«SEMIANNUAL REPORT TO THE CONGRESS October 1, 2013 to March 31, 2014 SUMMARY OF OIG ACCOMPLISHMENTS Financial Results Questioned costs Issued during ...»
OIG reviews selected audit reports for findings and questioned costs related to Department awards and to ensure that the reports comply with the requirements of OMB Circular A-133.
OIG’s oversight of non-Federal audit activity informs Federal managers about the soundness of the management of Federal programs and identifies any significant areas of internal control weaknesses, noncompliance, and questioned costs for resolution or follow-up.
During this reporting period, OIG’s Office of Audits reviewed 16 OMB Circular A-133 audit reports covering $1.3 billion in Federal funds. Of this amount, Department funds totaled $739 million. Eleven of the 16 reports documented the awardees’ lack of internal controls and noncompliance with Federal requirements, including weaknesses related to segregation of duties, cash management, financial reporting, sub-recipient monitoring, computing cost-share amounts, payroll reporting, timekeeping, and audit report submissions.
OIG also referred questioned costs of $628,469 to Department program officials for resolution or follow-up. Table 3 summarizes OIG’s reviews of non-Federal audits conducted during this reporting period.
SUMMARY OF OFFICE OF AUDIT REPORTS WITHOUT
MANAGEMENT DECISION FOR MORE THAN SIX MONTHS
Reason for not being resolved: OIG recommended that the Department perform a joint investigation with the Defense Security Cooperation Agency of potential Antideficiency Act violations of funds obligated outside the scope of the reimbursable agreements. The Bureau of Comptroller and Global Financial Services was requested to respond to recommendations by February 6, 2012. However, OIG had not received a response as of the end of this reporting period. Therefore, six recommendations (Nos. A.8.a, b, c, d, e, and f) remain unresolved.
Projected date of resolution: Unknown.
Report Number: AUD/CG-11-44 Subject: Afghan National Police Training Program Would Benefit From Better Compliance With the Economy Act and Reimbursable Agreements Date Issued: August 25, 2011.
Reason for not being resolved: OIG recommended that the Department of State develop and implement policies and procedures to ensure that any appropriation limitations on funds transferred to other U.S. Government agencies were taken into account before obligating funds for personal services contracts and develop policies and procedures to ensure that, before obligating funds under an Economy Act order, the Department validated that the ordering agency had the necessary authority to obligate funds for those purposes. The Bureau of International Narcotics and Law Enforcement Affairs was requested to respond to the recommendations by January 9, 2012. However, OIG had not received a response as of the end of this reporting period. Therefore, two recommendations (Nos. 1.d and e) remain unresolved.
Projected date of resolution: Unknown.
Report Number: AUD-SI-12-36 Subject: Limited-Scope Audit of Department of State Management of the Afghanistan Civilian Uplift Date Issued: May 31, 2012.
Reason for not being resolved: OIG recommended that the Department of State codify, in the Foreign Affairs Manual, the practice of updating the Global Employment Management System for all Department personnel by changing the organization code to the code for the newly assigned posts effective on the date that the personnel leave post. OIG also recommended that the Department direct overseas posts and domestic offices that have civilian personnel being assigned to Afghanistan (or to another post where restricted funds are being used) to immediately update the Global Employment Management System by changing the organization code to the code of the newly assigned posts for incoming and departing Afghanistan civilian uplift personnel. The Bureau of Human Resources was requested to respond to the recommendation by July 8, 2013. However, OIG had not received a formal response as of the end of this reporting period. Therefore, two recommendations (Nos. 1 and
3) remain unresolved.
Projected date of resolution: Unknown.
Report Number: AUD-MERO-13-20 Subject: Evaluation of Emergency Action Plans for U.S. Mission Afghanistan Date Issued: March 21, 2013 Reason for not being resolved: OIG recommended that Embassy Kabul establish formal agreements on the roles and responsibilities of non-Department of State law-enforcement agencies during events requiring implementation of the Emergency Action Plan. On March 10, 2014, Embassy Kabul responded that an informal information memorandum and Post Agreement had been completed, considering it to be sufficient action. OIG does not agree that these documents constitute acceptable alternative actions that are sufficient to address OIG’s concerns. OIG holds the position that other law-enforcement entities that wish to participate in responding to events requiring implementation of the Emergency Action Plan should state so in advance of an actual emergency and should establish formal agreements with the Embassy that address their specific roles and responsibilities when responding to an emergency. OIG also recommended that the Bureau of Diplomatic Security establish a process to validate the adequacy of Emergency Action Plans at high-threat posts, such as Embassy Kabul, by reviewing and assessing the resources listed in the plans for addressing each type of Emergency Action Plan emergency. As of September 10, 2013, the Bureau of Diplomatic Security had not developed a corrective action plan but had only provided copies of processes that OIG found insufficient at the time of the audit. Therefore, two recommendations (Nos. 6 and 8) remain unresolved.
Projected date of resolution: June 2014.
Subject: Audit of Department of State Application of the Procurement Fee To Accomplish Key Goals of Procurement Services of the Bureau of International Narcotics and Law Enforcement Affairs Corrections Systems Support Program in Afghanistan Date Issued: May 4, 2013.
Reason for not being resolved: OIG recocommended that the Bureau of Administration, in coordination with the Bureau of Budget and Planning, create a separate point limitation within the Working Capital Fund for the Procurement Shared Services (PPS) service center. Both the Bureau of Administration and the Bureau of Budget and Planning disagreed with this recommendation, stating the Bureau of Administration had “its own unique allotment code” that would allow the Bureau of Administration to “track all revenue, obligations, liquidations, and carry forward” amounts. OIG’s intent was to ensure that funds collected by the PSS service center were used for acquisition-related needs, which is a high priority within the Department. OIG has requested that the Department propose an alternative methodology that fulfills the intent of the recommendation. OIG also recommended that the Bureau of Administration identify significant procurement processes to map and develop standard operating procedures that currently are not included in available procedures. Although the Bureau of Administration stated agreement with OIG’s recommendation, it did not propose any additional corrective actions in response. Therefore, two recommendations (Nos. 1 and 18) remain unresolved.
Projected date of resolution: August 2014.
Report Number: AUD-MERO-13-37
Subject: Audit of the Bureau of International Narcotics and Law Enforcement Affairs Corrections Systems Support Program in Afghanistan Date Issued: September 19, 2013.
Reason for not being resolved: OIG recommended that the Bureau of International Narcotics and Law Enforcement Affairs determine the costs and then develop and implement a sustainability strategy in partnership with the Government of the Islamic Republic of Afghanistan to ensure the sustainability of the Afghan General Directorate of Prisons and Detention Centers (GDPDC) and the Afghan corrections system once international funding is removed, as required by the “Administrator’s Sustainability Guidance for USAID in Afghanistan” and the Consolidated Appropriations Act of 2012. In its response to the draft report, the Bureau stated that it partially concurred with the recommendation and that it was working with civil-society partners to engage in long-term planning and was actively working to have the Afghan government assume more responsibility for many of its programs. However, the Bureau did not address the need to determine 50 the costs to operate the GDPDC and to build a sustainability strategy with respect to those costs. The Bureau of International Narcotics and Law Enforcement Affairs was requested to respond to the recommendation by October 18, 2013. However, OIG had not received a response as of the end of this reporting period. Therefore, Recommendation 2 remains unresolved.
Projected date of resolution: July 2014.
REVISED MANAGEMENT DECISIONSNone.
MANAGEMENT SUCCESS IN RESOLVING AND
IMPLEMENTING RECOMMENDATIONSAudit of of Grant Closeout Processes for Selected Department of State Bureaus (AUD-CG-13-31) In June 2013, OIG made two recommendations to the Bureau of Educational and Cultural Affairs (ECA) that it should review expired grants in the Payment Management System (PMS) as of March 1, 2012, to determine whether the funds associated with those grants could be deobligated in the Global Financial Management System and used for other purposes and to subsequently close those grants in PMS to avoid unnecessary administrative fees. In response to the recommendations, ECA provided evidence that it had closed 513 awards and deobligated $14,249,136, with an additional 254 awards still pending final adjustment action that could result in additional funds being deobligated.
Furthermore, ECA informed OIG that it is now considering this matter one of its highest priorities and, as such, has (a) tasked a special closeout team within the Grants Division with oversight of research and ensuring closeout procedures are performed and has (b) identified the timely closeout of grant awards as a performance standard included and tracked in the performance plans of all ECA Grants Officers and support staff.
Compliance Follow-up Audit of Bureau of Oceans and International Environmental and Scientific Affairs Administration and Oversight of Funds Dedicated to Address Global Climate Change (AUD-ACF-14-16) In this December 2013 compliance follow-up audit, OIG modified portions of recommendations contained in OIG’s July 2012 report Audit of Bureau of Oceans and International Environmental and Scientific Affairs Administration and Oversight of Funds Dedicated To Address Global Climate Change (AUD-CG-12-40) and combined these portions into one recommendation. In its response to the modified recommendation contained in the compliance follow-up report, the Department’s 51 Procurement Executive issued Procurement Information Bulletin (PIB) 2014-5, “Non-Acquisition Interagency Agreements,” on January 23, 2014. This PIB provides Department managers with long-awaited standardized policies and procedures for the review and approval of nonacquisition interagency agreements. It also institutes a requirement that program offices should make a determination that an interagency transfer of money is the best approach to program implementation prior to executing a nonacquisition interagency agreement
SUMMARY OF INSPECTION REPORTS WITHOUT
MANAGEMENT DECISION FOR MORE THAN 6 MONTHSReport Number: ISP-I-13-44 Subject: Special Review of the Accountability Review Process Date Issued: September 20, 2013.
Reason for not being resolved: OIG recommended that the Department implement the following recommendations in the Special Review of the
Accountability Review Board (ARB) Process Report:
1. Establish guidelines that broaden the committee’s ability to task alternative reviews.
2. Revise regulatory guidance stated in 12 FAM 030, 12 FAM 032, and 1 FAM 30 to codify a transparent and fully documented review process and institutionalize the Deputy Secretary for Management and Resources’ responsibility for oversight and implementation of ARB recommendations.
3. Annually task the Under Secretaries and Assistant Secretaries in the Department to provide potential nominees to serve on the Accountability Review Board.
4. Create a baseline list of congressional recipients to whom a copy of the Secretary’s Report to Congress is delivered.
5. Develop minimum security standards that must be met prior to occupying facilities located in Department-designated high-risk, high-threat environments.
6. Prepare clear guidelines for Accountability Review Boards pertaining to the drafting and handling of recommendations dealing with issues of poor performance of Department personnel.
7. Develop an annual report to the Deputy Secretary outlining implementation of Accountability Review Board recommendations, with an emphasis on identifying problems, the way forward, and the impact of the Department’s global security program.
OIG is working to seek consensus and effect implementation of the stated recommendations with the Office of Management Policy, Rightsizing and Innovation, and the Bureaus of Administration and Diplomatic Security.
Projected date of resolution: June 2014.