Inspection of Embassy Nairobi, Kenya

ISP-I-19-08
    Report Contents
    Unclassified
    Unclassified


    What OIG Inspected
    OIG inspected the executive direction, program and policy implementation, resource management, and information management operations of Embassy Nairobi.

    What OIG Recommended
    OIG made 33 recommendations, including 31 recommendations to Embassy Nairobi to improve internal controls in general services, financial management, human resources, information management, foreign assistance, and public diplomacy. OIG also made 2 recommendations to the Bureau of International Narcotics and Law Enforcement Affairs on contract oversight.

    In its comments on the draft report, the Department concurred with 32 recommendations and disagreed with 1 recommendation. OIG considers all recommendations, except one, 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

    • Embassy Nairobi leadership coordinated the foreign assistance and policy advocacy activities of the 31 U.S. Government agencies in Nairobi to ensure they were consistent with, and contributed to, achieving Integrated Country Strategy goals.
    • The 2017 Annual Chief of Mission Management Control Statement of Assurance did not identify multiple internal control deficiencies in the management and information technology operations as well as in the Regional Security Office.
    • The embassy did not follow Department of State requirements to monitor unliquidated obligations, resulting in up to $1.7 million that could be put to better use.
    • Embassy Nairobi reported over $3.6 million in inventory shortages over the past two fiscal years and had $14 million in non-expendable inventory that should have been replaced or disposed of and the funds put to better use.
    • Cybersecurity deficiencies left Department information technology systems vulnerable.
    • The Consular Section delivered efficient services under challenging conditions.
    • Spotlights on Success: Embassy Nairobi implemented successful measures to solicit staff feedback, create a climate of intercultural respect, make effective use of the Integrated Country Strategy, improve crisis readiness, combat disinformation, deliver consular services in Mogadishu, and reduce vehicle accidents through the Drive-Cam driver safety program.
    Category
    Locations
    Bureaus/Offices
    Recommendation Number
    1
    Closed Implemented

    Embassy Nairobi should review and update its process for preparing the annual Statement of Assurance prior to preparing its 2018 statement, in accordance with Department guidance.

    Recommendation Number
    2
    Closed Implemented

    Embassy Nairobi, in coordination with the Bureau of African Affairs, should develop a foreign assistance coordination process for use by the embassy and all Department bureaus to ensure all assistance programming receives chief of mission approval prior to implementation.

    Recommendation Number
    3
    Closed Implemented Significant

    The Bureau of International Narcotics and Law Enforcement Affairs, in coordination with Embassy Nairobi, should designate a contracting officer representative with the appropriate technical experience required to review and certify construction work in Kenya in accordance with Department standards.

    Recommendation Number
    4
    Closed Not Implemented Significant

    The Bureau of International Narcotics and Law Enforcement Affairs, in coordination with Embassy Nairobi, should determine if the defective renovations identified in the building intended for the Kenyan police unit can be classified as latent defects, fraud, or gross mistakes amounting to fraud, as outlined in the contract terms and conditions, and if so, require the contractor to correct the deficiencies at no cost to the U.S. Government, in accordance with the Federal Acquisition Regulation.

    Recommendation Number
    5
    Closed Implemented

    Embassy Nairobi should close out its outstanding grants awards in compliance with Department standards.

    Recommendation Number
    6
    Closed Implemented

    Embassy Nairobi should require Public Affairs Section supervisors to complete all locally employed staff performance evaluations in accordance with Department guidance.

    Recommendation Number
    7
    Closed Implemented $81,331

    Embassy Nairobi, in coordination with the Bureau of African Affairs and the Bureau of the Comptroller and Global Financial Services, should reprogram one program-funded information management position to an International Cooperative Administrative Support Services-funded position in accordance with Department guidelines and put $81,331 to better use.

    Recommendation Number
    8
    Closed Implemented

    Embassy Nairobi should prepare an annual acquisition plan and obtain input from the U.S. Mission to Somalia on its plan.

    Recommendation Number
    9
    Closed Implemented

    Embassy Nairobi should require all contracting officer representatives to administer their contracts in accordance with Department standards.

    Recommendation Number
    10
    Closed Implemented

    Embassy Nairobi should clear its electronic filing backlog in accordance with Department guidelines.

    Recommendation Number
    11
    Closed Implemented

    Embassy Nairobi should renegotiate the terms of the five make-ready contracts and lower the minimum number of residences guaranteed to each of the contractors.

    Recommendation Number
    12
    Closed Implemented

    Embassy Nairobi should bring all professional drivers and incidental operators into compliance with the Department’s standards for motor vehicle safety management.

    Recommendation Number
    13
    Closed Implemented

    Embassy Nairobi should establish a comprehensive corrective action plan to certify all residences for occupancy in accordance with Department standards.

    Recommendation Number
    14
    Closed Implemented

    Embassy Nairobi should renegotiate all residential leases that do not comply with Department guidance and use the model lease as required by Department standards.

    Recommendation Number
    15
    Closed Implemented

    Embassy Nairobi should execute a new lease for the tactical holding facility in accordance with Department leasing procedures.

    Recommendation Number
    16
    Closed Implemented $14,000,000

    Embassy Nairobi should conduct a utilization survey and sell or dispose of excess inventory in accordance with Department standards, and put up to $14 million to better use.

    Recommendation Number
    17
    Closed Implemented

    Embassy Nairobi should conduct spot checks of all of its expendable and non-expendable property in accordance with Department standards prior to moving to its new warehouse.

    Recommendation Number
    18
    Closed Implemented

    Embassy Nairobi should ensure that all residential inventories are accounted for and documented in its files in accordance with Department guidelines.

    Recommendation Number
    19
    Closed Implemented

    Embassy Nairobi should terminate official payments for private domestic staff without legally obligating documentation.

    Recommendation Number
    20
    Closed Implemented

    Embassy Nairobi should develop and implement standard procedures to accurately track and record employee receivables in accordance with Department requirements.

    Recommendation Number
    21
    Closed Implemented

    Embassy Nairobi should bring the subcashiering program into compliance with Department requirements.

    Recommendation Number
    22
    Closed Implemented

    Embassy Nairobi should implement written procedures to review unliquidated obligations, including deobligating all funds when offices do not provide documentation that the obligations are valid.

    Recommendation Number
    23
    Closed Implemented $1,700,000

    Embassy Nairobi should review all unliquidated obligations with no activity for over one year, deobligate those that are no longer valid in accordance with Department standards, and put up to $1.7 million to better use.

    Recommendation Number
    24
    Closed Implemented

    Embassy Nairobi should cease using the American Employee Association to provide payroll services for official residence staff until it has complied with the requirements of 6 Foreign Affairs Manual 500.

    Recommendation Number
    25
    Closed Implemented

    Embassy Nairobi should submit the hotel and restaurant report for all listed localities in Kenya to the Office of Allowances.

    Recommendation Number
    26
    Closed Implemented

    Embassy Nairobi should perform all Information Systems Security Officer duties, including consistent reviews, in accordance with Department standards.

    Recommendation Number
    27
    Closed Implemented

    Embassy Nairobi, in coordination with the Bureau of Diplomatic Security and the Bureau of Information Resource Management, should remediate all physical cybersecurity recommendations from Department reviews.

    Recommendation Number
    28
    Closed Implemented

    Embassy Nairobi should implement a records management program that complies with Department standards.

    Recommendation Number
    29
    Closed Implemented

    Embassy Nairobi should upgrade the residential compound basement storage area to meet environmental standards or identify a suitable location for inactive records storage.

    Recommendation Number
    30
    Closed Implemented

    Embassy Nairobi should implement monthly testing of the emergency action committee radio network, in accordance with Department standards.

    Recommendation Number
    31
    Closed Implemented

    Embassy Nairobi, in coordination with the Bureau of Information Resource Management, should update the communications appendix in the emergency action plan.

    Recommendation Number
    32
    Closed Implemented

    Embassy Nairobi should implement its standard operating procedures for managing and tracking mobile devices and encrypted flash drives, as required by Department standards.

    Recommendation Number
    33
    Closed Implemented

    Embassy Nairobi should dispose of obsolete sensitive information processing equipment, in accordance with Department guidance.