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Old 01-23-2004, 04:52 AM
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Auditors say USO spent improperly for J. Lo, other shows

By ESTHER SCHRADER
Los Angeles Times




WASHINGTON -- When Jennifer Lopez, Kid Rock and Ja Rule put on a concert for 1,500 troops at the height of the war in Afghanistan, it was seen as another success for the United Services Organization, which for 63 years has been entertaining soldiers overseas.

But now the spotlight is on a team of government auditors who uncovered hundreds of thousands of dollars in unexplained expenses the USO submitted for the show.

The J. Lo gig was among several cited in a General Accounting Office report released this month that found more than $430,000 in improper, questionable or unsupported USO tour expenses charged to the Pentagon over a two-year period.

The GAO study, which looked at 10 randomly selected tours during 2000 and 2001, found no evidence of malfeasance in the nonprofit organization's use of government money. Nor was there any finding that the entertainers did anything wrong.

But the investigation, requested by Rep. Bill Young (R-Fla.) found that taxpayers repeatedly paid for first-class plane tickets, liquor and limousine services for celebrities, in violation of Pentagon and federal regulations.

Any such luxury expenses are supposed to be paid out of the USO's private donations, not the money it gets from Congress. The GAO report blamed sloppy bookkeeping.

The investigation, however, did prompt the Pentagon's Armed Forces Entertainment division, which disburses federal funds to the USO, to review all tours since 1998; so far, it has uncovered an additional $73,000 in improper payments and recovered more than $140,000 from the USO.

Said USO spokesman John Hanson: "We saw this as a real wake-up call. We don't have any indication that there's any inappropriate behavior. ... We don't know that happened. That's why we are taking measures to ensure that what we do from here forward is absolutely correct."

The GAO found that in the J. Lo concert, the Pentagon had paid MTV -- which aired the performance -- for $343,910 in "production expenses," despite a complete lack of supporting documentation.

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Old 01-23-2004, 05:06 AM
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