Report Contents
What OIG Inspected
OIG inspected U.S. Embassy Nicosia from April 19 to May 4, 2017. What OIG Recommended This report includes 12 recommendations. OIG made 11 recommendations to Embassy Nicosia to improve internal controls, grants management, and consular, general services, financial, facility management, and information management operations. OIG also made one recommendation to the Bureau of Overseas Buildings Operations regarding seismic evaluations of embassy housing.
In its comments on the draft report, the Department concurred with all 12 recommendations. OIG considers the recommendations resolved. The Department’s response to each recommendation, and OIG’s reply, can be found in the Recommendations Section of this report. The Department’s formal written responses are reprinted in their entirety in Appendix B.
What OIG Found
- The Ambassador navigated a challenging environment in difficult negotiations that sought to reunify Cyprus and pursued bilateral relations with Cyprus to advance U.S. foreign policy goals and business interests.
- Section leaders across the embassy generally managed their sections well and used resources to pursue Integrated Country Strategy goals.
- Embassy Nicosia’s annual statement of assurance of compliance with management controls did not include the Political-Economic and Public Affairs Sections.
- The embassy lacked standardized procedures to properly monitor and document federal assistance grants.
- Although there was no evidence of waste or misuse of supplies or equipment, internal controls over facility maintenance expendable supplies did not appropriately mitigate such risks.
- Embassy Nicosia was not in compliance with the Prompt Payment Act for vendor payments.
- Although Cyprus is in a high-risk seismic zone, the embassy had not conducted proper seismic evaluations of U.S. Government-leased properties.
- The embassy had not tested its information technology contingency plan.
- Embassy Nicosia’s North Office had no central fire alarm system or means to properly restrict access to consular work space.
- Spotlight on Success: Monthly crisis management tabletop exercises prepared the embassy to perform well in actual emergencies.
Report Terms
Report Recommendations
Embassy Nicosia should prepare its Chief of Mission Annual Management Control Statement of Assurance in accordance with Department guidance.
Embassy Nicosia should implement standard operating procedures and maintain required records for all grant awards in accordance with Department guidance.
Embassy Nicosia should require visa applicants to direct general visa inquiries to the contractor-provided call center retained to provide this service.
Embassy Nicosia should restrict access to the North Office consular work space to employees having official reasons for access.
Embassy Nicosia should establish internal controls for the administration and disbursement of facility expendable supplies in accordance with Department standards.
Embassy Nicosia should conduct an annual inventory of its facility expendable supplies and enter it into the Integrated Logistics Management System.
Embassy Nicosia should require that all chauffeurs and incidental drivers under chief of mission authority receive required safe driver training and have required medical clearances.
Embassy Nicosia should pay its invoices in compliance with the Prompt Payment Act and Department guidelines.
The Bureau of Overseas Buildings Operations, in coordination with Embassy Nicosia, should perform seismic evaluations of the embassy’s residential properties in accordance with Department standards.
Embassy Nicosia should install a fire alarm system in its North Office to meet Department fire safety standards.
Embassy Nicosia, in coordination with the Bureau of Overseas Buildings Operations, should configure the unclassified server room to meet Department standards.
Embassy Nicosia should conduct annual information technology contingency plan testing of the unclassified and classified networks in accordance with Department standards.