Report Contents
Summary of Review
OIG inspection reports have frequently highlighted embassy-specific improvements needed in managing overseas expendable property, but OIG initiated this review to take a Department-wide look at this issue. For this management assistance report (MAR), OIG reviewed 61 overseas inspection reports issued from October 1, 2016, to June 30, 2020, and identified 17 findings related to expendable property management issues. In these reports, OIG found that overseas posts did not account for all expendable property using the Department of State’s (Department) mandated system of record, the Integrated Logistics Management System (ILMS). 1 Specifically, posts failed to track staff uniforms, automotive parts, and facility management expendable property—including contractor-provided spare parts and surplus construction materials and supplies—in ILMS. OIG highlighted several causes for this internal control issue overseas, including lack of management oversight, lack of training, competing priorities, and staffing shortages.
In this review, OIG identified Department-level issues that contributed to or caused the issues in expendable property management, including outdated guidance and insufficient internal controls procedures. Additionally, the Bureau of Administration’s Property Management Division (PM) did not issue guidance on the receipt and accountability of surplus construction material and supplies. Finally, ILMS lacked an alert system to notify PM and overseas post managers of expendable property exclusions. OIG made three recommendations to the Bureau of Administration to address these issues. In its comments on the draft report, the Department concurred with all 3 recommendations. OIG considers all 3 recommendations resolved. The Department’s response to each recommendation and OIG’s reply can be found in the Recommendations section of this report. The Department’s formal written response is reprinted in its entirety in Appendix B.
1 The Integrated Logistics Management System is an integrated web-based system that encompasses all Department supply chain functions in one system. It is designed to upgrade Department supply chain management by improving operations in purchasing, procurement, warehousing, transportation, property management, personal effects, and diplomatic pouch and mail.
Report Terms
Report Recommendations
The Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services, should update its expendable property management guidance and include internal control procedures governing expendable property management on its Annual Physical Inventory and Reconciliation and annual Chief of Mission Management Control Statement of Assurance compliance questionnaires.
The Bureau of Administration, in coordination with the Bureau of Overseas Buildings Operations, should issue formal guidance on the receipt and accountability of overseas surplus construction materials and supplies.
The Bureau of Administration should develop and implement a plan to add an alert capability to improve the internal control capability of the Integrated Logistics System Expendables module.