Report Contents
What OIG Audited
In 2021, officials at U.S. Embassy Freetown, Sierra Leone, identified purchased goods that could not be used for their intended purposes and noted inventory discrepancies. As embassy officials took steps to address the identified issues, they asked the Office of Inspector General (OIG) to independently assess the procurement process at the embassy.
Accordingly, OIG conducted this audit to determine whether Embassy Freetown had implemented internal controls to manage the procurement process, including the purchase of selected goods identified by the embassy, in accordance with Department of State (Department) policies and procedures. To conduct this audit, OIG reviewed the procured items identified by the embassy, as well as selected office supplies, auto parts, and items for the Chief of Mission Residence purchased in FY 2020 and FY 2021.
What OIG Recommends
OIG made eight recommendations that are intended to improve internal controls over Embassy Freetown’s procurement process. On the basis of Embassy Freetown’s response to a draft of this report, OIG considers one recommendation closed, and the remaining seven recommendations resolved, pending further action. A synopsis of Embassy Freetown’s comments and OIG's reply follow each recommendation in the Audit Results section of this report. Embassy Freetown’s response is reprinted in its entirety in Appendix B.
What OIG Found
OIG found that Embassy Freetown officials took appropriate steps to address known internal control deficiencies that adversely impacted the procurement process and contributed to the purchases of goods identified by the Ambassador as unable to be used as intended. Specifically, the General Services Officer directed procurement staff to develop standard operating procedures (SOP) to guide the procurement process and began to coordinate with the Bureau of Overseas Buildings Operations on purchases made for the Chief of Mission Residence and Deputy Chief of Mission Residence. In addition, embassy officials completed an inventory of goods and corrected recordkeeping discrepancies with the furniture and appliance pool, spare auto parts, and office supplies. The deficiencies identified and addressed originated, in part, because of staffing shortages at the embassy. In response, the embassy prioritized the hiring of additional staff to support mission operations and conducted several training sessions to improve the procurement process.
Although OIG acknowledges the progress Embassy Freetown made to improve its procurement process, OIG identified key areas within the procurement process that require additional attention. Specifically, OIG found that the procurement files reviewed for this audit did not always include documentation demonstrating a bona fide need for the item purchased; a description of the purchased items, such as the brand and model number; how price was determined to be fair and reasonable; or evidence that the vendor selected had been vetted in accordance with Department policy. In addition, OIG found that embassy personnel did not consistently follow guidance regarding property disposal or document the disposal process in accordance with Department policy. These deficiencies occurred, in part, because procurement staff had not been thoroughly trained, provided detailed SOPs to guide the procurement process, or properly monitored to ensure compliance with Department procurement requirements. Correcting these deficiencies will improve Embassy Freetown’s ability to comply with Department procurement requirements and avoid costly procurement errors going forward.
Report Terms
Report Recommendations
OIG recommends that U.S. Embassy Freetown, Sierra Leone, establish internal controls to ensure compliance with 3 FAM 3246.3-6, “Purchase and Shipment of American Wine,” which forbids the use of “excess year-end funds to purchase wine, invitations, or other representation supplies and materials that are not a bona fide need of that fiscal year.”
OIG recommends that U.S. Embassy Freetown, Sierra Leone, update its Freetown Procurement Standard Operating Procedure for all procurements under $250,000 (the simplified acquisition threshold) to include procedures (1) establishing a bona fide need for the item to be purchased, (2) identifying and documenting the brand and model number of the item being purchased, (3) documenting how the price of the item was determined to be fair and reasonable, and (4) verifying and documenting that the vendor is not on the System for Award Management exclusions list.
OIG recommends that U.S. Embassy Freetown, Sierra Leone, review its procurement files, identify those (estimated at approximately 3,800) that should be closed, and closeout the procurement files accordingly.
OIG recommends that U.S. Embassy Freetown, Sierra Leone, update its Freetown Procurement Standard Operating Procedure for procurements over $10,000 but under the $250,000 (the simplified acquisition threshold) to include procedures for (1) soliciting and documenting the solicitation of at least three quotations meeting the requirements of the acquisition or providing written justification supporting the lack of competition, (2) including applicable Federal Acquisition Regulations and Department of State Acquisition Regulation provisions in the purchase order, and (3) publicly posting and documenting the public posting of the procurement in the file for procurements expected to exceed $15,000.
OIG recommends that U.S. Embassy Freetown, Sierra Leone, update its Auction Standard Operating Procedure to include procedures for (1) obtaining a delegation of authority if someone other than the Accountable Property Officer signs Form DS-132, Property Disposal Authorization and Survey Report, and (2) obtaining approval from the Property Management Officer before property can be disposed of by completing Form DS-132, Property Disposal Authorization and Survey Report.
OIG recommends that U.S. Embassy Freetown, Sierra Leone, develop and implement a process to track, verify, and document Procurement Section and Financial Management Office personnel compliance with mandatory training requirements consistent with their respective positions and responsibilities.
OIG recommends that U.S. Embassy Freetown, Sierra Leone, develop and implement a communication process to periodically inform Procurement Section and Financial Management Office personnel of their respective mandatory training requirements.
OIG recommends that U.S. Embassy Freetown, Sierra Leone, update its Freetown Procurement Standard Operating Procedure to include procedures for (1) conducting market research, vetting vendors, and ensuring competition; (2) communicating with offices involved in the procurement process, including the Bureau of Overseas Buildings Operations, for purchases made for the Chief of Mission Residence and Deputy Chief of Mission Residence; (3) selecting appropriate object and funding codes; and (4) establishing monitoring activities.