Report Contents
Summary of Review
In accordance with Federal regulations,1 the Department of State (Department) requires all bureaus, offices, and overseas missions to conduct a risk assessment for Federal financial assistance awards.2 The regulations also require that the risk assessment be factored into a monitoring plan that will be used to guide oversight to ensure that a grant’s stated goals and objectives are being accomplished. Failure to complete and use risk assessments and monitoring plans leaves the Department vulnerable to loss of funds or failure by the grantee to adequately perform on the award. OIG found a pattern of non-compliance with risk assessment and monitoring plan requirements in its review of findings from 12 overseas inspections and 13 Bureau of Administration, Office of the Procurement Executive Federal Assistance Division (A/OPE/FA) evaluations conducted between March 2015 and January 2017. OIG made five recommendations to improve awareness of the requirements to complete risk assessments and monitoring plans and to standardize their use overseas. In its comments on this draft report, the Bureau of Administration concurred with the five recommendations. The bureau’s response to the recommendations and OIG’s reply can be found in the Recommendations Section of this report. OIG considers the recommendations resolved. The bureau’s formal written response is reprinted in its entirety in Appendix C.
Report Terms
Report Recommendations
The Bureau of Administration, in coordination with the Foreign Service Institute, should accelerate development of updated online training that adequately explains risk assessment and monitoring plan requirements for grants and cooperative agreements.
The Bureau of Administration should issue cable guidance to overseas missions explaining the importance of risk assessments and monitoring plans and how to comply with Department of State requirements on their use.
The Bureau of Administration, in coordination with the Department’s six regional bureaus, should develop standardized and scalable templates that are tailored for overseas use and consistent with Department requirements on the preparation and use of risk assessments and monitoring plans for grants and cooperative agreements.
The Bureau of Administration should update Federal Award File Form DS-4012 to reflect the latest risk assessment requirements and integrate the updated form into the State Award Management System.
The Bureau of Administration should amend its guidance to require regional bureaus to verify that risk assessments and monitoring plans are completed and that they meet Department of State requirements as a prerequisite for approving overseas grants and cooperative agreements.