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U.S. Works to Correct Prevention-Campaign Mismanagement
August 8, 2001

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News Summary

The U.S. Office of National Drug Control Policy (ONDCP) and the Health & Human Services Department (HHS) are working to correct management errors in the $684 million National Youth Anti-Drug Media Campaign, Substance Abuse Funding News reported July 24.

The problems were revealed in a report conducted by the General Accounting Office (GAO). The report, "Anti-Drug Media Campaign: Aspects of Advertising Contract Mismanaging by the Government; Contractor Improperly Charges Some Costs," found problems with the advertising contract between the government and ad agency Ogilvy & Mather.

The report found that working records for 28 employees of Ogilvy & Mather were doctored to reflect added hours of work. In addition, the report found that the ad agency improperly billed full-time benefits to temporary workers. The report also revealed that Ogilvy & Mather failed to have a sound accounting system in place for the contract.

The ONDCP said it has begun implementing measures to address the report's recommendations. Among them are working with the U.S. Navy to review whether labor and other costs stated in the contract are correct. The Navy took over management of the program from HHS.

The drug czar's office also is determining whether the government overpaid Ogilvy & Mather.

HHS said it would work to ensure that there are tighter controls over the contract and that Ogilvy & Mather has an adequate accounting system in place.

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