The meal claim practice is commonly called double dipping. Other state agencies in Oregon don't allow it.At Treasury, it's standard procedure.
Last September, Treasury investment officer Sam Green attended the annual meeting of Apax Partners in Vienna, Austria. The night before the meeting, Apax bought dinner for a group of investors at the sumptuous, five-star Hotel Imperial.
The next day, Apax provided breakfast and lunch between business presentations at Vienna's Albertina Museum.
That evening, the investment firm laid on cocktails and dinner at one of the city's masterpieces of baroque architecture, the Palais Daun-Kinsky, which promises online that its chefs' international cuisine "satisfies the highest demands and turns every course into a culinary extravaganza."
All those meals were free. Yet Green's expense form shows that he claimed a meal allowance for every meal on the five-day trip, including those on his business-class flights to and from the meeting. The cost to taxpayers: $756.
Green did not respond to questions about his travel, including whether he attended any of the meals. At the request of Treasury officials, The Oregonian submitted detailed
Ted Wheeler.JPGTed Wheelerfactual statements regarding investment officers' trips. The agency didn't contest the accuracy of any of the statements, instead saying it had decided not to provide responses.
"The hope was to avoid anything that would be personally damaging appearing in the paper in a story about questioning Treasury policy," explained James Sinks, Treasury's communications director. He said State Treasurer Ted Wheeler was aware of the newspaper's submissions.
Seeking state reimburs
Ron Schmitzement for free meals is "acceptable practice within the agency," said Ron Schmitz, chief investment officer for Treasury's investment division.
The agency allows Schmitz and his 12 investment officers to use the meal allowances of as much as $168 a day for other travel costs. And they don't have to account for those expenses.
Treasury officials do face one narrow restriction on double dipping: Investment officers aren't supposed to claim the daily allowance if the state pays a fee for a conference that includes meals. The Oregonian's investigation, however, found employees violated that restriction.
The newspaper's investigation of travel expenses also found Treasury operates under special rules for its hotel costs. Spending limits meant to hold down hotel costs for other state employees are considered only guidelines at Treasury.
In addition, Treasury makes infrequent use of procedures imposed on other agencies to ensure the most economical travel is undertaken with public money.
Treasury follows its own rules
The 13 investment officers in Treasury's investment division are the state's analysts and watchdogs when it comes to investing money from Oregon's pension, accident insurance and common school funds.
The state employs an armada of outside investment managers to put that cash to work and pays them handsomely to do so. Last year, the state pension system spent $335 million in investment fees and expenses.