While the inspector general noted the agency sought competitive bids for the party planner and chose the company with the lowest estimate, it found the "costs of the ceremony and reception were higher than necessary."

The event planning company, MarCom Group Inc. of Fairfax, Va., was paid $85,552 for its work and given an additional $81,767 for plaques, $5,196 for official photographs, $1,486 for three balloon arches and $1,509 for signs.

The reception included finger food, coffee and cake that averaged $33 per person. Seven cakes cost a total of $1,850; three cheese displays, $1,500.

In a written response, the TSA said the costs "were neither extraordinary nor incurred without careful consideration of the amount, the reasonableness of the cost, and value the activities would have to the employees."

The inspector general also expressed concern that the TSA was more generous than most other federal agencies in awarding bonuses to executives. Federal agencies on average gave cash awards to 49 percent of their executives in 2002, while 76 percent of TSA executives received them in 2003.

The inspector general reviewed 88 employees' files and found that 38 percent "had no individual recommendation and justification for the performance award."

"The legitimacy of such large awards is called into question by the lack of an appropriate selection process and the reliance on boilerplate justifications that could be applicable to anyone," the report said.

The report also noted that fewer than 3 percent of nonexecutive employees received bonuses in 2003.

In its response, the TSA said that executives who got a bonus didn't get a pay increase and weren't eligible for a presidential awards program that can amount to as much as 35 percent of their base pay. The agency agreed, however, that more could be done to equalize treatment of top executives and lower-level employees.

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On the Net: Transportation Security Administration: www.tsa.gov

Homeland Security Department Inspector General: www.dhs.gov/dhspublic/display?theme89&content3309