The Department of State (Department) established the Telephone, Wireless, and Data Cost Center (TWD Cost Center) to provide centralized management control over equipment, services, and maintenance for unclassified voice and data telecommunications.
Kearney, on behalf of OIG, found that the TWD Cost Center collected fees in excess of the amount needed to cover the costs to sustain its operations. The total amount of revenue from FY 2010 to FY 2014 exceeded the TWD Cost Center’s expenses by more than $25 million.
TWD Cost Center officials stated that at least some of the funds available at the end of FY 2014 were needed to cover the cost of technical refreshes20 for voice and data equipment. According to TWD Cost Center officials, between FY 2010 and FY 2014, the Cost Center performed some refreshes, but it had not completed a full technical refresh cycle for either voice or data equipment.