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

The Department has maximized the use of fully-qualified personal services and third-party contractors to fill critical facility manager vacancies at posts, and ramped up recruiting efforts over the past twelve months. Eight facility manager students currently are in tradecraft training at the Foreign Service Institute and expected to complete it in January 2020. The Department also has established several OBO Regional Support Centers (ORSC), with the latest one in the Bureau of African Affairs (AF). The AF ORSC will reach initial operational capability in 2020 and provide direct facility management support to AF posts. Regarding specific OIG recommendations made on public water and mold issues from U.S. Embassy Paramaribo’s chancery roof, a Departmental team reviewed the roofing deficiencies and estimates that they will be corrected by the end of calendar year 2019. In addition, post mitigated the mold issues and worked with the embassy health unit and OBO’s Office of Safety Health and Environmental Management to confirm that there are no reports of occupants with health issues linked to mold in the buildings. Regarding OIG’s Inspection of Embassy Banjul, The Gambia , OIG reported numerous physical defects in the chancery. OBO and the Embassy continue to negotiate with the landlord to undertake the repairs, but the parties have yet to determine a start date. For the Inspection of Embassy Port-au-Prince, Haiti , OIG reported potential workplace safety hazards, including issues with the elevator. The Embassy completed most of the required repairs, and is coordinating with OBO to issue a Certificate of Use for the two elevator issues. Ensuring the Health and Safety of Personnel Abroad The Department’s emphasis on fostering and sustaining a healthy, resilient, and engaged global workforce for optimal performance is incorporated into the Under Secretary for Management’s High Five action plan. The Department is working to expand resilience support and training activities through ongoing outreach and other efforts.  2  O versight of C ontracts , G rants , and F oreign A ssistance In response to the OIG recommendations, the Department took a number of actions to improve oversight of contracts and grants, including those that appear below. The Department will continue to take steps to address OIG’s recommendations. Overseeing Construction Contracts OIG’s audit of the commissioning of two residential buildings at the Embassy in Kabul found that, in order to accommodate the ambassador’s request to expedite occupancy, OBO declared the buildings substantially complete even though 8 of 22 systems were not commissioned. OBO maintains that as long as fire and life-safety systems are complete and a building can be used for its intended purpose, minor punch list items should not prevent the Department from moving people into safer, more secure facilities as quickly as possible, particularly in a critical-threat environment. OBO is in the process of updating its policies and procedures to allow for the necessary flexibilities required for overseas construction, especially in fluid environments such as Kabul. During the same audit, OIG identified weaknesses in how OBO maintains commissioning documentation, which serves as the historical record of key decisions made throughout the project planning and delivery process. OBO maintains that the risks identified by OIG are minimal, although OBO concurs that an improved documentation process may mitigate these risks. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 127 MANAGEMENT’S RESPONSE TO INSPECTOR GENERAL | OTHER INFORMATION