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

Operation of Official Vehicles Overseas Several FY 2019 inspection reports identified a lack of compliance with motor vehicle safety standards in the operation of official vehicles overseas. As in previous years, OIG found lapses in medical clearances for drivers, outdated or absent safety training for operators of official vehicles, and drivers working excessive hours, a practice that increases the risk of motor vehicle accidents caused by driver fatigue. In particular, Embassy Port-au-Prince, Haiti—a post that exhibited all the deficiencies noted above—had the highest number of motor vehicle mishaps among overseas missions. From FY 2012 to FY 2017, the embassy reported 311 mishaps, of which the Department deemed nearly 60 percent preventable. 6 Residential Safety and Security The Department also continued to exhibit deficiencies in the administration of its housing and related anti-crime program in FY 2019. Our inspection report findings show that many Department employees and their families continue to occupy residences abroad that do not or cannot be demonstrated to meet Department safety standards. In Kigali, Rwanda, we found that 40 of the embassy’s 68 residencies had not been certified for occupancy. 7 This was notable given the post had seen multiple hazardous electrical incidents, one of which led to injuries requiring medical treatment for a child who came in contact with an inadvertently electrified metal pipe. Additionally, we found the embassy in Haiti, site of the devastating 2010 earthquake, did not conduct seismic safety assessments of 25 leased residential units as required by Department standards. 8 6 ISP-I-19-18, June 2019. 7 OIG, Inspection of Embassy Kigali, Rwanda (ISP-I-19-15, March 2019). 8 ISP-I-19-18, June 2019. 9 OIG, Inspection of Embassy New Delhi and Constituent Posts, India (ISP-I-19-10, December 2018). 10 OIG, Inspection of Embassy Koror, Republic of Palau (ISP-I-19-06, February 2019). 11 Department of State, Agency Financial Report, Fiscal Year 2018 . Emergency Preparedness Department guidelines require U.S. embassies to maintain post-specific emergency action plans to respond to situations such as bombs, fires, civil disorder, or natural disasters. Although we frequently find substantial compliance with emergency planning standards, we continue to highlight deficiencies that we identify because of their significant implications for life and safety. For example, some consular sections—which play a lead role in crisis preparedness—did not meet Department standards. In New Delhi, India, we found that many consular employees did not know what their roles might be in a crisis and that they were unfamiliar with the contents of a disaster assistance kit, which is vital to their ability to function off-site in an emergency. 9 In Koror, Republic of Palau, the embassy did not have a disaster assistance kit, and other basic equipment, such as a satellite phone, had not been tested within the preceding year. 10  2  O versight of C ontracts , G rants , and F oreign A ssistance The oversight of contracts, grants, and foreign assistance continues to be a significant challenge for the Department. Domestically and abroad, Department entities did not consistently and adequately monitor contractor performance, conduct thorough invoice reviews, and oversee grants and foreign assistance programs. A growing body of OIG work also illustrates the difficulty the Department faces in managing large, long-term construction contracts, particularly in contingency environments. Because of the substantial resources involved (more than $15 billion for contracted services and $15 billion for grants and fixed charges obligated in FY 2018 11 ), inadequate oversight and mismanagement pose considerable financial risk. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 113 INSPECTOR GENERAL’S STATEMENT ON THE DEPARTMENT’S MAJOR MANAGEMENT AND PERFORMANCE CHALLENGES | OTHER INFORMATION