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

noted in past reports a lack of coordination between OBO and DS, both of which have responsibilities for physical security at diplomatic facilities. 85 The creation of a database of physical security deficiencies reflects improved coordination between the bureaus, but the Department must develop and implement a process to prioritize physical security deficiencies at overseas posts to improve allocation of funding. Regarding information security, OIG remains concerned with the overlapping and poorly defined responsibilities between DS and IRM and the organizational placement of the CIO, which impedes the position’s ability to effectively implement an agency-wide information security program. In addition to addressing these structural and organizational concerns through its reports and recommendations, OIG has repeatedly emphasized these matters in testimony, presentations, and other communications with the Department and with Congress. C onclusion Effectively implementing U.S. foreign policy through diplomacy, advocacy, and assistance is essential to our nation’s security and prosperity. However, each of the management challenges described in this report has an outsized effect on the Department’s ability to perform its mission and to safeguard taxpayer resources while doing so. 85 OIG, Compliance Follow-up Audit of the Process To Request and Prioritize Physical-Security Related Activities at Overseas Posts (AUD-ACF-16-20, December 2015). OIG observes that where multiple challenges overlap, unique vulnerabilities emerge for the Department. OIG is particularly concerned with the Department’s information systems, which are relied on by all programs and operations for carrying out the Department’s mission. Longstanding information security weaknesses put every other function at risk. Additionally, widespread workforce management issues hinder oversight of contracts and grants and weaken internal controls, exposing the Department to the risk of fraud and waste, particularly in critical and contingency environments. In fact, our growing body of work on the construction projects at Embassy Kabul illustrates the interplay of all these issues. Pressure to quickly complete construction projects coupled with poor coordination among stakeholders, a slow acquisitions process, and personnel without the necessary expertise can lead to contract management mistakes with financial and security implications for the Department. The Department will benefit most if deficiencies are effectively addressed in programs and operations that are affected by multiple challenges. OIG accordingly encourages the Department to consider how these challenges interact and how it can address them systemically. OIG remains committed to assisting the Department as it works to improve the effectiveness and efficiency of its programs and operations. HELP FIGHT FRAUD. WASTE. ABUSE. 1-800-409-9926 stateOIG.gov/HOTLINE If you fear reprisal, contact the OIGWhistleblower Coordinator to learn more about your rights. WPEAOmbuds@stateoig.gov 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 125 INSPECTOR GENERAL’S STATEMENT ON THE DEPARTMENT’S MAJOR MANAGEMENT AND PERFORMANCE CHALLENGES | OTHER INFORMATION