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

in designing a new fraud risk exposure analysis methodology that comparatively scores bureaus throughout the Department, to effectively assist the Department in making informed fraud risk management decisions. Additionally, CGFS engaged with management from all Bureaus in the Department and documented fraud risks, controls in place to mitigate the fraud risk, and a residual risk analysis. This effort was coordinated with the Department’s Enterprise Risk Management program in compliance with OMB Circular A-123. Progress in Identifying Risks and Vulnerabilities Many Department managers have robust fraud preventive and detective measures, and fraud analytics programs that have operated for many years, while some areas have recently developed fraud prevention activities. Below are examples and highlights from a few of our accomplishments in 2020. Consular: CA liaised with management and consular adjudicators worldwide to refine their fraud prevention strategies and tactics to combat new and evolving threats. CA disseminated anti-fraud information to a wide variety of clients via a broad range of avenues, including formal fraud prevention training, the CA/FPP website, the Fraud Digest, webinars, and other publications. CA also liaised with the Bureau of Diplomatic Security (DS), the Department of Homeland Security (DHS) and other Federal agencies and organizations concerned with immigration fraud, alien smuggling, and identity theft linked to consular products. In addition, CA supported 51 investigations involving allegations of internal malfeasance, resulting in the termination or resignation of 13 consular staff. CA provided assistance to DS in visa and passport fraud investigations, with special focus on those that involve employee malfeasance. Procurement: An 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 2020, 201,195 annuitant payments totaling $999 million were reviewed against the Death Master File and 65 payments totaling $284,208 were stopped due to this initiative. Travel Card Program: In 2019, 110,226 transactions totaling more than $18 million were inspected by the Department’s automated Misuse tool, 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. 646 transactions were confirmed as misuse totaling $89,741. Annual 2020 results are not yet compiled. Payroll: The COVID-19 pandemic resulted in a dramatic volume of authorized departures from Posts all over the world for personnel and their families to return to domestic safe havens. A component of how payroll is calculated includes location allowances earned while living abroad. Because personnel who relocated to the United States were no longer eligible for location allowances, this created a vulnerability to expend improper payments. The Department developed analytic reconciliation techniques to identify personnel who were granted safe passage payments and those who were still receiving location allowances, and as a result identified approximately 300 individuals who were required to return the overpaid allowances. Progress on Establishing Strategies, Procedures, and Other Steps to Curb Fraud Instances of potential and actual fraud are investigated by the Office of Inspector General. Some fraud investigations are also coordinated with the Criminal Fraud Investigations office in DS. In addition, posts routinely report the occurrences of fraud on an annual basis in the Statement of Assurance. Department-wide, all personnel are encouraged ? Did You Know? Elihu B. Washburne, the 25th Secretary of State, served only 11 days in 1869. His term remains the shortest of any Secretary of State. M ore information on former Secretaries can be found a t: https://history.state.gov/departmenthistory/ p eople/secretaries 142 | U ni ted S tates D epartment of S tate 2020 A gency F inanci al R eport OTHER INFORMATION | PAYMENT INTEGRITY AND OTHER LAWS AND REGULATIONS