Gowdy on IRS Conference Spending 'a character issue'Conservative Rep. Trey Gowdy (R-SC) fought back tears today as he dressed down a top IRS official at the Oversight Committee hearing today on Capitol Hill.
This was powerful–
Twitchy calls it a boom-worthy performance:
Published on Jun 6, 2013
Rep. Gowdy discusses how IRS spending on conferences is not a question of training, but a moral and character issue.
IRS SPENDING CONFERENCE, PART 1
MEMORANDUM FOR CHIEF FINANCIAL OFFICER
FROM: Michael E. McKenneyActing Deputy Inspector General for Audit
SUBJECT: Final Audit Report – Review of the August 2010 Small Business/Self-Employed Division’s Conference in Anaheim, California (Audit # 201310024)
This report presents the results of our review to identify the Internal Revenue Service’s (IRS)spending on conferences during Fiscal Years 2010 through 2012 and review selected conferences to determine whether the conferences were properly approved and the expenditures were appropriate. Our review focused on the Small Business and Self-Employed Division’s All Managers Continuing Professional Education Conference in Anaheim, California, from August 24 through 26, 2010, and addresses the Major Management Challenge of Achieving Program Efficiencies and Cost Savings.
This audit focused on the Anaheim conference because it was the most expensive IRS conference held during the three-year period (Fiscal Years 2010 through 2012) and because theTreasury Inspector General for Tax Administration (TIGTA) received an allegation of excessive spending related to this conference.
In its response, the IRS indicated that the use of event planners, the receipt of room upgrades,and the welcome reception and breakfast provided by the hotels did not entail the use of any additional Government resources. TIGTA disagrees with this statement. As noted in this report, TIGTA believes that the costs for the conference could have been reduced if the IRS had not requested the numerous concessions from the Anaheim hotels and had instead negotiated for a lower room rate. The requests for proposal sent by the event planners to the hotels on behalf of the IRS specifically requested numerous upgraded rooms and other concessions but specified that per diem, the most that the IRS could pay for each room, would be paid. Further,Department of the Treasury guidance implemented in November 2012 places limitations on the use of event planners because their use can increase costs. As noted in our report, event planners
received an estimated $133,000 from the hotels, which was based on the cost of rooms paid for by the IRS.Management’s complete response to the draft report is included as Appendix XI.
Copies of this report are also being sent to the IRS managers affected by the report recommendations.
If you have any questions, please contact me or Gregory D. Kutz, Assistant Inspector General for Audit (Management Services and Exempt Organizations).