Unsupported IT Equipment Billing Costs Exceed $83.3M

USDA OIG Reports

Filed March 18th, 2026

Detected March 28th, 2026

Summary

The USDA Office of Inspector General issued a report identifying over $83.3 million in unsupported costs due to inadequate controls over IT equipment billing by the Client Experience Center. The report recommends determining the allowability of these charges and establishing stronger control activities.

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What changed

The USDA Office of Inspector General's report (No. 88801-0002-12) found that the Client Experience Center failed to implement adequate controls over the billing of USDA client agencies for IT equipment, resulting in over $83.3 million in unsupported costs during FY 2024. The report recommends that the agency verify the support and allowability of these charges and recover funds as appropriate.

Compliance officers within USDA agencies should review their internal controls related to IT equipment billing and asset management. The report also mandates the establishment of new control activities aligned with GAO's Green Book and updates to policies to classify computers with memory capabilities as sensitive personal property, in accordance with federal regulations and USDA property management rules. Failure to address these control deficiencies could lead to continued unsupported costs and potential recovery actions.

What to do next

Determine support and allowability of $83.3M in FY24 workstation service charges and recover as appropriate.
Establish control activities for workstation services billing to ensure accuracy and support.
Update policies to classify computers with memory as sensitive personal property per CFR and USDA regulations.

Penalties

Recovery of unsupported costs as appropriate.

Source document (simplified)

Controls Over Issuing and Excessing IT Equipment Billing

Report Information

Date Issued

March 18, 2026

Report Number: 88801-0002-12 Report Type Inspection / Evaluation Description We determined that the Client Experience Center did not have adequate control activities over USDA client agencies’ computer equipment billing, which resulted in more than $83.3 million in unsupported costs. Joint Report No Agency Wide Yes (agency-wide) Questioned Costs $83,349,252 Funds for Better Use $0 View report on Oversight.gov

Recommendations

1 - Open

Determine whether the more than $83.3 million charged in FY 2024 for workstation services to customers were supported and allowable, and recover as appropriate.

2 - Open

Establish control activities, in accordance with GAO’s Green Book, to include procedures for workstation services billing to ensure bills submitted to agencies are accurate and supported.

3 - Open

Update policies and procedures to comply with the 2007 Code of Federal Regulations and the 2015 USDA Agriculture Property Management Regulations as required, to ensure that computers with memory capabilities are classified as sensitive personal property.