Certificated Expenditures

Certificated expenditures, which involve expenses for the maintenance and repair of the executive residence at the White House, entertainment expenses for the President and the Vice President, and travel expenses for presidential and vice presidential staff, totaled $8.3 million in fiscal year 1996. White House records show that 144 reimbursable events were held at the White House that year and that these events had total reimbursable costs of about $1.6 million. GAO found that established procedures were followed for reimbursable activities. The First Family reimburses the White House for certain personal expenses, including the cost of food and beverages served to them at their residence. There also may be other costs, such as housekeeping and utilities, associated with the First Family's nonofficial guests, especially those who stay overnight at the White House. GAO was unable to determine the amount of these unreimbursed incidental costs because the White House does not maintain, nor is it required to have, a system to keep track of these costs. The White House publicly released a list of 831 overnight guests at the executive residence between 1993 and 1996. This material indicated that 107 overnight guests were not named because they are relatives (and accompanying guests) of the President and the First Lady or friends of their daughter. The 938 overnight guests did not include White House staff who may have stayed overnight at the executive residence when their duties required them to do so. GAO did not find a systematic approach at the White House to maintain and report data on overnight guests and overnight stays. As a result, GAO could not verify the number of overnight stays. At the same time, GAO did not identify any notable discrepancies between the names that the White House publicly disclosed and the materials GAO examined.

GAO noted that: (1) for fiscal year (FY) 1996, certificated expenditures of the President and Vice President totalled about $8.3 million; (2) GAO reviewed samples of FY 1996 certificated transactions and found that they were made for purposes authorized under 3 U.S.C. sections 105 and 106; (3) based on the results, GAO concluded that FY 1996 certificated expenditures were proper; (4) when official and nonofficial reimbursable events were held at the White House, the related expenses were initially paid from the Executive Residence at the White House appropriation; (5) White House records showed that, in FY 1996, 144 reimbursable events were held at the White House and that these events had total reimbursable costs of about $1.6 million; (6) the Executive Residence Organization and Procedures Manual describes key procedures for handling reimbursable activities; (7) these procedures are generally consistent with those GAO observed in its prior audits of Executive Residence at the White House certificated expenditures; (8) the Chief Usher's administrative staff inadvertently used incorrect salary rates to compute overtime and made computational errors that misstated the amounts billed for FY 1996; (9) GAO brought this matter to the attention of the Chief Usher and the White House Counsel's staff; (10) a Deputy Counsel to the President told GAO that the White House would address the misstated billings for FY 1996; (11) the First Family reimburses the Executive Residence at the White House appropriation for certain personal expenses; (12) there also may be other incidental costs associated with the First Family's nonofficial guests; (13) GAO was unable to determine the amount of these unreimbursed incidental costs because the White House does not maintain, nor is it required to have, a system to accumulate these costs; (14) in 1997, the White House publicly disclosed that 938 guests stayed overnight at the Executive Residence during 1993 through 1996 and identified 831 of them; (15) the White House had indicated that the 107 overnight guests who were not identified are relatives of the President and the First Lady and friends of their daughter; (16) GAO examined materials the White House staff stated they used to report the names of overnight guests, and GAO discussed recordkeeping on overnight guests and overnight stays with White House officials and others; and (17) GAO could not verify the number of overnight guests or determine the number of overnight stays; however, GAO did not identify any notable discrepancies between the names the White House publicly disclosed and the materials GAO examined.