By popular demand: Of home furnishings and ‘culture of corruption’……

But first some lovely music:

Pickering: DMR probe may reveal “culture of corruption” ~ Da Noose

Auditor Pickering had to get out in front of the rampant rumor mill and boy did he! So what do we know now?  Here are a few observations.

Office of Inspector General report on the DMR friends and family program lends insight into the flawed appraisals obtained in the Bay Tech Building Scandal

I have a series of posts coming on the family and friends programs at both the DMR and the Bay-Waveland School District so today I begin with that preliminary US Department of the Interior Office of the Inspector General report on the problems at DMR.  The twist is that I’m going to use that report to highlight the inherently flawed purchase of the Bay Tech Building by the Bay-Waveland School Board. In this series of posts I’m completely in my field of expertise as an auditor and hopefully I’ll set off a few light bulbs.  First let’s do a quick review on the OIG report on the DMR family and friends program aka CIAP.

The DMR scandal broke on October 25 with reporting by the Sun Herald the Investigative Division of the Office of the State Auditor were at the Bolton Building in Biloxi going through Director Bill Walker’s office.  The story that came from officialdom was that investigators were following up on a somewhat routine US DOI OIG audit of the Coastal Impact Assistance Program that found major problems in how DMR was running the program.  The OIG audit, an unusual occurrence absent a major wasting of tax dollars or suspected criminal activity, was described in different terms by the folks at State Auditor’s office that claimed it was because the federal agency administering the program was changing.  I do not believe that for a second personally as I firmly believe a dime was dropped. (I’ll explain more on that next week)

In any event the folks at the various OIG offices are auditors and since I’m an auditor by trade with a bit of practical experience let’s recreate some of the events through the eyes of an auditor.

First thing we have to do is figure out exactly what in the heck were looking at because the folks at OIG are not walking encyclopedias of compliance requirements related to the thousands of federal programs out there but luckily for us we have the internet so my first stop would be “The Catalog” aka the Catalog of Federal Domestic Assistance, specifically CFDA #15.426 Coastal Impact Assistance Program and a close second would be the enabling legislation, which contains this: Continue reading “Office of Inspector General report on the DMR friends and family program lends insight into the flawed appraisals obtained in the Bay Tech Building Scandal”