U.S. Department of State Fiscal Year 2019 Agency Financial Report

Continued attention to the management challenges identified in this report will improve the Department’s capacity to fulfill its mission while exhibiting good stewardship of public resources. OIG encourages the Department to consider ways that specific recommendations might be applied broadly to make systemic improvements that will result in meaningful and permanent change. We hope that this report, accompanied by the oversight work we perform throughout the year, assists the Department in its efforts to improve the effectiveness and efficiency of its programs and operations.  1  P rotection of P eople and F acilities The Department properly prioritizes the safety and security of its personnel and facilities. Nonetheless, the global presence of the Department and the widespread threat of physical violence against U.S. diplomats and U.S. diplomatic facilities ensures that the protection of people and facilities remains a top management challenge. Although naturally greater in conflict areas such as Iraq and Afghanistan, all U.S. diplomatic facilities face some level of risk. Additionally, natural disasters, environmental hazards, and ordinary crime continually pose risks to the health and safety of Department personnel and their families serving abroad. Much of OIG’s work identifies these types of risks to the protection of Department personnel and facilities and provides recommendations to address those risks. Constructing and Maintaining Safe and Secure Diplomatic Facilities Constructing and maintaining safe and secure diplomatic facilities has been an ongoing challenge, which is compounded in regions affected by conflict and humanitarian crises. OIG continues to recommend steps the Department can take to improve adherence to its own policies and procedures. 2 OIG, Audit of the Execution of Security-Related Construction Projects at U.S. Embassy Kabul, Afghanistan (AUD-MERO-19-40, September 2019). 3 OIG, Inspection of Embassy Paramaribo, Suriname (ISP-I-19-20, July 2019). 4 OIG, Inspection of Embassy Banjul, The Gambia (ISP-I-19-04, November 2018). 5 OIG, Inspection of Embassy Port-au-Prince, Haiti (ISP-I-19-18, June 2019). Construction projects at Embassy Kabul, Afghanistan, remain a focus. For example, in one FY 2019 audit, we found that, because OBO still has difficulty expediting physical security projects in Kabul, the mission has relied on the regional security office to manage large-scale construction projects. However, given that office’s relative lack of construction experience, some projects have faced deficiencies as a result. 2 We discuss other facets of these findings below, as they also relate to the Department’s challenges to oversee contractor performance and to manage operations in contingency environments. Beyond ensuring the initial construction of safe and secure facilities, the Department is responsible for comprehensive preventative and routine maintenance of its existing facilities. Our FY 2019 inspection work continued to identify problems related to facilities maintenance at several overseas posts. In Paramaribo, Suriname, the embassy’s leaky roof led to mold problems that created health hazards for employees, many of whom reported respiratory issues to OIG. 3 Despite having been identified in March 2017, OBO had not yet addressed the problem at the time of our inspection. Furthermore, we encountered a poorly maintained chancery with numerous physical defects in Banjul, The Gambia, 4 and we reported a potential workplace safety hazard at Embassy Port-au-Prince, Haiti, where the embassy’s two elevators continued in use despite the identification of 48 unaddressed deficiencies. 5 Ensuring the Health and Safety of Personnel Abroad Although our inspection work consistently finds that embassy leadership is engaged on health and safety issues, we also continue to identify instances where a lack of management oversight and failure to follow Department standards creates risks for Department personnel and their families. As in previous years, we note the following three areas for improvement: the operation of official vehicles, residential safety and security, and emergency preparedness. 112 | U nited S tates D epartment of S tate 2019 A gency F inancial R eport OTHER INFORMATION | INSPECTOR GENERAL’S STATEMENT ON THE DEPARTMENT’S MAJOR MANAGEMENT AND PERFORMANCE CHALLENGES