Incompatible Software Malfunctioning IT

As the workplace becomes increasingly mobile, the federal government is opting for devices other than BlackBerrys. The Obama Administration announced a Digital Government Strategy for federal employees to access workplace networks from mobile devices without compromising privacy and security concerns. In accordance with this strategy, the Department of Homeland Security, Department of Defense, and National Institute of Standards and Technology developed a baseline of standard security requirements for mobile computing and a framework design to reference in designing security and privacy protections. This would allow federal employees to use a range of popular brand devices without compromising government networks and leaking information, and even allow some offices to implement a bring-your-own-device policy instead of on government-issued devices.

Technology insiders applauded the government’s decision to develop the mobile technology to permit federal employees to work remotely. A survey of federal managers and federal workers found that each employee would add an additional seven hours each week in productivity, amounting to $14,000 in productivity gains. Of those federal workers who already have mobile device access, they spend a weekly average of nine additional hours on top of their full-time work schedules checking in to their workplace networks. Almost half of these workers report working more efficiently outside the office.

The Department of Agriculture forked over $20 million to several companies for MDM integration which is now one year behind schedule and malfunctioning. Perhaps if the USDA hired one of the companies approved by the GSA for mobile management solutions, then the USDA would not be having these rollout problems. Or maybe if the USDA required a demonstration of the bidding companies’ capabilities for MDM integration in the USDA’s network, then USDA employees would now be using their own iPhones and Android to access their workplace servers. Instead, the USDA paid three contractors $20 million.

Testing before handing over taxpayers’ money would have shown that one contractor’s software is not compatible with part of the USDA’s network security infrastructure. Eight months after the MDM system was supposed to have completed a 30-day, 3,000 phone test phase, this test phase has been pushed back, and the USDA is still just testing one component of the contractor’s incompatible software to determine whether the software will be used or abandoned. According to the USDA’s Request for Proposal, the agency already supported more than 3,000 mobile devices before the $20 million project and hoped to expand the number of mobile devices to more than 100,000 over the next few years. As of late July, only 1,370 devices were on the USDA’s MDM system.

Surely, given the failure of the MDM integration at the USDA, other federal agencies would restrain themselves from awarding millions in taxpayer dollars to these contractors without first testing their product? Think again. One of these three contractors was awarded $212.1 million in government contracts just in 2013. The contractor with the incompatible software has several multi-million dollar government contracts with the CIA, NSA, FBI, DHS, and the Air Force. Instead of pouring millions of dollars to fix “glitches,” taxpayers would prefer their money go towards testing new technologies first to prevent such rollout problems.

Information found for this “Your Tax Dollars @ Work” post was done by using a Google search. Information compiled from multiple public websites & media outlets.

Scams, Fraud, And Abuse For Tuition

Taxpayers are seeing their dollars thrown away to scam artists, and students struggling to pay for college may find higher tuition costs as some community colleges try to recover the millions of dollars they’re losing each year from federal Pell Grant fraud and abuse. Out of the $33.5 billion in Pell Grants the federal government doled out last year, individuals posing as students, called “Pell Runners”, took off with $1.2 billion.

Given how easy it is receive the funds, it’s no wonder there is significant fraud. When students register for classes at a participating college, they can fill out a financial aid form. If they qualify for a Pell Grant – based only on financial need – the federal government will issue the grant to the school. The school then takes out the cost of tuition for the semester and sends the remaining funds directly to the student. The student can use the leftovers to pay for a variety of purposes, such as food and living expenses. Because community colleges are generally low-cost, Pell Grant recipients can have one or two thousand dollars sent to them for their personal use. Once the money is received, however, scamming recipients disappear, leaving the school to try to find them to pay back the funds, and oftentimes moving on to do the same at another school. Tracking down these scammers is nearly impossible, and the college usually ends up paying back the fraudulently received grant out of their own monies.

At Henry Ford Community College this year alone, over $4 million of taxpayer money went to individuals who claimed they were full-time students, only to take the money and run, never actually setting foot inside a classroom. The federal government has not done enough to curb the abuse. Some schools have been taking matters into their own hands, implementing measures to try to reduce the incidents of fraud. Some impose a longer waiting period before distributing the funds to the student performing more stringent checks, one school waiting until 10 percent of the way into the semester, while other schools are increasing tuition, in part to cover the costs of Pell Grant abuse.

In either situation, it’s the honest students that suffer: longer waiting periods means it will take longer to get the money they need, and higher tuition costs means they will have to get by with less next semester when the college sends them a reduced check.

Information found for this “Your Tax Dollars @ Work” post was done by using a Google search. Information compiled from multiple public websites & media outlets.

Turn Them On, Leave Them On

At 6.6 million square feet the Pentagon is often billed by the military as “the world’s largest low-rise office building.” The massive amount of square footage in this building alone translates to miles of hallway space alone, but it is dwarfed by the amount of federal property that sits unused every year. If underutilized federal buildings were converted into Pentagons, you could line up 68 of them end-to-end and just barely have enough room.

Many of these buildings, if not severely underutilized, sit empty but still require the normal upkeep that goes along with running a fully functional building. In 2010, GAO found several buildings that were not only empty, but were set for demolition and yet were maintained at taxpayer expense. One such building owned by the Veterans Affairs Administration cost $20,000 a year to operate. A warehouse owned by the General Services sat completely empty from 2008 through 2011, during which time the agency spent nearly $2 million on it.

Each year, the government spends at least $1.5 billion maintaining properties that it no longer needs. A radioactive property and a property with a collapsed roof are just two examples of government property in serious disrepair. How does GSA rate these rundown buildings? Excellent condition of course!

Information found for this “Your Tax Dollars @ Work” post was done by using a Google search. Information compiled from multiple public websites & media outlets.

I Dislike The Facebook Refund Status

Here is a status update no one will “like” – one of America’s largest companies avoided paying federal or state income taxes, and is poised to do so again this year. In fact, they will likely receive a check from the federal government in the form of a tax refund. Despite bringing in more than $1 billion in U.S. pretax profits last year, the social-media giant Facebook reported a combined $429 million refund from their federal and state tax filings. Uncle Sam cut a check to Facebook for roughly $295 million in 2012, according to one analysis of the company’s 10-K filing. Facebook’s first annual 10-K report filed with the Securities and Exchange Commission for 2012 details the company’s use of the employee stock option tax deduction, which lowered the company’s income taxes owed to federal and state authorities by $1.03 billion last year.

By providing stock options as a major form of their compensation, to date, Facebook has claimed $3.2 billion in federal and state stock option deductions, $1.03 billion of which was used to offset their total U.S. pretax profit of $1.1 billion in 2012, and $429 million was refunded from its 2010 and 2011 tax bills. The remaining $2.17 billion in stock option tax deductions can now be carried forward by the company and used to offset future tax liabilities. This rollover, in addition to currently outstanding employee stock options, may once again make this year’s tax bill disappear. If Facebook has the same U.S. pretax profit in 2013 as last year ($1.1 billion), the company will be able to zero out their tax bill for the next year. Taxpayers gave Facebook a gift card worth an estimated $295 million in 2012, and Uncle Sam will likely cut the billion-dollar company another big check in 2013.

Information found for this “Your Tax Dollars @ Work” post was done by using a Google search. Information compiled from multiple public websites & media outlets.

Speaking Of Googling It……….

One federal agency is charging other offices and taxpayers to provide government reports that are largely available free of charge on the Internet. It is essentially the “let me Google that for you” office of the federal government. Home to more than three million records, the Department of Commerce’s National Technical Information Service (NTIS) collects “government-funded scientific, technical, engineering, and business-related information” and reports and sells them to other federal agencies. Only it turns out most of what it sells can also be found for free on the Internet with little effort. Established more than 60 years ago, NTIS is a vestige of the pre-Internet era when a lot of the reports the agency collects were not widely available; however, as times have changed agency has not.

Required by law to be largely self-sustaining, NTIS charges other federal agencies to access its collection of reports. However, a November 2012 review of the office by GAO uncovered that about three-quarters of the reports in the NTIS archives were available from other public sources. Specifically, GAO estimated that approximately 621,917, or about 74 percent, of the 841,502 reports were readily available from one of the other four publicly available sources GAO searched. The GAO explains, that the source that most often had the reports GAO was searching for was located at Google. In addition, reports could be found on the website of the issuing federal department, the Government Printing Office’s website, or USA.gov.

Yet, federal departments continue to send taxpayer dollars to NTIS for reports they could get for free with a simple web search. NTIS notes that one of its best-sellers is the Armed Forces Recipe Service, available on CD-ROM for $79. However, the Armed Forces Recipe Service recipe index is also available online and can be downloaded for free directly from the Quartermaster Corps Website. Further, a recipe index that offers 1,700 convenient recipes for groups of 100 that can be easily adjusted up or down, likely falls outside the scope of technical, scientific, and engineering reports the office should be collecting.

Another report sold by NTIS is the 2009 Public Health Service Food Code produced by the Department of Health and Human Services (HHS), which is available for $69. Alternatively, the report is available for free on the Food and Drug Administration’s website. Moreover, GAO found much of the work outdated because NTIS has focused largely on growing its repertoire of older reports. Specifically, NTIS added approximately 841,500 reports to its repository during fiscal years 1990 through 2011, and approximately 62 percent of these had publication dates of 2000 or earlier. While the office worked to accumulate reports older than those dated 2000, GAO reports that only 21 percent of the reports distributed from 2001 to 2011 were dated older than 1989. Meanwhile, nearly 100 percent of the reports from 2009-2011 were distributed. However, these are also the most likely to be available online elsewhere.

More than 12 years ago, GAO issued two different reports explaining NTIS would need to soon reconsider its function and fee-based model, as the Internet made of the reports it sold available for free. Shuttering the NTIS entirely was first suggested in 1999, by the Clinton administration’s Secretary of Commerce William Daley, who contended declining sales revenues soon would not be sufficient to recover all of NTIS’ operating costs. The Secretary attributed this decline to other agencies’ practice of making their research results available to the public for free through the Web.

According to GAO, the decline in revenue for its products continues to call into question whether NTIS’s basic statutory function of acting as a self-financing repository and disseminator of scientific and technical information is still viable. As the actual “let me Google that for you” website explains, this is for all of those people who find it more convenient to bother you with their question than Google it for themselves. But when NTIS is doing the Googling, the search response comes with a price tag for taxpayers. Federal agencies pay NTIS millions of dollars each year to provide government reports that are available for free online and can be found with a simple Google search. They need to start paying me because I Google everything!

Information found for this “Your Tax Dollars @ Work” post was done by using a Google search. Information compiled from multiple public websites & media outlets.

Why Didn’t I Move To Hawaii

Ever dream of escaping it all and owning a dream home on a remote island paradise? Didn’t think you could afford it? Think again. There is now a U.S. Department of Agriculture (USDA) home loan program here to help you. Created to assist those with low and moderate incomes in rural areas obtain safe and sanitary dwellings, the program has expanded to cover “mortgages for millionaires” and homes in suburban and urban areas, as well as seaside resort communities. This year more than 100 individuals or families received loan guarantees for $500,000 or more from the U.S. Department of Agriculture to purchase a residence in Hawaii. If these new homeowners later cannot afford their new homes, it’s no problem; the federal government will protect the banks from losses by repaying 90 percent of the loans.

These and thousands of other loan guarantees were issued this year by the USDA Rural Housing Service (RHS) Section 502 loan programs. The Section 502 guarantee program and Section 502 direct loan program provide loans to low and moderate income individuals for the purchase of modest housing in a rural area. The programs had authority to guarantee $24 billion in privately sourced loans and make $900 million in new direct loans for FY2013. There is no down payment requirement for the loans, no maximum purchase price, and—according to USDA—the government is required to serve all borrowers who meet eligibility requirements and seek to purchase homes in eligible areas. And despite the name of the program, it serves more than just rural areas. An independent analysis found that, today, the program covers nearly the entire U.S. land mass. That has helped turn the program into one of the sweetest deals available.

The program issued nearly 166,000 loan guarantees in FY 2013 and more than 100 of those were for amounts greater than, or equal to $500,000. Nearly all of these half-a-million dollar home loans were in Hawaii. Many of the most scenic parts of Hawaii, including Maui and Kauai, are eligible areas for USDA rural loan assistance. Maui has been selected as the top island in the world for 20 consecutive years in the annual Condé Nast Traveler Readers’ Choice Awards. Providing a combination of tropical ambience and American comforts, this island paradise offers an abundance of activities offered, from whale-watching to nature hikes to watersports with unending natural beauty. The entire island of Kauai, described as “a little slice of heaven, is considered rural by USDA.

Since property values in Hawaii exceed the national average, buying a home there may seem to be out of reach for most, but everyone from risky borrowers to the wealthy are benefitting from this USDA loan program. The USDA rural housing program’s income guidelines are generous, notes a senior loan officer in Hawaii. Likewise for those with more modest incomes, the Federal Government will reimburse up to 90 percent of the original loan amount to the lender if a borrower defaults on a loan. Thousands of borrowers do foreclose every year, costing the federal government hundreds of millions of dollars, and the number and cost have skyrocketed over the past five years. In 2008, the program had 3,369 foreclosures costing in $103 million in loss claims paid. By 2011, there were 18,808 foreclosures costing $295 million. Last year, the program paid $496 million in loss claims, according to the USDA Office of Inspector General. If trends continue, this loss will have exceeded half-billion dollars in 2013.

The department acknowledges default rates vary throughout the year and during 2012, the delinquency rate for loans 30 or more days past due ranged from 7.65 percent to 10.44 percent. By comparison, the delinquency rate in a typical housing market is around 3 percent. While designed to operate off of loan fees, the program’s delinquency rates make a taxpayer bailout more likely according to experts who predict it’s likely the program isn’t covering its costs and will probably require taxpayer funding. While USDA was putting taxpayers on the hook for generous and increasingly risky loan guarantees, housing assistance to low-income individuals across the country, including in Hawaii, was being cut. In March, USDA threatened the elimination of rental assistance for more than 10,000 very low income rural residents, generally elderly, disabled, and single female households. In July the Department notified hundreds of borrowers that their contracts would be cut off before the end of FY 2013, 90 including a housing unit for disabled elderly in Kailua-Kona, Hawaii.

And while USDA is quick to threaten assistance for the poor, elderly and disabled, the Inspector General found the Rural Development program did not identify and review loss claims from loans with questionable eligibility prior to payment, resulting in millions of dollars in improper payments. Before USDA kicks out low income elderly and disabled from rural housing, the department should first discontinue its risky loan practices that are costing nearly half-a-billion dollars a year in loss claims. This really has me wondering why I didn’t move to Hawaii.

Information found for this “Your Tax Dollars @ Work” post was done by using a Google search. Information compiled from multiple public websites & media outlets.