Unauthorized Legal Services Contracts Improperly Charged to Resource

B-290005 Jul 01, 2002 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights GAO reviewed the Fish and Wildlife Service's implementation of the endangered species program and found that the Service had entered into contracts with a law firm and with an attorney for assistance with various personnel issues, labor law matters, and allegations of discrimination. However, the Fish and Wildlife Service entered into these contracts without authority and improperly charged the services to its resource management appropriation. GAO found that the Service has no authority to acquire legal services, and payments the Service made under the contracts were improper. In addition, the Service's resource management appropriation is not available for the purchase of legal services. Accordingly, the Service has violated the Antideficiency Act and should report the violation to Congress and the President in accordance with the provisions of the Office of Management and Budget Circular A-34. View Decision Unauthorized Legal Services Contracts Improperly Charged to Resource Management Appropriation, B-290005, July 1, 2002 The Honorable Dan Burton Chairman, Committee on Government Reform House of Representatives Dear Mr. Chairman: The purpose of this letter is to advise you of contracts for legal services that the Fish and Wildlife Service (Service) entered into without authority and that the Service improperly charged to its resource management appropriation. During the course of GAO's review of the Service's implementation of the endangered species program, /1/ we learned that the Service had entered into contracts with a law firm and with an attorney for assistance with various personnel issues, labor law matters, and allegations of discrimination. As of April 9, 2002, the Service had paid over $155,000 for these legal services, using funds from its fiscal year 2001 resource management appropriation. For the reasons explained below, the Service has no authority to acquire legal services, and payments the Service made under the contracts were improper. In addition, the Service's resource management appropriation is not available for the purchase of legal services. Accordingly, the Service has violated the Antideficiency Act and should report the violation to the Congress and the President in accordance with the provisions of Office of Management and Budget (OMB) Circular A-34, (2000). BACKGROUND During our review of the Service's implementation of the endangered species program, we discovered that the Service's California/Nevada Operations office in Sacramento, California (CNO) had contracted with the law firm Powell, Goldstein, Frazer & Murphy of Atlanta, Georgia, for advice on employment problems, assistance in negotiating labor agreements, and review of draft responses to discrimination charges and related matters. /2/ The Service paid Powell, Goldstein, Frazer & Murphy over $65,000 out of its resource management appropriation for itemized services provided under the contract, including research on labor relations issues, review and revision of management bargaining proposals, and preparation and review of letters to a union. The Service's CNO and the Portland Oregon Regional Office both contracted with Mr. Samuel A. Vitaro, an attorney who performs mediation, arbitration, and fact-finding services. In total, the CNO and Portland offices paid over $90,000 for Mr. Vitaro's services. The CNO office contracted with Mr. Vitaro to provide consultation services on August 15, 2001. /3/ The Portland Oregon Service office contracted with Mr. Vitaro to conduct administrative fact-finding at the Western Washington Office in Lacey, Washington, and to provide a written report containing findings and recommendations to Service management. /4/ Both offices made the payments out of the Service's resource management appropriation. DISCUSSION The Solicitor of the Department of Interior is solely responsible for the legal work of the Department of the Interior, including the Fish and Wildlife Service: "the legal work of the Department of the Interior shall be performed under the supervision and direction of the Solicitor of the Department of the Interior." 43 U.S.C. Sec. 1455. Therefore, to the extent that the Service, or any of its offices identifies a need for legal services, the Service should engage the offices of the Solicitor and the Solicitor's staff. Interior's Departmental Manual emphasizes that the Solicitor is responsible for "all of the legal work of the Department," including "providing legal advice to . . .