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

with the loss of Government control and accountability for policy and program decisions. 29 Another report noted that the Global Engagement Center (GEC) did not consistently manage and monitor awards in accordance with Federal requirements, Department policies and guidance, and award terms and conditions. OIG found that 9 of 10 of the monitoring and evaluation plans reviewed did not include all monitoring and evaluation plan elements and did not demonstrate a direct link to the proposed scope of work, as required by the Federal Assistance Directive. Until such deficiencies are fully remediated, GEC will not be in a position to ensure award recipients are using funds as intended or be able to fully demonstrate that the awards being implemented are fulfilling GEC’s statutory mandate to coordinate efforts in countering propaganda and disinformation efforts aimed at undermining U.S. national security interests. 30 Ensuring Proper Invoice Review and Approval Processes Proper invoice review and approval processes help the Department ensure that it receives the benefit of its contracts and that it can take appropriate steps if contractors are not performing in accordance with the terms of a contract. Issues with maintaining records of invoice reviews and verifying that invoices include all required information persist. 31 For example, in one report OIG selected four task orders associated with four different contracts for facilities management services that had a combined value of more than $151 million. OIG found limited supporting documentation for the 35 invoices selected for review. In addition, OIG could not verify that some invoices were processed properly because the CORs for three of the four task orders reviewed did not maintain records of their invoice reviews. 29 ISP-I-20-14, June 2020. 30 AUD-MERO-20-26, April 2020. 31 OIG, Audit of Mission Turkey and Embassy Beirut Fuel Oversight and Payment Process (AUD-MERO-20-19, January 2020); ISP-I-20-21, May 2020; AUD-CGI-20-21, March 2020; ISP-I-20-09, January 2020. 32 AUD-CGI-20-21, March 2020. 33 AUD-MERO-20-19, January 2020. 34 OIG, Audit of the Bureau of Overseas Buildings Operations Process To Execute Construction Closeout Procedures for Selected Capital Construction Projects (AUD-CGI-20-43, September 2020); AUD-MERO-20-39, September 2020; AUD-MERO-20-20, February 2020. Furthermore, the CORs could not clearly explain how they reviewed invoices, and 10 out of 35 invoices reviewed did not show a COR approval stamp. As a result, OIG made several recommendations, including to develop and implement procedures to monitor and verify the completeness, accessibility, retention, and review of COR files. 32 Other OIG work found that oversight officials at Mission Turkey and Embassy Beirut did not verify that invoices involving fuel included all of the required information to make them proper or certify them for payment and verify that prices complied with contract terms. As a result, OIG identified $3.4 million in questioned costs and concluded that the Department should implement fuel receiving procedures in accordance with the Federal Acquisition Regulation requirements that require Contracting Officers (COs) or CORs to accept fuel on behalf of the Government. 33 Overseeing Construction Contracts The Department continues to experience problems with the oversight of construction contracts, which are often long-term, complex, and of high value. 34 In addition to the financial consequences resulting from inadequate management and oversight of these contracts, insufficient oversight of the building process can lead to the construction of substandard facilities, which occasionally has implications for the safety and security of personnel. An inspection of a new embassy compound (NEC) in Turkmenistan highlighted issues that arise when personnel fail to communicate properly with local government officials and follow internal procedures. In July 2016, the Government of Turkmenistan halted construction on a new building on the embassy compound because it was being constructed in a location that violated one of the city’s 122 | U ni ted S tates D epartment of S tate 2020 A gency F inanci al R eport OTHER INFORMATION | INSPECTOR GENERAL’S STATEMENT ON THE DEPARTMENT’S MAJOR MANAGEMENT AND PERFORMANCE CHALLENGES