Federal Telework: Better Guidance Could Help Agencies Calculate Benefits and Costs
Published: 2016-07-15T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: With over 1 million federal employees eligible for telework in 2013, federal agencies are fully engaged in incorporating telework as a standard human capital flexibility. GAO was asked to review the benefits and costs associated with agency telework programs. This report (1) identifies the reported benefits and costs associated with federal agency telework programs and assesses the extent to which selected agencies have supporting data; and (2) identifies some of the key resources that federal agencies can use to help calculate benefits and costs associated with their telework programs.
For this review, GAO selected six agencies—DOT, EPA, FDIC, GSA, MSPB, and USDA—based on criteria that included agency size and reported cost savings from telework. GAO analyzed selected agencies' documents and interviewed agency officials to assess the extent that these agencies had supporting data. GAO also compiled and reviewed potential resources for agencies.
section_title: What GAO Found
paragraphs: Benefits associated with telework programs include continuity of operations and reduced employee absences, based on GAO's literature review and the experiences of six selected agencies. The benefits most frequently cited by the selected agencies—the Department of Transportation (DOT), Environmental Protection Agency (EPA), Federal Deposit Insurance Corporation (FDIC), General Services Administration (GSA), Merit Systems Protection Board (MSPB), and the United States Department of Agriculture (USDA)—were improved recruitment/retention, increased productivity, and improved work/life balance. Ongoing costs of telework programs include training and managing the telework program and one-time costs include information technology set up. The ongoing cost most frequently cited by the selected agencies was personnel costs. However, GAO found that the selected agencies had little data to support the benefits or costs associated with their telework programs. All of the selected agencies could provide some supporting documentation for some of the benefits and only two could provide supporting documentation for some of the costs.
The Office of Personnel Management (OPM) collects data on telework via its annual data call and consults with the Chief Human Capital Officers (CHCO) Council about its annual telework report to Congress. However, GAO found substantial declines in agency reporting of telework cost savings to OPM. For example, in 2012, agencies reported 66 examples of telework cost savings, but a year later they reported 29 examples. Amidst this decline, OPM decided to collect less information about cost savings—a key benefit of telework. OPM asked agencies for cost savings information in 2011, 2012, and 2013 but did not in its 2014-2015 agency data request. The Telework Enhancement Act of 2010 requires an annual assessment of agencies in meeting established outcome goals. Assessments that include information on benefits, net costs savings, and costs can help decision makers in determining the overall effects of their telework programs and the progress achieved. OPM officials stated that they streamlined the annual data request to focus on the act's requirements, which do not explicitly include reporting on cost savings. However, as a result of this decision Congress will have less information to assess the value of telework.
OPM provides resources to agencies to help them with their telework programs, but may be missing other opportunities to help agencies better identify the net cost savings associated with their telework programs. The resources OPM offers include fee-for-service assistance to help implement or improve existing telework programs and training and webinars on responding to its annual data call. However, OPM guidance lacks information about how agencies can use existing data collection efforts to more readily identify benefits of their telework programs, and OPM has not provided guidance on how agencies should calculate the costs of their programs. By not taking advantage of existing data sources or having guidance on calculating costs, agencies are limited in their efforts to evaluate the net cost savings associated with their telework programs. As a result, Congress does not have the information it needs to assess the true value of telework, which could impact its ability to provide oversight of telework across the federal government.
section_title: What GAO Recommends
paragraphs: GAO recommends that the Director of OPM should include cost savings questions in future telework data calls and provide clarifying guidance on options for developing supporting data for benefits and costs. OPM concurred with both recommendations. OPM will include cost savings questions from previous surveys in the 2016 agency telework survey. OPM will work with the CHCO Council to develop more guidance for agencies on evaluating the benefits and costs of telework programs.

section_title: Letter
paragraphs: With over 1 million federal employees eligible (about 45 percent of federal  employees) for telework in 2013, federal agencies are fully engaged in  incorporating telework as a standard human capital flexibility. The  Telework Enhancement Act of 2010 (act) requires an assessment of  agency progress in achieving established telework outcome goals  such  as reduced energy use and real estate costs. Many of these outcome  goals reflect benefits and cost savings agencies can achieve through  telework. Studies suggest there is a range of benefits, cost savings, and  costs associated with telework, but agencies can face challenges with  evaluating the extent to which telework benefits the agency and at what  cost. With so many employees eligible, it is a good management practice  for agencies to understand the value of their telework programs.
You asked us to review the benefits and costs associated with agency  telework programs. This report identifies (1) the reported benefits and  costs associated with federal agency telework programs and assesses  the extent to which selected agencies have supporting data; and (2) some  of the key resources that federal agencies can use to help calculate  benefits and costs associated with their telework programs. For the  purposes of this report, we are including benefits that are quantifiable  such as cost savings from reduced federal real estate use and benefits  that are not monetized, such as environmental impacts. We are defining  costs incurred as one-time costs and ongoing costs. For example, one- time costs include one-time information technology (IT) set up and  ongoing costs include personnel costs.
To respond to these objectives, we selected a nongeneralizable sample  of six agencies—Department of Transportation (DOT), Environmental  Protection Agency (EPA), Federal Deposit Insurance Corporation (FDIC),  General Services Administration (GSA), Merit Systems Protection Board  (MSPB), and United States Department of Agriculture (USDA)—based on  agency reported cost savings, identification as a telework leader by the  Office of Personnel Management (OPM), recipient of a 2013 Mobile Work  Exchange Award, reported use of telework to achieve agency goals, core  missions related to telework benefits, and agency size. We also  reviewed guidance for setting and evaluating telework program goals.
To identify reported benefits and costs associated with federal agency  telework programs, we conducted a literature review to identify and create  an inventory of the reported benefits and costs. We analyzed selected  agencies’ documents and conducted semi-structured interviews with  agency officials on benefits, costs incurred, supporting data for benefits  and costs incurred, challenges associated with calculating benefits and  costs incurred, and potential risks associated with telework programs and  methods to address the risks. We also reviewed OPM’s 2012, 2013, and  2014 annual telework reports to Congress and agencies’ 2013 responses  to OPM on telework participation, telework-related outcome goals, cost  savings, barriers to telework implementation, and actions taken to  address those barriers. To determine the reliability of the data that OPM  used in the 2014 annual report to Congress, we reviewed our prior data  reliability assessments conducted on OPM’s 2011 data call and consulted  knowledgeable OPM officials about OPM’s data collection methods. We  have determined that the data is sufficiently reliable for the purposes of  our review.
To identify available resources that federal agencies can use to help  calculate benefits and costs incurred, we compiled and reviewed a list of  potential resources from our literature review and information from OPM  and the selected agencies. For more detailed information on our  objectives, scope, and methodology, please see appendix I.
We conducted this performance audit from April 2015 to July 2016 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 that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.
subsections: section_title: Background
subsections: section_title: Telework Enhancement Act of 2010 and Agency and OPM Roles and Responsibilities
paragraphs: In drafting the Telework Enhancement Act of 2010, Congress recognized  that telework was an important tool and that legislation was needed to  help agencies overcome their resistance to telework. The act established  a framework of requirements for executive agencies to meet in  implementing telework. These requirements include notifying all  employees of their eligibility to telework and establishing agency telework  participation goals. The act also requires each executive agency to  designate a telework managing officer (TMO) who develops telework  policy, serves as an advisor for agency leadership, and is a resource for  managers and employees.
The act assigns OPM major leadership responsibilities including (1)  providing policy and policy guidance for telework; (2) assisting each  agency in establishing appropriate qualitative and quantitative measures  and teleworking goals; (3) identifying best practices and  recommendations for the federal government and reviewing the outcomes  associated with an increase in telework, including effects on energy  consumption, job creation and availability, urban transportation patterns,  and the ability to anticipate the dispersal of work during periods of  emergency; and (4) submitting an annual report to Congress addressing  the telework program of each executive agency that includes an  assessment of each agency’s progress in meeting outcome goals that the  agency may have established, such as the impact of telework on  recruitment and retention and energy use, among others.
The act also requires each executive agency to submit an annual report  on the agency’s efforts to promote telework to the Chair and Vice Chair of  the Chief Human Capital Officers (CHCO) Council. In addition, the act  requires OPM to consult with the CHCO Council in submitting its annual  report to Congress addressing the telework programs of each executive  agency. The CHCO Council receives updates from OPM on agencies’  annual telework reports and discusses their implications and promising  practices. Telework was discussed at the February 2016 meeting.
section_title: Telework Participation
paragraphs: As shown in figure 1, three key areas of telework participation have  increased, according to OPM’s 2014 annual report. OPM reported that,  from 2011 to 2012, the number of employees eligible for telework  increased from 684,589 to 1,020,034 (an increase of about 49 percent),  and the number of employees that had telework agreements increased  from 144,851 to 267,227 (an 84 percent increase). While we have  previously reported on data limitations related to OPM’s telework report,  OPM’s report provides useful context about the status of telework in the  federal government and is the most comprehensive source of information  on telework in the executive branch.
section_title: Selected Agencies Identified Benefits and Costs Associated with Telework, but Generally Lacked Supporting Data
paragraphs: Figure 2 shows telework benefits we identified associated with federal  agency telework programs, based on a literature review and the  experiences of the six selected agencies whose telework programs we  examined. These benefits included reduced employee absences,  improved work/life balance, improved recruitment and retention,  maintaining continuity of operations (COOP) during designated  emergencies or inclement weather, reduced commuting costs/transit  subsidies, increased productivity, reduced real estate costs, reduced  utilities, and positive environmental impacts, such as reduced greenhouse  emissions.
subsections: section_title: All Selected Agencies Identified Benefits
paragraphs: All six selected agencies identified benefits associated with their telework  programs. Specifically, all six selected agencies identified human capital  (improved recruitment/retention), improved work/life balance, and  increased productivity and five of them identified reduced utilities,  reduced commuting costs/transit subsidies and reduced employee  absences as benefits (see table 1). For example, USDA officials reported  that the agency highlights telework as an agency benefit during hiring  events to recruit and attract veterans and persons with disabilities. The  officials also said they have been able to retain staff who, because they  can telework, choose to relocate from their established duty stations and  continue working at the agency rather than retire. In addition, FDIC  officials reported that their telework program contributes to improved  work/life balance for their employees due to reduced commuting time.
Four of the six agencies identified COOP, reduced real estate use, and  positive environmental impact as benefits of their telework programs (see  table 1). For example, a FDIC official said that FDIC was able to reduce  the amount of office space it leased because eligible teleworkers opted to  relinquish their dedicated office space and telework from home or at an  approved alternate work site when not working at an insured depository  institution.
section_title: Government-wide Telework-Related Outcome Goals Include Benefits That We Identified
paragraphs: Beginning in 2011, OPM also began collecting data on agency progress  in setting and achieving outcome goals including telework benefits that  we identified in our inventory, such as employee recruitment and  retention. The number of agencies government-wide that set and  assessed the progress of their telework-related outcome goals  substantially decreased between 2012 and 2013, according to OPM’s  2014 annual report. (see figure 3). Fewer agencies reported setting a  goal for emergency preparedness—83 agencies in 2012 compared to 41  in 2013. Likewise, fewer agencies reported setting goals for employee  recruitment as a telework related outcome goal—62 agencies in 2012  compared to 26 in 2013. OPM officials noted in the 2014 report that  agencies set ambitious telework-related outcome goals in the early  implementation of the act and as agency telework programs matured,  agencies began to identify and set fewer telework-related outcome goals  to track and assess progress.
section_title: Costs Associated with Agencies’ Telework Programs
paragraphs: Figure 4 shows the costs associated with telework that we identified for  federal agency telework programs based on a literature review and the  experiences of the six selected agencies in our review. Unlike benefits,  OPM’s annual report does not include information on costs associated  with agency telework programs. Agencies may incur one-time costs for  implementing their telework program and ongoing costs to maintain their  telework program. One-time costs may include program planning, initial  information technology (IT) setup, or employee outfitting costs. Ongoing  costs may include personnel costs associated with required training and  administrative costs of staff managing the telework program.
Five of the six selected agencies identified ongoing costs associated with  their telework programs, including personnel and technology related  costs. The cost of personnel was the most frequently identified ongoing  cost associated with these five agency telework programs. Personnel  costs can include salaries for telework coordinators or employee training  costs. For example, EPA identified employee training as an ongoing  personnel cost because all employees are required to participate in  telework training to remain telework eligible. Managers who supervise  teleworkers also receive training. In addition, USDA officials reported  ongoing costs to purchase additional remote access software to  accommodate annual increases in teleworkers to the network and  maintain the required licenses annually. MSPB did not identify any costs  associated with its telework program. None of the six selected agencies  identified one-time costs associated with implementing their telework  programs.
section_title: Selected Agencies Had Little Supporting Data for Benefits and Costs
paragraphs: The act does not require agencies to provide supporting data to OPM for  benefits or costs incurred. We defined supporting data as having both a  data source and a corresponding methodology. Supporting data can be  quantitative or qualitative. For example, emissions reductions connected  to telework can be measured in metric tons of carbon emissions avoided.  Cost savings can include reduced spending on transit subsidies or utility  bills. Qualitative support for benefits might include responses from survey  questions or results from focus groups indicating that telework has  improved work/life balance.
subsections: section_title: Selected Agencies Had Supporting Data for Some Benefits
paragraphs: Supporting data for benefits from all of the selected agencies are shown  in figure 5.
Specifically, all of the selected agencies had supporting data for 1 to 7 of  the benefits that they identified.
DOT had supporting data for 1 of the 10 benefits (reducing environmental impact) that it identified. The agency reported avoiding approximately 21.7 million kg of carbon dioxide emissions in fiscal year 2014, which is equal to 1.7 kg on average per employee, per day.
EPA had supporting data for 1 of the 9 benefits it identified: reduced environmental impact. EPA reported avoiding 10,791 telework-related metric tons of carbon dioxide emissions in 2014 as compared to 2011.
FDIC had supporting data for 4 of the 8 benefits it identified. FDIC conducted a telework survey of managers and employees in 2008 which suggests that telework contributed to retaining employees, work/life balance, and increased productivity.
GSA had supporting data for 5 of the 12 benefits it identified: work/life balance, transit subsidies, environmental impact, reduced paid administrative leave, and increased job satisfaction/employee morale. To calculate costs savings for reduced transit subsidies from teleworking, GSA officials obtained a transit subsidy participation list from DOT for fiscal year 2013 through fiscal year 2015 and compared it against reported telework hours for the same period to calculate a cost savings of $926,872 in 2015 based on telework-related reduced use of transit subsidies in comparison with 2013. GSA officials also reported that from fiscal year 2013 through fiscal year 2015, employees used 45,426 fewer hours of paid administrative leave during worksite closures and they teleworked about 202,886 hours more. According to GSA officials, these figures represent its emphasis on enabling and requiring employees to telework when agency worksites are closed, which previously would have resulted in the use of only paid administrative leave.
MSPB officials had supporting data for 1 of the 5 benefits identified.
An MSPB official cited employee satisfaction data related to the impact of telework on work/life balance from the Federal Employee Viewpoint Survey.
USDA had supporting data and corresponding methodologies for 7 of the 10 benefits it identified: employee retention, work/life balance, transit subsidies, utilities, real estate, environmental impact and employee satisfaction. USDA provided cost savings from 2011 to 2014 information for 4 of these benefits, as shown in figure 6. For example, USDA identified at least 32 cases of employees who accepted full-time telework arrangements in place of retirement, allowing the agency to retain experienced employees and saving an estimated $1.5 million from reduced or eliminated commuter costs and reduced salaries due to changes in locality pay, among other things. USDA used information from multiple sources to quantify benefits and savings attributable to telework. For example, its Office of Operations provided data for real estate and utilities cost savings and National Finance Center data were used for transit subsidy savings.
Officials from DOT, GSA, and MSPB reported various reasons that they  did not have supporting data for some of the benefits that they identified.  First, DOT and MSPB officials said that they do not track data on some  identified benefits. For example, DOT officials said that they do not have  tracking systems or data sources to calculate specific COOP cost savings  associated with teleworking. Second, DOT and GSA officials said that in  many cases, the telework benefits are not distinguishable from those of  other activities. For example, DOT officials said that a number of  programs contribute toward reaching goals and it is difficult to ascertain  the extent to which telework contributes to their accomplishment.
section_title: OPM Is Collecting Less Information on Cost Savings
paragraphs: OPM did not include questions about cost savings associated with  telework in the 2014-2015 data call on telework. OPM had asked  questions about costs savings in its 2011, 2012, and 2013 telework data  calls and added additional questions on the amount of cost savings and  the methodology for calculating the savings in the 2013 telework data call  in response to our recommendation. OPM officials told us that they had  asked specific questions on cost savings in previous telework data calls  as part of their effort to help agencies set and evaluate their goals. OPM  officials said they streamlined the 2014-2015 data call to focus on the  requirements of the act, which does not specifically require OPM to  include questions on overall cost savings associated with telework  programs. In addition, they said that the survey still provides opportunities  for agencies to describe cost savings as agencies were asked to describe  their progress in achieving each outcome goal listed in the act as well as  any other outcomes goals, including the data and methodology used to  assess progress. OPM officials said they believe that they were  successful in their 3 year effort to get agencies to set outcome goals,  including cost savings, and to evaluate the success in meeting their  goals.
In 2013, about 20 percent of agencies (17 of 89) reported achieving 29  different instances of cost savings from telework which included rent for  office space, utilities, human capital (such as using telework for retention),  reduced employee absences, and parking and/or transportation  subsidies, according to OPM’s 2014 annual report and our analysis of the  2013 telework data call results. The report also stated that 4 agencies  reported a corresponding dollar savings amount. For example, the  Election Assistance Commission reported yearly rental savings of  $750,000 and that it obtained the data from an existing agency real estate  report. In addition, IRS reported telework enabled it to close 22 small  offices and save $410,539. Each of the 4 agencies that reported a dollar  savings amount also reported a corresponding methodology for  determining the costs.
However, from 2012 to 2013, there was a decrease in the number of cost  savings reported associated with federal telework programs and the  number of agencies that were planning to track cost savings, according to  the 2014 OPM report. Agencies reported fewer examples of cost savings  (from 66 to 29) in 2013 than in 2012 and the number of agencies  reporting that planning was underway to assess cost savings decreased  from 31 to 18, according to the 2014 OPM report and our analysis of the  2013 telework data call results. About 60 percent of agencies (54 of 89)  reported that they were unable to track any cost savings, according to  OPM’s 2014 annual report. The report noted that agencies have had  difficulty establishing and linking cost savings directly to telework  programs. Establishing cost savings through telework remains a work in  progress and agencies also often do not track such investments,  according to the report. None of the selected agencies’ officials said that  they were planning to collect additional cost savings information. For  example, EPA officials said that the agency might collect additional data  when it identified new telework goals and measures, and USDA officials  said that no additional data were necessary.
The act requires an assessment of each agency’s progress in achieving  established telework-related outcome goals. Outcome goals such as  emergency preparedness and reduced energy use reflect the benefits  agencies can achieve and, in some cases, the cost savings that relate to  reduced real estate or utilities paid. We have previously found that federal  agencies should establish measurable telework program goals and  processes, procedures, or a tracking system to collect data to evaluate  the telework program, and that complete and reliable information is vital  to assessing effectiveness. Federal internal control standards also  suggest that to ensure that management’s objectives are carried out,  activities need to be established to monitor performance measures and  indicators, including validating the integrity of the measures and  indicators.
However, with no information being required on cost savings as a part of  OPM’s data call and agencies’ plans to reduce collection of this data in  the future, agencies will have less information to assess the value of their  telework programs than they currently do. In the current fiscal climate,  cost savings is an important measure of the success of telework  programs, according to OPM’s 2014 report.
section_title: Two Selected Agencies Had Supporting Data for Some Costs Incurred
paragraphs: Of the six selected agencies we reviewed, five identified costs incurred,  but only two—FDIC and GSA—provided supporting data, as shown in  figure 7. For example, FDIC officials reported that they had ongoing costs  from financial reimbursements to encourage employees to elect the full- time telework option and opt out of office space in field offices during field  office lease expirations. The option allows FDIC to rent less real estate  space. FDIC officials stated that they calculated these costs by  multiplying the dollar value of the one-time reimbursement for costs  associated with equipment not otherwise provided by FDIC (up to $500)  or the ongoing outfitting cost payment (up to $480 annually for costs  associated with multiple phone lines and high-speed Internet) by the  number of employees receiving it. GSA officials reported total ongoing  salary costs of about $245,290 for 2 percent of the salaries of GSA’s 34  telework coordinators and 20 percent of the salary of its agency telework  coordinator. GSA officials stated that they multiplied the average full-time  equivalent costs by the percentage of time used by each official in a  coordinator role. GSA officials also reported that 14,300 employees have  completed mandatory telework training since 2011 at a salary cost of  about $62 per employee, which equals about $884,600 in salary costs  associated with training.
Officials from DOT, EPA, GSA, FDIC, and MSPB also reported various  reasons why they did not have supporting data for some costs incurred.  DOT, GSA, and MSPB officials stated that telework is part of normal  business operations and they cannot easily or meaningfully distinguish  telework costs incurred from routine business costs. According to EPA  and MSPB officials, both agencies’ telework programs evolved from  bargaining units’ requests for flexible work schedules over 15 years ago.  Therefore, associated costs incurred have been considered normal  operating costs in some cases and thus not tracked as telework-related  costs incurred. FDIC officials said that they were unable to provide  information on start-up costs for their agency’s telework program, which  began in 2003, because they were past the mandatory retention period  for any records. In addition, according to the 2014 OPM report, obtaining  data to calculate energy use and environmental impact is challenging for  agencies and often may require cross-agency collaboration or data that  are not currently being collected.
section_title: Agencies Identified and Partially Addressed Barriers to Telework and Risks
paragraphs: In the 2011 and 2013 OPM data calls, agencies reported on barriers to  telework participation and steps taken to address the barriers. Our  analysis shows that, government-wide, agencies identified fewer barriers  to telework participation in 2013 than 2011, as shown in figure 8.  However, management resistance remains the most frequently reported  barrier to telework, according to OPM.
Among the six selected agencies we reviewed, DOT, EPA, MSPB, and  USDA reported certain barriers to telework participation in the 2014 OPM  report. DOT reported barriers, including IT security and funding issues,  management resistance (for example, managers/supervisors who may  not be fully comfortable managing employees working offsite), and  organizational cultures. EPA reported that managers and supervisors  have been uncomfortable with telework. MSPB also reported that some  managers were not comfortable approving telework agreements for some  job series. Finally, USDA reported barriers including IT infrastructure and  secure remote access, employee desire and ability to use telework tools,  and budgetary limitations related to purchasing equipment to support  telework consistently across the department.
OPM’s 2014 annual report also stated that agencies are taking steps to  overcome barriers to telework participation (see figure 9). Among the  selected agencies, DOT, EPA, GSA, MSPB, and USDA reported  addressing barriers in OPM’s 2014 report. For example, DOT reported  providing training for employees and managers, marketing for telework  via intranet, all hands meetings, memorandums to employees, and  including a performance standard in SES performance plans in support of  telework. GSA reported that its mobility and telework policy addresses  unfamiliarity with telework or hesitation to participate.
Officials from two of the six selected agencies (DOT and USDA) also  identified potential risks associated with their telework programs. Risk  assessment is the identification and analysis of relevant risks associated  with achieving objectives, deciding how to manage the risk, and  identifying what corresponding actions should be taken. DOT officials  identified risks related to technology, IT security and IT funding,  management resistance, and organizational culture. USDA officials  identified risks related to management resistance and technology.
DOT and USDA officials stated that they had taken steps to manage risks  associated with their telework programs. EPA and GSA officials also  identified activities related to risk mitigation. Officials from DOT, EPA,  GSA, and USDA stated that they provided telework training for managers  and employees. For example, USDA officials reported that the agency  requires supervisors to complete all telework training. DOT and GSA  officials stated that they provided clear messaging and information.  Specifically, DOT officials said that they internally market and encourage  telework as a means to continue operations (e.g., when options for  “unscheduled telework” have been announced by OPM) and provide  telework policy guidance to employees, supervisors, and managers on an  ongoing basis. GSA officials also said that ongoing communication across  GSA supports employees’ understanding of the flexibilities available to  them, and their responsibilities in regard to telework participation. USDA  officials said that they addressed management resistance by  incorporating telework into managers’ performance plans to make  managers accountable for providing employees the necessary training  and equipment for effective implementation of telework. DOT and USDA  stated that they addressed technology issues relating to telework. For  example, DOT reported that it periodically updates its computers and  remote access technologies to contend with emerging data security  threats.
Officials from FDIC and GSA also stated that they identified risks related  to fraud, waste and/or abuse associated with their telework programs,  while DOT, EPA, MSPB, and USDA officials did not. In the initial stages  of implementing its telework program, FDIC identified potential risks  associated with its telework program that included a possible decline in  productivity, access to sensitive information off-site, and time and  attendance concerns, according to FDIC officials. FDIC has taken steps  to mitigate risks and help prevent fraud, waste, and abuse through a  range of control activities. Among other actions, it issued a directive on  telework that clearly delineates program guidelines and responsibilities,  provided training on telework and information security to staff, and made  telework participation subject to the employee/supervisor agreement,  program participation eligibility, and adherence to the telework policy.
Inspectors general at some of the selected agencies have noted fraud  and other risks in those agencies’ telework programs. GSA officials noted  six Office of the Inspector General (OIG) recommendations from a 2015  audit that related to (1) tracking telework agreements, (2) recording duty  stations and using correct locality pay for all virtual employees, (3)  timekeeping for teleworkers, (4) controls over transit subsidies, (5)  completion of required telework training, and (6) ensuring GSA telework  training addressed requirements of its telework policy. GSA officials  reported they took actions to address each recommendation that included  (1) implementing a tracking tool for telework agreements and updating its  policy, (2) verifying official duty stations and adjusting pay appropriately,  (3) enhancing timekeeping controls for teleworking, (4) reviewing transit  subsidies and working with DOT to transition to an automated transit  subsidy application, (5) developing tracking for telework training  completion, and (6) developing updated telework training.
In 2014 and 2015, EPA’s OIG reported on four cases of time and  attendance fraud involving telework at the agency. First, the OIG  investigated an EPA manager who entered and approved fraudulent time  and attendance records for an employee who exclusively teleworked for  several years, which cost the government more than $500,000. Second,  the OIG found evidence that a senior executive knew about but took no  action regarding an arrangement between a supervisor and employee  during which the employee had been teleworking for more than 20 years  with very little substantive work produced. Third, an executive prepared  and approved false telework time and attendance records for an  employee who was suffering from a debilitating disease and was not  working. Fourth, the OIG reported that EPA fired an employee for  misconduct that included falsely claiming telework hours on numerous  occasions. While the OIG noted that EPA has begun to change its time  and attendance policies and practices, it identified a culture of  complacency among some EPA supervisors regarding time and  attendance controls, and taking prompt action against employees, and  the OIG recommended that the agency take measures to communicate  its commitment to internal controls.
Although both DOT and EPA reported that they did not identify telework  risks associated with fraud, waste, or abuse, both reported taking actions  to avoid these risks. While EPA did not identify telework risks associated  with fraud, waste, or abuse in response to our questions, EPA officials did  describe actions the agency had taken to avoid such risks. EPA adopted  a new policy that requires employees to complete telework training prior  to being approved to telework, to annually recertify their telework  agreements, and to document their time and attendance telework status.  In the event of fraud, waste, or abuse, the policy allows management to  modify or terminate a telework agreement at any time.
In addition, the Census and Commerce OIGs also reported on cases of  abuse and waste involving, but not limited to, telework. First, in 2015, the  Census OIG reported that employees in its Census Hiring and  Employment Check office engaged in time and attendance abuse—some  of which involved employees who claimed to telework a full day with  evidence showing they performed little or no work at all. Second, the  Department of Commerce OIG uncovered waste in 2014 at the U.S.  Patent and Trademark Office’s Patent Trial and Appeal Board. At one  office, the Patent Trial and Appeal Board paid the employees  approximately $5 million for time in which employees were not working.
DOT did not identify telework risks associated with fraud, waste, or  abuse, but it reported occasionally issuing preemptive guidance to hedge  against potential risks. For example, in 2014, DOT reported issuing  internal guidance reminding employees and managers to be diligent in  accounting for work hours while teleworking and code telework hours in  the time and attendance system.
section_title: Lack of Guidance Limits Agencies’ Ability to Better Determine Benefits and Costs Incurred
subsections: section_title: OPM Resources for Agencies
paragraphs: OPM provides three types of telework assistance to agencies. First, OPM  offers training and webinars on responding to the telework data call. The  training includes standards for setting and evaluating goals and identifies  some data sources available to evaluate telework-related agency  outcome goals. An OPM official stated that a large majority of officials  responsible for completing the telework data call participated in the 2014- 2015 training sessions. Information presented in the training sessions is  not available in other forms such as guidance or policies, but general  information on setting and evaluating goals is available through OPM  resources which are posted on telework.gov, according to OPM officials.
Second, OPM collaborated with Mobile Work Exchange to develop and  publish Measuring Telework and Mobility Return on Investment: A  Snapshot of Agency Best Practices in 2014 on methodologies and  guidance to measure agency return on investment (ROI) on telework  programs. The report also highlights a variety of tools and best practices  for measuring telework ROI across the federal government. The report is  intended to be a snapshot in time and has not been updated since  publication, according to Mobile Work Exchange.
Third, OPM offers various services for a fee to help agencies implement  or improve an existing telework program. Services include an evaluation  of existing telework policies and practices, a telework satisfaction survey  that establishes a baseline to track progress, telework training sessions,  and a program evaluation. OPM officials stated that they also have  identified ROI factors and indicators to measure telework programs. OPM  officials reported that the most frequent services agencies ask for are  telework training and the telework satisfaction survey, but that no agency  has thus far asked for telework ROI.
In addition, OPM officials said that Global Workplace Analytics conducts  key telework research related to federal agencies calculating benefits and  costs associated with implementing their telework programs. They  stated that the Global Workplace Analytics calculator is comprehensive  and based on solid research.
section_title: Existing Data Collection That Can Assist Telework Benefits Calculations
paragraphs: Some of the data many agencies may already collect for requirements  under an Office of Management and Budget (OMB) memorandum and an  executive order could also be of use for calculating the benefits  associated with telework (see table 2). Agencies can apply a cost  allocation approach to help calculate the amount of benefits associated  with telework in instances where agencies collect data that are not  directly related to telework. EPA and GSA are already using the data for  this purpose.
Under OMB’s Reduce the Footprint memorandum, CFO Act agencies are  required to submit plans that include the efficient use of office space and  to identify cost-effective alternatives to the acquisition of additional office  space, such as teleworking and hoteling. Agencies are also required to  specify annual reduction targets for domestic office and warehouse  space. If an agency requires less office space due to teleworking and  consolidates that space, this could result in agencies meeting reduction  targets, disposing of surplus properties, and using their real estate more  efficiently. DOT’s 2016-2020 plan identified telework as a strategy to  consolidate office space and improve space management. DOT identified  the introduction of full-time telework as a contributing factor to closing the  Federal Highway Administration Legal Services and Resource Center  office in San Francisco, resulting in a reduction of 9,804 rentable square  feet. In addition, according to DOT, it anticipates that the combination of  alternative work schedules, telework, and shared workspace scenarios  will reduce the office workspaces designed in the future by at least 10  percent. GSA also identified telework as a contributing factor to its  headquarters renovation which resulted in a 40 percent reduction in office  space and $24.6 million in annual rent savings.
Executive Order 13693 on planning for federal sustainability and its  implementing instructions requires agencies to submit and annually  update a plan focused on, among other things, specific agency strategies  to accomplish greenhouse gas emissions reduction targets, including  approaches for achieving the goals and quantifiable metrics for agency  implementation. The data generated to measure a reduction in  greenhouse gas emissions could be partially a result of telework reducing  real estate use, utilities, and commuting. For example, GSA calculated  the environmental impact associated with its telework program by using  data generated for this order. In addition, EPA’s 2014 plan recognized  that telework contributed to the agency’s reduction of greenhouse gas  emissions by about 40 percent from fiscal year 2008 to fiscal year 2013  because its telework program allowed staff to work from an alternate  location. The plan noted that telework decreased the greenhouse gas  emissions associated with employee commuting by reducing the number  of days employees commute to work each week.
GSA also created the Carbon Footprint Tool (tool) to help agencies meet  the executive order’s requirements, which can be used to calculate  greenhouse gas emissions avoided from teleworking. The tool calculates,  measures, and reports greenhouse gas emission reductions. The tool  allows agencies to change the number of teleworkers to calculate the  impact on greenhouse gas emissions. For example, GSA used data  generated by the tool to calculate avoided emissions from telework. GSA  estimated that telework in fiscal year 2013 avoided over 8,800 metric tons  of carbon dioxide equivalent.
section_title: Net Savings Central to Determining the Value of Telework
paragraphs: OPM may be missing an opportunity to advise agencies of options that  can inform the assessment of the agency’s progress in meeting outcome  goals and contribute to understanding the full value of the telework  program. OPM has guidance on calculating telework benefits in various  resources but none on costs incurred. OPM’s 2014-2015 telework data  call includes a list of data sources and examples of measures or metrics,  which include the amount of spending on transit subsidies and the  percentage of employees expressing satisfaction with their jobs. In  addition, the data call has information on establishing good goals,  choosing a time frame, choosing a method for assessing a goal, selecting  a metric/measure, and finding sources of data. OPM’s training materials  on the data call also include similar information. OPM officials stated that  there is also information on setting goals and evaluating telework  programs, including discussion of a range of benefits associated with  telework programs in several resources, in telework.gov, the Guide to  Telework in the Federal Government, and webinars for agency human  resource professionals.
While the act requires OPM to report on the progress of agencies that  have set outcome goals reflecting telework benefits, it does not require  OPM to report on costs associated with telework programs. In addition,  the OPM data call does not include questions on costs incurred and  OPM’s data call training materials do not discuss the types of costs that  agencies’ telework programs may incur. Moreover, OPM’s guidance lacks  information on the existing data collection that can assist telework  benefits calculations discussed previously, specifically under Executive  Order 13693 and OMB’s Reduce the Footprint memorandum.
Given the focus on increasing access to telework as embodied in the  provisions of the act, it is essential that agencies understand the true  effects of their telework programs. The act requires an assessment of  each agency’s progress in meeting established telework-related outcome  goals. An evaluation of benefits and costs, which would assist agencies in  identifying net cost savings, provides a systematic framework for  assessing telework programs. Thus, an agency’s potential to realize net  cost savings depends on its ability to develop data on costs incurred from  implementing the telework program. We have previously found that  federal agencies should establish measurable telework program goals  and processes, procedures or a tracking system to collect data to  evaluate their telework programs, and that complete and reliable  information is vital to assessing effectiveness.
OPM officials said that it is difficult to provide government-wide guidance  on evaluating telework programs as agency use of telework to achieve  goals varies. Furthermore, OPM officials stated that it is difficult to identify  the effects of telework because it requires extensive research design and  a staff with the expertise and skills to conduct rigorous evaluations. For  example, OPM officials said that agencies vary in the resources available  to them to track and evaluate telework programs. In addition, OPM  officials said they do not have the resources to target and assist each  agency in establishing appropriate qualitative and quantitative measures  and teleworking goals. OPM officials also stated that agencies may not be  aware of all the available resources, including OPM’s services for a fee.  However, the CHCO Council provides an additional avenue for OPM to  engage agencies on telework. As mentioned, the council receives  updates from OPM on agencies’ annual telework reports and discusses  their implications and promising practices. Telework was discussed at the  February 2016 meeting.
While we recognize that providing this guidance could be challenging,  some of the agencies we reviewed told us that they could benefit from  having such guidance. DOT reported that it would be useful to have  standard government-wide guidance on translating qualitative telework  programmatic outcomes into quantifiable cost savings data. GSA officials  also stated that, although the 2014 report on which OPM collaborated  with Mobile Work Exchange, Measuring Telework and Mobility Return on  Investment: A Snapshot of Agency Best Practices, is helpful to quantify  some benefits related to their telework program, there are no available  guidance or tools that provide a holistic solution to evaluating telework  programs.
By not taking advantage of data sources that can inform on benefits nor  providing guidance on costs associated with telework, agency  assessments may be less informative about the net cost savings of  telework and, ultimately, the value of telework. Further, Congress will  have less information to understand the full value of the telework program  which could affect its ability to oversee telework across the federal  government.
section_title: Conclusions
paragraphs: Telework is a tool that has the potential to impact agencies’ performance  and costs. A better understanding of the benefits achieved and costs  incurred via telework can help an agency determine the value of this tool.  Given that agency employees are increasingly using telework, it is  important that agencies examine the impact of using this tool on their  performance and cost bottom lines. Even though agencies are not  required to report on costs incurred by the act, Congress has a clear  interest in the value of this flexibility offered to the federal  workforce. Congress signaled its interest by assigning OPM a role in  reporting an assessment of each agency’s progress in meeting telework  outcome goals that reflect benefits, such as the impact on recruitment  and retention and energy use. However, agencies continue to face  challenges in quantifying the impact of telework, identifying costs  incurred, and translating benefits into quantifiable cost savings. OPM can  work with the CHCO Council on methods to assist agencies in assessing  the benefits and costs associated with their telework programs.
OPM did not ask agencies about cost savings in its 2014-2015 telework  data call despite a substantial decrease in the number of cost savings  examples reported associated with telework programs and the number of  agencies planning on tracking telework cost savings. However, the act  requires an assessment of each agency’s progress in meeting telework- related outcome goals that reflect the benefits agencies can achieve and,  in some cases, these may be cost savings. In the current fiscal climate,  cost savings is an important measure of the success of telework  programs and the absence of these questions will likely result in agencies  reporting even more limited cost savings information than they do  currently.
The six selected agencies had little supporting data for either the benefits  or costs associated with their telework programs. Such supporting data  are important to inform decision making about the value of telework.  Moreover, without data on net benefits including cost savings associated  with telework, agencies have incomplete information to determine the  value of telework through assessing whether the benefits being achieved  outweigh the costs incurred. Congress also will not have the information it  needs to oversee federal telework programs as OPM will not be reporting  this information to Congress.
section_title: Recommendations for Executive Action
paragraphs: We recommend the Director of OPM take the following actions:  1.  To help ensure that agencies are reporting cost savings associated  with their telework programs, include cost savings questions in future  telework data calls.  2.  To help agencies determine the value of their telework programs,  working with the Chief Human Capital Officers Council, provide  clarifying guidance on options for developing supporting data for  benefits and costs associated with agency telework programs. For  example, the guidance could identify potential data sources, such as  the data generated in response to requirements under OMB Reduce  the Footprint Memorandum 2015-01 and Executive Order 13693.
section_title: Agency Comments and Our Evaluation
paragraphs: We provided a draft of this report to the Acting Director of OPM, Secretary  of DOT, Administrator of EPA, Chairman of FDIC, Administrator of GSA,  Chairman of MSPB, Deputy Assistant Inspector General for Audit of  USDA, and the Executive Director of the CHCO Council. OPM provided  written comments (reproduced in appendix II). OPM concurred with our  recommendation to include cost savings questions in future telework data  calls beginning with the 2016 telework data call. OPM also concurred with  our second recommendation and said it would work with the CHCO  Council to support agency efforts to determine the value of their telework  programs by developing clarifying guidance for agencies with CHCO input  and by hosting a CHCO academy session focused on evaluating the  benefits and costs of telework programs.
None of the other agencies provided comments on the report’s findings,  conclusions, or recommendations. However, three agencies (FDIC, EPA,  and OPM) provided technical comments that were incorporated, as  appropriate.
As agreed with your offices, unless you publicly announce the contents of  this report earlier, we plan no further distribution until 17 days from the  report date. At that time, we will send copies of this report to OPM, DOT,  EPA, FDIC, GSA, MSPB, and USDA as well as interested congressional  committees and other interested parties. In addition, the report is  available at no charge on the GAO website at http://www.gao.gov.
If you or your staff have any questions about this report, please contact  me at (202) 512-6806 or jonesy@gao.gov. Contact points for our Offices  of Congressional Relations and Public Affairs may be found on the last  page of this report. GAO staff who made key contributions to this report  are listed in appendix III.
section_title: Appendix I: Objectives, Scope, and Methodology
paragraphs: This report identifies (1) the reported benefits and costs associated with  federal agency telework programs and assesses the extent to which  selected agencies have supporting data; and (2) some of the key  resources that federal agencies can use to help calculate benefits and  costs associated with their telework programs. For our review, we  included benefits that are quantifiable such as cost savings from reduced  real estate use and benefits that are non-monetized such as  environmental impacts. We defined costs incurred as one-time and  ongoing costs. One-time costs incurred include one-time information  technology set-up, such as system software. Ongoing costs incurred  include ongoing personnel costs and equipment and services, such as  information technology maintenance.
To address both of our objectives we reviewed our previous work on  agency telework programs, the Telework Enhancement Act of 2010 (act),  and guidance for setting and evaluating telework program goals. We also  reviewed Office of Personnel Management (OPM) and General Services  Administration (GSA) documents related to agency telework programs. In  addition, we interviewed key OPM officials from the offices of Human  Resource Solutions and Employee Services and received answers to  written questions from the Acting Executive Director of the Chief Human  Capital Officers Council on the council’s involvement with telework.
We reviewed OPM’s 2012, 2013, and 2014 annual reports to Congress  and agencies’ 2013 responses to OPM on telework participation,  telework-related outcome goals, costs savings associated with telework  programs, barriers to telework participation, and actions taken to address  those barriers. To determine the reliability of the data that OPM used in  the 2014 annual report to Congress, we reviewed our prior data reliability  assessments conducted on OPM’s 2011 data call. In addition, we  consulted knowledgeable OPM officials about OPM’s data collection  methods over time for its 2011, 2012, and 2013 telework data calls since  the enactment of the act. We did this to determine if significant changes  had occurred that might affect the reliability of the data in the 2014 annual  report. For the purposes of our review, we have determined that the data  are sufficiently reliable for providing contextual information on agencies  reporting telework participation, telework-related outcome goals, cost  savings from telework, barriers to telework participation, and methods to  overcoming these barriers.
To identify the selected agencies, we compiled a universe of agencies  that had: reported achieving cost savings or a methodology for calculating  cost savings associated with telework programs in the 2013 OPM data  call, been identified by OPM as a leader, or were recipients of a 2013  telework Mobile Work Exchange award. We then selected the agencies  from this universe by considering the criteria above as well as the size of  the agency and agencies that had reported achieving agency goals using  their telework program in the 2013 OPM telework data call, reported cost  savings in multiple areas, and had core missions directly linked to  telework benefits. We selected a nongeneralizable sample of six  agencies: Environmental Protection Agency (EPA), Federal Deposit  Insurance Corporation (FDIC), General Services Administration (GSA),  Merit Systems Protection Board (MSPB), Department of Transportation  (DOT), and United States Department of Agriculture (USDA). Initially we  had also selected the United States Patent and Trade Office. However,  we excluded that office because of a recent IG report that there was  potential fraud related to its telework program and our 2013 report that  questioned its reported cost savings associated with its telework  program.
To identify and create an inventory of the reported benefits and costs  associated with federal agency telework programs, we conducted a  literature search encompassing public and private sector organizations’  telework programs and identified two reports that discussed the benefits  and costs incurred by federal agency telework programs. We also  identified a third report focused on nonfederal telework programs that  provided a more detailed review of one-time and ongoing costs  associated with implementing and maintaining telework programs. In  addition, we conducted another literature review to check that the  inventory was not missing any key benefits or costs incurred. We also  asked the selected agencies which benefits and costs were associated  with their telework programs.
To assess the extent to which selected agencies have supporting data for  identified benefits and costs associated with their telework programs, we  reviewed selected agencies’ policies, guidance, and other relevant  documents related to their telework programs. In addition, we conducted  semi-structured interviews with selected agency officials on benefits,  costs incurred, and challenges associated with calculating benefits and  costs incurred. We analyzed this information to assess the extent that the  selected agencies have supporting data for the benefits and costs  associated with telework programs that the agencies identified. We  defined supporting data as having both a data source and a  corresponding methodology. Supporting data can be quantitative,  monetized, or qualitative. For example, emissions reductions connected  to telework can be measured in metric tons of carbon emissions reduced  or avoided. Cost savings can include spending on transit subsidies or  utility bills. Qualitative support for benefits might include responses from  open-ended survey questions or results from focus groups indicating that  telework has improved work/life balance. We reviewed whether the  selected agencies had supporting data and not the quality of the  supporting data because this was outside of the scope of our review. We  present the examples of supporting data for contextual purposes only.  Since FDIC initiated the agency’s telework program in 2003, we included  supporting data that pre-dated the 2010 act.
We used our previous report that found that agencies should establish  measurable telework program goals and processes, procedures or a  tracking system to collect data to evaluate the telework program. We  also utilized OPM’s 2013 telework data call, which includes guidance for  setting and evaluating telework program goals and directs agencies to  select metrics/measures and identify data sources to evaluate telework  program goals. In addition, we used our federal internal controls  standards, which state that activities need to be established to monitor  performance measures and indicators and information should be  recorded and communicated to management that enables them to carry  out their internal control and other responsibilities.
To review whether agencies had identified potential risks associated with  telework programs and methods to address them, we reviewed the 2012,  2013, and 2014 OPM telework annual reports and agencies’ 2013  telework data call responses to OPM on barriers to telework participation.  We also asked the selected agencies semi-structured interview questions  on risks associated with telework programs and how the agencies had  addressed the risks. In addition, we reviewed relevant reports on potential  fraud, waste, or abuse related to agency telework programs.
To identify available resources that federal agencies can use to help  calculate benefits and costs incurred, we compiled a list of potential  resources from our literature review and information from OPM and the  selected agencies. We reviewed the resources and determined which  ones were helpful through reviewing the documents and, in some cases,  asking the relevant agency or organization clarifying questions. We also  asked GSA follow-up questions about the Carbon Footprint Calculator  and OPM about its relevant resources.
To assess the Global Workforce Analytics calculator, we reviewed  documents summarizing the calculator and the set of assumptions using  the Office of Management and Budget’s (OMB) Circular A-94 Guidelines  and Discount Rates for Benefit-Cost Analysis of Federal Programs. In  addition, we interviewed the creator of the calculator and asked detailed  questions about some of its assumptions. In general, we found that the  creators of the calculator supported the assumptions employed by citing  studies and the findings of others. However, we noted certain limitations  in the literature cited. Specifically, we noted that because much of the  literature supporting the assumptions was based on the private sector,  there is less demonstrated applicability to the federal government. For  example, the calculator claimed unused sick days due to telework as a  financial benefit to the organization, given that unused sick days are  forfeited at the end of the year, which is not true for the federal  government (although the authors note that this can be adjusted in the  calculator). In addition, the paper assumes cost savings because of a  reduced footprint due to real estate savings. However, the paper does not  take into account that employees may tend to telework on similar days,  reducing the ability to achieve savings by sharing office space.
In addition, OMB guidance on benefit-cost analysis suggests that  uncertainty be incorporated into a benefit-cost estimate and estimates of  outcomes presented with a range. In this way, policy makers can  determine not just what the most likely outcome is, but the distribution of  outcomes that are within the range of possibility. The calculator can  produce high and low estimates (by using different assumptions).  However, a limitation is that it does not automatically produce ranges of  estimates.
We conducted this performance audit from April 2015 to July 2016 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 that  the evidence obtained provides a reasonable basis for our findings and  conclusions based on our audit objectives.
section_title: Appendix II: Comments from the Office of Personnel Management
section_title: Appendix III: GAO Contact and Staff Acknowledgments
subsections: section_title: GAO Contact:
section_title: Staff Acknowledgments:
paragraphs: In addition to the contact named above, Signora May (Assistant Director)  and Maya Chakko (Analyst-in-Charge) supervised this review and the  development of the resulting report. Crystal Bernard, Benjamin Bolitzer,  Karin Fangman, Ellen Grady, Erik Kjeldgaard, Judith Kordahl, Steven  Putansu, Robert Robinson, Stewart Small, and Colleen Taylor made key  contributions to this report.