U.S. Department of State Fiscal Year 2020 Agency Financial Report

vehicle fleet contributed to this challenge. OIG notes that a significant aspect of addressing this challenge relates to the Department’s ability to identify internal control weaknesses in the first place and its subsequent compliance with relevant standards. This issue affects management of both the Department’s financial resources and its property. As with oversight of contracts and grants, attention to this challenge is particularly important to ensure that the Department appropriately oversees and uses public resources. Operating in Contingency and Critical Environments In some cases, the Department must operate in “critical” environments, or areas that experience various threats in the form of conflict, instability, disease, or natural disasters. These pose their own set of problems and contribute to existing challenges. OIG’s work has identified contracts and other foreign assistance that is susceptible to inadequate oversight, with the absence of clear guidance and limited staff contributing to such weaknesses. Staff reductions in Afghanistan and Iraq have contributed to expedited staffing reviews, while OIG also identified the lack of a centralized database for the special immigrant visa program in Afghanistan. This contributed to delays and increases the Department’s risk for fraud and threats to national security. Workforce Management Although the Department has experienced periods of transition in the past fiscal year, it continues to strive to be flexible and meet its resource needs, to include providing adequate compensation in challenging areas. Nevertheless, OIG continued to identify staffing gaps, frequent turnover, poor leadership, and inexperienced and undertrained staff that contribute to challenges in workforce management. The issue of underqualified staff intersects with the challenge of contract oversight. Although OIG’s inspection work frequently highlights strong embassy leadership, we did identify areas where trust in leadership is lacking. For example, in one report the detail of a career employee was ended after discussion about that employee’s perceived political views. As a result, OIG recommended training on the Department’ merit-based personnel rules for political appointees. 2 OIG, Review of Delays Encountered Constructing the New Embassy Compound in Ashgabat, Turkmenistan (AUD-MERO-20-20, February 2020). Promoting Accountability Through Internal Coordination and Clear Lines of Authority Clear lines of authority are necessary for ensuring that the Department is able to hold decision makers accountable. However, OIG finds that poor coordination and vague or dispersed authority are at the root of some of the Department’s other deficiencies. As noted in our summary, OIG found that the Department lacks coordination and guidance on the investigative and disciplinary processes for its handling of sexual harassment reports. An absence of joint guidance for offices and poor coordination and unclear goals have contributed to such lapses. It’s important that the Department eliminate conflicting lines of authority to ensure accountability. 1 P rotection of P eople and F acilities The Department’s global presence and the continued threat of physical violence directed toward U.S. diplomats makes the protection of people and facilities an ongoing top management challenge. Although the Department prioritizes the safety and security of its personnel and facilities, all U.S. diplomatic facilities face some level of risk. Additionally, natural disasters, environmental hazards, and ordinary crime continually pose risks to the health and safety of Department personnel and their families serving abroad. Constructing and Maintaining Safe and Secure Diplomatic Facilities Constructing and maintaining safe and secure diplomatic facilities has been an ongoing challenge, which is compounded in regions affected by conflict and humanitarian crises. OIG continues to recommend steps the Department can take to improve adherence to its own policies and procedures. In one particular review, OIG found that work on a new embassy compound in Ashgabat, Turkmenistan, had been significantly delayed because the Bureau of Overseas Buildings Operations (OBO) had allowed construction on one building to begin in a physical location that violated the city’s standards. 2 Although the crux of our review related to 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 117 INSPECTOR GENERAL’S STATEMENT ON THE DEPARTMENT’S MAJOR MANAGEMENT AND PERFORMANCE CHALLENGES | OTHER INFORMATION