New Smithsonian inspector general to report to board

In the face of heightened scrutiny on Capitol Hill, the Smithsonian Institution and Office of Management and Budget have decided to appoint a new Smithsonian inspector general who reports to the governing board, rather than to Smithsonian Secretary Lawrence Small.

Small faces criticism from Senate Finance Chairman Charles Grassley, R-Iowa, among other lawmakers, for the high salaries for high-ranking museum officials as well as for signing a 30-year contract with the Showtime cable network to produce Smithsonian films. In letters to Grassley last week, Roger Sant, chairman of the Smithsonian Board of Regents' Executive Committee and Audit and Review Committee, wrote that the change will be made internally and put to a formal vote in September.

"It is apparent from informal discussions with several other members of the Board of Regents and the Secretary of the Smithsonian that there is broad support for changing the reporting relationship of the Inspector General of the Smithsonian," Sant wrote.

OMB Director Rob Portman said in a letter to Grassley that the actions "appear to correspond with our shared objective to ensure the next person appointed to this very important position has the leadership and capabilities to detect and prevent fraud, error and waste across all of the Smithsonian Institution's varied activities."

Under the Inspector General Act of 1978, in consultation with the Government Accountability Office, OMB is required to publish an annual list of "designated federal entities" and who heads them. Portman wrote that OMB is undertaking the process of designating the Smithsonian Board as that agency's head that the IG would report to.

The previous Smithsonian inspector general, Debra Ritt, resigned earlier this month in the midst of an investigation into Smithsonian salaries, expenses and business ventures. Grassley wrote Portman to urge that the new IG report to the board -- rather than to Small -- questioning Small's ability to objectively oversee an investigation into his own salary and benefits among other officials.

According to Internal Revenue Service filings, Small earned $813,065 in 2004, prompting the House Appropriations Committee in the fiscal 2007 Interior spending bill to slap a restriction capping Smithsonian executive compensation at $400,000 -- or no more than the president's compensation.

Grassley also questioned Small's involvement in accounting scandals swirling around Fannie Mae when he was an executive there. "There's a fox-guarding-the-henhouse dynamic here," Grassley said at the time. Grassley called the Smithsonian's and OMB's actions "a good, fast response" and said, "I'm glad to see a shot in the arm for strong, independent oversight to protect a national treasure."

A number of top congressional officials serve on the Smithsonian's board, including Senate Majority Leader Bill Frist, R-Tenn., Senate Appropriations Chairman Thad Cochran, R-Miss., and House Labor-HHS Appropriations Subcommittee Chairman Ralph Regula, R-Ohio.