Report Contents
What OIG Audited
The Department of State (Department) created its aviation program in 1976 to support narcotics interdiction and drug crop eradication programs. The program has since grown to a fleet of 206 aircraft and includes transportation services for chief of mission personnel. Within the Department, the Aviation Governing Board (AGB) is responsible for providing oversight of aviation activities. In addition, the Bureau of International Narcotics and Law Enforcement Affairs, Office of Aviation (INL/A), is the aviation service provider in support of counter-narcotics, law enforcement, and overseas missions operations.
The Office of Inspector General (OIG) conducted this audit to determine whether the Department is administering its aviation program, including key internal controls related to aviation asset accountability, aviation asset disposal, and aircraft operations and maintenance, in accordance with Federal requirements and Department guidelines.
What OIG Recommends
OIG made 25 recommendations to address the deficiencies identified in the aviation program. On the basis of the Department’s responses to a draft of this report, OIG considers 2 recommendations closed, 22 recommendations resolved pending further action, and 1 recommendation unresolved. A synopsis of management’s comments regarding the recommendations and OIG’s reply follow each recommendation in the Audit Results section of this report. Management’s responses to a draft of this report are reprinted in their entirety in Appendices B through F.
What OIG Found
The Department is not consistently administering its aviation program in accordance with Federal requirements or Department guidelines. Specifically, OIG found instances in which significant aviation operations were undertaken without the knowledge or approval of the AGB, which is required by Department policy. In addition, the AGB is not fulfilling its responsibilities to evaluate the usage and cost effectiveness of aircraft services, as required by Office of Management and Budget Circulars and Department guidance. Furthermore, INL administered country-specific aviation programs differently depending on whether a post used the worldwide aviation support services contract. As a result of limited AGB oversight and the absence of evaluations to determine the appropriate usage and cost effectiveness of the Department’s aircraft operations worldwide, the Department is not optimally managing aviation resources and spent $72 million on unnecessary services from September 2013 to August 2017.
OIG also found that INL did not fully maintain sufficient accountability over aircraft equipment, and OIG identified deficiencies related to accounting for aviation assets. In addition, Department aviation assets were not always disposed of in accordance with Department requirements, which resulted in more than $8 million in funds that could be put to better use. OIG determined that the underlying cause of these deficiencies typically involved a lack of procedures and guidance to effectuate compliance. Until INL/A improves in these areas, aviation assets will be at risk for fraud, waste, and abuse.
OIG found that INL/A had sufficient oversight mechanisms in place related to the operations and maintenance of aircraft at the locations tested. However, INL’s goal of increasing the institutional capability of host nations to eventually operate certain aviation programs without INL support remains elusive. Efforts to nationalize these aviation programs have faltered primarily because transition plans, including benchmarks, have not been developed and executed with the host countries. Until these plans are implemented, INL will be unable to fully assess and address the obstacles hindering the realization of this fundamental foreign assistance goal.
Report Terms
Report Recommendations
OIG recommends that the Under Secretary for Management develop and implement a plan to enforce the centralized management and oversight of all Department aviation programs and assets, including oversight of and approval by the Aviation Governing Board, on all decisions related to providing aviation services, in accordance with the Foreign Affairs Manual.
OIG recommends that the Aviation Governing Board, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, update the Aviation Governing Board Charter to align with its role and responsibilities outlined in Volume 2 of the Foreign Affairs Manual 800, and implement procedures to effectively manage and use Department aviation resources that support foreign affairs requirements overseas, including updating the voting Board members.
OIG recommends that the Aviation Governing Board, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, develop and implement a detailed strategic plan for all of the Department of State’s aviation needs, including medical needs and country-specific needs like those of Embassy Bogota. The plan should have clear goals and attainable objectives, both at the headquarters level and for each country of operation.
OIG recommends that the Aviation Governing Board, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, develop and implement procedures requiring that a cost-benefit analysis is performed and its results considered before deciding whether to acquire an aircraft and begin or end aviation operations in a country.
OIG recommends that the Under Secretary for Management review the decision to expend $70.9 million to operate the Cyprus Air Base and make a determination as to whether the expenditures were necessary or reasonable considering the lack of benefit to the Department of State.
OIG recommends that the Under Secretary for Management review the decision to expend $174,090 to store aircraft and make a determination as to whether the expenditures were necessary or reasonable considering the lack of benefit to the Department of State.
OIG recommends that the Under Secretary for Management review the decision to expend $1.2 million to acquire and refurbish three aircraft for the Philippines Coast Guard and make a determination as to whether the expenditure was necessary or reasonable considering the lack of benefit to the Department of State or the Philippine Coast Guard.
OIG recommends that the Aviation Governing Board (AGB), in coordination with the Bureau of International Narcotics and Law Enforcement Affairs (INL), revise Volume 2 of the Foreign Affairs Manual (FAM) 800 to clarify that INL is the sole provider of aviation services for the Department of State and any requests for exceptions to, or waiver of this policy, along with a written justification, must be submitted to and approved by the AGB. The FAM revision should include a requirement for a periodic review of the decision to determine whether it remains beneficial.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs (INL) update the “INL Financial Management Handbook” to include guidance related to recording assets purchased with INL project funding or transferred to INL from another agency that are not being donated to a host government in the Integrated Logistics Management System.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs (INL) implement a process to ensure it performs Property Management System Analysis inspections of INL operations in all countries with aviation programs.
OIG recommends that Embassy Bogota, Colombia, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, identify all Department-owned aviation assets in Colombia that meet the definition of accountable property and record them in the Integrated Logistics Management System.
OIG recommends that Embassy Lima, Peru, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, identify all Department-owned aviation assets in Peru that meet the definition of accountable property and record them in the Integrated Logistics Management System.
OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, develop updated formal policies, procedures, and implementing guidance to ensure that Department of State aviation assets, including assets donated by other agencies, are accurately valued when initially obtained and the correct value is recorded in the accounting system.
OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, develop policies, procedures, and implementing guidance to update the valuation of an aircraft after undergoing other-than-routine maintenance, including both programmed depot maintenance and phase maintenance.
OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, develop and implement policies, procedures, and implementing guidance to determine when an aircraft should be considered “In Service” and “Not in Service” and to update the status of the aircraft in the Integrated Logistics Management System.
OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of International Narcotics and Law Enforcement Affairs, review and update all aircraft valuations, including accumulated depreciation, taking into account the acquisition value, the amount of any refurbishments, and the impact of any periods the aircraft was not in service.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Bureau of Administration, develop and implement a policy and implementing guidance on the process for overseas aviation asset disposal, which should include clear instructions on the appropriate forms and approvals that are needed.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Bureau of Administration, develop and implement a policy and implementing guidance on the process for domestic aviation asset disposal, which should include clear instructions on the appropriate forms and approvals that are needed.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Bureau of the Comptroller and Global Financial Services, develop and implement an action plan to use the $8,303,020 identified in this report as funds that could be put to better use to replace similar property needed at other locations.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Bureau of the Comptroller and Global Financial Services, develop and implement guidance to use proceeds of sale from aviation assets for replacement property.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs develop and implement a methodology for obtaining systematic input from each Senior Aviation Advisor and Government Technical Monitor when developing statements of requirements, performance standards, and the quality assurance plan for contractors performing maintenance of aircraft and incorporating, as appropriate, the input into the new worldwide aviation support services contract.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs develop and implement policies and procedures requiring that all country-specific aviation programs use SeeSOR for quality assurance oversight.
OIG recommends that the Bureau of International Narcotics and Law Enforcement Affairs develop and implement policies and procedures requiring that all foreign assistance aviation programs have documented nationalization plans with clear goals and attainable objectives, both at the headquarters level and for each country of operation.
OIG recommends that Embassy Panama City, Panama, develop and implement a documented nationalization plan with clear goals and attainable objectives for the aviation program.
OIG recommends that Embassy Lima, Peru, develop and implement a documented nationalization plan with clear goals and attainable objectives for the aviation program.