IG-02-010

AUDIT 

REPORT TELEPHONE MANAGEMENT 

March 26, 2002

 National Aeronautics and 

Space Administration

OFFICE OF INSPECTOR GENERAL
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Acronyms 

CFR Code of Federal Regulations 

GSA General Services Administration 

NMI NASA Management Instruction 

NPD NASA Policy Directive 

OSF Office of Space Flight
March 26, 2002 

W 

TO: A/Administrator 

FROM: W/Counsel to the Inspector General 

SUBJECT: INFORMATION: Telephone Management 

 Report Number IG-02-010 

The NASA Office of Inspector General has completed an audit of telecommunications 

management. We found that controls for acquiring and managing telecommunications 

services1

 were generally adequate. However, NASA had not established effective 

Agencywide controls for managing telephone use. The Agency had no guidance to 

collect administrative costs associated with unauthorized calls and to sufficiently block 

the ability to use inappropriate2

 toll-free telephone numbers. Also, NASA did not 

consistently follow its policy for reviewing and certifying telephone charges. 

Consequently, NASA was not assured that telephone services were effectively and 

efficiently managed. 

Background 

Federal employees are permitted limited use of Government office equipment for 

personal needs if use does not interfere with official business and involves minimal 

additional expense to the Government. NASA’s policy allows the use of 

Government-provided telephones for official business, emergency, or authorized personal 

use. The NASA policy provides specific definitions for emergency and authorized 

personal calls.3

 Any telephone calls that are not for official business, emergency, or 

authorized personal reasons are unauthorized calls. Individuals making unauthorized 

calls are required to reimburse the Agency. In addition, Center Directors and the Director

 

1

 Telecommunications services include telephones, facsimiles, local video, administrative radio, remote

telecommunications, and public address service. 2

 Center officials generally described inappropriate toll-free telephone numbers as those that allow access 

to sexually explicit or sexually oriented material, radio and television talk shows, and psychics. 3

 NASA Policy Directive (NPD) 2540.1D, Use of Government Telephones, defines an emergency call as 

one to services such as an ambulance, local government, or military groups with jurisdiction for the safety 

of life. The NPD defines an authorized personal call as one that does not adversely affect an employee’s 

performance of official duties or the functions of the employee’s organization; is of reasonable duration 

and frequency; and is local, made to a toll-free number, or charged to a personal telephone calling card, to 

the employee’s home telephone, or to the non-Government party called. 
2 

for Headquarters Operations should develop procedures for supervisors to review and 

certify that toll calls are for official business, for emergency, or for authorized personal 

reasons; and to collect money for unauthorized calls. 

Recommendations 

We recommended that NASA evaluate alternative procedures for reviewing and 

collecting for unauthorized telephone use and implement the most cost-effective 

procedures; modify existing guidance to provide for recovery of administrative costs 

associated with unauthorized calls and require review of cellular telephone charges; and 

establish a policy for blocking use of inappropriate toll-free numbers. We also 

recommended that NASA direct the Jet Propulsion Laboratory to modify its telephone 

policy to comply with the Agency’s certification and collection requirements. Actions to 

implement these recommendations will provide NASA more assurance that telephone 

services are sufficiently managed. 

Management’s Response and OIG Evaluation 

NASA concurred with the recommendations to evaluate and implement procedures for 

reviewing and collecting for unauthorized calls; to modify Agency guidance to include 

provisions for recovery of administrative costs associated with unauthorized calls, to 

require review of cellular telephone charges, and to establish procedures for blocking 

inappropriate toll-free numbers. Although NASA partially concurred with the 

recommendation to require the Jet Propulsion Laboratory to modify its telephone policy 

to comply with NASA policy, management’s planned actions will meet the intent of the 

recommendation. 

[original signed by] 

Francis P. LaRocca 

Enclosure 

Final Report on Audit of Telephone Management 
TELEPHONE MANAGEMENT
March 26, 2002 

W 

TO: M/Associate Administrator for Space Flight 

S/Associate Administrator for Space Science 

FROM: W/Assistant Inspector General for Audits 

SUBJECT: Final Report on Audit of Telephone Management 

 Assignment Number A-00-060-00 

 Report Number IG-02-010 

Enclosed please find the subject final report. Please refer to the Executive Summary for 

the overall audit results. Our evaluation of your response is incorporated into the body of 

the report. We consider management's proposed, corrective actions responsive to the 

recommendations. The recommendations will remain open for reporting purposes until 

corrective actions are completed. Please notify us when actions have been completed on 

the recommendations, including the extent of testing performed to ensure corrective 

actions are effective. The final report distribution is in Appendix G. 

We appreciate the courtesies extended to the audit staff. If you have questions 

concerning the report, please contact Mr. David L. Gandrud, Director, Information 

Technology Program Audits, at (650) 604-2672, or Mr. Roger W. Flann, Program

Manager, at (818) 354-9755. 

[original signed by] 

Alan J. Lamoreaux 

Enclosure 
2 

cc: 

AI/Associate Deputy Administrator 

AO/Chief Information Officer 

B/Acting Chief Financial Officer 

B/Comptroller 

BF/Director, Financial Management Division 

G/General Counsel 

JM/Director, Management Assessment Division 

NASA Center Directors 

Director, NASA Management Office, Jet Propulsion Laboratory 
Contents 

Executive Summary, i 

Introduction, 1 

Finding and Recommendations, 2

 Management Controls Over Telephone Use, 2 

Appendix A – Objective, Scope, and Methodology, 7

Appendix B – General Services Administration Response to Inquiry on 

Telephone Use, 9

Appendix C - Reviews/Certifications of Telephone Charges and Collections 

for Unauthorized Calls, 12 

Appendix D - Inappropriate Toll-Free Numbers Blocked, 13 

Appendix E - Inappropriate Toll-free Numbers Not Blocked, 14

Appendix F – Management’s Response, 15

Appendix G – Report Distribution, 18
NASA Office of Inspector General 

IG-02-010 March 26, 2002 

 A-00-060-00 

Telephone Management 

Executive Summary 

Background. The General Services Administration (GSA) provides overall policy for 

telecommunications services.4

 Agencies may issue their own policies and procedures for 

implementing GSA policy. NASA’s telecommunications management policies are found 

in various policy directives, guidance, and procedures. For fiscal year 2001, NASA 

locations5

 estimated they would spend about $191 million for telecommunications 

services. 

Objective. The overall audit objective was to determine whether NASA had established 

effective controls for acquiring and managing its telecommunications services. 

Specifically, we determined whether management controls were sufficient to ensure that 

NASA procured only required services and support. Appendix A contains further details 

on the audit objective, scope, and methodology. 

Results of Audit. Except for telephone services, NASA had generally established 

adequate controls for acquiring and managing telecommunications services. However, 

NASA had not established effective Agencywide controls for managing telephone use. 

Specifically, NASA had not: 

• established guidance for collecting administrative costs associated with 

unauthorized calls, 

• consistently followed policy for reviewing and certifying telephone charges, and 

• sufficiently blocked the ability to use inappropriate toll-free telephone numbers. 

As a result, NASA lacked assurance that it was effectively and efficiently managing its 

telephone services. 

 

4

 See footnote 1. 5

 NASA locations are the Ames Research Center (Ames), Hugh L. Dryden Flight Research Center 

(Dryden), John H. Glenn Research Center (Glenn), Goddard Space Flight Center (Goddard), Jet Propulsion 

Laboratory (JPL), Lyndon B. Johnson Space Center (Johnson), John F. Kennedy Space Center (Kennedy), 

Langley Research Center (Langley), George C. Marshall Space Flight Center (Marshall), NASA 

Headquarters (Headquarters), and John C. Stennis Space Center (Stennis). 
Recommendations. NASA should evaluate alternative procedures for reviewing and 

collecting for unauthorized telephone use and implement the most cost-effective 

procedures. Also, NASA should modify existing guidance to provide for recovery of 

administrative costs associated with unauthorized calls and require review of cellular 

telephone charges. Further, NASA should establish a policy for blocking use of 

inappropriate toll-free numbers. Finally, NASA should direct JPL to modify its 

telephone policy to comply with the Agency’s certification and collection requirements. 

Management’s Response. NASA concurred with all but one recommendation. 

Management partially concurred with the recommendation to direct JPL to modify its 

telephone policy to comply with NPD 2540.1D; however, the proposed actions meet the 

intent of the recommendation. 

Evaluation of Response. Management’s planned actions are responsive to all the 

recommendations. 

ii
Introduction

In October 1996, the NASA Administrator transferred management responsibility for 

Agency telephone use from the Office of Space Communications to the Office of Space 

Flight (OSF). The OSF, Space Communications Office, has primary responsibility for 

telecommunications, including establishing policy on telephone use. At the time of the 

transfer, NASA Management Instruction (NMI) 2540.1C, “Use of Government 

Telephones,” provided Agency policy on telephone usage. On November 27, 1998, 

NASA replaced NMI 2540.1C with NASA Policy Directive (NPD) 2540.1D, same title. 

Information systems organizations at most NASA locations are responsible for 

implementing the telephone usage requirements in NPD 2540.1D. 

NPD 2540.1D requires that NASA locations establish local policies and procedures for 

telephone management. The NPD also requires local procedures for supervisory 

certification that long-distance calls are for authorized personal calls or for official 

business or emergency purposes. The NPD defines authorized personal calls to include 

local calls; toll-free calls; or calls charged to an employee’s telephone calling card, the 

employee’s home, or to a non-Government party. An authorized personal call can also 

be long-distance to locations in the local commuting area. For fiscal year 2001, NASA’s 

estimated obligations for telephone services totaled about $99 million.6

At our request, the GSA Office of Governmentwide Policy provided us a further 

understanding of the Code of Federal Regulations (CFR)7

 requirements relating to 

telephone use. For example, GSA discussed alternatives to supervisory reviews and 

certifications of long-distance calls. Appendix B contains our questions and GSA 

responses regarding the review of telephone calls, use of cellular telephones, and trends 

in Governmentwide policy. 

 

6

 This amount includes estimated obligations for domestic long-distance, international long-distance, and 

local services. The estimate also includes the associated services and equipment, such as cellular 

telephones and calling cards, used for the local and long-distance services. Calling cards allow employees 

to place official long-distance calls from non-Government telephones. 7

 The GSA administers 41 CFR Subpart 101-35.2, "Telecommunications Management Policy," dated 

July 1, 2000, for all Federal agencies. Details on the CFR are in the finding section of the report.
Finding and Recommendations 

Management Controls Over Telephone Use 

NASA lacked adequate management controls over telephone use. Specifically, NASA 

had not: 

• established guidance consistent with CFR requirements for collecting 

administrative costs associated with unauthorized calls; 

• complied with guidance for reviewing and certifying telephone charges; and 

• adequately blocked the ability to access inappropriate toll-free telephone 

numbers. 

These conditions existed because NASA did not follow existing Agency guidance, 

update the guidance to address CFR requirements, or establish guidance relating to 

inappropriate telephone use. As a result, NASA lacked assurance that it was effectively 

and efficiently using and managing telephone services. 

Requirements for Use of Government Telephones 

Title 41 CFR, section 101-35.201, "Authorized Use of Long-distance Telephone 

Services." The CFR states that Agencies should use Government telephones for official 

business only and should collect for any unauthorized calls if it is cost-effective to do so. 

The CFR also states that Agency collections for unauthorized calls shall include an 

additional amount to cover the administrative costs of determining that the call was 

unauthorized and for processing the collection. 

NPD 2540.1D, "Use of Government Telephones." The NPD outlines NASA policy for 

using Government-provided telephones. The NPD states that telephone calls placed over 

Government-provided or commercial telephone systems will be used for official 

business, for an emergency, or for authorized personal calls only. Any call that is not 

official, an emergency, or authorized personal usage, is an unauthorized call. 

The NPD also states that Center Directors and the Associate Administrator for 

Headquarters Operations (now the Director, Headquarters Operations) are responsible for 

developing procedures to: 

obtain supervisory certification that toll calls under their jurisdiction are for 

official business, for emergency purposes, or are authorized personal calls; and 

• 

• collect money from those who use Government telephone services to make 

unauthorized personal calls. 

2
The NPD states that an authorized personal call: 

does not adversely affect the performance of the employee’s official duties or the 

effective function of the employee’s organization; 

• 

• 

• 

is of reasonable duration and frequency and could not have been reasonably made 

at another time; and 

is local, made to an “800” toll-free number, or charged to a personal telephone 

calling card, to the employee’s home telephone, or to the non-Government party 

called. 

An authorized personal call may also be long-distance. The long-distance call may be 

made at Government expense to locations within the local commuting area to speak to a 

spouse or dependent, to reach a number available only during working hours, or to 

arrange for emergency repairs to the employee’s residence or property. 

Collecting Administrative Costs

NPD 2540.1D does not comply with the CFR regarding costs to be included in charges 

for unauthorized telephone calls. Specifically, the NPD does not address the CFR 

requirement to identify the administrative costs of (a) determining that the call was 

unauthorized and (b) processing the collection. The NPD requires only that the cost of an 

unauthorized call be rounded to the nearest dollar to cover the administrative costs. 

The OSF official responsible for developing NPD 2540.1D stated that he overlooked the 

CFR requirement to recover all administrative costs associated with unauthorized calls. 

The official stated that the CFR requirement should be included in the NPD. By revising 

NPD 2540.1D to agree with the CFR, NASA will have improved guidance for charging 

telephone users for the administrative costs associated with unauthorized telephone calls. 

Until NASA revises NPD 2540.1D, the Agency does not have a documented policy to 

require the full recovery of all administrative costs associated with unauthorized 

telephone calls. 

Reviewing and Certifying Telephone Charges 

NASA locations did not perform supervisory reviews and certifications of telephone 

charges as required by NPD 2540.1D. Specifically, only 4 of 11 NASA locations had 

established a supervisory review and certification process for wired (standard) 

telephones, and only 1 of 11 NASA locations had established a review and certification 

process for Agency-distributed wireless (cellular) telephones. 

Standard Telephones. We requested that NASA locations provide us information on 

the process they used to review and certify telephone charges. Headquarters, Langley, 

and Marshall officials responded that they did not have such a process because its costs 

3
would likely exceed the benefits achieved. None of the three locations had performed a 

cost/benefit analysis to support its position. Goddard and Johnson responded that they 

had implemented processes for reviewing and certifying telephone charges. However, 

neither Center had ensured that its organizational components reviewed and certified 

telephone charges. Finally, Ames and Marshall were the only NASA locations that had 

established controls over collect calls. Ames included collect calls in call detail reports 

that were distributed to supervisors for review and certification. Marshall’s contract with 

the local telephone carrier prohibited collect calls to the Center. Appendix C 

summarizes, by NASA location, whether supervisors performed reviews and 

certifications and collected for unauthorized calls. 

With respect to supervisory review and certification of telephone charges at JPL, the NASA 

contract with the California Institute of Technology (CalTech) did not include reference to 

NPD 2540.1D. When NASA negotiated the contract, CalTech representatives would not 

accept incorporation of the NPD, and NASA officials said they believed that existing JPL 

policy satisfied the intent of the NPD. However, the JPL policy was not adequate because it 

did not provide for certification and collection of costs associated with unauthorized calls. 

Cellular Telephones. Of the 11 NASA locations we reviewed, only Ames certified 

cellular telephone charges. Ames had a process to review and certify cellular telephone 

charges but did not address calls costing less than $5. Although Johnson and Kennedy 

reviewed cellular telephone charges from a central organization and forwarded 

questionable calls to supervisors for further investigation, those locations did not certify 

cellular telephone charges. 

Management officials gave several reasons for not reviewing and certifying cellular 

telephone charges. For example, officials at several Centers said that they believed it 

would not be cost-effective to implement such a process. An official at one Center said 

she had not considered that NPD 2540.1D applied to cellular telephones. Although 

NPD 2540.1D does not specifically mention cellular telephones, OSF management stated 

that the NPD covers cellular telephones. 

Review, Certification, and Collection Process. As previously discussed, 41 CFR states that 

Agencies should use Government telephones for official business only and collect for any 

unauthorized calls if it is cost-effective to do so. NPD 2540.1D includes the same restrictions 

for using Government telephones and requires supervisory review and certification. NASA 

included the supervisory review, certification, and collection requirements without first 

determining their cost-effectiveness. Further, NPD 2540.1D does not address the CFR 

reference to cost-effectiveness when establishing NASA’s collection procedures for 

unauthorized calls. In view of the minimal amounts collected by NASA locations that 

performed supervisory reviews (see Appendix C), NASA should consider possible 

alternatives to the current review, certification, and collection process. We contacted three

4
Federal agencies8

 to determine whether they had a cost-effective procedure to identify and 

collect for unauthorized calls. Each agency gathered call detail information. Although 

practices may vary within specific components of each agency, representatives of the agencies 

indicated limited, if any, use of the call data to collect for unauthorized long-distance calls. 

Most of the representatives we spoke with questioned the cost-effectiveness of identifying and 

collecting for such calls. We did not identify any agency that had a cost-effective process for 

doing so. 

To better understand the options available for reviewing telephone charges and to clarify 

the extent to which agencies should apply CFR requirements, we developed several 

questions that we provided to GSA’s Office of Governmentwide Policy. Appendix B 

provides GSA’s response to our questions. NASA may wish to use the response in 

developing cost-effective alternative procedures such as reviewing samples of 

long-distance calls or developing a policy that addresses specific cellular telephone 

charges. 

Blocking Access to Inappropriate Telephone Numbers 

NPD 2540.1D allows employees to call a toll-free9

 number but does not address blocking 

access to inappropriate toll-free numbers. The absence of Agencywide guidance 

regarding calls to inappropriate toll-free numbers resulted in a wide variance in the 

number of toll-free numbers blocked at NASA locations. For example, Goddard 

identified and blocked 151 toll-free telephone numbers, while Langley blocked no 

numbers. Appendix D identifies the number of inappropriate toll-free numbers blocked 

at each location. Appendix E shows examples of inappropriate toll-free numbers not 

blocked. 

NASA locations did not always block access to inappropriate numbers because the Agency 

had not established an applicable policy. Without guidance for identifying and blocking calls, 

employees will continue to have access to inappropriate toll-free numbers. 

Conclusion 

Approaches for controlling telephone charges vary within the Agency. With the decreasing 

cost of long-distance services and growth in the use of cellular telephones, NASA needs to 

reassess the consistency and effectiveness of its controls for managing telephone use. Such 

controls can provide NASA management assurance that the CFR requirements are met and 

that cost-effective processes exist for managing telephone use at NASA locations. 

 

8

 We contacted GSA, the Department of the Interior, and the Defense Telecommunications ServicesWashington of the Department of the Army, which provides telephone services to Department of Defense 

components in the Washington, D.C., area. 9

 The NPD refers to 800 toll-free numbers; however, the OSF official responsible for updating 

NPD 2540.1D stated that the intent was to include all toll-free numbers. Toll-free numbers beginning with

“866,” “877,” and ‘888,” were not readily available and used at the time the NPD was issued. 

5
Recommendations, Management Response, and Evaluation of Response 

The Associate Administrator for Space Flight should: 

1. Evaluate the cost-effectiveness of alternative procedures (such as sampling of 

calls or identification of extraordinary call frequency, unusual locations called, 

or unusually high cost per call) for reviewing and collecting costs for 

unauthorized telephone use, and modify NPD 2540.1D to provide for 

implementation of the most cost-effective procedure. 

2. Modify NPD 2540.1D to provide for the recovery of administrative costs 

associated with identifying and collecting the costs of unauthorized calls and 

to include specific reference to cellular telephones. 

3. Establish a policy for blocking access to inappropriate toll-free numbers. 

Management Response. Concur. The OSF will develop cost-effective procedures 

for reviewing and collecting costs (for unauthorized calls) and will update 

NPD 2540.1D to incorporate those procedures. Also, the OSF will modify 

NPD 2540.1D to provide for recovering administrative costs associated with 

identifying and collecting the costs of unauthorized calls and for blocking access to 

inappropriate toll-free numbers. Proposed changes and modifications to 

NPD 2540.1D will be completed by the end of fiscal year 2002. See Appendix F for 

management’s complete response. 

Evaluation of Management's Response. Management’s planned actions are 

responsive to the recommendations. The recommendations are resolved, but will 

remain undispositioned and open for reporting purposes until corrective actions are 

completed. 

4. The Associate Administrator for Space Science should direct JPL to modify its 

telephone policy to comply with NPD 2540.1D. 

Management Response. Partially concur. The Associate Administrator for 

Space Science stated that the NASA Management Office will initiate negotiations 

with Caltech/JPL to incorporate the NPD 2540.1D requirements into the contract 

once NASA completes revision of the NPD (see Appendix F). 

Evaluation of Management's Response. Management’s planned actions will satisfy the 

intent of the recommendation. The recommendation is resolved, but will remain 

undispositioned and open for reporting purposes until corrective actions are completed. 

6
Appendix A. Objective, Scope, and Methodology 

Objective 

The overall objective was to determine whether NASA had established effective controls 

for acquiring and managing its telecommunications services. Specifically, we 

determined whether management controls were sufficient to ensure that NASA procures 

only required services and support. 

Scope and Methodology 

We performed work at all NASA locations. We limited our review to management 

controls for acquiring telephones, facsimiles, local video, administrative radio, remote 

telecommunications, and public address services. To accomplish the audit objective, we: 

Reviewed applicable laws, regulations, NASA guidance, and other documentation 

related to the acquisition of, accountability for, and use of telecommunications 

services to understand the procedures used to manage telecommunications 

services. 

• 

• 

• 

• 

• 

Interviewed information technology personnel and reviewed applicable 

documents to understand the procedures for acquiring and paying for 

telecommunications services. 

Obtained information from the Defense Telecommunications Services - 

Washington of the Department of the Army, Department of the Interior, and 

General Services Administration regarding their practices to identify and collect 

for unauthorized calls. 

Obtained information from the General Services Administration to determine its 

position on Title 41 of the Code of Federal Regulations requirements regarding 

telephone usage. 

Requested information from all NASA locations to understand and evaluate 

management practices relating to blocking telephone numbers, reviewing and 

certifying toll calls, and collecting for unauthorized calls. 

Because of time constraints, we did not perform the extensive testing necessary to 

determine the extent of unauthorized calls made by employees at NASA locations. We

did not rely on computer-processed data for the results included in this audit report. 

Management Controls Reviewed 

We reviewed management controls related to the use of Government telephones as 

described in Title 41 of the Code of Federal Regulations, NASA Policy Directive 

7
Appendix A 

(NPD) 2540.1D, and guidance issued by NASA locations. We considered the 

management controls to be adequate except that NPD 2540.1D did not fully comply with 

Code of Federal Regulations requirements and did not address blocking access to 

inappropriate toll-free numbers. In addition, the Jet Propulsion Laboratory telephone 

policy did not fully comply with the NPD (see the Finding). 

Audit Field Work 

We performed field work from September 2000 through August 2001 at Ames Research 

Center, Hugh L. Dryden Flight Research Center, John H. Glenn Research Center, 

Goddard Space Flight Center, Jet Propulsion Laboratory, Lyndon B. Johnson Space 

Center, John F. Kennedy Space Center, Langley Research Center, George C. Marshall 

Space Flight Center, NASA Headquarters, and John C. Stennis Space Center. We

performed the audit in accordance with generally accepted Government auditing 

standards. 

8
Appendix B. General Services Administration Response to 

Inquiry on Telephone Use 

To better understand the options available for reviewing telephone charges, we submitted 

questions to the General Services Administration’s (GSA’s) Office of Governmentwide 

Policy. The questions addressed how agencies should apply Title 41 of the Code of 

Federal Regulations (CFR) requirements. Our questions and GSA’s responses (which we 

paraphrased in some cases) are provided below. 

Questions and Responses Relating to Review of Telephone Calls 

Question: 41 CFR section 101-35.202, “Collection for Unauthorized Use,” states that 

Agencies shall collect for any unauthorized calls if it is cost-effective to do so and further 

states that collections shall include an additional amount to cover administrative costs. 

Since administrative costs should be included in the amounts collected, can the Agency 

determine that it would be uneconomical to institute a supervisory review and 

certification process? 

Response: Yes, and with the reduced price of calls (on land lines) some other agencies 

have made that decision because the cost of review is too high. For your information, 

FTS [Federal Telecommunications System] 200110 makes it optional if an agency even 

gets the billing details for long-distance calls - since it does cost so much and the review 

costs may exceed the abuse (if any).11

Question: Can the requirement for supervisory review and certification be met with a 

process less than the supervisory review of all long-distance calls? (For example, either 

(1) some higher level review that would identify questionable phone use for further 

supervisory review or (2) monthly review of higher usage phones and a system that 

randomly selects a sample of other users.) 

Response: Yes. The random selection review and audit process is a well-founded 

approach that has been used widely by many agencies as a realistic way to certify bills. 

(This is similar to what is done for travel vouchers and other financial transactions where 

the dollars and risk are much higher.)12

 

10 FTS 2001 is the Federal Government’s long-distance voice/data/video network that is managed through 

the GSA. 

11 Some NASA locations used their local Central Branch Exchange “call detail data” for reviewing 

long-distance calls. Accordingly, those NASA locations may not need the FTS 2001 billing details to 

review use of long-distance calls. 12 Our audit also identified commercial sources that provided services and software for monitoring 

telephone usage through call accounting. Call accounting is the process of collecting, analyzing, and 

reporting call record information. 

9 
Appendix B

Questions and Responses Relating to Use of Cellular Telephones

Question: 41 CFR, section 101-35.201(c)(3)(i), prohibits use of a Government system or 

device, where the Government pays the cost of the long-distance call, for other than 

official business. Would cellular telephone calls, for which air-time charges (local or 

long-distance) apply, fall under this CFR section?

Response: Actually, the general policy is for "official business,” but down lower [within 

41 CFR, section 101-35.201(c)(3)(I)] the regulations intentionally say "authorized calls" 

and the procedures open the issue of agency-authorized personal calls. So the agency can 

set policies that permit some personal calls. For instance, GSA internal policies permit 

that long-distance calls may be made to home or for personal business within the local 

commuting area. (This acknowledges that just to call home or their doctor's office may be 

a long-distance call for some.) 

Also see "Model Limited Use Policy for Government IT" found at http://www.cio.gov

(search for "limited") that outlines the direction for agencies to set policies that permit 

personal use. The basic rule in that model policy is that the personal use not create 

"significant additional expense" for the Government. 

Also note that the Government Rules of Conduct speak of "Authorized Use" of 

Government equipment and facilities. Heads of agency can authorize the use of agency 

facilities (see 5 USC [United States Code] 30113). 

On cell phones - you’ll notice that that issue is intentionally omitted from the "Model 

Limited Use Policy.” The reason is - as you suggest - because it is a gray area and a 

slippery slope. If you don't draw a line, you'll be paying for all the personal cell phone 

service for Government employees. But where to draw a line? If the user is on a rate 

plan (justified by their Government use) that has free nights and weekends - then there is 

no additional expense - so if the agency adopts the policy, it is fine to use that time for 

personal use. Or if the plan permits 500 minutes per month, the employee can use the 

unused minutes for personal calls. Even occasional calls that are billable do not add 

"significant additional expense" and MAY also be determined to be acceptable. 

You can see the direction - but until the market rate plans shift toward unlimited calls - or 

very low costs per minute, it is difficult to draw the clear line. We also did not want to 

create an environment that employees are all asking to change plans to 1,000 minutes per 

month or unlimited so that their personal calls (for the privileged) would be covered. 

 

13 Title 5 of the U.S. Code (titled "Government Organization and Employees"), Section 301, states that the 

head of an Executive department may prescribe regulations for the Government of his department, the 

conduct of its employees, the distribution and performance of its business, and the custody, use, and 

preservation of its records, papers, and property. 

10 
Appendix B 

BOTTOM LINE: While we intentionally did not establish clarity in the model policy 

for cell phone use in this area, the agency could establish a policy that permits some

limited personal use. 

Question: During the course of our audit, we have been asked whether an employee 

having a cellular telephone plan covering a specified amount of minutes can use the 

remaining minutes at the end of the billing period for personal calls. Can they? 

Response: Yes, if the agency adopts that policy - because it creates no significant 

additional expense on the Government. However - be careful not to create demand 

landslide [created by significant personal use] for new high-cost rate plans that are not 

warranted by Government use. 

It may be worth noting here that two agencies are telling employees to buy their own 

personal phone service, and the agency will pay the employee a fixed monthly stipend 

(say $25/month) for the Government calls. That reverses the issue and gets rid of all of 

these problems. We are still researching to establish if there is a clear legality and the 

proper mechanics for doing that. 

Question: Another similar situation with cellular telephones is where the provider does 

not charge for calls under a minute in length. In both of these situations, our audit would 

conclude that nothing but authorized calls can be made. Is there any guidance in place or 

contemplated that would contradict our position?

Response: The agency can easily "authorize" these calls because no "significant 

additional expense" would be created for the Government. 

Question and Response Relating to Trends in Governmentwide Policy 

Question: Given the many changes in technology for placing telephone calls - - cellular, 

personal data assistants, etc., and the drop in cost for telephone services, do you foresee 

any near-term changes to Government policies pertaining to their use? If so, would you 

please explain? 

Response: Yes, see "Model Limited Use Policy." In general, the trend is toward a 

relaxation of the limits on authorized use, the blending of family, work, and home, 

acknowledging pressures to increase teleworking14 (and paying for telecom services to 

the employee's home), and to make the Government work place more friendly, more like 

commercial industry. You'll see very liberal telework arrangements evolving. There is 

also the shift toward empowering and trusting the employees to use, but not abuse the 

work environment. 

11 

 

14 Telework allows employees to work at locations other than their traditional office. 
Appendix C. Reviews/Certifications of Telephone Charges and 

Collections for Unauthorized Calls 

NASA Location 

Supervisory 

Reviews and 

Certifications 

Performed 

Collections for 

Unauthorized Calls 

October 1, 2000 

through March 31, 2001 

Ames Research Center Yes $ 144 

Dryden Flight Research 

Center No 480 

Glenn Research Center No 0 

Goddard Space Flight Center Yes 3,096 

NASA Headquarters No 0 

Jet Propulsion Laboratory No 0 

Johnson Space Center Yes 2,170 

Kennedy Space Center No 0 

Langley Research Center No 0 

Marshall Space Flight Center No 0 

Stennis Space Center Yes 137 

 Total $6,027 

12 
Appendix D. Inappropriate Toll-Free Numbers Blocked 

NASA Location Inappropriate Numbers 

Blocked 

Ames Research Center 71 

Dryden Flight Research Center 0 1

Glenn Research Center 0 

Goddard Space Flight Center 151 

NASA Headquarters 0 1

Jet Propulsion Laboratory 0 

Johnson Space Center 56 

Kennedy Space Center 68 

Langley Research Center 0 

Marshall Space Flight Center 0 

Stennis Space Center 25 

Total 371 2

1 The telephone carrier at this location could not block specific toll-free 

telephone numbers. 

2 This number represents 271 different toll-free numbers. The population of 

inappropriate numbers may be larger.

13 
Appendix E. Inappropriate Toll-Free Numbers Not Blocked 

Inappropriate Tollfree Numbers* Response at Call Destination 

Number of NASA 

Locations That Did Not 

Block This Number 

(800) 468-XXXX Sexually explicit 7 

(800) 568-XXXX Sexually explicit 8 

(800) 723- XXXX Psychic 7 

(800) 733- XXXX Sexually explicit 6 

(800) 753- XXXX Sexually explicit 9 

(800) 758- XXXX Sexually explicit 8 

(800) 766- XXXX Chat line 10 

(800) 786- XXXX Sexually explicit 7 

(800) 949- XXXX Sexually explicit 7 

(800) 999- XXXX Sexually explicit 7 

*We have provided the complete telephone numbers to NASA management. 

14 
Appendix F. Management's Response 

15 
Appendix F 

16 
Appendix F 

17 
Appendix G. Report Distribution 

National Aeronautics and Space Administration (NASA) Headquarters 

A/Administrator 

AI/Associate Deputy Administrator 

AA/Chief of Staff 

AB/Associate Deputy Administrator for Institutions 

AO/Chief Information Officer 

B/Acting Chief Financial Officer 

B/Comptroller 

BF/Director, Financial Management Division 

C/Acting Director, Headquarters Operations 

G/General Counsel 

J/Assistant Administrator for Management Systems 

JM/Director, Management Assessment Division 

M/Associate Administrator for Space Flight 

S/Associate Administrator for Space Science 

NASA Centers 

Director, Ames Research Center 

Director, Dryden Flight Research Center 

Director, Glenn Research Center 

Director, Goddard Space Flight Center 

Acting Director, Johnson Space Center 

Director, Kennedy Space Center 

 Chief Counsel, Kennedy Space Center 

Director, Langley Research Center 

Director, Marshall Space Flight Center 

Acting Director, Stennis Space Center 

Director, NASA Management Office, Jet Propulsion Laboratory 

Non-NASA Federal Organizations and Individuals 

Assistant to the President for Science and Technology Policy 

Deputy Associate Director, Energy and Science Division, Office of Management and 

 Budget 

18 
Appendix G 

Non-NASA Federal Organizations and Individuals (Cont.) 

Branch Chief, Science and Space Programs Branch, Energy and Science Division, Office 

 of Management and Budget 

Director, Acquisition and Sourcing Management Team, General Accounting Office 

Senior Professional Staff Member, Senate Subcommittee on Science, Technology, and 

 Space 

Chairman and Ranking Minority Member – Congressional Committees and 

Subcommittees 

Senate Committee on Appropriations 

Senate Subcommittee on VA, HUD, and Independent Agencies 

Senate Committee on Commerce, Science, and Transportation 

Senate Subcommittee on Science, Technology, and Space 

Senate Committee on Governmental Affairs 

House Committee on Appropriations 

House Subcommittee on VA, HUD, and Independent Agencies 

House Committee on Government Reform

House Subcommittee on Government Efficiency, Financial Management, and 

 Intergovernmental Relations 

House Subcommittee on Technology and Procurement Policy 

House Committee on Science 

House Subcommittee on Space and Aeronautics 

Congressional Member 

The Honorable Pete Sessions, U.S. House of Representatives 

19 
NASA Assistant Inspector General for Audits 

Reader Survey 

The NASA Office of Inspector General has a continuing interest in improving the 

usefulness of our reports. We wish to make our reports responsive to our customers’ 

interests, consistent with our statutory responsibility. Could you help us by completing 

our reader survey? For your convenience, the questionnaire can be completed 

electronically through our homepage at http://www.hq.nasa.gov/office/oig/hq/audits.html

or can be mailed to the Assistant Inspector General for Audits; NASA Headquarters, 

Code W, Washington, DC 20546-0001. 

Report Title: Telephone Management 

Report Number: Report Date: 

Circle the appropriate rating for the following statements. 

Strongly 

Agree Agree Neutral Disagree 

Strongly 

Disagree N/A 

1. The report was clear, readable, and 

logically organized. 

5 4 3 2 1 N/A

2. The report was concise and to the 

point. 

5 4 3 2 1 N/A 

3. We effectively communicated the 

audit objectives, scope, and 

methodology. 

5 4 3 2 1 N/A 

4. The report contained sufficient 

information to support the finding(s) 

in a balanced and objective manner. 

5 4 3 2 1 N/A 

Overall, how would you rate the report? 

# Excellent # Fair

# Very Good # Poor

# Good

If you have any additional comments or wish to elaborate on any of the above 

responses, please write them here. Use additional paper if necessary. 

 

 

 

20 
How did you use the report?

 

 

 

 

 

How would you identify yourself? (Select one) 

 # Congressional Staff # Media 

# NASA Employee # Public Interest 

# Private Citizen # Other:

# Government: Federal: State: Local:

May we contact you about your comments? 

Yes: ______ No: ______ 

Name: ____________________________ 

Telephone: ________________________ 

Thank you for your cooperation in completing this survey. 

21 
Major Contributors to the Report 

David L. Gandrud, Program Director, Information Technology Program Audits 

Roger W. Flann, Program Manager 

Bessie J. Cox, Auditor-in-Charge 

Eugene R. Bauer, Auditor 

Ronald T. Callahan, Auditor 

Nancy C. Cipolla, Report Process Manager 

Barbara J. Smith, Program Assistant