International Journal on Governmental Financial Management – 2008 141
The OIG Report
The Office of the Inspector General’s report described eleven allegations againstDominick. Nine of the eleven were found to have no basis in fact. One was found to havean arguable basis, but a “de minimus” amount of funds were involved. Another was foundto have a basis, but related to actions of subordinate ABC employees and was onlyindirectly attributable to Dominick. This allegation, in which Dominick was at fault, wasdiscovered by the Office of the Inspector General while investigating the others.The Office of the Inspector General report made no material recommendations for changesand generally confirmed Dominick’s substantial compliance with internal controls. Thereport did offer lots of opinions and unsupported conclusions about issues outside thescope of the investigation or the expertise of the investigator. The report harshly criticizedDominick, using vague and sensationalistic terms. The opinions expressed in the reportapparently substitute the judgment of an independent investigator for that of a politicallyappointed agent with biased responsibilities. The only change to result from theinvestigation was the resignation of Dominick. Press coverage of his resignation, “amid aninquiry into his spending”, suggests the investigation may have caused him to resign.The allegations against Dominick, and the Office of the Inspector General report on them,may be summarized as follows:
1.Hiring Policies and their Budget Impact
Dominick was accused of hiring excessive numbers of ABC employees. The report foundno unauthorized employees were hired and no policies or procedures were violated. Thereport then criticized Dominick for hiring new employees, expressed an opinion that thefunds should have been used for other purposes, and suggested that Dominick denied ABCemployees safety equipment and training programs.
2.Design Changes to ABC’s Headquarters Building
Dominick was accused of making unnecessary changes to the ABC headquarters buildingcompleted during his tenure. Again, the Office of the Inspector General report found nounauthorized acts or failures to follow policies and procedures.The Office of the Inspector General report then proceeded to detail building expenditures,including the use of premium materials in portions of the building used by Dominick andother senior ABC managers. The report provided sensationalistic details and dollar amounts and expressed an opinion that funds expended for these offices could have been put to better use.