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

conflicts of interest. 77 Many leadership concerns associated with the National Passport Center in New Hampshire were also reported to OIG, prompting a targeted review. Employees reported widespread inappropriate behavior that included allegations of retaliation, such as denying awards, promotions, and special assignments and pursuing meritless disciplinary actions; multiple incidents of sexual and gender- based harassment; and multiple accounts of subtle or blunt intimidation. 78 Additionally, our inspection of Embassy Libreville revealed a leadership team falling short of the Department’s own principles. We found that verbal outbursts on the part of a senior leader created anxiety and impeded communications. 79 We also found one leader who may have violated anti-nepotism guidelines and supervisors who failed to address poor performance by some staff members in several embassy sections. 80  7  P romoting A ccountability T hrough I nternal C oordination and C lear L ines of A uthority Promoting accountability through careful internal coordination and clear, well-defined lines of authority is still a challenge for the Department. OIG finds that poor coordination and vague or dispersed authority are at the root of some of the Department’s other deficiencies. This is a concern that affects a wide range of Department functions: it is often implicated in problems particular to certain Department programs or projects, and it is likewise relevant to some of the Department’s more longstanding and systemic difficulties, including ensuring physical and information security. 77 OIG, Review of Allegations of Politicized and Other Improper Personnel Practices in the Bureau of International Organization Affairs (ESP-19-05, August 2019). 78 OIG, Targeted Review of Leadership and Management at the National Passport Center (ISP-I-19-13, November 2018). 79 ISP-I-19-16, June 2019. 80 Ibid . 81 OIG, Audit of Department of State Directorate of Defense Trade Controls Export Licensing Processes (AUD-SI-19-07, February 2019). 82 ISP-I-19-12., October 2018. 83 AUD-MERO-19-27, June 2019. 84 OIG, Review of Allegations of Improper Passport Seizures at Embassy Sana’a, Yemen (ESP-19-01, October 2018). A lack of internal coordination was one of our findings in the audit of the Department’s Directorate of Defense Trade Controls, which is charged with controlling the export of defense articles and services. Specifically, we found that licensing officers, who adjudicate applications from prospective exporters, did not always work with other relevant bureaus and offices to gain valuable input before approving applications. 81 In our inspection of DRL foreign assistance program management, we heard from employees of regional bureaus and embassies that DRL did not always share sufficient information about sensitive democracy and governance programs taking place in their region or country, which hampered their ability to direct and supervise the implementation of foreign assistance programs. 82 Furthermore, we found instances where dispersed and unclear authority contributed to weaknesses in certain programs and operations. For example, we reported that we could not affirm whether grants and cooperative agreements awarded to counter violent extremism were achieving desired results because the Bureau of Counterterrorism (CT) had not ensured that the strategic plans and activities of Department bureaus aligned with the overall Department goals. 83 We found that CT officials could not enforce compliance with Department goals because they did not have the authority to do so. Similarly, we found that the search for a resolution to improper passport seizures at Embassy Sana’a, Yemen, was prolonged in part because there was no single decisionmaker with clear authority to resolve differing viewpoints on legal questions. 84 A lack of coordination also affects the Department’s overall difficulties in tracking and prioritizing physical security needs at overseas posts and its struggle to implement an effective information security program. On the former, we have long 124 | 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