Former Presidents: Office and Security Costs and Other Information (28-SEP-01, GAO-01-983). GAO updated a 1988 report on costs borne by the federal government associated with former presidents and their dependents. In addition to updating that report, GAO added information concerning the offices of former presidents. For fiscal years 1977 through 2000, the federal government paid about $370 million to support former presidents and their families. As of June 1, 2001, the offices of the five living former presidents ranged in size from 3,306 to 5,912 square feet. Under the Former Presidents Act, the General Services Administration (GSA) is authorized to provide for each former president suitable office space appropriately furnished and equipped as determined by the GSA Administrator at a location specified by the former president. The law does not, however, provide any information or guidance on the appropriate amount of space that is to be provided. For fiscal year 2000, GSA's rental charged to former President Bush was $144,000, former President Carter $89,283, former President Ford $105,099, and former President Reagan $256,671. Former President Clinton's office was not finished until late August 2001. His estimated annual rent payment to GSA for fiscal year 2002 is estimated to be about $354,000. According to GSA officials, the federal government is paying the entire lease cost for all of the former presidents' offices. The rental rates GSA has paid are generally within the range of comparable rents paid for similar properties in the areas in which the former presidents' offices are located. The Carter Presidential Center, where the office of former President Carter is located, has provided additional space for President Carter's use at no cost to the government. The Secret Service maintains space close to each of the former presidents' offices and pays rent to GSA for that space. No special amenities or interior features appear to exist at the former President's offices. The office staffs of former presidents' ranged from six to 19 persons and included full-time and part-time paid members along with volunteers and interns. In addition to receiving federal compensation, most paid staff members also receive compensation from other sources. According to representatives of each former president, the staff is not involved with political fund-raising activities. To varying degrees, foundations associated with each former president are involved with the office operations. Although the foundations themselves do not pay any portion of the office rent cost, they do assist office operations by supplying some furniture and equipment -------------------------Indexing Terms------------------------- REPORTNUM: GAO-01-983 ACCNO: A02038 TITLE: Former Presidents: Office and Security Costs and Other Information DATE: 09/28/2001 SUBJECT: Cost control Cost effectiveness analysis Housing allowances Office expense allowances Federal Buildings Fund ****************************************************************** ** This file contains an ASCII representation of the text of a ** ** GAO Testimony. ** ** ** ** No attempt has been made to display graphic images, although ** ** figure captions are reproduced. Tables are included, but ** ** may not resemble those in the printed version. ** ** ** ** Please see the PDF (Portable Document Format) file, when ** ** available, for a complete electronic file of the printed ** ** document's contents. ** ** ** ****************************************************************** GAO-01-983 Report to the Chairman, Subcommittee on Treasury, Postal Service, and General Government, Committee on Appropriations, House of Representatives United States General Accounting Office GAO September 2001 FORMER PRESIDENTS Office and Security Costs and Other Information GAO- 01- 983 Page i GAO- 01- 983 Former Presidents Letter 1 Results in Brief 2 Background 5 Total Federal Cost of Former Presidents From Fiscal Years 1977 Through 2000 Was About $370 Million 9 Historical Space Data Provide Guidance for Amount of Office Space; Office Sizes Vary 9 GSA Generally Pays All Costs for Office Space 11 Office Rental Costs Generally Similar to Comparable Properties 12 Former Presidents? Office Space Has No Special Amenities or Build- Out Features but Provides Good Exterior Views 15 Former Presidents Staff Generally Receive Compensation From Federal and Nonfederal Sources and Are Reportedly Not Engaged in Political Fund- raising 16 Agency Comments and Our Evaluation 21 Appendix I Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 23 Appendix II Scope and Methodology 34 Tables Table 1: Former Presidents Office Space 10 Table 2: Fiscal Year 2000 Rental Cost for Offices of Former Presidents and GSA?s Current Estimated Cost of Comparable Space 13 Table 3: Former President?s Office Staff and Compensation Paid With Funds From the Former Presidents Act 18 Table 4: Total Expenditures Associated With Former Presidents, Fiscal Years 1977- 2000 23 Table 5: Expenditures Under the Former Presidents Act, Fiscal Years 1977- 2000 24 Table 6: Expenditures Under the Former Presidents Act, by Former President, Fiscal Years 1977- 2000 25 Table 7: Expenditures Under the Former Presidents Act, by Former Presidents? Widows, Fiscal Years 1977- 2000 26 Contents Page ii GAO- 01- 983 Former Presidents Table 8: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 2000 27 Table 9: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1999 28 Table 10: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1998 29 Table 11: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1997 30 Table 12: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1996 31 Table 13: Former Presidents, Wives, Widows, and Minor Children Protected by the Secret Service, Fiscal Years 1977- 2000 32 Page 1 GAO- 01- 983 Former Presidents September 28, 2001 The Honorable Ernest J. Istook, Jr. Chairman, Subcommittee on Treasury, Postal Service, and General Government Committee on Appropriations House of Representatives Dear Mr. Chairman: This report responds to your request of March 20, 2001, that we update and expand on the work we reported on in 1988, concerning costs borne by the federal government associated with former presidents and their dependents. 1 In addition to updating the information contained in that report, you also asked for additional information concerning the offices of former presidents. As agreed with your office our six objectives, therefore, are as follows: How much has the federal government spent to support former presidents and their dependents since fiscal year 1977? What are the sizes and types of office space utilized by each former president? What guidance exists regarding the appropriate size of a former president?s office? What is the rental cost of each of the former presidents? offices, and does any person or entity other than the General Services Administration (GSA) pay for any of the former presidents? office space? Is the rental cost GSA pays for each former president?s office in accord with prevailing rental rates for similar properties near the former presidents? offices? Is there any other space near the offices of former presidents that is used for activities associated with former presidents? Are there any special amenities or interior space features within each former president?s office that could affect rental cost? How many staff occupy each former president?s office? Does the staff receive compensation from nonfederal sources? Are the staffs involved with political fund- raising activities? 1 Former Presidents: Support Costs and Other Information (GAO/ GGD- 88- 57FS, Mar. 13, 1988). United States General Accounting Office Washington, DC 20548 Page 2 GAO- 01- 983 Former Presidents Is there any involvement between entities such as presidential foundations and the former presidents? offices? To respond to your request, we researched applicable laws, reviewed GSA files, toured each of the former presidents? offices and interviewed GSA and U. S. Secret Service officials and staff from each of the former presidents? offices. In addition, to provide context for the information we are reporting, we reviewed and discussed with GSA and Secret Service officials, applicable laws authorizing benefits for former presidents and GSA?s correspondence to one former president relating to the use of appropriated funds. This report provides information on private funding that was provided by the offices of the former presidents. GSA is not required to collect or verify this information, nor are the offices of former presidents required to report it. During the period in which we conducted our review former President Reagan?s office was in the process of relocating to a smaller office complex. This relocation was expected to be completed during September 2001. Much of the information contained in this report about former President Reagan?s office is based upon the location of his office as of June 1, 2001. Where possible, we have also provided information concerning his future office. At the time we last visited former President Clinton?s office, it had not been completed. Where possible, we have included information about his office based on information provided by GSA officials responsible for establishing the office. Some of this information was still preliminary at the time we completed our work and is subject to change. For fiscal years 1977 through 2000, the federal government paid about $370 million to support former presidents and their families. The cost for fiscal year 2000 was about $26 million. Each former president by law is entitled to a pension, a furnished office, salaries for office staff, office- operating expenses, travel funds, free mail, and Secret Service protection. In addition, a former president?s surviving widow is entitled to a pension. The former president?s surviving spouse is entitled to free mail costs, and Secret Service protection. The tables in appendix I provide cost information on a yearly basis for fiscal years 1977 through 2000 and identify those persons receiving protection during these fiscal years. Tables 8 through 12 provide detailed information on cost, by category, for each former president for fiscal years 1996 through 2000. Results in Brief Page 3 GAO- 01- 983 Former Presidents As of June 1, 2001, the offices of the five living former presidents ranged in size from 3,306 to 5, 912 square feet. Under the Former Presidents Act, 2 GSA is authorized to provide for each former president suitable office space appropriately furnished and equipped as determined by the GSA Administrator at a location specified by the former president. The law does not, however, provide any information or guidance on the appropriate amount of space that is to be provided. According to a GSA official who was involved with establishing former President Bush?s office, the former president used the size of existing former presidents? offices as a guide in determining the size of his future office. Likewise, the Chief of Staff for former President Clinton said historical space data and advice from GSA officials were used in estimating the size of former President Clinton?s office. Table 1 provides information on the types and amount of space, such as the former president?s personal office, general offices, and conference area for each of the former presidents? offices. For fiscal year 2000, GSA?s rental charge to former President Bush was $144,000, former President Carter $89, 283, former President Ford $105, 099, and former President Reagan $256,671. Former President Clinton?s office was not finished until late August 2001. His estimated annual rent payment to GSA for fiscal year 2002 is estimated to be about $354,000. According to a GSA official, the fiscal year 2003 rental rate will be adjusted to reflect any amortization of interior construction costs not accounted for in the fiscal year 2002 rental charge. According to GSA officials, the federal government is paying the entire lease cost for all of the former presidents? offices. The rental rates GSA has paid are generally within the range of comparable rents paid for similar properties in the areas in which the former presidents? offices are located. Table 2 provides information on the fiscal year 2000 rental cost of the former presidents? offices and current comparable rental cost for other properties located near each of the former presidents? offices. No outside organizations paid any portion of the rent. However, the Carter Presidential Center, 3 where the office of former President Carter is located, has provided additional space for former President Carter?s use at no cost to the government. This includes a conference room and some office space. The Secret Service maintains 2 3 U. S. C. sect. 102 note. 3 Former President Carter and his wife Rosalynn Carter founded the Carter Presidential Center, a nonprofit organization in 1982. The Jimmy Carter Library and Museum are operated by a separate organization. Page 4 GAO- 01- 983 Former Presidents space close to each of the former presidents? offices. The Secret Service pays rent to GSA for that space. No special amenities or interior features appear to exist at the former Presidents? offices. All five offices provide good exterior views. Three of the offices- those of former Presidents Bush, Reagan, 4 and Clinton- are located on the top floor of their respective high- rise buildings and provided panoramic views. Former President Ford?s office is a one- story house with a view overlooking a golf course and former President Carter?s office is located on the second floor- also the top floor- of the Carter Center and provides a view of some of the Carter Center grounds. According to GSA officials, office space permitting good outside views should command higher rental rates. However, because so many other factors also affect the negotiation of rental rates, they could not provide a precise amount for that feature. The office staffs of former presidents? ranged from 6 to 19 persons and included full- time and part- time paid members along with volunteers and interns. In addition to receiving federal compensation, most paid staff members also receive compensation from other sources. These sources include the former presidents and his or his spouses? foundations. Table 3 provides information on the type and number of staff that are currently employed by each former president and the total federal and nonfederal compensation they receive. According to representatives of each former president, the staff is not involved with political fund- raising activities. Former President Carter?s staff is involved with fund- raising for the former president?s foundation. To varying degrees, foundations associated with each former president are involved with the office operations. While the foundations themselves do not pay any portion of the office rental cost, they do assist office operations by supplying some furniture and equipment. At former President Carter?s office, which is leased from the Carter Presidential Center- a nonprofit foundation- two staff members of the Center use office space paid for by GSA. Simultaneously, however, GSA does not pay for other Center space that is used exclusively by former President Carter or his staff. Only one of the former presidents? spouse maintains an office within his office complex. Former President Carter provides his spouse an 4 Former President Reagan?s office is relocating to another building. The size of the office is also being reduced from about 5, 912 to about 2,450 usable square feet of space. Page 5 GAO- 01- 983 Former Presidents office. GSA pays for that space. According to a former President Carter office representative, Mrs. Carter is significantly involved with the former president?s activities and thus was provided an office by the former president. We provided copies of a draft of this report to the Administrator, General Services Administration, the Secretary of the Treasury, and former Presidents Bush, Carter, Clinton, Ford, and Reagan for their comment. We received either written or oral comments from GSA, the Secret Service, a Treasury bureau, former President Carter and representatives of former Presidents Bush, Clinton, Ford, and Reagan. GSA?s Chief Financial Officer and former President Clinton?s Chief of Staff provided technical clarifications to our draft report. These clarifications have been included where appropriate. The Deputy Assistant Director of the Secret Service stated that the Secret Service had no comment. Former President Carter and the Chiefs of Staff of former Presidents Bush, Ford and Reagan all said that the information pertaining to their offices was accurate. The Presidential Transition Act, 5 the Former Presidents Act, presidential protection legislation, 6 and other legislation authorize federal government benefits for former presidents, their spouses, and children. The Presidential Transition Act and the Former Presidents Act authorize office space and office operating costs to a former president. The Former Presidents Act authorizes pensions for a former president and his surviving widow. The protection legislation authorizes the Secret Service to provide protection for former presidents, their spouses, and children and specifies the length of time each is entitled to receive protection. The act authorizes GSA to provide former presidents the following support: suitable office space, appropriately furnished and equipped as determined by the GSA Administrator at a place within the United States specified by the former president; compensation for members of their office staff, not to exceed for any one person the amount provided for an Executive Level IV position (currently that amount is $125,700); 5 3 U. S. C. sect. 102 note. 6 18 U. S. C. sect. 3056. Background Presidential Transition Act Page 6 GAO- 01- 983 Former Presidents an allowance for travel expenses and subsistence; communications services; and printing, binding, and postage expenses. Under the Transition Act, funds are available for expenses incurred to establish an office for an outgoing president beginning 30 days before his presidential term expires, (December 21) until 6 months after the end of the term of office (July 20). 7 The act also provides that, except for pensions, entitlements under the Former Presidents Act do not become effective until 6 months after the presidential term expires (July 20). This act authorizes GSA to provide the following support for a former president, some of which are similar to that provided by the Transition Act: a pension at an annual rate equal to the rate of pay for a head of an executive department, currently $161,200. Upon the death of a former president, a surviving widow is entitled to receive an annual pension of $20,000. an office staff selected by the former president and responsible only to him in the performance of their duties. For the first 30 months the total annual allowance for the entire staff is limited to $150,000. Thereafter, the annual allowance is limited to $96, 000. No individual may be paid more than the highest annual rate provided for an Executive Level II position, currently $145,100. While not considered to be federal employees, staff working for the former president are eligible for certain federal benefits, such as federal retirement and life and health insurance. 8 office space appropriately furnished and equipped, as determined by the GSA Administrator, located wherever the former president specifies in the United States. Upon the death of a former president, GSA has determined that to give the staff ample time to bring its operations to a conclusion, the office should be allowed, as a general rule, to operate up to 6 additional months. 9 GSA has decided that 6 months is sufficient time to complete any 7 GSA has concluded that July 20 th is the last day that Presidential Transition Act funds are legally available to be obligated by a former president. 8 Retirement - 5 U. S. C. sect. 8331( 1)( I) and 5 U. S. C. sect. 8401 (11)( A), health insurance- 5 U. S. C. sect. 8901( 1)( H), and life insurance - 5 U. S. C. sect. 8701( a)( 9). 9 The Former Presidents Act does not provide any information or guidance on how long a former president?s office should be given to wind up affairs after a former president?s death. Former Presidents Act Page 7 GAO- 01- 983 Former Presidents unfinished business and transfer appropriate documents and other items to the presidential library. The surviving spouse is not entitled to any staff or office allowance. Originally provided for in the Former Presidents Act, former presidents were authorized to send nonpolitical mail within the United States, its territories, and possessions as franked mail (i. e., mail with their signature in lieu of postage). Subsequently, this provision was moved to 39 U. S. C. sect. 3214 and revised to include mail sent internationally and to grant surviving spouses the same mailing privileges. 10 The former presidents may also use penalty mail (mail sent in envelopes without a stamp and bearing a notice of penalty for private use) for 6 months after leaving office under the authority of the Presidential Transition Act. GSA is also authorized to pay for travel and related expenses of former presidents and no more than two members of their staffs. 11 GSA, in consultation with officials representing the former presidents, prepares yearly operating budgets. Funds are appropriated by Congress and included as part of GSA?s annual appropriation act. In addition to assisting the former presidents? offices with budget preparation, GSA also provides administrative support for the offices of former presidents, assisting on requests for equipment, supplies, and other office expenditures. Beginning in 1962, the Secret Service was authorized to protect a former president, at his request, for a reasonable period of time after he leaves office. 12 In 1965, protection was expanded to a former president and his wife during his lifetime and the widow and minor children of a former president for a period of 4 years after he leaves office or his death occurs while still in office, unless such protection is declined. 13 In 1968, protection was once again expanded to protect a former president and his wife during his lifetime, the widow of a former president until her death or remarriage, and minor children of a former president until they reach 16 10 The Former Presidents Act appropriation reimburses the Postal Service for expenses under 39 U. S. C. sect. 3214. 11 Public Law 90- 608, 82 Stat. 1190, 1192 (1968). 12 Public Law 87- 829, 76 Stat. 956 (1962). 13 Public Law 89- 186, 79 Stat. 791 (1965). Presidential Protection Page 8 GAO- 01- 983 Former Presidents years of age, unless such protection is declined. 14 In 1994, the law was amended to rescind lifetime protection for former presidents and their spouses if the president?s term of office began after January 1, 1997. 15 The 1994 amendment provided that for presidents who begin their term of office after January 1, 1997, protection is provided for them and their spouses for a period of not more than 10 years from the date the former president leaves office except, as follows: The protection of a spouse is terminated in the event of remarriage or divorce from, or the death of a former president. If the death of a president occurs while in office or within 1 year after leaving office, the spouse shall receive protection for 1 year from the time of death. The child of a former president under the age of 16 receives protection for a period of time not exceeding 10 years or upon the child becoming age 16, whichever comes first. After the statutory period of protection has terminated, the Secretary of the Treasury has the authority to provide temporary protection if the Secretary determines that conditions warrant further protection. President George W. Bush is the first President covered by the revised protection legislation. In fiscal year 1994, the Former Presidents Act was amended to authorize an appropriation for GSA to make available for each former president up to $1 million annually and his or her spouse up to $500,000 annually for security and travel- related expenses if, the former president and/ or spouse was not receiving lifetime protection under the lifetime provision (18 U. S. C. sect. 3056), or protection provided by the Secret Service had expired at the end of the 10- year period, or protection was declined prior to end of the 10- year period. 14 Public Law 90- 608, 82 Stat. 1190, 1198 (1968). 15 18 U. S. C. sect. 3056. Page 9 GAO- 01- 983 Former Presidents Each former president by law is entitled to a pension, franked mail, a furnished office, office staff salaries, office operating expenses, travel funds, and Secret Service protection. In addition, a former president?s surviving widow is also entitled to a pension. The former president?s surviving spouse is entitled to free mail and Secret Service protection. For fiscal year 2000, the cost to the federal government for those benefits was about $26 million. For fiscal years 1977 through 2000, the total cost was about $370 million. The tables in appendix I provide information on costs on a yearly basis for fiscal years 1977 through 2000 and identify recipients of protection during these fiscal years. Tables 8 through 12 provide detailed information on cost, by category, for each former president for fiscal years 1996 through 2000. Under the Former Presidents Act, GSA is authorized to furnish each former president suitable office space appropriately furnished and equipped, as determined by the GSA Administrator, at a location of the former presidents choosing in the U. S. According to GSA officials, this provision allows former presidents to select the city, building, floor, and even location on a floor for their offices. GSA?s role is to negotiate with the building owners the best lease, which would include rental cost. GSA officials told us that GSA has no authority to reject a former president?s location request and has not issued any guidance on this subject. The law does not provide any information or guidance for GSA concerning the amount of office space requested by a former president. According to a GSA official who was involved with establishing former President Bush?s office, the former president used the size of existing former presidents? offices as a guide in determining the size of his future office. Likewise, the Chief of Staff for former President Clinton said historical space data and advice from GSA officials were used in estimating the size of former President Clinton?s office. As of June 1, 2001, the size of former presidents? offices ranged from 3,306 to 5,912 square feet. Table 1 provides information on the amount of space utilized by former Presidents?, Bush, Carter, Clinton, Ford, and Reagan. Table 1 also provides information on the amount of various types of space, such as the former president?s personal office, general offices, and conference space in each of the former presidents? offices. A lease has been signed for the Clinton office space. Although former President Clinton moved into his office during July 2001, as of August 7, 2001, construction of the interior and furnishing of this space had not been completed. Total Federal Cost of Former Presidents From Fiscal Years 1977 Through 2000 Was About $370 Million Historical Space Data Provide Guidance for Amount of Office Space; Office Sizes Vary Page 10 GAO- 01- 983 Former Presidents Table 1: Former Presidents Office Space a Former presidents Space usage Ford Carter Reagan b Bush Clinton President?s office 610 1,018 555 698 1,106 Spouse office 0 496 0 0 0 General office 1,560 2197 3,607 3,223 3,880 Conference 401 0 c 0 d 336 442 Kitchen/ pantry 0 f 164 60 198 49 Other 735 348 1,690 g 119 112 Total 3,306 4,223 5,912 4,574 5,589 a Actual measurement of space, in usable square feet, made by GSA at our request. b Former President Reagan?s office is relocating, with an expected reduction in space to about 2, 450 square feet. c The Carter Center provides a conference room at no cost to GSA. d The office has some space that was previously used as conference space but is presently designated as reception/ office space and is included in the office category. e Kitchen/ pantry located in the Secret Service space. f Includes a mailroom of about 140 square feet. g Includes a secure corridor, hallway, and elevator lobby. Source: GSA. The office of former President Reagan was in the process of relocating. The current location has been used since he left office in 1989. According to his Chief of Staff, this move is being done because the former president no longer requires as much space as is currently occupied. Because of the former president?s medical condition, the new office will not contain an office for the former president?s personal use. The new office will be reduced in size from about 5,900 to about 2,450 usable square feet. GSA signed a lease for the space on July 3, 2001, and relocation is expected to take place during September 2001. In addition to his current office, about 1,700 additional square feet of space was used for a short period of time during 1989 and 1990 as a mailroom. The space was located in another building and was required because of the large amount of mail that was being received. Former Presidents Ford and Bush have had only one primary office since their terms of office ended. The office size for former President Ford has not changed. Former President Bush?s office eliminated about 1,300 square feet of unneeded office space in 1994, about 1 year after he first occupied Page 11 GAO- 01- 983 Former Presidents his office. About 119 square feet of storage space was added during 1999. The storage space is located on another floor in the building. Both former Presidents Ford and Bush maintain summer offices in other locations. Former President Ford?s primary office is located in Rancho Mirage, CA., and his summer office is in Vail, CO. Former President Bush?s primary office is located in Houston, TX, and his summer office in Kennebunkport, ME. GSA does not pay any rental costs for the two summer offices; the former presidents pay the costs for the space. Their primary offices remain open and operational throughout the year. GSA?s primary costs for the two summer offices are the per diem and travel cost of staff who relocate for the summer months to staff those offices. Only two staff members are allowed to be on travel at government expense at the same time. The per diem and travel costs for the Ford and Bush summer offices for fiscal year 2000 were $36,247 and $35,607, respectively. Former President Carter?s office is located at the Carter Presidential Center, in Atlanta GA. According to GSA and Carter Center officials, former President Carter?s office has resided at the Center since the Center opened in 1986. Prior to that time, the office was located in the Russell Federal Building, which is also located in Atlanta. According to information provided by GSA, the square footage of the Carter Center office is about 18 percent smaller than that of the Russell building location. According to GSA officials, except for the office of former President Carter, all the space occupied by each of the offices of former presidents is paid for by GSA. 16 As shown in Table 8, for fiscal year 2000, GSA?s rental charge to former President Bush was $144,000, former President Carter $89,283, former President Ford $105, 099, and former President Reagan $256,671. As of August 7, 2001, former President Clinton?s office was not finished. His estimated annual rent payment to GSA for fiscal year 2002, is expected to be about $354, 000. According to a GSA official, the fiscal year 2003 rental rate will be adjusted to reflect any amortization of interior construction costs not accounted for in the fiscal year 2002 rental charge. All the former presidents? offices are located in leased space, including 16 The rent payments for the former presidents? offices are paid from Former Presidents Act appropriations and transferred into the Federal Buildings Fund to reimburse GSA for the lease costs and administrative and security fees. GSA Generally Pays All Costs for Office Space Page 12 GAO- 01- 983 Former Presidents former President Clinton?s office. GSA is the lessee for all office space used by the former presidents, and the former presidents are, in essence, tenants. Former President Carter, who maintains his office at the Carter Presidential Center, utilizes some additional office space that is provided by the center at no cost to the government. For example, a conference room and some office space are available for his use. The Center also provides an apartment that is located next to his personal office. In addition to the former president?s office space, the Secret Service maintains offices near each former president?s office. GSA negotiates space for the Secret Service, as part of the lease for each former president?s office. The Secret Service pays rental costs for its space to GSA. Based upon the information provided by GSA officials, rental rates paid by GSA for former presidents? offices generally are similar to rental rates charged for comparable office space located near the former presidents? offices. The cost per square foot of space for former presidents Bush and Carter was within the range, and the rate for former President Reagan?s office was slightly below. Although, the rental rate for former President Ford, was about 6 percent higher than the highest comparable rental rate, the firm that provided the rental information at the request of GSA stated that suitable space for use by a former president might not exist. In its report, the firm stated that the space for which they provided information was applicable for typical agencies but not necessarily a former President. Former President Clinton?s space is about 4 percent more costly than other federally leased space in the same building but located on a lower floor. According to a GSA official, the higher floor location was the most significant factor for the higher cost. The amount of rent that GSA charges each of the offices of former presidents is determined in the same way GSA determines rent it charges federal agencies in space it controls. The former presidents? office rent is based upon GSA?s lease costs (what it pays the building owner), plus amounts to cover GSA administrative and security costs. GSA charges rent monthly. The rental cost are paid from GSA?s Former Presidents Act appropriation and deposited into the Federal Buildings Fund. GSA uses the Federal Buildings Fund, subject to congressional limitations, to pay lease costs, building operating costs and capital expenses. Table 2 provides information on the rental cost of each of the former president?s offices for fiscal year 2000 and what GSA officials believe Office Rental Costs Generally Similar to Comparable Properties Page 13 GAO- 01- 983 Former Presidents would be the current cost of comparable space at other locations near each of the former presidents offices. Table 2: Fiscal Year 2000 Rental Cost for Offices of Former Presidents and GSA?s Current Estimated Cost of Comparable Space Former president and location of office Fiscal year 2000 rental cost a Usable square feet b Cost per usable square foot GSA?s estimated comparable cost c Bush Houston, TX $144,000 4,574 $31.48 $34.91 to $37.93 Carter Atlanta, GA 89,283 4, 223 21.14 $18.14 to $33.05 Ford Rancho Mirage, CA 105,099 3, 306 31.79 $22.81 to $29.94 d Reagan e Los Angeles, CA 256,671 5, 912 43.42 $44.84 to $64.93 a Rent paid by former presidents to GSA includes the lease cost GSA pays to the building owners plus GSA administrative and security costs. b Actual measurement of space made by GSA at GAO?s request. c The comparable rental cost provided by GSA officials has been increased by GSA?s 8 percent administrative fee and 13 cents per- square foot security fee. d GSA hired a private firm to conduct a market survey of available properties. That firm provided rental rate information on seven properties. However, in its report it stated that there is very little existing space that is of the quality or is suitable for the use of a former president?s office. The report also stated that while the properties included in its report would be ?? valid for a typical agency office lease, ? we are not comfortable that a suitable quality office building exists for the proposed use.? e On July 2, 2001, GSA signed a lease for space to house former President Reagan?s new office. A total of about 2,450 square feet will be used for the former president?s office. The estimated annual rental payment to GSA by the former president will be about $139,000, or about $56.73 per square foot. Source: GSA. Former President Clinton?s office is not included in table 2 because his New York City office was not opened until July of 2001. Although the office was opened in July, interior construction was not completed until August 2001. GSA?s rental payment to the building owner, per usable square foot, is expected to be about $59.71. Former President Clinton?s annual rental cost for fiscal year 2002 is currently estimated to be about $354,000. This amount includes GSA?s lease cost and its administrative and security costs. According to a GSA official, the fiscal year 2003 rental rate will be adjusted to reflect any amortization of interior construction costs not accounted for in the fiscal year 2002 rental charge. Also according to the official, the current square foot rental rate that GSA is paying the building owner is similar to the rate negotiated for the Social Security Page 14 GAO- 01- 983 Former Presidents Administration on another lease in the building and awarded the same day as the former president?s office lease (April 17, 2001). The rental rate per square foot for the Social Security office, which is located on a lower floor, is about $57.18. The Clinton rental rate is about 4 percent higher. According to a GSA official, the higher floor location was the most significant factor for the higher cost. Also, according to the official, no other comparable properties exist in the area. Once GSA has negotiated a lease for space, an office?s layout must be developed, constructed, and furnished with desks, telephones, computers, and other equipment. The amount of interior construction depends upon the condition of the leased space and the planned layout: it might already be configured so that only minor modifications are necessary, or the space could require extensive work. If interior construction is necessary, GSA tries, as part of its negotiation with the building owner, to persuade the owner to pay for some of the construction costs. For example, as part of the lease cost, the owner may provide an allowance of $5 per square foot. According to GSA officials, the condition of the commercial leasing market at the time GSA negotiates with the owner determines, to some extent, what the rent and build- out allowance will be. If quality space is in short supply, GSA officials said that rental rates go up and allowances offered or provided by building owners go down. If the costs of the construction exceed the allowance provided by the owner, GSA and the former president, as the tenant, are responsible for the additional costs. Such costs can be charged against the former president?s account in one lump- sum, or GSA can amortize the cost as part of the rent over some period of time. We found that at least two of the former presidents? offices, using Transition Act funds, chose the lump- sum payment to pay for part of their office interior construction costs. We could not determine if similar payments were made for the other three former presidents? offices, because records were not readily available. However, based upon discussions we had with GSA officials, we believe it is likely that this method was chosen as well. Using the funds on a lumpsum basis keeps the rent costs lower than if those costs were amortized and collected as part of the monthly rent. In the GSA lease files for former Presidents Bush and Clinton, we found documentation stating that the former presidents authorized the use of their transition funds for this purpose. According to a GSA budget official, this is an allowable expenditure of Transition Act funds because they can be used for office space. According to the budget official, it was his experience that this was the preferred method. Former President Bush authorized $134,500 and Transition Act Funds Are Authorized for Former Presidents Use for Initial Interior Space Construction and Furnishing of Space Page 15 GAO- 01- 983 Former Presidents former President Clinton authorized $415, 000 of their Transition Act funds for the construction of their offices interior space. Former President Clinton?s total transition budget was $1,525,000, of which about $878,000 was obligated as of June 30, 2001. Once the interior construction is finished, the office needs to be furnished with desks, chairs, computers, telephone systems, and so forth. According to a GSA budget official, either Transition or Former President Act funds can be used for this purpose because both acts allow for those types of expenditures. Subsequent purchases of furniture or equipment may be paid for from either Transition or Former Presidents Act funds, depending on the timing of the acquisition. During our examination of former Presidents? Bush, Carter, Ford, and Reagan offices, we did not identify any special amenities or build- out features that we believe would not be found in similar commercial office space. Construction of former President Clinton?s office was only partially complete at the time of our visit to his office on August 7, 2001. We inspected each former president?s office complex and did not see anything that might be considered in excess of what would be found in quality office space elsewhere. Walls were generally painted, no wallpaper, and the furniture was generally government issue. According to GSA officials, a former president is allowed interior space that is comparable to the quality of space provided to an executive department head. Since the former president?s pension is based upon the salary of a cabinet official, it is reasonable to expect that the office quality would be comparable. We visited two cabinet officer offices as part of this assignment, and on previous occasions we have visited offices such as an U. S. Attorney?s office and judicial chambers. Based upon our observations, we do not believe that the former presidents? offices exceed the GSA standard. While former President Clinton?s office was not yet completed when we visited, the completed work was not expected to include anything that appeared to exceed GSA?s standard or what we observed in the offices we visited for comparative purposes. GSA?s New York Region Director of Property Acquisition and Realty Services said the quality of former President Clinton?s planned office would be equivalent to a federal official such as a U. S. Attorney or federal judge. Each former president?s office had what we considered to be a good outside view. Three of the offices, former Presidents Bush, Reagan, and Clinton, are located on the top floor of their respective buildings. In our opinion, each provides good panoramic views. Former President Ford?s Former Presidents? Office Space Has No Special Amenities or Build- Out Features but Provides Good Exterior Views Page 16 GAO- 01- 983 Former Presidents office is a one- story house and former President Carter?s is located on the second floor of the Carter Center. Each of those two offices, we believe, also has good exterior views. Former President Ford?s view is of a golf course, and former President Carter?s view consists of part of the Carter Center grounds. We asked GSA officials if a higher floor location or a good exterior view could command a higher rental rate. They said that while everything regarding real estate is negotiable, it would be reasonable to assume that a high- floor office with a good view or an office with a good view in general could be expected to command a higher rental rate. Because so many factors influence what the final rental rate would be, such as the supply and demand for office space, GSA officials could not provide a definitive incremental rental amount generally associated with a higher floor location or an office with a good view. However, according to a GSA official involved with the lease for former President Clinton?s office space, a higher elevation could command as high as a 10 percent premium. Each former president receives federal funding for an office staff. Former presidents? office staff ranged from 6 to 19 persons, including full- and part- time paid members and volunteers and interns. Although staffs can receive federal compensation, they are not considered federal employees. They are, however, eligible for certain federal benefits such as retirement and health insurance. In addition to receiving federal compensation, most staff members also receive additional compensation from the former presidents, their foundations, and/ or their spouses? foundations. According to representatives of the former presidents?, no staff members conducted political fund- raising. The Former Presidents Act allows each former president to select a staff that is only responsible to him in the performance of their duties. An annual allowance of $150,000 is provided for the first 30 months beginning July 20th of the year in which the term of office of the former president expired and $96,000 annually thereafter. According to officials from GSA?s Office of General Counsel, while the staff receives federal compensation, they are not classified as federal employees. However, the staff may participate in several federal employee benefits programs, such as retirement and health insurance. Table 3 provides information on the number of staff within the offices of former Presidents Bush, Carter, Clinton, Ford, and Reagan. Former Presidents Staff Generally Receive Compensation From Federal and Nonfederal Sources and Are Reportedly Not Engaged in Political Fund- raising Staff Allowance Page 17 GAO- 01- 983 Former Presidents In addition to receiving federal compensation, most of the former presidents? staffs reportedly receive compensation from nonfederal sources according to representatives of the former presidents. This additional compensation came directly from the former presidents and/ or from one of their or their spouses? foundations. In return, the staff perform their normal former presidents? office duties, assist the former president with personal matters, or assist the foundation with former presidential activities or a combination of the three. For example, the head of one former president?s office receives compensation from the federal government, the former president, and his foundation. That person?s duties include managing the office, dealing with issues such as preventing the commercialization of the former president?s image, assisting the foundation with setting up meetings and conferences dealing with issues that took place during his presidency, and serving as the library?s freedom of information representative. Table 3 provides information on the total amount of compensation received by the office staff of former Presidents Bush, Carter, Ford, and Reagan and the sources of that compensation. Table 3 also provides limited information on former President Clinton?s staffing plans. Staffs Receive Compensation From Nonfederal Sources Page 18 GAO- 01- 983 Former Presidents Table 3: Former President?s Office Staff and Compensation Paid With Funds From the Former Presidents Act a Former President Types of staff Ford Carter Reagan Bush Clinton b Full- time paid 4 94612 Part- time paid 1 0130 Volunteers c 1 2136 Interns c 0 1221 Total 6 12 8 14 19 Total amount of federal salaries $95,732 $93,864 $94,316 $95,644 $0 Total amount of nonfederal salaries $87,550 $314,837 $150,000 $363,000 $0 d Total compensation $183,282 $408,701 $244,316 $458,644 $0 a Staff numbers are current as of June 1, 2001, and compensation reflects total for fiscal year 2000. As of June 1, 2001, former President Clinton?s staff was being paid by Transition Act funds. Former President Act funds became available to pay his staff salaries on July 20, 2001. As of June 30, 2001, former President Clinton has obligated about $562,000 for personnel salaries and benefit costs. b Based upon an estimate provided by the Chief of Staff of former President Clinton. The permanent office was not fully established at the time of our review. c Based upon a daily average. Former President Clinton?s office is expected to utilize volunteers and interns, but the exact number of these individuals has not yet been determined. d According to the Chief of Staff of former President Clinton, some staff compensation will be paid by the former president and his presidential foundation. Source: Offices of former Presidents and GSA. GSA officials informed us that there is no legal prohibition that would preclude the former president?s staff from receiving compensation from other sources or doing personal work for the former presidents. We are unaware of any legal prohibition that would preclude these activities. With regard to the former president?s staff doing personal work for him, the Former Presidents Act provides that staffs are only responsible to the former president in the performance of their duties. According to all of the chiefs of staff or other representatives of the former presidents, none of the offices have been involved with political fundraising activities. This is consistent with GSA?s advice to the former presidents that their staff should not use appropriated funds for partisan political activities. In response to a request from former President Bush for GSA?s opinion on matters relating to the operation of his office, the GSA Administrator stated in a 1993 letter that ?neither appropriated funds nor Political and Presidential Foundation Fund- raising Page 19 GAO- 01- 983 Former Presidents federally funded office staff time may be used in support of partisan political activities.? At the time GSA sent former President Bush this letter, there was a specific prohibition in GSA?s appropriations act against using funds appropriated for former presidents? allowances and office staff for partisan political activities. 17 While this prohibition is no longer included in GSA?s appropriations act, GSA officials informed us that as a matter of policy it has always, even prior to the 1993 provision, advised former presidents against using federal funds or federally funded office staff time for partisan political activities. GSA has not issued any overall instructions about the propriety of political fund- raising by the staff of former presidents. Former President Carter?s staff is, however, involved with fund- raising for the former president?s foundation. GSA officials informed us that there is no legal prohibition against former president?s staff participating in fundraising activities for the former president?s foundations. We are unaware of any legal prohibition that would preclude former president?s staff from engaging in this type of activity. To varying degrees, foundations associated with the former presidents or their spouses are involved with the use of former president?s office space and staff. In addition to staff compensation discussed above, former presidents' foundations share office in the former presidents? offices and provide office equipment and furnishings. GSA officials informed us that there is no legal prohibition against the practices of sharing office space and providing furniture and equipment that have developed between former presidents and their foundations. We are unaware of any legal prohibitions that would preclude this. The following is a description of the relationship between those organizations and the current former presidents who already have permanent offices. According to the Chief of Staff for former President Ford, one staff member receives compensation from the Gerald R. Ford Library and Museum and another staff member receives compensation from the Betty Ford Center. The latter staff member conducts normal duties for the former President and also assists Mrs. Ford with her Center?s activities. According to the Chief of Staff, the staff member?s computer was supplied by the Center and Mrs. Ford pays for all office supplies required as a result 17 Public Law 103- 123, 107 Stat. 1226, 1266 (1993). Presidential Foundations Involved With the Offices of Former Presidents Former President Ford Page 20 GAO- 01- 983 Former Presidents of her Center?s activities. Neither Mrs. Ford, the Library, nor the Center maintains offices at the former president?s office. Former President Carter?s office is located at the Carter Presidential Center and space is rented from the Center. According to the Carter Center?s Director of Administrative Services, all of the office staff that work on former President Carter?s activities are employed and paid by the Carter Center. However, under a contract between GSA and the Center, GSA pays $80,000 to the Center to provide administrative support for the office of the former president. Those funds are then used to cover a portion of some employee?s salaries. The Director also stated that all of the other staff only receive Carter Center funds. During fiscal year 2000, one employee who was located in Plains, GA, worked for the office and received compensation from both the government and the Carter Center. That employee retired last year. Employee titles are also different. Where as other former presidents have chiefs of staff, former President Carter?s personal assistant?s title is the Executive Assistant to the Chairman. Former President Carter is the Carter Center?s chairman. Some of the space utilized by the Carter Center?s Executive Director and his assistant is paid for by GSA. According to the Director, he is actively involved with the office of former President Carter by traveling with the former president, accepting awards on his behalf, handling some of the former president?s correspondence, and working with the former president?s staff. Mrs. Carter is assigned an office in the office of former President Carter. The Director of Administrative Services stated that the former president decided to provide an office for his wife in his former president?s office because they both work jointly on most activities involving the former president. GSA officials informed us that there is no legal prohibition against this, and we are unaware of any such prohibition. The Director also stated that GSA does not pay for some space that is used exclusively by the former president, such as a conference room and some office space. The Carter Center also provides an apartment for the former president. The apartment is located next to the former president?s personal office in the Carter Center. According to the Director, the Carter Center provided most of the equipment and furniture used by the former president?s staff. GSA subleases space for former President Reagan?s office from the Ronald Reagan Presidential Foundation. The foundation once had staff located on the same floor but in separate office space. The foundation staff has since relocated to the Reagan Library, but according to former President Reagan?s Chief of Staff, the foundation did utilize the conference room for Former President Carter Former President Reagan Page 21 GAO- 01- 983 Former Presidents its quarterly meetings. According to the Chief of Staff, one staff person receives compensation from the foundation; this individual assists the foundation in setting up conferences, such as on the Cold War, that are associated with the former president. The foundation provided some furniture. The Chief of Staff also stated that Mrs. Reagan supplied a computer used by one of the staff who assists her, and she purchases her own office supplies. Mrs. Reagan does not have an office in the office of former President Reagan. The Chief of Staff also stated that three staff members receive compensation from former President Reagan. According to the Chief of Staff for former President Bush, two staff members receive compensation from the George Bush Presidential Center Foundation. The foundation also provided two computers and some furniture, but it has no office space at the former president?s office. From August 2000 through March 2001, one of its staff members was located at the former president?s office. That staff person transcribed the personal diaries of the former president that he dictated while he was president. One staff member assists Mrs. Bush. According to the Chief of Staff, Mrs. Bush purchases all office supplies necessary for her activities. Mrs. Bush does not have her own office at former President Bush?s office. The Chief of Staff also stated that seven staff members receive compensation from former President Bush. Former President Clinton has established the William Jefferson Clinton Presidential Foundation. The foundation is located in Little Rock, Arkansas. As previously stated, the foundation will assist with the payment of office staff salaries. According to former President Clinton?s Chief of Staff, no other assistance from the foundation is being considered. We received either written or oral comments from GSA, the Secret Service, former President Carter and representatives of former Presidents Bush, Clinton, Ford, and Reagan. GSA?s Chief Financial Officer and former President Clinton?s Chief of Staff provided technical clarifications to our draft report. These clarifications have been included where appropriate. The Deputy Assistant Director of the Secret Service stated that the Secret Service had no comment. Former President Carter and the Chiefs of Staff of former Presidents Bush, Ford and Reagan all said that the information pertaining to their offices was accurate. As agreed with your office, unless you publicly announce the contents of this report earlier, we plan no further distribution until 30 days from its issue date. At that time, we will send copies of this report to the Chairman Former President Bush Former President Clinton Agency Comments and Our Evaluation Page 22 GAO- 01- 983 Former Presidents and Ranking Minority Members of the congressional committees with jurisdiction over GSA and the Secret Service. We are also sending copies of this report to the Administrator of GSA; the Secretary of the Treasury; the Director of the Secret Service; and former Presidents Bush, Carter, Clinton, Ford, and Reagan. We will also send copies to interested congressional committees and make copies available to others on request. Major contributors to this report were Ronald King, John Parulis, and Susan Michal- Smith. If you or your staff have any questions, please contact me on (202) 512- 8387 or at ungarb@ gao. gov. Sincerely yours, Bernard L. Ungar Director, Physical Infrastructure Issues Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 23 GAO- 01- 983 Former Presidents Table 4: Total Expenditures Associated With Former Presidents, Fiscal Years 1977- 2000 Fiscal year Former Presidents Act Secret service protection Total 1977 $378,749 $5,576,349 $5,955,098 1978 651,965 7, 936,728 8,588,693 1979 720,697 9, 072,373 9,793,070 1980 739,795 7, 563,432 8,303,227 1981 718,325 9, 741,663 10,459,988 1982 1,024,405 11,750,238 12,774,643 1983 1,028,820 10,941,419 11,970,239 1984 1,075,176 10,547,659 11,622,835 1985 1,103,933 11,416,329 12,520,262 1986 1,036,729 8,359,615 9,396,344 1987 1,055,273 9,265,491 10,320,764 1988 1,058,305 8,331,803 9,390,108 1989 1,247,848 13,472,939 14,720,787 1990 1,710,716 12,785,902 14,496,618 1991 1,815,394 12,897,617 14,713,011 1992 1,976,800 13,481,078 15,457,878 1993 2,247,506 18,945,296 21,192,802 1994 2,495,498 18,797,425 21,292,923 1995 2,072,824 20,942,654 23,015,478 1996 1,992,168 21,139,287 23,131,455 1997 2,002,882 22,746,170 24,749,052 1998 2,036,002 22,580,904 24,616,906 1999 2,023,888 23,186,699 25,210,587 2000 2,083,331 23,743,561 25,826,892 Total $34,297,029 a $335,222,631 $369,519,660 a For fiscal years 1985 through 1987, the amount shown includes Former President Act funds used to pay the rental charge for a townhouse owned by the federal government in Washington D. C. that was used exclusively by former presidents when they visited the capital. Starting with fiscal year 1988, Congress eliminated the rental payments because the property was seldom used. The charge to the Former Presidents Act account for those 3 years was $62,913, $63,627, and $53, 821 respectively. Source: GSA and Secret Service officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 24 GAO- 01- 983 Former Presidents Table 5: Expenditures Under the Former Presidents Act, Fiscal Years 1977- 2000 Fiscal year Former presidents Widows Total 1977 $316,168 $62,581 $378,749 1978 590,002 61,963 651,965 1979 660,697 60,000 720,697 1980 693,394 46,401 739,795 1981 676,125 42,200 718,325 1982 979,405 45,000 1,024,405 1983 1,006,420 22,400 1,028,820 1984 1,052,276 22,900 1,075,176 1985 1,080,933 23,000 1,103,933 1986 1,012,604 24,125 1,036,729 1987 1,034,273 21,000 1,055,273 1988 1,037,329 20,976 1,058,305 1989 1,226,884 20,964 1,247,848 1990 1,688,611 22,105 1,710,716 1991 1,794,670 20,724 1,815,394 1992 1,956,300 20,500 1,976,800 1993 2,226,106 21,400 2,247,506 1994 2,474,298 21,200 2,495,498 1995 2,050,324 22,500 2,072,824 1996 1,970,972 21,196 1,992,168 1997 1,981,582 21,300 2,002,882 1998 2,014,595 21,407 2,036,002 1999 2,002,374 21,514 2,023,888 2000 2,061,731 21,600 2,083,331 Total $33,588,073 $708,956 $34,297,029 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 25 GAO- 01- 983 Former Presidents Table 6: Expenditures Under the Former Presidents Act, by Former President, Fiscal Years 1977- 2000 a Fiscal year Nixon Ford Carter Reagan Bush Total 1977 $215,923 $100,245 $0 $0 $0 $316,168 1978 229,323 360,679 0 0 0 590,002 1979 282,990 377,707 0 0 0 660,697 1980 318,213 375,181 0 0 0 693,394 1981 300,418 323,390 52,317 0 0 676,125 1982 311,313 296,188 371,904 0 0 979,405 1983 291,868 331,184 383,368 0 0 1,006,420 1984 317,525 350,366 353,063 0 0 1,020,954 1985 317,469 360,995 339,556 0 0 1,018,020 1986 307,679 328,267 313,031 0 0 948,977 1987 360,990 343,182 276,280 0 0 980,452 1988 403,601 351,161 282,567 0 0 1,037,329 1989 390,557 359,441 324,027 152,859 0 1,226,884 1990 407,202 336,785 352,200 592,424 0 1,688,611 1991 420,611 409,956 367,899 596,204 0 1,794,670 1992 436,739 411,840 407,934 699,787 0 1,956,300 1993 448,603 454,145 388,256 746,058 189,044 2,226,106 1994 396,901 433,539 406,673 665,973 571,212 2,474,298 1995 0 453,235 411,214 619,954 565,921 2,050,324 1996 0 430,088 394,825 605,607 540,452 1,970,972 1997 0 432,121 408,277 608,886 532,298 1,981,582 1998 0 437,639 398,937 614,028 563,991 2,014,595 1999 0 437,328 399,765 611,236 554,045 2,002,374 2000 0 510,357 397,635 599,649 554,090 2,061,731 Total $6,157,925 $9,005,019 $7,029,728 $7,112,665 $4,071,053 $33,376,390 a Does not included cost associated with D. C. townhouse. (See table 4 note) Cost was charged to overall account and not to individual former presidents. Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 26 GAO- 01- 983 Former Presidents Table 7: Expenditures Under the Former Presidents Act, by Former Presidents? Widows, Fiscal Years 1977- 2000 Fiscal year Mrs. Johnson Mrs. Truman Mrs. Eisenhower Widows postage Total 1977 $20,000 $20,000 $20,000 $2,581 $62,581 1978 20,000 20,000 20,000 1, 963 61,963 1979 20,000 20,000 20,000 0 60,000 1980 20,000 20,000 2, 000 4,401 46,401 1981 20,000 20,000 0 2,200 42,200 1982 20,000 20,000 0 5,000 45,000 1983 20,000 0 0 2, 400 22,400 1984 20,000 0 0 2, 900 22,900 1985 20,000 0 0 3, 000 23,000 1986 20,000 0 0 4, 125 24,125 1987 20,000 0 0 1, 000 21,000 1988 20,000 0 0 976 20,976 1989 20,000 0 0 964 20,964 1990 20,000 0 0 2, 105 22,105 1991 20,000 0 0 724 20,724 1992 20,000 0 0 500 20,500 1993 20,000 0 0 1, 400 21,400 1994 20,000 0 0 1, 200 21,200 1995 20,000 0 0 2, 500 22,500 1996 20,000 0 0 1, 196 21,196 1997 20,000 0 0 1, 300 21,300 1998 20,000 0 0 1, 407 21,407 1999 20,000 0 0 1, 514 21,514 2000 20,000 0 0 1, 600 21,600 Total $480,000 $120,000 $62,000 $46,956 $708,956 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 27 GAO- 01- 983 Former Presidents Table 8: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 2000 Cost Category Ford Carter Reagan Bush Widows Total Pensions Benefits for former presidents pensions $155,700 $155,700 $155,700 $155,700 $20,000 $642,800 Office Staff Personnel benefits $22,182 $5,903 $23,652 $34,348 $0 $86,085 Personnel compensation 95,732 93,864 94,316 95,644 0 379,556 Subtotal $117,914 $99,767 $117,968 $129,992 $0 $465,641 Office Equipment $24,528 $0 $0 $12,978 $0 $37,506 Equipment rental 0 0 00 00 Other services 6,225 15,374 14,306 18,199 0 54,104 Postage 16,116 15,114 10,267 14,007 1, 600 57,104 Printing 50 865 8,075 12,057 0 21,047 Rental payments to GSA 105,099 89,283 256,671 144,000 0 595,053 Supplies and materials 20,865 1, 120 22,780 10,226 0 54,991 Telephone 20,992 20,412 13,882 9, 307 0 64,593 Transportation of things 1, 622 0 00 01,622 Travel 41,246 0 0 47,624 0 88,870 Subtotal $236,743 $142,168 $325,981 $268,398 $1,600 $974,890 Total $510,357 $397,635 $599,649 $554,090 $21,600 $2,083,331 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 28 GAO- 01- 983 Former Presidents Table 9: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1999 Cost Category Ford Carter Reagan Bush Widows Total Pensions Benefits for former presidents pensions $151,800 $151,800 $151,800 $151,800 $20,000 $627,200 Office Staff Personnel benefits $23,131 $5,479 $22,749 $34,178 $0 $85,537 Personnel compensation 95,801 93,864 91,529 94,773 0 375,967 Subtotal $118,932 $99,343 $114,278 $128,951 $0 $461,504 Office Equipment $2,319 $0 $0 $26,813 $0 $29,132 Equipment rental 0 00 0 0 0 Other services 4,276 11,425 8, 846 8,545 0 33,092 Postage 7, 805 17,414 9, 106 13,879 1, 514 49,718 Printing 0 1, 480 14,484 18,027 0 33,991 Rental payments to GSA 76,938 92,388 274,361 139,279 0 582,966 Supplies and materials 20,266 5, 589 22,173 12,173 0 60,201 Telephone 21,178 20,326 15,135 9, 907 0 66,546 Transportation of things 0 0 1,053 34 0 1,087 Travel 33,814 0 0 44,637 0 78,451 Subtotal $166,596 $148,622 $345,158 $273,294 $1,514 $935,184 Total $437,328 $399,765 $611,236 $554,045 $21,514 $2,023,888 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 29 GAO- 01- 983 Former Presidents Table 10: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1998 Cost Category Ford Carter Reagan Bush Widows Total Pensions Benefits for former presidents pensions $150,950 $150,950 $150,950 $150,950 $20,000 $623,800 Office staff Personnel benefits $23,227 $5,152 $23,083 $35,048 $0 $86,510 Personnel compensation 95,795 93,864 95,391 95,491 0 380,541 Subtotal $119,022 $99,016 $118,474 $130,539 $0 $467,051 Office Equipment $15,211 $0 $12,812 $28,800 $0 $56,823 Equipment rental 0 00000 Other services 5,677 12,680 18,565 10,986 0 47,908 Postage 7, 148 15,869 10,003 13,386 1, 407 47,813 Printing 1,192 6,904 14,173 19,896 0 42,165 Rental payments to GSA 74,846 89,251 258,782 134,372 0 557,251 Supplies and materials 8,667 2,603 17,162 11,821 0 40,253 Telephone 16,575 21,664 11,509 16,054 0 65,802 Transportation of things 0 04060 0406 Travel 38,351 0 1,192 47,187 0 86,730 Subtotal $167,667 $148,971 $344,604 $282,502 $1,407 $945,151 Total $437,639 $398,937 $614,028 $563,991 $21,407 $2,036,002 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 30 GAO- 01- 983 Former Presidents Table 11: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1997 Cost Category Ford Carter Reagan Bush Widows Total Pensions Benefits for former presidents pensions $148,400 $148,400 $148,400 $148,400 $20,000 $613,600 Office staff Personnel benefits $20,880 $4,788 $22,817 $34,867 $0 $83,352 Personnel compensation 95,136 93,961 95,645 93,051 0 377,793 Subtotal $116,016 $98,749 $118,462 $127,918 $0 $461,145 Office Equipment $10,037 $14,819 $16,446 $14,689 $0 $55,991 Equipment rental 1,229 0 0 0 0 1,229 Other services 3,430 12,151 15,366 13,916 0 44,863 Postage 6, 711 17,305 11,401 12,956 1, 300 49,673 Printing 2,336 4,433 10,103 1, 319 0 18,191 Rental payments to GSA 74,949 89,373 269,243 134,557 0 568,122 Supplies and materials 10,661 4, 880 14,086 7, 981 0 37,608 Telephone 18,563 18,167 5, 137 17,122 0 58,989 Transportation of things 0 0 097097 Travel 39,789 0 242 53,343 0 93,374 Subtotal $167,705 $161,128 $342,024 $255,980 $1,300 $928,137 Total $432,121 $408,277 $608,886 $532,298 $21,300 $2,002,882 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 31 GAO- 01- 983 Former Presidents Table 12: Expenditures Under the Former Presidents Act, by Cost Category, by Former President and Widows, Fiscal Year 1996 Cost Category Ford Carter Reagan Bush Widows Total Pensions Benefits for former presidents pensions $148,400 $148,400 $148,400 $148,400 $20,000 $613,600 Office Staff Personnel benefits $23,087 $4,747 $23,308 $36,652 $0 $87,794 Personnel compensation 96,000 92,942 91,217 112,019 0 392,178 Subtotal $119,087 $97,689 $114,525 $148,671 $0 $479,972 Office Equipment $4,536 $1,304 $0 $7,198 $0 $13,038 Equipment rental 960 0 0 0 0 960 Other services 6,708 5,314 11,206 4, 926 0 28,154 Postage 6, 189 25,213 15,149 18,351 1, 196 66,098 Printing 511 1,440 17,419 9, 868 0 29,238 Rental payments to GSA 74,949 89,373 269,242 134,557 0 568,121 Supplies and Materials 6,768 6,504 18,740 8, 851 0 40,863 Telephone 17,474 19,588 10,090 13,160 0 60,312 Transportation of things 0 0 836 605 0 1,441 Travel 44,506 0 0 45,865 0 90,371 Subtotal $162,601 $148,736 $342,682 $243,381 $1,196 $898,596 Total $430,088 $394,825 $605,607 $540,452 $21,196 $1,992,168 Source: GSA officials. Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 32 GAO- 01- 983 Former Presidents Table 13: Former Presidents, Wives, Widows, and Minor Children Protected by the Secret Service, Fiscal Years 1977- 2000 FY 1977 FY 1978 FY 1979 Mrs. Truman Mrs. Eisenhower John Kennedy, Jr. Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Susan Ford Mrs. Truman Mrs. Eisenhower Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Mrs. Truman Mrs. Eisenhower Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford FY 1980 FY 1981 FY 1982 Mrs. Truman Mrs. Eisenhower Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Mrs. Truman Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Former President Carter Mrs. Carter Amy Carter Mrs. Truman Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Former President Carter Mrs. Carter Amy Carter FY 1983 FY 1984 FY 1985 Mrs. Truman Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Former President Carter Mrs. Carter Amy Carter Mrs. Johnson Former President Nixon Mrs. Nixon Former President Ford Mrs. Ford Former President Carter Mrs. Carter Mrs. Johnson Former President Nixon a Mrs. Nixon a Former President Ford Mrs. Ford Former President Carter Mrs. Carter FY 1986 FY 1987 FY 1988 Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Appendix I: Total Expenditures Associated With Former Presidents, Fiscal Years 1977 to 2000 Page 33 GAO- 01- 983 Former Presidents FY 1989 FY 1990 FY 1991 Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan FY 1992 FY 1993 FY 1994 Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush FY 1995 FY 1996 FY 1997 Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush FY 1998 FY 1999 FY 2000 Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush Mrs. Johnson Former President Ford Mrs. Ford Former President Carter Mrs. Carter Former President Reagan Mrs. Reagan Former President Bush Mrs. Bush a Protection ended on July 31, 1985, at the request of former President Nixon. Source: Secret Service officials. Appendix II: Scope and Methodology Page 34 GAO- 01- 983 Former Presidents To answer the first objective, which updates the cost information contained in our 1988 report, we obtained from GSA and Secret Service data on the expenditures for former presidents for fiscal years 1977 through 2000. We did not independently verify the information they provided. To determine the size of each office and how the space is used, such as a presidential suite, general office space, or other uses, we reviewed GSA files, toured each of the former presidents? offices, and interviewed GSA officials and officials representing each former president. GSA provided us with information regarding the amount of space utilized for specific purposes, such as the size of each former president?s personal office. As you requested, all space measurements are reported in usable square feet. GSA defines usable square feet as the area where a tenant normally houses personnel and/ or furniture. It does not include any share of a building?s support or common- use areas, such as elevator lobbies, building corridors, or mechanical rooms. We did not independently verify the space measurements. To determine if there was other federal space associated with the former presidents? offices, we asked GSA officials for information about whether other federal space was associated with the former president?s office. To determine if the offices contain any special amenities that could affect rental cost, we toured each of the former presidents? offices and interviewed GSA leasing officials about factors that could affect rental costs. Our conclusions about whether or not the offices contained any unusual build- out items or special amenities not generally found in commercial office space are based upon visits we made to the offices of the Secretaries of Labor and Transportation and our audit experience dealing with GSA space issues. GSA leasing officials provided information on the rental cost of comparable properties. We did not independently verify that information. We gathered information on how GSA determines its rental charges. To determine if the former presidents? office rental rates were in line with prevailing rental rates, we asked GSA to provide rental rates for comparable properties located near each former president?s office. We did not independently verify the information provided by GSA. However, we did review the market survey GSA had contracted for in regard to locating comparable office space for former President Ford?s office and any information provided by GSA officials regarding comparable office space for the other former presidents. To determine the number of staff utilized by each office, and from which entities the staff received compensation, we reviewed GSA files dealing Appendix II: Scope and Methodology Appendix II: Scope and Methodology Page 35 GAO- 01- 983 Former Presidents with federal compensation for these staffs, interviewed staff members from each former president?s office, and obtained compensation data on all staff from a representative at each office. We did not obtain the source documents or independently verify that data. To determine if the staff was involved with political fund- raising, we asked each former president?s chief of staff or other representative whether their staffs were involved with political fund- raising. We did not independently verify their response. To determine what involvement, if any, other persons or entities have had with each of the former presidents? offices, we interviewed staff of each of the former presidents? offices. In addition to reviewing GSA records, we also researched applicable laws dealing with former presidents and discussed these laws with GSA and Secret Service officials. We requested comments on a draft of this report from Administrator of GSA, the Secretary of the Treasury, and former Presidents Bush, Carter, Clinton, Ford, and Reagan. We received written comments from GSA, the Secret Service, a Treasury bureau, former President Carter and former President Clinton?s Chief of Staff. We also received oral comments from the Chiefs of Staff for former Presidents Bush, Ford, and Reagan. Their comments have been incorporated, as appropriate, in this report. We conducted our review at the following locations: GSA offices in Washington, D. C.; Atlanta, GA; Houston, and Ft. Worth, TX; New York City, NY, and San Francisco, CA; Secret Services office in Washington, D. C., and Former President Bush?s office in Houston, TX; former President Carter?s office in Atlanta, GA; former President Clinton?s temporary office in Washington, D. C., and the space leased by GSA for his office in New York City, NY, former President Ford?s office in Rancho Mirage, CA; and former President Reagan?s office in Los Angeles, CA. We conducted our work between March and August 2001 in accordance with generally accepted government auditing standards. (393017) The first copy of each GAO report is free. Additional copies of reports are $2 each. A check or money order should be made out to the Superintendent of Documents. VISA and MasterCard credit cards are also accepted. Orders for 100 or more copies to be mailed to a single address are discounted 25 percent. Orders by mail: U. S. General Accounting Office P. O. 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