Planned work includes inspection and audit projects that have not been initiated but are planned. Projects are listed approximately in the order we expect work to begin. This list may be modified as events unfold and as additional risks are identified. Learn more about our Office of Inspections and Office of Audits, which will be executing these projects.
Inspection of Embassy Jerusalem, Israel
OIG is prioritizing inspections of overseas missions operating in areas affected by ongoing instability in the Middle East. OIG plans to conduct an inspection of Embassy Jerusalem, Israel in the 2027 spring inspection cycle. Embassy inspections assess advancement of foreign policy goals and objectives, policy and program implementation, consular operations, resource management, information management, and security.
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.
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.