The following is a transcript of a report by Team 4 investigative reporter Jim Parsons that first aired March 8, 2007, on WTAE Channel 4 Action News at 5 p.m.

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Gov. Ed Rendell said spending at PHEAA is out of control.

Team 4 investigative reporter Jim Parsons has details, plus he's uncovered new examples of questionable spending at PHEAA.

Rendell told reporters in Harrisburg that it's time for a housecleaning at the Pennsylvania Higher Education Assistance Agency because of what was in spending records the agency turned over to WTAE Channel 4 Action News and two other media outlets last week.

In the meantime, Team 4 has uncovered additional expense records at PHEAA that raise more questions and eyebrows.

From the same state agency that brought you a $135,000 weekend retreat for board members last June at Nemacolin Woodlands Resort, including use of the state plane, kegs of beer at a 7 Springs bash and a $128 tuxedo rental for an employee, come new findings.

Expense records showed employees billed for reimbursement to get tickets to the Museum of Modern Art in New York, an invitation for unknown persons to a Pittsburgh Steelers game and dinner afterward at the Grand Concourse and for flowers as a housewarming gift.

The agency blocked out the name of the recipient.

Also, Team 4 has learned that PHEAA has spent a lot of money on lobbyists, even though 16 of the agency's 20 board members are state lawmakers.

According to the Pennsylvania Senate, PHEAA spent more than $2.5 million on lobbyists between 2003 and 2006.

Another expensive expenditure by PHEAA was a conference at the Westin Mission Hills Resort in Rancho Mirage, Calif., in March 2005.

One dinner for PHEAA employees and guests totaled almost $5,000. Another topped $3,500. Other dinners at the conference were considerably less, including meals at $560, $425 and $353.

Among those attending for PHEAA was Rep. Joe Markosek, of Monroeville, a member of PHEAA's board.

"That was strictly to meet with and be with clients," said Markosek.

Markosek said he took in a round of golf while at the California conference, and that PHEAA picked up his entire tab of $1,600.

"They wanted to show our clients that they were serious about their business, and having a board member there does that," said Markosek.

"They are a public agency and public servants," said Tim Potts of Democracy Rising. "They are not public royalty. And they've just got to stop it."

Like Rendell, Potts is calling for reform at PHEAA, even though the agency argues that its expenses are covered by proceeds from its loan business.

"That doesn't entitle them to a blank check," said Potts. "It doesn't entitle them to use the money that they could be turning into scholarships and loans for students into flower arrangements and bottles of wine."

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