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

3 reported a significant amount of questioned costs and funds that could be put to better use during FY 2019. • In addition, the previously reported matters related to the Antideficiency Act and the Prompt Payment Act impact the Department’s compliance with FFMIA. The Department has not implemented and enforced systematic financial management controls to ensure substantial compliance with FFMIA. 7 Although the Bureau of the Comptroller and Global Financial Services (CGFS) performed an analysis to assess the Department’s compliance with FFMIA, CGFS has not developed remediation plans to address instances of noncompliance. The Department’s ability to meet Federal financial management system requirements was hindered by limitations in systems and processes. Since our FY 2009 audit, we have reported annually that the Department did not substantially comply with all requirements of FFMIA; however, this year the Department’s substantial compliance improved in two of three requirements. During the audit, we noted certain additional matters involving compliance that we will report to Department management in a separate letter. Department’s Response to Findings Department management has provided its response to our findings in a separate letter included in this report as Appendix A. We did not audit management’s response, and accordingly, we express no opinion on it. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing and not to provide an opinion on the effectiveness of the entity’s compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and OMB Bulletin No. 19-03 in considering the entity’s compliance. Accordingly, this report is not suitable for any other purpose. Alexandria, Virginia January 17, 2020 7 Ibid. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 61 INDEPENDENT AUDITOR’S REPORT | FINANCIAL SECTION