[Evaluation Report on Selected Telecommunications Charges, Department of the Interior]
[From the U.S. Government Printing Office, www.gpo.gov]

Report No. 98-I-648

Title: Evaluation Report on Selected Telecommunications Charges,
       Department of the Interior

Date:  September 10, 1998




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                  ******************************






U.S. Department of the Interior
Office of Inspector General






EVALUATION REPORT


SELECTED TELECOMMUNICATIONS
CHARGES, DEPARTMENT OF THE INTERIOR

REPORT NO. 98-I-648
AUGUST 1998




MEMORANDUM



TO:               The Secretary

FROM:             Richard N. Reback
                  Acting Inspector General

SUBJECT SUMMARY:  Final Evaluation Report
                  for Your Information -
                  "Selected Telecommunications Charges,
                  Department of the Interior" (No. 98-I-648)


Attached for your information is a copy of the subject final
evaluation report.  The objective of the  evaluation  was to
determine   the  feasibility  of eliminating local directory
assistance and other telephone services, such as weather and
time  reporting,  to  reduce  Department   of  the  Interior
telecommunications costs.

We  found  that the Department did not incur any  costs  for
telephone services related to weather and time reporting but
that it did  incur  costs  for  directory assistance.  Local
telephone directory assistance was  available  to  employees
because   telephone  companies  automatically  provided  the
service.  However,  Departmental bureaus and offices had not
performed  a  cost-benefit  analysis.   In  addition,  local
telephone directory  assistance  costs  were  not  centrally
accumulated  by the Department or by the telephone companies
we contacted,  and  the  Department did not track or account
for  these costs separately  from  other  telecommunications
costs.   By  focusing  on  the  offices that had the largest
number  of  employees,  we identified  directory  assistance
costs of $46,300 that the  Department  incurred  in calendar
year 1997.

We  recommended  that  the  Assistant  Secretary for Policy,
Management  and  Budget  determine whether  providing  local
telephone  directory  assistance   was  cost  effective  and
efficient  after  considering  the  total  annual  cost  and
benefits of the service.  We considered  the  action  of the
Chief  Information  Officer,  Office  of  the  Secretary, to
"provide  guidance and notification to employees"  regarding
the expense  of  directory assistance calls to be sufficient
to address the report's one recommendation.

If  you have any questions  concerning  this  mater,  please
contact  me  at (202)  208-5745  or Mr. Robert J.  Williams,
Assistant Inspector General for Audits, at (202) 208-5520.

Attachment






                                             I-IN-MOA-003-98



                        EVALUATION REPORT



Memorandum



To:       Assistant Secretary for Policy,
          Management and Budget

From:     Robert J.  Williams
          Assistant Inspector General for Audits

Subject:  Evaluation Report on Selected
          Telecommunications Charges, Department of the
          Interior (No. 98-I-648)


                          INTRODUCTION

This  report presents the results of our evaluation
of local telephone directory assistance charges in
the Department of the Interior. The objective of the
evaluation was to determine the feasibility of
eliminating local directory assistance and other
telephone services, such as weather and time reporting,
to reduce Departmental telecommunications costs.

BACKGROUND

As defined, telecommunications  services include the
electronic transmission of information  of any type,
such  as  data, sound, video, and facsimile.[1]   To
carry  out  its   telecommunications   mission,  the
Department  of the Interior expended more  than  $62
million in fiscal  year  1995  on telecommunications
resources that provide  a wide array of voice, data,
radio,   and   video  services  to  its   employees.
Telecommunications    services,    including   local
telephone directory assistance, are  acquired  under
the   General   Services   Administration's  Federal
Telecommunications System contract  and  from  local
and   long-distance   telephone   companies  serving
Departmental  offices  nationwide.  Local  telephone
directory  assistance  is   provided   by  telephone
companies  to  customers  to  enable them to  obtain
telephone numbers electronically.   The  charges for
this service can range from $.25 to $1.00  per  call
depending on the geographical area and the telephone
company from which the call is initiated.

SCOPE OF EVALUATION

This evaluation was conducted from December 1997
through March 1998 by contacts with individuals at
selected Departmental offices and bureaus
(see Appendix 2) and at telephone company offices
nationwide. As part of the evaluation, we reviewed
Departmental and telephone company documents and
records pertaining to local telephone directory
assistance charges for calendar year 1997 and
interviewed Departmental personnel in regard to their
directory assistance use.

This evaluation was conducted in accordance with the
"Quality Standards for Inspections,"  issued  by the
President's Council on Integrity and Efficiency, and
accordingly   included  such  tests  and  evaluation
procedures that  we  considered  necessary under the
circumstances.   We  also reviewed the  Departmental
Report on Accountability for fiscal year 1996, which
includes  information  required   by   the   Federal
Managers'  Financial  Integrity  Act, and determined
that  no  material weaknesses were included  in  the
report that  directly  related  to the objective and
scope  of our evaluation.  Because  of  the  limited
scope and objective of our review, internal controls
were reviewed  only  to the extent that they related
to the use of local telephone directory assistance.

PRIOR AUDIT COVERAGE

Neither  the Office of  Inspector  General  nor  the
General Accounting  Office  has  issued  any reports
during  the  past 5 years that addressed charges  to
the Department  of the Interior for the use of local
telephone directory assistance.

RESULTS OF EVALUATION

We found that the Department of the Interior did not
incur any costs for  telephone  services  related to
weather  and time reporting but did incur costs  for
local   telephone   directory   assistance.    Local
telephone  directory  assistance  was  available  to
employees  because telephone companies automatically
provided the service.  However, Departmental bureaus
and  offices   had   not  performed  a  cost-benefit
analysis of this service, and the Department did not
know the full cost of  providing  this  service.  We
estimated  that  the  Department  expended at  least
$46,300 during calendar year 1997 to  provide  local
telephone   directory   assistance  to  the  offices
reviewed.

We found that local telephone  directory  assistance
costs   were   not   centrally  accumulated  by  the
Department   or  by  the  telephone   companies   we
contacted and  that  the Department did not track or
account  for  these  costs   separately  from  other
telecommunications costs.  As  such,  we  identified
and  estimated  the costs related to local telephone
directory assistance by focusing on the offices that
had the largest numbers  of  employees.   Using this
approach, we identified directory  assistance  costs
of  $46,300 that the Department incurred in calendar
year 1997 as follows:

                  Bureaus Costs

     National Park Service           15,037
     U.S. Geological Survey          10,777
     Office of the Secretary          8,151
     Bureau of Land Management        3,778
     Bureau of Reclamation            2,298
     U.S.  Fish and Wildlife Service  2,572
     Bureau of Indian Affairs         1,465
     Office of Surface Mining         1,152
     Minerals Management Service      1,084

     Total                          $46,314

     These   costs   were  calculated  by  obtaining
     telephone account  information  for the offices
     listed    and   the   related  local  directory
     assistance  costs  from  Bell   Atlantic,  Bell
     South, Pacific Bell, Sprint, and  U.S. West for
     calendar  year  1997.   We also obtained  costs
     from the Departmental bureaus  and  offices and
     the General Services Administration.

     Because  the  Department  has  more than  2,000
     locations   that   use  hundreds  of  telephone
     accounts nationwide  and over 67,000 employees,
     we believe that the annual  cost  of  directory
     assistance   was   significantly   higher  than
     $46,300.    We   contacted  bureau  and  office
     management to discuss  whether  local telephone
     directory  assistance  costs had been  analyzed
     and   whether   analyses  were   performed   to
     determine whether  the  service  was  needed to
     perform     mission-related    work.     Bureau
     telecommunications managers said that they were
     generally unaware  of  the amount of funds that
     were expended for the  service.  They also said
     that they were aware that  employees were using
     local   directory   assistance  but   had   not
     conducted  a  cost-benefit   analysis   because
     summary  data  were not available and telephone
     billing data for these costs were decentralized
     to field offices.

     We found that there  were alternatives to using
     local telephone directory assistance which were
     available to employees  at  no additional cost,
     such  as  obtaining  numbers  from   the  local
     telephone directory, Federal Department locator
     services, and the Internet.  Specifically, each
     year  the  telephone  companies  provided   the
     number  of  telephone directories  requested by
     Departmental    offices.    These   directories
     included blue pages,  which  listed  Government
     agencies;    yellow    pages,    which   listed
     businesses;  and  white  pages,  which   listed
     individuals.    Also,   according   to  General
     Services    Administration    officials,   most
     Governmental entities, including the Department
     of   the  Interior,  have  telephone   employee
     locator services to assist callers in obtaining
     telephone  numbers  of  offices and individuals
     within    Federal    agencies.     Furthermore,
     employees  can  obtain  telephone  numbers  and
     addresses  at no additional  cost  through  the
     Department's access to the Internet.

     As part of our  review,  we  also  conducted  a
     telephone   survey   of  45  randomly  selected
     employees  of  the  Departmental   bureaus  and
     offices   nationwide   to   obtain  information
     concerning   their   use  of  local   telephone
     directory assistance.   Of  the 45 responses we
     received,  we found that 37 employees  received
     local  telephone   directories   annually,   39
     employees  had  access  to  a  local  telephone
     directory,   43  employees  had  access to  the
     Internet,  30  employees had knowledge  of  the
     telephone directory  on  the  Internet,  and 35
     employees said that their official duties would
     not  be  affected if local directory assistance
     was eliminated.

     Based on our  evaluation, we concluded that the
     elimination  of   local   telephone   directory
     assistance  would  save  at  least $46,300  per
     year.     However,    before   the   Department
     determines    whether   to    eliminate   local
     telephone directory assistance, we believe that
     it should consider the total costs and benefits
     of    the    service    as    part    of    its
     telecommunications survey, which is planned for
     fiscal year 1998.

     Recommendation

     We  recommend that the Assistant Secretary  for
     Policy,   Management   and   Budget   determine
     whether  providing  local  telephone  directory
     assistance  is  cost  effective  and  efficient
     after considering the total annual cost and any
     benefits  of  the service.  If it is determined
     not to be cost  effective  and efficient, local
     telephone   directory  assistance   should   be
     discontinued.

Office of the  Secretary Response and Office of
Inspector General Reply

In the July 15, 1998, response (Appendix 3) from the
Chief Information Officer,  Office of the Secretary,
to  our draft report, the Officer  stated,  "Through
extrapolation,   we  can  conclude  that  nationwide
directory assistance  charges  may  be  as  high  as
$150,000."  The Officer also stated that "there were
no instances of employee directory assistance misuse
cited in the report" and that "the benefit of having
convenient  access  to  needed  telephone numbers is
inherent in providing quality telephone  service  to
our  employees."   Further,  the Officer stated that
"eliminating local directory assistance  may  not be
worth  pursuing  in light of other initiatives where
significant cost reductions can be achieved, such as
consolidating  and   optimizing   FTS2000  services,
eliminating redundancies and unused telephone lines,
and  implementing  shared services."   However,  the
Officer said that the Office would "provide guidance
and  notifications  to   employees   that  directory
assistance calls can be costly and should  be placed
only   when   other   means  are  not  available  or
practical."

We  consider  the  Officer's   action   to  "provide
guidance  and  notification  to employees" regarding
the  expense  of directory assistance  calls  to  be
sufficient to address  our recommendation.  However,
the information requested  in  Appendix  4 should be
provided.

The legislation, as amended, creating the  Office of
Inspector  General requires semiannual reporting  to
the  Congress  on  all  audit  reports  issued,  the
monetary  impact  of  audit  findings  (Appendix 1),
actions  taken  to  implement audit recommendations,
and    identification    of     each     significant
recommendation  on which corrective action  has  not
been taken.

We  appreciate  the  assistance  of  Office  of  the
Secretary and bureau personnel in the conduct of our
evaluation.



cc:  Solicitor

Assistant Secretary for Fish and Wildlife and Parks
Assistant Secretary for Indian Affairs
Assistant Secretary for Land and Minerals Management
Assistant Secretary for Water and Science
Chief Information Officer, Office of Information Resources Management
Director, National Park Service
Director, U.S. Fish and Wildlife Service
Deputy Commissioner, Bureau of Indian Affairs
Director, Bureau of Land Management
Director, Minerals Management Service
Director, U.S. Geological Survey
Director, Office of Surface Mining Reclamation and Enforcement
Commissioner, Bureau of Reclamation
Focus Leader for Management Control and Audit Followup
Audit Liaison Officer, Office of the Solicitor
Audit Liaison Officer, Policy, Management and Budget
Audit Liaison Officer, Fish and Wildlife and Parks
Audit Liaison Officer, Indian Affairs
Audit Liaison Officer, Land and Minerals Management
Audit Liaison Officer, Water and Science
Audit Liaison Officer, National Park Service
Audit Liaison Officer, U.S. Fish and Wildlife Service
Audit Liaison Officer, Bureau of Indian Affairs
Audit Liaison Officer, Bureau of Land Management
Audit Liaison Officer, Minerals Management Service
Audit Liaison Officer, U.S. Geological Survey
Audit Liaison Officer, Office of Surface Mining Reclamation and Enforcement
Audit Liaison Officer, Bureau of Reclamation


**FOOTNOTES**

[1]:The American Heritage Dictionary, Second Edition.



                                                         I-IN-MOA-003-98
                                                         APPENDIX 1


               CLASSIFICATION OF MONETARY AMOUNTS


                                                       Funds To Be Put
            Finding Area                                To Better Use
__________________________________________            __________________

Cost of Local Directory Assistance Service                 $46,300


                                                  APPENDIX 2
                                                  Page 2 of 2



OFFICES CONTACTED                                 OFFICE LOCATION


Office of  the Secretary                          Washington, D.C.
Communications and Information
Systems and Services


U.S. Fish and Wildlife Service                    Arlington, Virginia
Information Resources Management,
Headquarters Office
Information Resources Management,                 Portland, Oregon
  Region One
Contracting & General Services,                   Albuquerque, New Mexico
  Region Two
Contracting & General Services,                   Twin Cities, Minneapolis
  Region Three
Contracting & General Services,                   Hadley, Massachusetts
  Region Five
Contracting & General Services,                   Lakewood, Colorado
  Region Six
Contracting & General Services,                   Anchorage, Alaska
  Region Seven
Automated Data Processing Division,               Atlanta, Georgia
  Region Four


U.S. Geological Survey Office of Information      Reston, Virginia
Service and Telecommunications Services
Western Region Headquarters,                      Menlo Park, California
Branch of Information Services
Water Resources  Division,                        Albuquerque, New Mexico
District Office
Water Resources Division, District Office,        Sacramento, California
Administrative  Services
Water Resources Division, District Office,        Raleigh, North Carolina
Administrative Services
Water Resources Division,District Office,         Baltimore, Maryland
Administrative Division
Water Resources Division,Sub-District Office,     Tampa, Florida
Administration
Water Resources Division,                         Woods Hole, Massachusetts
Woods Hole Field Center
Earth Resources Observation Systems Data Center,  Sioux  Falls,South Dakota
Program Budget & Administration


Office of Surface Mining                          Washington,D.C.
Reclamation and Enforcement
Office of Administrative Operations
Western Regional Coordinating Center              Denver, Colorado
Division of Office Technology
Transfer & Administrative Support
Appalachian Regional Coordinating Center          Pittsburgh, Pennsylvania
Division of Administrative Services
Knoxville Field Office,                           Knoxville, Tennessee
Program Support Group


Bureau of Land Management                         Washington, D.C.
Information Resources Management
Arizona State Office                              Phoenix, Arizona
California State Office                           Sacramento, California
Colorado State Office                             Lakewood, Colorado
Eastern States Office                             Springfield, Virginia
Montana State Office                              Billings, Montana
New Mexico State Office                           Sante Fe, New Mexico
Oregon State Office                               Portland, Oregon
Wyoming State Office                              Cheyenne, Wyoming
Idaho State Office                                Boise,Idaho
Nevada State Office                               Reno, Nevada
Alaska State Office                               Anchorage, Alaska
National Business Center                          Denver, Colorado


Bureau of Indian Affairs                          Arlington, Virginia
Eastern Area Office
Albuquerque Area Office,                          Albuquerque, New Mexico
Administrative Services
Phoenix Area Office,                              Phoenix,Arizona
Property Management
Billings Area Office, Acquisition                 Billings, Montana
& Property Management
Portland Area Office, Property Management         Portland, Oregon
Division of Accounting                            Albuquerque, New Mexico
Management, Government Unit
Division of Property Management                   Washington, D.C.


Bureau of Reclamation Administrative              Washington, D.C.
Support Group
Lower Colorado Region                             Boulder City, Nevada
Pacific Northwest Region, Information             Boise, Idaho
Resources Management Group
Mid-Pacific Region,                               Sacramento,California
Information Technology Services
Upper Colorado Region,                            Salt Lake City, Utah
Property & Services Management
Great Plains Region,                              Billings, Montana
Information Technology Group
Reclamation Service Center,                       Denver,Colorado
Finance & Accounting


Minerals Management Service                       Herndon,Virginia
Procurement & Support
Services Division
Houston Compliance Division                       Houston, Texas
Dallas Compliance Division                        Dallas, Texas
Southern Administrative                           New Orleans, Louisiana
Service Center
Western Administrative                            Denver,Colorado
Service Center
California Administrative Satellite Office        Camarillo, California
Alaska Administrative Satellite Office            Anchorage, Alaska


National Park Service                             Washington, D.C.
Information & Telecommunications Center
Intermountain Region,                             Denver,Colorado
Administrative Program Center
Midwest Region,                                   Omaha, Nebraska
Information Systems & Technology
Southeast Region,                                 Atlanta, Georgia
Contracting & Property Management
Harpers Ferry Center,                             Harpers Ferry,West Virginia
Office of Support Services
Pacific Great Basin Support Office                San Francisco, California
Boston Support Office                             Boston, Massachusetts
Columbia Cascades Support Office                  Seattle, Washington
Philadelphia Support Office                       Philadelphia, Pennsylvania




                     STATUS OF AUDIT REPORT RECOMMENDATION

                     --------------------------------------
      Finding/
   Recommendation
      Reference               Status                           Action Required
  _________________          _________                        ____________________

      1                   Management                Provide a target date and the title of the
                          concurs;additional        official responsible for providing the
                          information needed.       guidance and notification to employees.





ILLEGAL OR WASTEFUL ACTIVITIES SHOULD BE REPORTED TO THE OFFICE
OF INSPECTOR GENERAL BY:

Sending written documents to:



Within the Continental United States

U.S. Department of the Interior
Office of Inspector General
1849 C Street,N.W.
Mail Stop 5341
Washington, D.C. 20240

Calling:

Our 24 hour
Telephone HOTLINE
1-800-424-5081 or
(202) 208-5300

TDD for hearing impaired
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Outside the Continental United States


Caribbean Region

U.S. Department of the Interior
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Calling:
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North Pacific Region

U.S. Department of the Interior
Office of Inspector General
North Pacific Region
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Suite 807, PDN Building
Agana, Guam 96910


Calling:
(700) 550-7428 or
COMM 9-011-671-472-7279