Friday, September 23, 2011

The High Cost of..........Muffins?

I have to admit that $16 per person makes a lot more sense than a $16 muffin, having arranged conferences, seminars, etc.  

The first question in what we read should always be "is this true".
Usually I have the greatest respect for the various Inspector Generals, but this is one case where the alternative explanation, absent more information, seems more reasonable.  I realize that there is a segment of our electorate that would like to believe that this accusation by the IG's office exemplifies both state and federal spending.  While undoubtedly there are examples of misspending that can be found, it is a stretch to represent those as typical.

I would remind our readers of some of the outrageous expenditures in the private sector by corporations like AIG on dubious corporate junkets at the same time they were receiving government bailout money.   All of which suggests to me that there can be individuals who use events to take advantage of expense allocations; that doesn't mean everyone does it or that it is common.  Given that it is a form of misconduct that occurs in both the public and private sectors, we shouldn't look at replacing either one with the other as the solution to the problem.

Rather, these kinds of events demonstrate the importance of an independent press to keep a bright light and tight focus on expenditures, and the greatest possible accountability and transparency, in order to prevent abuses.

 $16 muffin a myth, US hotel chain says
Auditor claims of a whopping $16 per muffin at a US government seminar are half-baked, the global hotel chain Hilton said Friday.
In a report, auditors at the Justice Department said the muffins were among several "extravagant and potentially wasteful" food items served at the training conference in August 2009 at the Capital Hilton in Washington.
Not true, Hilton Worldwide shot back in a statement received by AFP.
"In Washington, the contracted breakfast included fresh fruit, coffee, juice, muffins, tax and gratuity, for an inclusive price of $16 per person," said the corporate parent of the Hilton, Conrad and Waldorf Astoria hotels.
"Dining receipts are often abbreviated and do not reflect the full pre-contracted menu and service provided," it explained.
The inspector general's office of the Justice Department, which keeps tabs on spending, told AFP it stood by the 148-page report, which came as Washington wrestles with a record deficit and a sluggish economy.
The audit released Tuesday found that Justice Department agencies spent far too much on conference catering in 2008 and 2009, when the economic crisis was in full swing.
The audit found that one conference served $16 muffins, while another offered Beef Wellington hors d'oeuvres costing $7.32 per serving.
It said coffee and tea at the events cost up to $1.03 an ounce, meaning an eight-ounce cup would have cost more than eight dollars.
The audit said $4.4 million was spent on 10 events between October 2007 and September 2009, some of which "featured costly meals, refreshments, and themed breaks that we believe were indicative of wasteful or extravagant spending."

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