Smithsonian Head's Expenses 'Lavish,' Audit Says

In response to the findings regarding travel, the regents in January reversed a policy requiring Small to abide by Federal Travel Regulations. Instead, they authorized first-class travel, the use of car services, quality hotel accommodations and meals.

In response to the section about Small's wife's trip to Cambodia, the regents changed Small's employment agreement to waive preapproval, which is required for other Smithsonian employees.

Yesterday, Sant said that change was "a mistake" and went further than intended; he added that Small should be required to get pre-approval for his wife's paid travel.

Flowers for the Staff

The secretary's staff justified some spending that appeared to violate policy because they believed "the Secretary could waive any policy if it applied" to him.

The inspector general replied in a footnote, "We are aware of no written authority for the Secretary to waive Smithsonian policies."

A list of expenses prepared by an outside auditor working for the inspector general showed that Small often purchased expensive floral arrangements, rented tables, china and flatware, and hired high-end caterers for meals for employees who reported directly to him. The expenses included more than $2,000 for alcohol, though the auditor found that the rules do not allow the purchase of alcohol. Small also threw staff dinners, including one in July 2000 that cost $4,300.

Small justified the meals by telling the auditors that his staff frequently worked through lunch or dinner. Nevertheless, the auditors ruled the meals unauthorized because Smithsonian policy through December 2004 prohibited payment for meals unless they were essential to complete a project.

In December 2004, the rule was changed to allow the secretary to authorize staff meals at his discretion.

The inspector general also determined that Small had charged the institution hundreds of dollars for unauthorized "personal lunches" without any Smithsonian business purpose. After the investigation began, Small reimbursed the Smithsonian more than $700 for lunches and his wife's spousal fee at Washington's exclusive Cosmos Club.

Of 200 non-travel transactions identified as unauthorized, 66 involved gifts, including a $4,800 unauthorized bonus for an assistant to the secretary.

Small sent gifts to employees and donors, including plants, books, ties and smithsonite -- a mineral named for James Smithson, whose endowment to the United States resulted in Congress creating the Smithsonian Institution and trust. Between 2000 and 2004, Small spent $9,300 on flowers for staff, donors and regents.

The gifts were charged against a trust fund that does not authorize gifts to staff, volunteers and donors, the inspector general found.

On Christmas Day 2004, according to the outside auditor's report, Small charged $1,800 for "smithsonite for donors." "Some of the gifts listed in the report appear to be lavish," the inspector general said.

Research director Lucy Shackelford and research editor Alice Crites contributed to this report.