Audit spurs state agencies quickly to cut cellphone costs

State auditors knew they were onto something earlier this year when they began scrutinizing how Washington’s government agencies have been spending more than $9.2 million a year on cellphones.

Similar audits in other states found thickets of confusing service plans and millions of dollars lost on unused phones. There were strong clues something was amiss here, too.

“During the course of the audit, people started dumping phones like crazy,” Mindy Chambers, director of communications for state Auditor Brian Sonntag, said recently.

Washington’s audit found nearly one third of the cellphones issued to state workers were rarely being used, and in more than 2,000 examples, not used at all. Sonntag calculated the state spent $1.8 million on unnecessary government cellphones during the year studied.

The audit made headlines around the state. Its findings also snapped neatly together with a Nov. 4 directive from Gov. Chris Gregoire, instructing state agencies to get rid of unneeded phones and to ensure service contracts are the best possible value.

By the time the audit was published Nov. 18, state agencies had pulled 2,000 phones from service and entered new agreements. Combined savings topped $732,000, Sonntag reported.

About 45 percent of the state’s cellphone tab can be traced to three large agencies — the departments of Social and Health Services, Transportation and Corrections. Combined, those departments also accounted for about half of the phone spending questioned in the audit.

Sonntag’s office says the state needs expert help to develop a universal strategy for managing cellphone costs and service plans. So far, state agencies have been entering contracts and passing out phones as they think best. An appendix to the report (PDF, page 32) details what that looks like, department by department. Some of the data are re-purposed below. With a little math, it becomes clear the state has been spending nearly $1,000 a year for phones used by one state agency and less than $250 a year for others.

That also means costs vary for infrequently used phones. The data show that some of the most expensive under-used phones turned up in the offices of the state Insurance Commissioner ($697.60), the Workforce Training &Coordinating Board ($586), the Governor ($534) and the State Auditor ($520.80).

That’s correct, Chambers said. At least two phones used by top people in Sonntag’s office were turned in as a result of questions raised in the audit.

“We just believed it was important to get our own house in order,” she said, adding that the audit provides a good road map for the state in taming cellphone expenses.

And for the record, Sonntag carries a cellphone he pays for out of his own pocket, Chambers said.

State cellphone audit findings

Agencies with fewer than 17 cellphones are not listed. Find the original data here.

Agency Phones Annual cost Cost per phone Un- used phones Cost un-used Little- used phones Cost little- used Un-used + little- used
Social and Health Services 4,284 $1,434,638 $335 649 $196,803 1,327 $320,421 $517,224
Transportation 3,233 $1,412,192 $437 185 $45,002 594 $168,612 $213,614
Corrections 2,176 $702,921 $323 193 $40,178 513 $114,648 $154,826
Labor and Industries 1,160 $516,161 $445 107 $33,971 241 $73,867 $107,838
University of Washington 958 $448,364 $468 76 $27,704 199 $52,566 $80,270
Fish and Wildlife 947 $381,826 $403 58 $16,082 165 $36,111 $52,193
Employment Security 723 $372,240 $515 61 $22,683 144 $51,430 $74,113
Ecology 716 $347,579 $485 119 $19,842 118 $37,532 $57,374
Natural Resources 695 $258,434 $372 35 $5,905 102 $25,696 $31,601
Washington State Patrol 685 $324,578 $474 38 $12,722 93 $35,662 $48,384
Health 513 $236,753 $462 19 $5,026 111 $26,096 $31,122
Agriculture 496 $291,781 $588 18 $8,643 51 $17,119 $25,762
Attorney General 492 $214,402 $436 9 $2,338 77 $27,193 $29,531
Military 448 $191,175 $427 124 $14,979 39 $13,789 $28,768
Licensing 433 $158,949 $367 71 $11,022 161 $40,032 $51,054
Washington State University 353 $147,451 $418 28 $7,967 80 $21,193 $29,160
Eastern Washington University 308 $217,697 $707 19 $8,193 43 $18,701 $26,894
Parks and Recreation Commission 254 $92,055 $362 15 $1,695 65 $16,881 $18,576
Central Washington University 235 $139,170 $592 7 $1,464 31 $7,799 $9,263
Revenue 234 $107,626 $460 21 $4,838 30 $9,358 $14,196
Gambling Commission 188 $85,581 $455 9 $3,333 24 $11,191 $14,524
Liquor Control Board 182 $90,390 $497 10 $2,419 13 $4,500 $6,919
Financial Institutions 172 $83,195 $484 27 $8,879 27 $14,797 $23,676
Early Learning 163 $41,862 $257 9 $1,191 55 $8,035 $9,226
General Administration 154 $46,725 $303 8 $1,000 34 $6,898 $7,898
Information Services 146 $87,574 $600 7 $2,032 19 $5,952 $7,984
Financial Management 117 $67,852 $580 3 $1,243 9 $3,199 $4,442
Renton Technical College 111 $39,420 $355 13 $4,615 66 $23,412 $28,027
Lottery Commission 110 $56,672 $515 2 $876 9 $4,026 $4,902
Veterans Affairs 103 $43,851 $426 5 $1,152 13 $2,949 $4,101
Health Care Authority 72 $35,325 $491 3 $1,069 19 $6,539 $7,608
Supt. of Public Instruction 71 $46,676 $657 4 $2,135 5 $2,130 $4,265
State Auditor 70 $41,949 $599 3 $1,267 1 $873 $2,140
Utilities and Transportation Commission 70 $38,599 $551 9 $2,307 4 $2,246 $4,553
Evergreen State College 67 $30,647 $457 3 $1,141 27 $7,479 $8,620
Criminal Justice Training Commission 62 $26,216 $423 5 $725 22 $6,794 $7,519
Services for the Blind 48 $11,918 $248 7 $1,015 11 $1,595 $2,610
Secretary of State 47 $16,291 $347 7 $1,257 9 $2,405 $3,662
Personnel 45 $25,112 $558 2 $1,154 12 $5,451 $6,605
Administrative Office of the Courts 43 $19,814 $461 2 $1,008 7 $2,863 $3,871
Everett Community College 36 $11,092 $308 — — 9 $1,714 $1,714
Puget Sound Partnership 33 $25,527 $774 — — — — —
Retirement Systems 28 $13,946 $498 1 $119 5 $1,591 $1,710
Seattle Central Community College 28 $17,419 $622 7 $462 5 $734 $1,196
Community &Technical Colleges 26 $12,837 $494 3 $1,141 1 $573 $1,714
Lower Columbia College 25 $7,290 $292 1 $126 11 $2,398 $2,524
Insurance Commissioner 24 $16,558 $690 — — 5 $3,488 $3,488
Governor 24 $15,984 $666 1 $340 4 $2,264 $2,604
Green River Community College 19 $8,833 $465 — — 8 $2,409 $2,409
Higher Education Coordinating Board 18 $17,522 $973 — — — — —
School for the Blind 18 $8,156 $453 1 $493 4 $1,696 $2,189
Workforce Training &Coordinating Board 17 $10,630 $625 — — 2 $1,172 $1,172
Total 21,680 $9,097,455 — 2,004 $529,556 4,624 $1,256,079 $1,785,635
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