Executive Furniture

When the Office of the Comptroller of the Currency (OCC) moved into new quarters in mid-1991, reports of extravagant redecorating surfaced, including the purchase of marble conference tables supposedly costing nearly $5,000 and a china service valued at more than $2,500. A congressional report questioned whether such lavish spending was appropriate for a federal agency overseeing the financially troubled banking industry. GAO examined whether OCC and other financial regulatory agencies have procurement guidelines to prevent purchases of excessively priced executive furniture. GAO identified three policies to help avoid such purchases. These policies include (1) using Federal Supply Schedules of the General Services Administration for smaller purchases and competitive acquisitions for larger purchases, (2) limiting furniture purchases to essential needs, and (3) prohibiting purchases of "top-of-the-line" furniture. With one exception, all six agencies GAO reviewed use thesethree criteria. The Office of Thrift Supervision does not have a policy specifically banning the purchase of top-of-the-line furniture. GAO also notes that the Federal Deposit Insurance Corporation has only proposed policies, and that OCC's policies have only recently been adopted formally. However, GAO believes that the six agencies' policies generally provide adequate guidance on how to avoid buying top-of-the-line furniture.

GAO found that: (1) there were three criteria to prevent purchases of excessively priced executive furniture and protect the government from projecting an image of extravagance in its office furnishings; (2) all six agencies incorporate the three criteria, which include using the Federal Supply Schedule for smaller purchases and competitive acquisition methods for larger purchases, limiting furniture purchases to those requirements considered essential, and prohibiting the purchase of top-of-the-line furniture; (3) OTS does not have a policy to prohibit the purchase of excessively priced executive furniture; (4) SEC and FRB do not have policies specifically prohibiting the purchase of top-of-the-line executive furniture, although SEC prohibits its presidential appointees and FRB prohibits all of its employees from spending more than $5,000 on new furniture; and (5) SEC and FRB officials believe those limits effectively bar the purchase of top-of-the-line executive furniture.