oversight

FCA's Mobile Device Cost Controls

Published by the Farm Credit Administration, Office of Inspector General on 2015-07-31.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

OFFICE OF
INSPECTOR GENERAL       Audit Report  
                    Farm Credit AdministraƟon’s
                    Mobile Device Cost Controls
                             A‐15‐02



                         Auditor‐in‐Charge
                           Tammy Rapp

                        Issued July 31, 2015




                      FARM CREDIT ADMINISTRATION
Farm Credit Administration                                 Office of Inspector General
                                                           1501 Farm Credit Drive
                                                           McLean, Virginia 22102-5090




July 31, 2015

The Honorable Kenneth A. Spearman, Board Chairman
The Honorable Dallas P. Tonsager, Board Member
The Honorable Jeffery S. Hall, Board Member
Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090

Dear Board Chairman Spearman and FCA Board Members Tonsager and Hall:

The Office of Inspector General (OIG) completed an audit of the FCA’s Mobile Device Cost
Controls. The objective of this audit was to determine whether the FCA had implemented
effective cost controls for mobile devices and related services.

The FCA incurred $192,787 in monthly wireless communications expenses from October 23,
2013, through October 22, 2014. Additionally, the FCA purchased $18,762 in mobile devices.
During our audit, we concluded that the FCA used a sound approach for selecting a
smartphone and wireless communications service provider. Additionally, invoices for
wireless communications service were reviewed for accuracy prior to payment.

However, we identified three actions that the Office of Management Services and the Office
of Information Technology agreed to implement that will improve the management of mobile
devices. These actions should reduce the cost of monthly wireless communication expenses
and decrease the amount of data usage consumed:

       1. Develop procedures for obtaining the Rate Plan Analysis Report from its wireless
          communications provider on a semi-annual basis and evaluate the benefits of
          proposed changes to plans.

       2. Educate users on prohibited uses and the impact of excessive data usage.

       3. Identify users exceeding the 5 GB threshold and notify the user and their
          supervisor of the data usage during that cycle.
We appreciate the courtesies and professionalism extended by the FCA personnel to the
OIG staff. If you have any questions about this audit, I would be pleased to meet with
you at your convenience.

Respectfully,



Elizabeth M. Dean
Inspector General

Enclosure
                                            TABLE OF CONTENTS


EXECUTIVE SUMMARY ......................................................................................1

INTRODUCTION AND BACKGROUND ....................................................................2

AUDIT RESULTS...................................................................................................4

        Mobile Device Costs................................................................................................................... 4

             Agreed-Upon Action ................................................................................................................ 6

        High Data Usage on Mobile Devices ...................................................................................... 6

             Agreed-Upon Actions .............................................................................................................. 8

        Acquisition Process ................................................................................................................... 8

        Mobile Device Inventory .......................................................................................................... 10

OBJECTIVE, SCOPE, AND METHODOLOGY.......................................................... 12

ACRONYMS ....................................................................................................... 14
OBJECTIVE:                     The FCA incurred $192,787 in monthly wireless communications expenses from
The objective of our audit     October 23, 2013, through October 22, 2014. Additionally, the FCA purchased
was to determine whether the   $18,762 in mobile devices. Invoices for wireless communications service were
Farm Credit Administration
                               reviewed for accuracy prior to payment.
(FCA or Agency) had
implemented effective cost
controls for mobile devices    The FCA used a sound approach for selecting a specific smartphone model and
and related services.          wireless communications service provider. User input and specific criteria were
                               considered during the evaluation. The Chief Operating Officer (COO) approved
AGREED-UPON ACTIONS:           the smartphone lifecycle replacement decision based on the evaluation team
There are three agreed-upon    and Information Resources Management (IRM) Operations Committee’s
actions to improve the
                               (IRMOC) recommendation.
management of mobile
devices which should reduce
the cost of monthly wireless   The following cost savings measures were adopted by the FCA:
communication expenses            • Reduced inventory of broadband cards due to increase in smartphones
and decrease the amount of        • Offset the cost of smartphones by eliminating a $4 per day telephone
data usage consumed:                   allowance for travelers with smartphones
                                  • When mobile devices were turned in, billing was suspended
1. Develop procedures for
                                  • Prohibited international phone service with rare exceptions
   obtaining the Rate Plan
   Analysis Report from its
                               During our audit, we identified additional cost savings that could be achieved if
   wireless communications
                               the FCA changes plans for some of its smartphones. We also identified high
   provider on a
                               data usage on several mobile devices.
   semi-annual basis and
   evaluate the benefits of
                                  •   A review of the wireless communications service provider’s Rate Plan
   proposed changes to
   plans.                             Analysis Report and historical voice minute usage revealed that
                                      approximately $15,000 per year could be saved by reducing the voice
2. Educate users on                   minutes for 99 smartphones. The FCA’s current plan includes a shared
                                      voice minute pool of 96,000 minutes. The highest amount of voice
   prohibited uses and the
   impact of excessive data           minutes used between October 23, 2013, and October 22, 2014, was
   usage.                             36,202 minutes. Decreasing the pool to 56,400 minutes still provides
                                      ample voice minutes while saving the Agency approximately $15,000 per
3. Identify users exceeding           year.
                                  •   We identified data usage on 30% of mobile devices exceeding 5
   the 5 GB threshold and
   notify the user and their          gigabytes (GB) during a monthly billing cycle. This level of data usage is
   supervisor of the data             typically an indicator of video and/or audio streaming. We learned the
   usage during that cycle.           wireless communications service provider slows down the data
                                      connection speed for any device exceeding 5 GB in a billing cycle. High
                                      data usage does not impact wireless service costs since the FCA has an
                                      unlimited data plan. However, there is a direct impact on the user’s
                                      performance when the mobile device is needed to download data for
                                      business purposes and their download speeds were reduced resulting
                                      from high data usage.
                                                        1
INTRODUCTION AND BACKGROUND

     The Farm Credit Administration (FCA or Agency) is an independent agency in the Executive
     branch of the U.S. Government. The FCA is responsible for regulating and supervising the
     Farm Credit System and the Federal Agricultural Mortgage Corporation.

     The FCA’s mission as a financial regulator is to ensure a safe, sound, and dependable
     source of credit and related services for agriculture and rural America. In carrying out the
     FCA’s mission, many Agency employees spend a significant amount of time traveling or
     away from their offices. In today’s technological environment, the Agency keeps employees
     connected by leveraging technology to increase efficiency and communication.

     Mobile devices such as smartphones and tablets are one of the tools the Agency uses to
     keep employees connected to its’ information systems and each other. Additionally, mobile
     devices are part of the Agency’s continuity of operations and emergency response strategy.
     It is the Agency’s policy to provide mobile devices to employees based on the business
     needs of each office and the Agency.

     “The Federal Strategic Sourcing Initiative (FSSI) is a government-wide acquisition service
     that leverages the Federal Government’s consolidated buying power to acquire and manage
     IT resources at lower cost.” 1 One of the FSSI acquisition programs identified is
     wireless/mobile. As a result of the FSSI, the General Services Administration (GSA) awarded
     a new government-wide blanket purchase agreement (BPA) for wireless service plans. The
     agreements GSA awarded provide agencies with the ability to pool minutes, as well as order
     plans and devices more efficiently and at lower costs.

     At the FCA, the Chief Information Officer (CIO) is responsible for the agency’s IRM program.
     The IRMOC supports the CIO in that role and brings an Agency-wide perspective to
     information resources. The IRMOC is composed of members representing the COO, the
     General Counsel, Office of Regulatory Policy, Office of Secondary Market Oversight, Office
     of Management Services (OMS), the Chief Examiner, and the Farm Credit System Insurance
     Corporation. The committee’s primary responsibility is to recognize and address the
     Agency’s information and technology needs which include mobile devices.

     The agency has two key policies and procedures related to procurement and mobile devices:

            •   Policies and Procedures Manual (PPM) 812, Contracting/Procurement Policy,
                describes the Agency’s policy and procedures regarding contracting and
                procurement. “The goal of the Farm Credit Administration (FCA) shall be to acquire
                products and services that will provide the best value to the FCA in a timely
                manner that most effectively meets program needs.”



1
 FEDERAL INFORMATION TECHNOLOGY SHARED SERVICES STRATEGY (n.d.): n. pag. 2 Mar. 2012. Web. 12 June 2015.
<http://www.whitehouse.gov/sites/default/files/omb/assets/egov_docs/shared_services_strategy.pdf>.

                                                     2
      •   OMS Office Directive 009, Guidance for Providing Smartphones and Personal
          Smartphone Connectivity, describes the distribution of Agency smartphones. The
          directive states, “It is the Agency policy to provide smartphones to staff based on
          the business needs of the office and the Agency.” Office Directors determine which
          staff are provided Agency smartphones and include the cost of devices,
          accessories, and related services in their office budget.


Additionally, the FCA has policies that outline personal use of the FCA’s office equipment,
internet, email, and network. PPM 902B, FCA Internet, E-Mail, and Network Acceptable Use
Policy, provides for limited personal use of the FCA’s office equipment. The policy also states
personal use must not interfere with official duties or consume excessive resources. There
are examples of excessive resources which include “downloading large non-work related
audio or video streams”.

PPM 906, Personal Use of Farm Credit Administration Office Equipment, also provides for
personal use during non-work time if there is minimal additional expense and does not
interfere with the FCA’s operations. The policy also states, “Personal use must not decrease
your productivity or interfere with official duties.”




                                            3
    AUDIT RESULTS

    Mobile Device Costs

      The FCA incurred $192,787 in monthly wireless communications expenses from October 23,
      2013, through October 22, 2014. Additionally, there was $18,762 in purchases for related
      mobile devices.

      The FCA’s primary purpose for using mobile devices:

            •    Traveling to perform the FCA’s mission
            •    Ability to stay connected to Agency network
            •    Continuity of operations
            •    Emergency response

      The FCA’s policy for providing smartphones to staff:

            •    Senior Managers
            •    Examiners with greater than 1 year of the FCA work experience
            •    Other uses approved by Office Director

      Prior to payment, the FCA reviews wireless communication invoices for accuracy. The
      Contracting Officer’s Technical Representative (COTR) reviews invoices for the following
      attributes:

           •    Prior payment applied,
           •    Expected credits,
           •    Usage charges,
           •    Equipment charges,
           •    New devices,
           •    Suspended devices, and
           •    Reasonableness of amounts.

      The wireless invoice is organized by cost centers set up by the COTR. New mobile devices
      are not automatically assigned to a cost center and appear at the beginning of the detailed
      invoice making them easy to spot. The COTR identifies and assigns a name and cost center
      to new devices 2.

      The most significant charges related to mobile devices were the monthly service fees and the
      cost of the devices. Although there were additional expenses such as cases, warranties, and
      charging accessories, these were not reviewed in detail.


2
 Effective for FY 2016, smartphones and related service will be budgeted centrally by the Office of Information Technology (OIT).
Tablets will continue to be budgeted by each office.

                                                                 4
      Some of the cost saving measures used by the FCA identified during this audit included:

           •    The FCA reduced the number of broadband cards retained for traveling examiners
                and other employees since a majority of examiners and other employees now have
                an Agency smartphone.
           •    Although the Office of Examination (OE) increased the number of phones provided to
                examiners, OE justified the need for network connectivity for exams, amount of
                travel, and savings of $4 per day telephone allowance while on travel status.
           •    When a mobile device was turned in, it was suspended without billing while pending
                reassignment.
           •    Agency policy generally prohibits international phone service due to security
                implications and cost.

      We identified additional cost savings that could be achieved if the FCA changes plans for
      some of its smartphones. As a result of the OIG audit, the FCA’s primary wireless carrier
      provided a Rate Plan Analysis Report 3. The report included an analysis of usage from the
      past 3 months along with recommendations in plan changes that could potentially save
      wireless communication expenses to the Agency.

      GSA’s Federal Strategic Sourcing Initiative Wireless Program User Guide provides a method
      to assist agencies with reducing their costs for wireless communication expenses.

           •    Every six months, each contractor will provide a Rate Plan Analysis Report to each
                federal agency of its historical spending on the contractor’s BPA along with
                recommendations of the most cost‐effective service plans available to each of the
                Ordering Entity’s end users. 4

      The Rate Plan Analysis Report revealed the FCA’s 3-month average of voice minutes used
      from the January, February, and March 2015 billing cycles was 26,975 minutes. We also
      analyzed 12 additional months of voice usage from invoices obtained during our audit.

      The bar graph below shows the highest amount of monthly voice usage between October 23,
      2013, and October 22, 2014, was 36,202 minutes. However, the FCA’s current plan includes
      a total of 96,000 voice minutes per month. If the FCA changes to a reduced voice plan for 99
      of its smartphones reducing the shared voice minute pool to 56,400 minutes per month, the
      Agency could potentially save $15,000 per year. The reduced voice plan contains all the
      same features as the current plan, and still provides ample voice minutes to avoid overage
      fees.




3
 Rate Plan Analysis Reports were not requested from the wireless service provider prior to this audit.
4
 General Services Administration. Wireless FSSI User Guide p.18,. N.p., 14 Feb. 2014. Web. 11 June. 2015.
<http://www.gsa.gov/portal/category/100931#docs>.

                                                              5
                               Summary of Voice Usage and Allowance

    10/23-11/22/2013                            32,429

    11/23-12/22/2013                           30,831

     12/23-1/22/2014                         27,297

       1/23-2/22/2014                             36,069

       2/23-3/22/2014                            34,809

       3/23-4/22/2014                           32,525
                                                                                           Shared Usage
       4/23-5/22/2014                             36,202
                                                                                           Shared Allowance
       5/23-6/22/2014                        26,964

       6/23-7/22/2014                         30,031

       7/23-8/22/2014                          31,480

       8/23-9/22/2014                        28,166

     9/23-10/22/2014                          30,199

                         -          20,000     40,000          60,000   80,000   100,000


                Agreed-upon Action:
                1. OMS/OIT agreed to develop procedures for obtaining and analyzing the Rate Plan
                   Analysis Report from its wireless communications provider on a semi-annual basis
                   and evaluate the benefits of proposed changes to plans. Potential annual savings
                   identified in the April 2015 Rate Plan Analysis Report were approximately $15,000.

    High Data Usage on Mobile Devices

     During our review of wireless carrier invoices from October 23, 2013, through October 22,
     2014, we identified data usage on several devices exceeding 5 GB5 during a billing cycle. This
     amount of high data usage is typically an indicator of video and/or audio streaming.

     Approximately 30% of mobile devices were identified with high data usage during our review of
     invoices. Specifically,
          o In at least 1 month of the year reviewed:
                  74 devices exceeded 5 GB
                  29 devices exceeded 10 GB
                  12 devices exceeded 20 GB
          o 9 devices exceeded 10 GB in at least 3 months of the year reviewed

5
    1 gigabyte (GB) = 1,024 megabytes (MB)

                                                           6
    PPM 902B prohibits the consumption of excessive IT resources such as audio and video
    streaming. Although the FCA allows for some personal use of office equipment, PPM 906
    clearly states productivity must not be decreased as a result of personal use.

    Additionally, the wireless carrier has the right to terminate service or slow down the data
    connection speed for users exceeding 5 GB in a billing cycle. The agreement with the wireless
    communications service provider contains prohibited uses. An example of a prohibited use is
    continuous uploading, downloading, or streaming of audio, video, or games. The wireless
    communications service provider presumes anyone using more than 5 GB in a billing cycle is
    using their mobile device in a prohibited manner. We learned the wireless carrier slows down
    the data connection speed to these devices causing a noticeable difference in download
    performance which could impact productivity.

    Below are relevant excerpts from the wireless contract terms, conditions, and features
    regarding data usage:

         o    “Examples of prohibited uses include, without limitation, the following: (i) continuous
              uploading, downloading or streaming of audio or video programming or games…”
         o    “…but downloading movies using P2P file sharing services and/or redirecting
              television signals for viewing on laptops is prohibited.”
         o    “We reserve the right to limit throughput or amount of data transferred exceeding 5 GB
              in a given month, and to deny or terminate service, without notice, to anyone we
              believe is using an Unlimited Data Plan or Feature in any manner prohibited above or
              whose usage adversely impacts our network or service levels.”
         o    “Anyone using more than 5 GB per line in a given month is presumed to be using the
              service in a manner prohibited above, and we reserve the right to immediately
              terminate the service of any such person without notice.”

    For comparison purposes, we obtained from a large wireless carrier, examples showing how
    much data is used for common tasks6:

    Task                                                Quantity       Frequency   Estimated Data Usage
                                                                                      MB-megabytes
                                                                                       GB-gigabytes
    Email Messages                                        100              Daily       29.3 MB/month
    Browsing Internet Pages                               100              Daily       2.93 GB/month
    Audio streaming (e.g. radio, music)                  1 hour            Daily       1.76 GB/month
    Video streaming-standard definition                  1 hour            Daily      19.04 GB/month
    Uploading/Downloading Photos                           10              Daily       1.46 GB/month
    Video Calling-high bandwidth                         1 hour            Daily      21.09 GB/month
    (e.g. FaceTime, Skype)
    Online Games                                         1 hour            Daily      150 MB/month


6
 "Data Usage Calculator." Data Calculator. N.p., n.d. Web. 11 June 2015.
<http://www.verizonwireless.com/b2c/splash/datacalculatorPopup.jsp>.

                                                               7
 In addition to the common tasks above, other examples of potential data uses at the FCA
 include creating a mobile hotspot that is shared by examiners while performing an on-site
 examination. This hotspot could be used to connect to the FCA’s virtual private network for
 downloading loan data, obtaining email, accessing shared network drives, and web browsing.
 If an examiner creates a hotspot and shares with multiple users, this could result in a high
 usage of data.

 The FCA has an unlimited data plan, so high data usage does not impact wireless service
 costs. However, data utilization that exceeded the wireless carrier’s contract terms resulted in
 a throttled or slower data downloads for certain users. When a user exceeds a specified
 threshold within a billing cycle, the wireless communications service provider throttles the
 user’s speed until the next billing cycle. The user will experience a noticeable difference in the
 speed of downloads to their mobile device. This decrease in speed will have a direct effect on
 the user’s performance when the mobile device is used to download data for business
 purposes.

  Agreed-upon Actions:

  2. OMS/OIT agreed to educate users on prohibited uses and the impact of excessive data
     usage with mobile devices.
  3. OMS/OIT agreed to identify users exceeding the 5 GB threshold and notify the user and
     their supervisor of the data usage during that cycle.


Acquisition Process

  The FCA used effective controls over the acquisition process for mobile devices. Although
  the Farm Credit System Building Association (FCSBA) contracts with wireless service
  providers on behalf of the FCA, the FCA makes decisions regarding which devices and
  service providers are used. Additionally, the FCA manages the day-to-day wireless
  communications operations directly with the wireless service providers.

  The FCA Policy Statement 68 states, “The FCSBA was established to provide the facilities
  and related services for the FCA and its field offices.” FCA Policy Statement 68 further
  outlines the FCSBA’s responsibilities which include supervision of the telecommunications
  system. The FCSBA therefore contracts with the wireless communication service providers
  on behalf of the FCA, and the FCA reimburses the FCSBA for the actual cost of wireless
  communications services. FCSBA’s role is limited to contracting with the wireless provider
  and payment of wireless carriers’ invoices.

  The FCA used a sound approach to select a specific smartphone model. The FCA surveyed
  users to obtain their input on preferences of smartphone features. The FCA’s technology
  staff developed a list of specific evaluation criteria. Some of the evaluation criteria included:

         •   Cost
         •   Technical specifications

                                               8
      •   Weight
      •   Size
      •   Battery life
      •   Security features

The evaluation criteria were used to compare three different smartphone models, which
resulted in a recommendation by the evaluation team to upgrade the existing smartphone
with a similar model.

A sound approach was also used to select a primary wireless service provider. Two year
lifecycle costs were compared for three major service providers. Other key considerations
were coverage areas of the FCA office locations and a sample of Farm Credit System
institutions. The evaluation of service providers resulted in a recommendation by the
evaluation team to remain with the same wireless service provider due to their proven record
with the Agency, reliability of coverage, and efficiency in continuing service with the same
network.

The IRMOC was kept informed of activities involving the FCA’s mobile device strategy,
including the:

 •   procurement process and distribution of new smartphones,
 •   reevaluation of the mobile device management tool, and
 •   purchase and evaluation of tablets through a pilot test group.

The smartphone lifecycle replacement decision was approved by the COO. The evaluation
team presented three options to the IRMOC with a recommendation based on users
experience, current technology, industry research, training requirements, and security. The
IRMOC approved the evaluation team’s recommendation and presented the three options
and recommendation to replace the existing smartphones with an upgraded model and
continue service with the same wireless provider to the COO.

Smartphones and tablets were procured via purchase order and included on the wireless
carrier’s monthly invoices. GSA’s Federal Supply Schedule was the source for the contract
and pricing for the selected wireless communications provider.

The contracting specialist places the orders for mobile devices directly with the wireless
service provider. The Information Technology Specialist receives and inspects the mobile
device generally within two days of receipt. The user is then notified that the mobile device
was received and provided with instructions required before the device can be activated.
Users are notified that a personal credit card must be used for any potential app purchases.
The Information Technology Specialist and user complete the setup process either in person
or via video conference. The user is provided with the mobile device after setup and training
are complete.




                                           9
Mobile Device Inventory

        The FCA had the following
        inventory of mobile devices 7:                                       13 4
                                                                    32
        •    233 smartphones
        •    32 tablets
                                                                                                                     Smartphones
        •    13 USB Broadband devices
                                                                                                                     Tablets
        •    4 personal mobile devices
                                                                                                                     USB Broadband
        Smartphones                                                                                                  BYOD
        Any excess inventory of mobile
        devices caused by departing                                      233
        employees are reassigned to
        new employees or used to
        replace lost, stolen, or broken
        devices. We determined that
        although the unassigned inventory of smartphones had grown to over 20 as a result of
        several departures of the FCA staff, this excess inventory was recently reduced to a more
        reasonable level.

        We reviewed invoices to determine whether there were unused mobile devices. Although we
        identified some mobile devices with no voice, messaging, or data usage for three months or
        more, we determined these devices were suspended, disconnected, reassigned to another
        employee, or left in inventory for future reassignment. We did not identify a systemic issue
        with unused smartphones.

        Tablets

        The FCA’s mobile device strategy included determining the feasibility of tablets replacing
        laptops. Currently, senior managers are testing the utility of tablets. Tablets are primarily
        used for email and browsing the internet. The FCA is considering a lighter weight laptop that
        would reduce the need for tablets during the next rollout of laptops.

        USB Broadband Devices

        The FCA reduced the number of USB broadband devices retained for traveling examiners
        and other employees who do not have an Agency smartphone. The broadband devices are
        used by traveling staff to provide internet and network connectivity when away from the FCA
        offices. Since a majority of examiners now have an Agency smartphone with mobile hotspots
        that provide connectivity to agency systems, the need for USB broadband devices is greatly
        reduced.




7
    Inventory as of 3/20/2015. Includes devices used by the Farm Credit System Insurance Corporation (FCSIC) and managed by FCA.

                                                               10
        The FCA currently has 13 broadband devices in its pool 8 of devices, which are used
        primarily for traveling employees that do not have an agency issued smartphone. The FCA
        continues to analyze inventory levels and adjust as needed. OMS plans to reduce the
        inventory of USB broadband devices to 6.

        Personal/Bring Your Own Device (BYOD)

        Some staff without a mobile device assigned by the Agency may want to connect their
        personal mobile device to the Agency's internal electronic calendar and email system.
        Currently, there are only 4 personal devices connected to the FCA’s systems. Although the
        FCA permits personal mobile devices to connect to the Agency’s email and calendar system,
        this requires case-by-case approval as the personal mobile device must meet the following
        conditions:

             •    Approved by the employee’s supervisor
             •    Connected to the Agency’s mobile device management tool which enforces policy
                  and security settings
             •    Employee must immediately report a missing, lost, or stolen mobile device to the
                  OMS Helpline
             •    OMS has the right to remotely wipe data from any missing, lost or stolen personal
                  mobile device




8
    FCA has plans to deactivate an additional 7 broadband devices in the near future.

                                                                  11
OBJECTIVE, SCOPE, AND METHODOLOGY

 The objective of this audit was to determine whether the FCA implemented effective cost
 controls for mobile devices and related services.

 The scope of this audit focused on the acquisition and cost controls for smartphones, tablets,
 wireless broadband devices, and associated wireless service plans during fiscal year 2014.

 We conducted this performance audit in accordance with generally accepted government
 auditing standards. Those standards require that we plan and perform the audit to obtain
 sufficient, appropriate evidence to provide a reasonable basis for our findings and
 conclusions based on our audit objectives. We believe the evidence obtained provides a
 reasonable basis for our findings and conclusions based on our audit objectives.

 To accomplish our audit objective, we performed the following procedures:

    •   Identified and reviewed related laws, regulations, and Agency policies and
        procedures;
    •   Obtained background information on the FSSI;
    •   Reviewed audits related to the subject matter performed by the Government
        Accountability Office and other Offices of Inspector General;
    •   Obtained an understanding of:
            o the procurement process for acquiring mobile devices and associated service
                 plans
            o wireless contract service plan structure and options
            o mobile device inventory management
            o monthly wireless service payment processing
    •   Conducted interviews of key staff and managers with responsibility for overseeing
        management and procurement of mobile devices and their associated services;
    •   Identified significant internal control processes and determined if they were operating
        effectively and efficiently;
    •   Reviewed related documentation, including;
            o 2013 Smartphone Lifecycle Replacement decision memo
            o GSA Federal Supply Service Contract
            o Wireless service plan options
            o Requisitions, purchase orders, and modifications
            o Invoices from October 23, 2013, through October 22, 2014
            o Mobile device inventory
            o Rate Plan Analysis Report
    •   Summarized equipment costs and monthly service fees.

 We reviewed internal controls identified as significant to the audit objectives and did not
 identify any material control weaknesses.



                                             12
To assess the reliability of the data used to achieve our audit objective, we reconciled and
compared various data sources and performed reasonableness tests. We determined the
data used during this audit were sufficiently reliable for the purposes of our report.

This audit was performed at the FCA Headquarters in McLean, Virginia, from February
through July 2015. At the conclusion of this audit, we provided management with a draft
report of our observations and held an exit conference on July 15, 2015.




                                           13
ACRONYMS

  BPA      blanket purchase agreement

  BYOD     bring your own device

  CIO      Chief Information Officer

  COO      Chief Operating Officer

  COTR     Contracting Officer’s Technical Representative

  FCA      Farm Credit Administration

  FCSBA    Farm Credit System Building Association

  FSSI     Federal Strategic Sourcing Initiative

  GB       gigabyte

  GSA      General Services Administration

  IRM      Information Resources Management

  IRMOC    Information Resources Management Oversight Committee

  MB       megabyte

  OE       Office of Examination

  OIG      Office of Inspector General

  OIT      Office of Information Technology

  OMS      Office of Management Services

  PPM      Policies and Procedures Manual




                                       14
          R E P O R T
Fraud     |   Waste      |   Abuse      |    Mismanagement




          FARM CREDIT ADMINISTRATION
         OFFICE OF INSPECTOR GENERAL

        Phone: Toll Free (800) 437-7322; (703) 883-4316

                     Fax: (703) 883-4059

                E-mail: fca-ig-hotline@rcn.com

                Mail: Farm Credit Administration
                  Office of Inspector General
                    1501 Farm Credit Drive
                   McLean, VA 22102-5090