Report Contents
(U) What OIG Inspected
(U) OIG inspected policy coordination and leadership, policy implementation, resource management, and consular services at the American Institute in Taiwan, Washington Headquarters.
(U) What OIG Recommends
(U) OIG made 7 recommendations: 6 to the American Institute in Taiwan, Washington Headquarters, and 1 to the Bureau of the Comptroller and Global Financial Services. (U) In its comments on the draft report, the Department concurred with all 7 recommendations. OIG considers all 7 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 responses are reprinted in their entirety in Appendix B.
U) What OIG Found
- (U) The American Institute in Taiwan is a nonprofit corporation that provides contract support services to the Department of State. Stakeholders from Department offices and bureaus and other federal agencies described the American Institute in Taiwan, Washington Headquarters, as a collaborative partner in policy and program coordination.
- (SBU) [Redacted]
- (U) Under its contract, the institute is required to follow established policies and procedures unless an exemption has been granted. However, the institute’s Washington headquarters and the Bureau of East Asian and Pacific Affairs did not have a mechanism in place for the institute to request exceptions to established Department guidelines, procedures, and policies as needed.
- (U) The Bureau of the Comptroller and Global Financial Services did not exercise required oversight of the institute’s financial activities.
- (U) The institute’s Washington headquarters maintained funds in inactive bank accounts, resulting in an accumulation of at least $216,000 that could be put to better use.
Report Terms
Report Recommendations
Sensitive Information Redacted
The American Institute in Taiwan, Washington Headquarters, in coordination with the Bureau of East Asian and Pacific Affairs, should create a functional statement that defines its roles and responsibilities regarding Taiwan and communicate that information to all appropriate Department and interagency stakeholders in accordance with Department guidance.
The American Institute in Taiwan, Washington Headquarters, should develop and implement a system to track all agreements with the Taipei Economic and Cultural Representative Office in the United States, in accordance with Department guidance.
The American Institute in Taiwan, Washington Headquarters, in coordination with the Bureau of East Asian and Pacific Affairs, should implement a process to formally document written requests and approvals for exceptions to Department policy, as required by the contract.
The Bureau of the Comptroller and Global Financial Services, in coordination with the American Institute in Taiwan, Washington Headquarters, should oversee the institute’s financial operations as required by Department standards and the contract.
The American Institute in Taiwan, Washington Headquarters, should perform a review of its bank accounts, consolidate accounts where necessary in line with financial management controls guidelines, and put up to $216,000 to better use.
The American Institute in Taiwan, Washington Headquarters, should implement a performance evaluation system for its staff in accordance with Department guidance and staff employment contracts.