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

Procurement: The ILMS Analytics team identified multiple cases of split purchases (where each transaction was below the micro-purchase threshold) which allowed posts to avoid the competitive bid process. Beneficiary Payments: The use of Treasury’s Secure Payment System continues to assist with successful identification and prevention of fraudulent payments to beneficiaries. In 2019, 199,814 annuitant payments totaling $976 million were reviewed against the DMF and 80 payments totaling $336,765 were stopped due to this initiative. Travel Card Program: The Department’s Travel Card Program office utilizes an automated Misuse tool that has yielded 100 percent compliance with the Government Charge Card Abuse Prevention Act, which reviews all credit card transactions and compares the data to travel orders to determine if the card was used in compliance with government mandates. In 2018, 121,892 transactions totaling more than $23 million were inspected by the Misuse tool. 898 transactions were confirmed as misuse totaling $112,150. Annual 2019 results are not yet compiled; however, improved results are expected based on monthly reporting results. Cardholders who were found to have misused their cards were counseled on the appropriate use of the card and required to re-take training. Any cardholders who are found to have misused their cards a second time are referred to Human Resources for discipline, as well as to the Office of Inspector General. Progress on Establishing Strategies, Procedures, and Other Steps to Curb Fraud The potential for fraud is investigated by the Office of Inspector General and other fraud investigations such as the Criminal Fraud Investigations office in DS. In addition, posts report on a semi-annual or annual basis the occurrences of fraud including the types of fraud, fraud risks and methods to mitigate those risks. Fraud risk management is an important aspect of the Department’s strategy to achieve its mission and goals. During 2019, Bureaus collaborated with each other to advance an organizational culture to combat fraud across components, programs, and levels. The Department will continue to dedicate resources to this important initiative in 2020. Secretary of State Dean Acheson signs the Treaty of Peace with Japan. The treaty officially ended World War II and set the terms of peace with Japan. Forty-nine nations signed the Treaty of Peace with Japan in San Francisco, California, September 8, 1951 . Department of State 146 | U nited S tates D epartment of S tate 2019 A gency F inancial R eport OTHER INFORMATION | PAYMENT INTEGRITY AND OTHER LAWS AND REGULATIONS