Senate panel that oversees the department.

Senators said more than 10,000 Homeland Security employees carry purchase cards for business-related expenses – with a spending limit that was raised to $250,000 for emergencies after Hurricane Katrina hit Aug. 29. Aides said the audit covered expenses for a five-month period both before and after Katrina.

But investigators found that employees received scant training on how to use the cards, were given little or lax supervision and were told to follow spending guidelines that differed among the 22 agencies that make up the department.

The department spent $435 million with the purchase cards in the 2005 budget year, compared to $296 million in 2004, Homeland Security spokesman Russ Knocke said Tuesday evening. But he said only a fraction of the expenses were improper, noting that the department has disciplined about 70 employees amid 1.1 million purchases.

“Comparatively, we’re talking about a small number of bad apples,” Knocke said.

Among the expenses that investigators described as abusive or otherwise questionable:

•More than 2,000 sets of dog booties, costing $68,442, that have sat unused in storage since emergency responders decided they were not suited for canines assisting in Gulf Coast recovery efforts.

•Three portable shower units for $71,170 from a contractor who investigators said overcharged the government. Customs and Border Protection agents could have gotten similar showers for nearly a third of the price.

•Twelve Apple iPod Nanos and 42 iPod Shuffles, worth $7,000, for Secret Service “training and data storage.” Because the Shuffles cost less than $300, the Secret Service said they were not required to track them to ensure they were used properly.

•Conference and hotel rooms at a golf and tennis resort at St. Simons Island in Georgia, worth $2,395, for training 32 newly hired attorneys when they could have used a nearby federal law enforcement training center.

•A beer brewing kit and ingredients for more than $1,000 for a Coast Guard official to brew alcohol while on duty as a social organizer for the U.S. Coast Guard Academy.