Mission
The Office of Audits (AUD) supports the Department of State (Department) and the U.S. Agency for Global Media (USAGM) in their efforts to improve management; strengthen integrity and accountability; and ensure the most efficient, effective, and economical use of resources. AUD also provides oversight of the International Boundary and Water Commission, United States and Mexico, U.S. Section (USIBWC).
Many of the projects that AUD performs each year focus on major management challenges within the Department and USAGM. Because of limited resources, AUD generally focuses on high-cost programs, key management challenges, and vital operations. Such projects will provide Department and USAGM managers with information to help them make sound operational decisions and productive changes. AUD also devotes significant resources to fulfilling mandatory requirements, such as annual financial statement and information security audits, or to responding to congressional and agency requests. Finally, AUD conducts audits and other projects in response to consequential worldwide events. Areas of focus might include physical security at domestic and overseas locations; financial management; IT security; contracts, acquisition, and grants management; human capital and administrative issues; and high-risk programs and operations in crisis and post conflict areas.
Processes
An audit provides an independent, objective assessment of the stewardship, performance, or cost of government programs or operations. Audits assist legislators, oversight bodies, management, and the public by determining whether (1) officials are managing government resources and using their authority properly and in compliance with laws and regulations; (2) government programs are achieving their objectives and desired outcomes; and (3) government entities are providing services effectively, efficiently, economically, ethically, and equitably.
OIG audits are objective, fact based, and performed in accordance with the U.S. Government Accountability Office's Government Auditing Standards. Audits include an evaluation of sufficient, appropriate evidence and criteria (e.g., laws, regulations, contracts, or other benchmarks). The audit team develops findings and recommendations based on the results of the audit work performed.
The audit process includes:
- Audit notification. The audit team notifies external stakeholders, in writing, that an audit is scheduled to start.
- Entrance conference. The audit team holds a meeting to inform external stakeholders of the purpose, objectives, and scope of the audit and the methodology to be followed.
- Audit fieldwork. The audit team gathers evidence necessary to satisfy the project objective(s). The evidence must be sufficient and accurate to ensure that the team develops findings and recommendations that have a positive impact. Fieldwork must follow internal and external audit standards.
- Exit conference. At the conclusion of a project, the audit team holds a meeting with key external stakeholders to discuss the results of fieldwork, tentative findings, and anticipated recommendations. The audit team will solicit feedback from external stakeholders on the tentative findings and recommendations and use the feedback to modify the findings, as appropriate.
- Report preparation. The audit team prepares a draft report, which is vetted and cleared within OIG. Key external stakeholders typically have 14 calendar days after the draft report is issued to provide written comments and to specify whether they agree with the report’s recommendations and with the amount of any potential monetary savings. The audit team incorporates those comments into the final report. Key external stakeholders have 30 days from issuance of the final report to provide information on actions planned and taken to implement the recommendations.
Structure
The Assistant Inspector General for Audits leads the Office of Audits, which is comprised of the Core Operations and Global Governance (COGG) and the Global Emergencies and Emerging Risks (GEER) Directorates, as well as the Audit Operations, Quality, and Compliance Division (AOQC) and Senior Advisor for Construction and Contracts. The Deputy Assistant Inspector General (DAIG) for Audits is responsible for COGG and is charged with auditing the management and financial operations of the Department, USAGM, and USIBWC, including their financial statements, information security, internal operations, and external activities funded through contracts or federal financial assistance. The DAIG for GEER is responsible for the GEER Directorate and performs engagements of Department foreign assistance and foreign policy operations worldwide, including in crisis, post-conflict, and fragile states.
Core Operations and Global Governance (COGG) Directorate
Acquisitions and Federal Assistance Division
The Acquisitions and Federal Assistance (AFA) division audits contracts, grants, cooperative agreements, and similar assistance instruments. AFA audits assist external stakeholders to efficiently and effectively administer and oversee contracted activities and other federal assistance programs. The audits also assist external stakeholders to ensure that recipients of federal funds are spending the funds as intended, performing program activities as stipulated, and achieving desired results.
Cybersecurity and Information Assurance Division
The Cybersecurity and Information Assurance Division (CYBR) audits cybersecurity governance and determines the effectiveness of information security programs and practices. Additionally, CYBR reviews efforts to effectively protect global IT infrastructure and sensitive data (e.g., classified, personally identifiable information, or other sensitive information). Furthermore, CYBR performs technical assessments (e.g., vulnerability and configuration compliance scanning) to evaluate the ability to identify, manage, and mitigate cyber and IT risks. CYBR enhances the efficiency of critical in-house governance and regulatory compliance functions and promotes the confidentiality, integrity, and availability of information systems.
Financial Management Division
The Financial Management Division (FM) audits efforts to achieve effective financial management of programs and adequate accountability for resources. FM’s responsibilities include auditing financial issues, activities, and operations, including overseeing annual financial statement audits and performing mandated audits of improper payments.
Workforce and Operations Division
The Workforce and Operations (WFO) division is responsible for auditing human capital programs and the operational support elements that enable domestic and overseas missions to function effectively. WFO audits include oversight of workforce planning, construction-related activities, facilities management, and other support infrastructure that sustains global operations.
Global Emergencies and Emerging Risks (GEER) Directorate
Washington, DC (Headquarters)
GEER plans, conducts, supervises, oversees, and coordinates performance audits, evaluations, and other projects of high-cost, high-risk foreign assistance and foreign policy operational programs worldwide. GEER audits and evaluates the effectiveness of foreign assistance programs and engagements; embassy operations and personnel security; and the Department’s preparedness for emerging risks. In addition to its responsibilities related to Overseas Contingency Operations, GEER coordinates its often-high-profile and high-priority engagements with other federal Offices of Inspectors General and the international oversight community as appropriate. In addition to having staff at OIG’s headquarters, the GEER Directorate operates an overseas office Kyiv, Ukraine.
Embassy Kyiv, Ukraine
Opened in summer 2023, the GEER office in Kyiv, Ukraine, provides oversight on issues related to embassy operations; security; humanitarian assistance; and contracts, grants, and cooperative agreements related to the Department’s assistance to Ukraine. GEER’s on-the-ground presence at Embassy Kyiv allows staff to directly engage with the Deputy Chief of Mission and the Ambassador, facilitating oversight coordination. Furthermore, it allows OIG to coordinate with other Offices of Inspector General that are on site, reducing duplication of effort.
The Overseas Contingency Operations Division (OCO) collaborates with U.S. Department of War (DoW) OIG and U.S. Agency for International Development (USAID) OIG to produce quarterly reporting on overseas contingency operations and activities of the Federal government related to those operations. With DoW OIG and USAID OIG, the division also coordinates, develops, and carries out a joint strategic plan to conduct comprehensive oversight of and reporting on all aspects of the OCO.
Strategic Priorities Division (STP) conducts audits that address complex enterprise-wide challenges and responds to strategic priorities in crisis, post-conflict, and fragile states worldwide.
The Security and International Programs Division (SIP) audits the Department’s approach to protecting personnel, property, and information to include both the day-to-day security of embassies and consulates as well as how overseas posts are prepared to respond to a range of emergency scenarios. Additionally, the SIP Division audits the full range of the Department’s international programs, with a particular focus on programs implemented in high-threat and high-risk environments.
The Foreign Assistance Division (FA) audits the Department’s foreign assistance programming. In doing so, the FA Division advances national security by assessing U.S. strategic investment abroad, identifying vulnerabilities in the Department’s development of objectives and performance management in foreign assistance awards, and promoting evidence-based decision making.
Audit Operations, Quality, and Compliance Division
The Audit Operations, Quality, and Compliance Division (AOQC) conducts quality control reviews of audits, performs workforce planning and analysis for AUD, performs contracting officer’s representative duties, develops and manages budget information in coordination with OIG’s budget office, recruits and hires qualified employees, and manages the continuing professional education requirements for AUD employees. AOQC also provides editing services for all published and official AUD documents, and provides a full range of administrative support.
In addition, AOQC performs compliance follow up on AUD recommendations. Compliance follow up is an integral part of good management and is a shared responsibility between agency officials and OIG. Corrective action taken by management to resolve audit findings and recommendations is essential to improving the effectiveness and efficiency of agency operations. AOQC tracks the status of recommendations, verifies that corrective actions have been taken to implement recommendations, helps to obtain agreement (resolution) for audit recommendations not previously accepted by management, and coordinates follow-up reviews and evaluations as needed. AOQC is also responsible for periodic reporting of corrective actions. In addition, AOQC provides statistical sampling and technical methodology support for AUD teams and reviews draft reports for statistical and methodological soundness, clarity, and recommendation consistency.
Peer Reviews
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