Talk about a day late and a dollar short: D.C. Auditor Deborah Nichols took three years to report on violations of personnel laws, allegations of nepotism and misappropriation of funds inside the office of the chief technology officer.
Nichols’ audit, launched after The Barras Report published a series of investigative stories about Chief Technology Officer Suzanne Peck in 2002, including the hiring of Kim and Pedro Agosto — a husband-and-wife team — was released last week.
The audit concluded that hiring violated personnel laws; that the duo received payments for relocation expenses to which they were not legally entitled; and that their relationship with the agency’s director of operations, Janet Mahaney, “created an adverse appearance.”
Pedro Agosto was hired as a program manager; he received $91,114 a year. Peck got the chief financial officer to appoint Kim Agosto her agency’s fiscal director with a $98,926 salary, the audit states.
That wasn’t enough: The Agostos were reimbursed for relocation expenses, which, by law, shouldn’t exceed $10,000 and are paid only for employees hired in “hard-to-fill” posts. Peck didn’t get such a designation but still authorized relocation reimbursements of $28,139.23, according to the auditor.
A separate, internal 2003 memorandum by the CFO concluded the Agostos should return $18,936.45, and that the city administrator take action against the technology office for “violating personnel laws,” according the document.
Nichols’ audit indicates the Agostos repaid a total of $22,312.95. CFO records indicate that only $7,291.94 was paid by Kim Agosto; they aren’t sure whether Pedro Agosto returned any money.
About this discrepancy, Lawrence Perry, deputy auditor, said, “The report speaks for itself.”
Help us!
The auditor also found that Peck paid the Agostos for permanent housing costs, which is impermissible. Therefore, they should reimburse the city another $5,826.28.
Don’t expect a dime.
The Agostos left the government in 2004. Personnel, technology and CFO officials say they have no forwarding information.
Christina Fleps, general counsel for the technology office, said the agency stopped using its travel card and paying relocation expenses. She didn’t comment on its failure to secure “hard-to-fill” designations.
“We will fully comply with the auditor’s remaining recommendations,” she said.
The money is minor. More troubling is the nepotism: Mahaney authorized the payments to the Agostos. Mahaney is Kim Agosto’s aunt. As the agency’s fiscal officer, Kim Agosto had control over its fiscal records, including requests for payments to her husband’s program, according to the auditor.
These relationships “may have resulted in tainted financial transactions,” the auditor said.
Personnel rules dictate that employees refrain from action that might result in or create the appearance of “using public office for private gain, giving preferential treatment to any person … or affecting adversely the confidence of the public in the integrity of government,” says the auditor.
Who knew?
Jonetta Rose Barras is the political analyst for WAMU radio’s “D.C. Politics Hour with Kojo and Jonetta.” She can be reached at [email protected].
