WASHINGTON - The Homeland Security Department wasted hundreds of thousands of dollars last year on iPods, dog booties, beer-making equipment and designer jackets, congressional investigators have concluded.

More than 100 laptop computers and a dozen boats also bought by Homeland Security employees are missing, the investigators found.

Poor training, lax oversight and rampant confusion over what employees are allowed to buy with government-issued purchase cards left Homeland Security “vulnerable to fraud, waste and abuse,” according to a draft report by the Government Accountability Office, Congress’ investigative and auditing arm.

The report was to be released Wednesday by a Senate panel that oversees the department.

Senators said more than 10,000 Homeland Security employees carry purchase cards for business-related expenses — with a spending limit that was raised to $250,000 for emergencies after Hurricane Katrina hit last Aug. 29. Aides said the audit covered expenses for a five-month period both before and after Katrina.

But investigators found that employees received scant training on how to use the cards, were given little or lax supervision and were told to follow spending guidelines that differed among the 22 agencies that make up the department.

The department spent $435 million with the purchase cards in the 2005 budget year, compared to $296 million in 2004, Homeland Security spokesman Russ Knocke said Tuesday evening. But he said only a fraction of the expenses were improper, noting that the department has disciplined about 70 employees amid 1.1 million purchases.

“Comparatively, we’re talking about a small number of bad apples,” Knocke said.

Among the expenses that investigators described as abusive or otherwise questionable:

_More than 2,000 sets of dog booties, costing $68,442, that have sat unused in storage since emergency responders decided they were not suited for canines assisting in Gulf Coast recovery efforts.

_Three portable shower units for $71,170 from a contractor who investigators said overcharged the government. Customs and Border Protection agents could have gotten similar showers for nearly a third of the price — and faster.

_12 Apple iPod Nanos and 42 iPod Shuffles, worth $7,000, for Secret Service “training and data storage.” Because the Shuffles cost less than $300, the Secret Service said they were not required to track them to ensure they were used properly.

_37 black Helly Hansen designer rain jackets, costing nearly $2,500, for use in a firing range that the Customs and Border Protection purchaser later acknowledged shuts down when it’s raining.

_Conference and hotel rooms at a golf and tennis resort at St. Simons Island in Georgia, worth $2,395, for training 32 newly hired attorneys when they could have used a nearby federal law enforcement training center.

_A beer brewing kit and ingredients for more than $1,000 for a Coast Guard official to brew alcohol while on duty as a social organizer for the U.S. Coast Guard Academy. “The estimated price for a six-pack of USCG beer was $12,” the investigators noted, adding: “Given that the six-pack cost of most beers is far less than $12, it is difficult to demonstrate that the Academy is achieving cost savings by brewing its own beer.”

Investigators also noted that Customs and Border Protection wasted up to $464,586 by buying meals-ready-to-eat over the Internet instead of contracting through the Pentagon, as is standard procedure. And they found that the Federal Emergency Management Agency cannot locate 107 laptops, 22 printers and two GPS units worth $170,000. FEMA also cannot find 12 of 20 boats the agency bought for $208,000.

Knocke, the Homeland Security spokesman, said the department will begin enforcing new spending guidelines in the next several weeks that should eliminate much of the confusion and make sure buys are strictly supervised. Violators could have their cards taken away, be forced to repay expenses and face disciplinary action, he said. “We take very seriously our responsibility to be good stewards of taxpayer dollars,” Knocke said.

The senators who ordered the investigation — Sens. Susan Collins, R-Maine, and Joe Lieberman, D-Conn. — described Homeland Security as negligent in preventing the shopaholics among its ranks. The two lead the Senate’s Homeland Security and Governmental Affairs Committee.

Homeland Security “left the door wide open for these abuses,” Collins said.

Added Lieberman: “That is hard to believe.”

In his Martin Luther King Jr. Day speech the wonderful mayor of New Orleans likened the city to that of a chocolate city. Wow, here’s a quick guess at who won’t be mayor next term.

NEW ORLEANS, Louisiana (CNN) — Mayor Ray Nagin on Tuesday apologized for urging residents to rebuild a “chocolate New Orleans” and saying, “You can’t have New Orleans no other way.”

“I’m really sorry that some people took that they way they did, and that was not my intention,” the mayor said. “I say everybody’s welcome.”

Nagin added that he never should have used the term “chocolate.”
Across the Hurricane Katrina-ravaged city, many voiced their displeasure with the mayor’s Monday remarks at a Martin Luther King Jr. Day speech. One Web site even began peddling T-shirts showing Nagin with a top hat along with the caption “Willy Nagin and the Chocolate Factory.”

Resident Alex Gerhold called Nagin’s remarks “stupid” and “pitiful.”

“He used the wrong dairy product to describe us. We’re more Neapolitan, not chocolate,” Gerhold said. “It doesn’t do the city any kind of justice.”

Aisha Johnson said she didn’t think the mayor’s comments were necessarily inflammatory, just out of line.

“He should have chosen his words more carefully,” she said.

But some residents, like Ann McKendrick, were angered.

“You can’t reunite a city if your comments are going to divide a city,” McKendrick said.

Nagin’s remarks fall into a line of inappropriate statements the mayor has made, said civil rights attorney Tracie Washington. She said she is “done trying to figure out what our mayor is going to say off the cuff on any given day.”