Planned work includes projects that have not been initiated but are planned by the Office of Inspections and Office of Audits. This list will be updated as new work is planned.
Audit of the Department of State’s Application of Updated Terms and Conditions To Awards Transferred From the U.S. Agency for International Development
The terms and conditions included in Department award vehicles, such as contracts, grants, and cooperative agreements, represent a legally binding framework defining performance expectations and dispute resolution processes in the event of disagreement among the parties. On July 1, 2025, the Department assumed responsibility for the administration of ongoing foreign assistance programs and associated awards that were previously provided through the U.S. Agency for International Development (USAID). The Department directed updates to the award language for transferred awards by October 14, 2025. The updates spanned four categories: (1) Executive Order compliance; (2) access and authorities; (3) operational conflicts and administration; and (4) payment and invoicing. The preliminary objective is to determine whether the Department updated the terms and conditions of awards transferred from USAID to reflect current regulations and guidance.
Audit of the Department of State’s Oversight of Non-Federal Audits of Foreign Organizations Receiving Awards
Government agencies frequently rely on non-profit organizations to implement programs—including humanitarian and development programs—worldwide. The Code of Federal Regulations (2 C.F.R. 200) establishes audit requirements for certain domestic organizations receiving federal awards. Specifically, according to the guidance, certain domestic organizations expending $1,000,000 or more in federal funds during a fiscal year must have a non-federal auditor perform an audit of the organization’s financial statements and compliance with award requirements. The guidance states that federal agencies may apply requirements on foreign organizations as permitted in agency regulations. The Department developed requirements for foreign organizations to obtain non-federal audits in its Federal Assistance Directive. The transition of U.S. Agency for International Development foreign assistance awards to the Department has increased the number of non-federal audits of foreign organizations that the Department will need to oversee. The proposed objective of this audit is to determine whether the Department has established and implemented an oversight program for identifying, tracking, and addressing non-federal audits of foreign organizations receiving foreign assistance awards.
Audit of the Department of State’s Administration of Termination Procedures for Selected Federal Assistance Awards
Executive Order 14169 paused foreign development assistance while agencies reviewed programs and determined whether to continue, modify, or end them. Many of these programs rely on federal assistance awards, and the accelerated review timeline increased the risk that terminations were not completed according to requirements. The preliminary objective of this audit is to determine whether the Department administered termination requirements and deobligated available funds for selected FY 2025 federal assistance awards in accordance with federal and Department guidance.
Audit of the Department of State’s Administration of Selected Foreign Assistance Funded Contracts
With the transition of USAID foreign assistance programs to the Department, the Department is now responsible for implementing programs in new sectors using contracts. The preliminary objectives of the audit are to determine whether the Department is administering foreign assistance-funded contracts in accordance with federal and Department requirements and whether those contracts are achieving desired results.
Evaluation of the Department of State’s Administration of Its Continuing Foreign Assistance Programs
The Department’s ability to effectively administer its traditional foreign assistance programs may be affected by the transition of USAID foreign assistance programs to the Department and the Department’s domestic reorganization, which was effectuated in July 2025. The preliminary objective of the evaluation is to describe the Department’s administration of foreign assistance programs and the awards approved to continue following reviews required by Executive Orders.
Audit of the Department of State’s Implementation of Foreign Assistance to Ukraine
Ukraine assistance programs valued at an estimated $1.8 billion were transferred to the Department in July 2025. Implementation of those programs is being managed by a unit previously responsible only for strategic coordination of, rather than execution of, foreign assistance. The preliminary objective of the audit is to determine whether U.S. Embassy Kyiv has developed and implemented the structural capacity to administer foreign assistance awards in accordance with federal and Department requirements.
Audit of the Department of State’s Counterterrorism Vetting
To address the risk that U.S. foreign assistance could inadvertently or incidentally benefit terrorist organizations that threaten national security, the Department screens individuals and organizations implementing and receiving foreign assistance for potential ties to terrorism. The preliminary objective of the audit is to determine whether the Department’s risk management and counterterrorism vetting procedures are designed to prevent terrorist organizations from benefitting from U.S. foreign assistance funds.
Inspection of the Bureau of African Affairs
The Bureau of African Affairs has inherited significant foreign assistance management and oversight responsibilities from USAID and from functional bureaus with limited additional staffing. The preliminary objectives of the inspection are to (1) review how the Bureau of African Affairs has reorganized and defined its roles and responsibilities, including those related to foreign assistance management, and (2) evaluate the extent to which the bureau is executing its mission and responsibilities in accordance with Department priorities and guidance.
Audit of the Department of State’s Efforts To Combat Infectious Diseases in Selected Countries Through the Global Fund
The Global Fund is a non-profit organization that is structured as a partnership between governments, civil society, the private sector and communities affected by HIV, tuberculosis, and malaria. The preliminary objective of the audit is to determine whether U.S. contributions to the Global Fund are contributing to selected countries’ capacity to combat HIV, tuberculosis, and malaria as intended.
Evaluation of the Department of State’s International Disaster Response Readiness
The Department recently assumed responsibility from USAID for leading international disaster assistance for the U.S. government and managing rapid deployments of personnel and relief materials to international disasters. The preliminary objectives of the evaluation are to (1) assess the extent to which the Department has defined its roles and responsibilities for planning and organizing a U.S. government response to international disasters after the consolidation of USAID functions, and (2) determine the Department’s capacity to coordinate and monitor a U.S. government response to international disasters with other international and interagency actors.
Audit of the Department of State’s Accountability of Disaster Assistance Response Supplies
In July 2025, the Department assumed responsibility for five geographically dispersed warehouses with relief commodities intended to aid in rapid responses to humanitarian emergencies. The preliminary objectives of the audit are to determine whether the Department (1) maintained accountability of disaster assistance inventory stored at former USAID warehouses, and (2) has developed and implemented the necessary capacity to distribute disaster assistance supplies in response to humanitarian emergencies.
Inspections of Overseas Posts
Alongside ongoing inspections, OIG will inspect one post with notable foreign assistance connections in FY2027: Embassy Jerusalem, which had significant USAID presence and programming. This inspection will evaluate all aspects of foreign assistance, including global health programming, to ensure accountability and effective management of U.S. resources.