Report Contents
What OIG Inspected
OIG inspected the Property Management Division, located under the Office of Logistics Management, Office of Program Management and Policy in the Bureau of Administration.
What OIG Recommends
OIG made 5 recommendations to the Bureau of Administration. In its comments on the draft report, the Bureau of Administration concurred with 4 recommendations and disagreed with 1 recommendation. OIG considers 4 recommendations resolved and 1 recommendation unresolved. The Bureau of Administration’s response to each recommendation, and OIG’s reply, can be found in the Recommendations section of this report. The bureau’s formal response is reprinted in its entirety in Appendix B.
What OIG Found
- The Property Management Division had challenges fully implementing its programs due to previous extended vacancies in key positions, including the Division Director.
- The division did not routinely monitor bureau and overseas post compliance with Department of State property management standards.
- The division lacked adequate internal controls to monitor completion of annual inventory processes.
- The process to create new business units in the Integrated Logistics Management System resulted in inadequate oversight of 86 out of 1,213 business units in the system.
- Conflicting guidance on procedures for accounting for overseas missions’ bulk fuel stocks created risks that such property would be recorded incorrectly in the Department’s systems of record.
- Spotlight on Success: The Annual Inventory Modernization program resulted in enhanced internal controls over Department property while reducing the time required to conduct inventories by an average of 40 percent.
Report Terms
Report Recommendations
The Bureau of Administration should implement a plan to establish objectives and internal guidance and procedures to routinely monitor bureau and overseas mission compliance with Department property management standards.
The Bureau of Administration should implement and disseminate formal guidance requiring Property Management Division approval and oversight of all business units in the Integrated Logistics Management System, in accordance with Department guidelines.
The Bureau of Administration should develop and implement internal controls for the review and validation of annual inventories, in accordance with Department standards.
The Bureau of Administration should review and update standards governing bulk fuel stock accountability, in accordance with Department standards.
The Bureau of Administration should require that the Property Management Division mandate the use of the Integrated Logistics Management System electronic scanners for overseas residential inventories.