Audit of U.S. Department of State Use of Short-Term Leases Overseas

OIG recommends that the Bureau of Overseas Buildings Operations revise volumes 15 of the Foreign Affairs Manual and Foreign Affairs Handbook to designate all noncapital leases as operating leases, regardless of lease duration, in accordance with Statements of Federal Financial Accounting Standards.

OIG recommends that the Bureau of Overseas Buildings Operations revise volumes 15 of the Foreign Affairs Manual and the Foreign Affairs Handbook to apply current funding and cost sharing requirements associated with short-term leases to all operating leases.

OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of Overseas Buildings Operations, revise volumes 4 of the Foreign Affairs Manual and the Foreign Affairs Handbook to account for the revisions in volume 15 of the Foreign Affairs Manual regarding leases.

OIG recommends that the Bureau of the Comptroller and Global Financial Services, Office of International and Cooperative Administrative Support Services, in coordination with the Bureau of Overseas Buildings Operations, revise volume 6 of the Foreign Affairs Handbook to account for the revisions in volume 15 of the Foreign Affairs Manual regarding leases.

OIG recommends that the Bureau of Diplomatic Security, in coordination with the Bureau of Overseas Buildings Operations, revise volumes 12 of the Foreign Affairs Manual and the Foreign Affairs Handbook to account for the revisions in volume 15 of the Foreign Affairs Manual regarding leases.

OIG recommends the Bureau of Overseas Buildings Operations establish guidelines and procedures that require posts to track and report on make-ready funds expended for individual properties to help ensure funds are expended for authorized purposes and do not exceed the Department of State limitation.