Please colloquy between he and the judge when he entered his change of plea. The council can make us aware of that behind. It is my understanding that there is a transcript, we dont have a copy of it right now. Counsel, you are not sworn, but if you could answer that gentlemans question as a member of the bar would be helpful for us to dispense with this. Mr. Chairman, there is no five 9 11 component to the plea agreement. The strait of plea agreement that does not require any additional testimony or affirmation. Did he receive a reduction in is guideline points . He did. Was a super acceptance or that twopoint acceptance . It was three. Two plus one. That does not include answering questions and he is not in jeopardy at a Congressional Committee hearing . No. It only requires acceptance of responsibility as contemplated by the guidelines. I would love to have a copy of that plea agreement. I am sure other attorneys and not attorneys would like to see it as well. I am going to direct scott to get that. Obviously is of our interest that the u. S. Attorneys office not enter into an agreement that would in some way allow what is occurring here to occur. Do you have any questions . I just wanted to enter into the record, i think he makes an excellent inquiry. I was wondering the same thing. We have the letter of september 203rd, 2013. September 241st. And then this is a statement. We ought to have that as part of the record. Without objection. Do you have any other questions . Said just now found out. I do have one question. To the council. Yes. On behalf. Okay. Fine. Is there any, you know, part of our problem here is that we are trying to prevent this from happening again. There is no requirement anywhere obviously the trial judge. With that we will take a 2minute recess so that we can reassess. Mr. Chairman, just one thing, first of all, i am hopeful, mr. Chairman, that after sentencing we bring him back because then he is no longer in jeopardy and we cant get the kind of affirmation that we need to assist the things you talked about a little bit earlier, making sure this does not happen again so that we can get as much detail as possible. I am hoping that he is aware that he will likely come and i am assuming, once sentencing is over i agree with that gentleman. The reason for am watching it is so that he knows what is said here. The intent to seek work with the u. S. Attorneys office. I believe that the appropriate arrangement should be prior to his sentencing as part of his plea bargain. That is not my decision, not your decision, but we will seek to work with the court. As you know, we delay this hearing until after the plea bargain in order to make the closure of this portion of the investigation for the attorneys generals for the ig office in place. We will take this 2minute recess and be right back. Thank you. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] i recognize Bob Perciasepe for his opening statement. All the members of the committee here today, thank you for providing me with their virginity to prepare before you today and discuss the Environmental ProtectionAgency Progress in addressing recent issues brought to light. The Ongoing Investigation involving former epa employee john beale. As evidenced by our steadfast cooperation with the Inspector Generals investigation to this matter of we approach this with great seriousness and are approaching corrective actions aggressively to deal with the issues that were raised by the fraudulent activity. As stewards of the taxpayer resources the epa take seriously a responsibility to ensure federal funds are used for the purpose is appropriate, costeffective, and important to the agency mission. The reason the Inspector General investigation, as we know, identified a number of the administrative processes and controls which are listed in testimony just a few moments ago that were either insufficient or not being effectively used in preventing what appears to be a calculated longterm criminal fraud. I have not been provided the full details at of the Inspector General investigative findings but am aware of the most significant fraud involved, employee pay including exceeding such tory palins, and authorize extension on retention, incentives, time and attendance, governmentfunded travel and in nearly all instances there are policies and procedures in place however, number of them may have been ignored, circumvented, or undermined by his criminal misconduct. At this time the epa is fully cooperating with the Inspector General and is looking for to assessing all findings with a complete commitment to implement appropriate for the process improvements and Administrative Changes necessary to ensure a more effective internal controls well we are waiting for the Inspector Generals report and continue to cooperate, we dont want to wait to deal with some the issues that we already know about. In regard to steps already taken as part of our regular ongoing process of improvements and based on some of the preliminary finding shared, i want to outline a number of actions that we have already begun to take. Back in last year and more recently this year back in october of last year i directed the office of administration and Research Management and our office of chief Financial Officer to conduct additional reviews of policies and controls for time and attendance. Employee, pay, and travel. These reviews have resulted in they have resulted in a strengthening of existing policies. We have strengthened supervisory control on time and attendance. Increased oversight of time entry and approval practices, including generation of except as reports to assist managers to show whether every employee, whether the employee or theyre timekeeper into the employees time. Each employee fail center his or her own time, and the answers were a supervisor or time approval fail to approve an employees time, all of these are now available in the exception reports and are an additional series of rituals on top of our existing system. These reports will then enable the office of chief Financial Officer working with the employees and supervisors and time approvers to correct or discovered what the issues may be. We have improved a review of employee travel, including a requirement now that 100 percent of all travel vouchers will be audited and of receipts will be submitted by the chief Financial Officer before payment is authorized. We have been tightened retention incentive processes requiring future retention incentives to be entered into the urinary system with them not to exceed date, a stop date on the system by generating an acceptance report which will require a Human Research specialist to either confirm the reefer recertification is received or in the incentive payment. I might add there is nobody at epa right now receiving incentive payments. We have also ensured a review of gross payment amounts of employees by generating new controls for employee pay to insure compliance with the steps toward palance. These documented changes in policies and procedures will also be supported by an array of new training to our resources for employees and supervisors and defined roles and responsibilities associated with our administrative processes. As i indicated previously, our agency is fully committed to strengthening in captivity for stewardship of resources invested to us by the taxpayers and we expect fully to be working with the Inspector General as they do their administrative review of this current investigation and that there will be providing us with additional recommendations beyond the ones i have already mentioned that we already implemented. Want to thank you again for allowing me to represent the agency you today in the alley toward answering your questions. Thank you, mr. Chairman. Thank you. I will now recognize myself for a series of questions. Mr. Sullivan, you and your deputies in your investigation uncovered not just the big lie, but you also uncovered these excess payments. Were you able to discover whether any other whether this was a common overrun, firstclass, you know, the nature of, you know emanates of the violations that are unrelated to is not showing up to work. The scope of your investigation include any other employees other than mr. Beall . Our investigation was targeting mr. Beall for his alleged criminal conduct which is now been proven by his guilty plea. The question you refer to now, i believe, the bigger picture, and days now and a thorough audit of seven areas that he is already testified to. And the epa is audited by an outside accounting firm. Is that correct . I dont know. You dont know. A clean audit on spending. Chairman, my staff conducts the epa it is done in house. Okay. Previously these are simply areas that were not audited. Surly, obviously. The specific areas that we are discussing here, no. And on the pain never includes verify whether you exceed the ses pay cant . We have not conducted an audit on that issue. Abcaeight. Does your accounting change now catch someone who is paid more than this as a tarmac some . Yes, sir, it would. We designed it design these improvements we have been making and the ones that we are now implementing to deal with the most important findings that we know of so far. And so we come again, want to keep pointing out that we will expect to learn more. Yes. You said some glowing things about mr. Beall including if it had been anybody but you would have not considered historical level. Isnt it true that you were aware that it took trips to domestic locations. You also aware of the excess spending in excess of the epa guidelines in the federal regulations . No, sir, i was not aware that. Mr. Sullivan, do your investigations, who do review and would approve a firstclass ticket for ten times the cost . We interviewed the individual the sign the vouchers. She told us that because mr. Beall status as an executive them because of his cia connections she never actually looked at the vouchers, she designed and process them. In other words, under cover supersecret status was known by a great many people. That is a fair statement. Our founding fathers, they already keep this secret is for one to be dead. Arent there people who have no highranking security clearance it were well aware of that he was with the ca . He does that have the security clearance. To rhinology has never had a security clearance. We can understand that part. In other words, the people in h. R. And so on the or approving these excess payments without looking at them, there were told he was in the caa, so was an open secret that he was super clandestine secret. The folks may not have known that, let the people at his level, the executives approving them, highranking. Deputy assistant have been a strict and that without credible requirements cannot approve expenses greater than their supposed to be approved and no one needs justification. That is what happened. No control over the american taxpayers in excess at the epa. That is part of the issue of the audit. You yourself received, as i understand, and 9,000 discount or 8,000 discount on a mercedes benz. Them understand your fair one today. Is it true you receive the discount through a lobbyist on behalf of mercedesbenz on your automobile . [inaudible conversations] please turn the microphone on for all of us. S you if you receive the discount. That is pretty much a yes and no did you receive a discount of mercedes erased by and lobbyists on automobile your purchasing . As i said, this is an issue that was reviewed and investigated a couple of years ago. My understanding is that the decision was a no further action as warranted. And disclose it in my 2011 Financial Disclosure form. Okay. So today in the investigation in which we are conducting on the epa there was an investigation. He disclosed it in financial documents after the fact. Did you receive did you excepted 8,000 discount from mercedesbenz . Mr. Chairman, i came here voluntarily today to discuss the issues associated with mr. Beale i did not come prepared to discuss the set of issues. As i said, already investigated. A decision has been made and it. I am not prepared to discuss those issues today. Reserve you a subpoena in the city would come voluntarily. Was not aware of that either. Okay. Let me go through the script. Tied the course of the committees investigations but to our attention the you allegedly engaged in an end to conduct. According to the report from the epa Inspector General you excepted and 8,000 discount from mercedesbenz. It was not offered to the general public and was arraigned specifically for you by a lobbyist employed by local law firm. The committee is charged with preventing an investigating waste, fraud, and abuse. The information we have uncovered during the investigation as a result of the Inspector Generals work includes an allegation of improper discount and demonstrates at least one possibility and that the culture in which you operated as a supervisor promoted are allowed unethical behavior at the epa which mr. Beale has pled guilty to. At this by the committee would ask once again voluntary or otherwise, because we will request you back in voluntarily, would you please answer the question, did you receive not was it passed by, not was a prosecutor, did you receive the discount . Mr. Chairman, as i said, that was not an issue i came here prepared discuss. I came voluntarily to discuss matters directly related to mr. Beale. If the committee wants to pursue this set of issues i would ask that it be done through my counsel. Be represented by counsel here today . I am. Would you please confer with counsel as to whether or not this question, the question which takes no preparation, you know whether now you receive a discount. He said there was an investigation that cleared you. We are inquiring into that because, quite frankly, it was part of the ig investigation and the affirmation that was given to s and is germane to this jury. Youre not here simply because you were due to my mr. Beale pier you are here as part of the broader investigation about what might be a negligent culture at the epa as to whether or not the American Peoples money is being protected and will spend. Please be could your counsel. We will wait. [silence] [inaudible conversations] mr. Chairman, i noted a 90,011 Financial Disclosure form, i did receive a discount on a vehicle. It is described in that form. And the attorney lot is to arrange to that, is that somebody that does business with the epa . Mr. Chairman by this is a set of issues that i did not come prepared to discuss in detail with you and the committee. And who will stay at its 10,000foot level. Any individual. Was it an individual a firm that did business with the epa and sought to influence legislation . Yes, mr. Chairman, it was an individual who did business with the epa. Is it your understanding the you are allowed to accept discounts of monetary value from lobbyists or anyone else who does business with your agency they you oversee and or accept them from something not available to the general public . And just asking what you understand the ethics to be. Mr. Chairman, as i said, this is an issue which was investigated by the ig in the department of justice. They came to the conclusion, i have a standing is they came to the conclusion that no further action is warranted. I am going to go to the Ranking Member. I am not sure that we believe that this is a closed matter. Esther cummings, thank you for your patients is. Just piggyback. Just one question. Mr. Brenner said the mr. Beale, he has been cleared of this spirit is that right . Did you do the investigation . That he is talking about . I would like to refer this to mr. Sullivan. Mr. Sullivan. Yes, mr. Cummings. My office did do the investigation. He is not accurate in his resuscitation of the facts. The fact is that the u. S. Department of justice Public Integrity section did decline prosecution of mr. Brewer for excepting the discount. However, we were never able to interview him because he retired prior to his being allowed to interview him. Once he retired airline had the ability to compel him. Up processes once we get a declination and employee within the agency is compelled to speak to us because there are no longer under jeopardy a prosecution. We will was our plan to compel his interview with us never happened. It is very helpful. Thank you very much. I ask unanimous consent. Without objection. So ordered. I wanted thank you for joining a spirit of want to commend you in your team. Youve investigated, youre very fine work in uncovering this massive fraud. The taxpayers, helping bring him to justice. I am struck by the audacity of his lines. According to the criminal plea agreement, and i quote, for more than ten years they engaged in a string of the session during which she lied to the United States government, the supervisors, friends and family about a position he claimed he had the the Central Intelligence is a c. And it goes on to say that they uses fates have as an excuse to this is not show up for work, but he did it for what ended up to be to a half years. Is that right . At mlb god to a half years. And a minimum. What does that mean . That means that the two and a half year figures that was agreed to during negotiations which in the United States attorney and his defense counsel it is quite possible that it couldve been more. It could have been more or maybe a year or two more. We agreed on a two and a half year figures. Yeah the is he was a secret agent seems to busters to all of us now. He kept it going for decades. People pretty much everybody. His employers, family, his criminal defense lawyer. It sounds like he was good at lying. And the more people he, you know, the more he lied the more it seems that people believed him. And they went on and on and on. It became easier to believe. You interviewed more than 40 current and former epa employees with your investigation. Is that correct . Yes, sir. And figuring epa officials across multiple administrations believed he was working for the epa. You heard him talk of what a great guy he was in goal of the wonderful stuff he had done. Did you