Recommendations

Audit of Bureau of Overseas Buildings Operations’ Oversight of New Construction Projects at the U.S. Embassy in Kabul, Afghanistan

AUD-MERO-18-17 January 2018

Recommendation Number

1

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations issue a Construction Alert defining which building equipment and systems must be fully commissioned prior to substantial completion and update its Policy and Procedures Directive for the Commissioning and Transition to Occupancy of Overseas Facilities (P&PD CM 01) to include those requirements.
Recommendation Number

2

Closed Implemented Significant

OIG recommends the Bureau of Overseas Buildings Operations require project directors to certify that all required building equipment and systems are fully commissioned prior to issuing the certificate of substantial completion.
Recommendation Number

3

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations establish and implement internal controls to verify that all required documentation in support of commissioning testing is completed prior to substantial completion. This should include all pre-functional checks, functional performance tests, and integrated systems tests to ensure that building equipment and systems are functioning as intended.
Recommendation Number

4

Closed Not Implemented Significant

OIG recommends that the Bureau of Overseas Buildings Operations move responsibility for oversight and management of commissioning agents from the Office of Construction Management to the Office of Facility Management. Specifically, the Office of Facility Management should oversee all aspects of the commissioning process, including (a) ensuring that commissioning agents have fulfilled the terms outlined in the statement of work; (b) verifying that all building systems are designed, installed, and tested to meet the Department’s contract requirements; and (c) ensuring that commissioning of all major systems is done before the project is declared substantially complete.
Recommendation Number

5

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations update its Policy and Procedures Directive for the Commissioning and Transition to Occupancy of Overseas Facilities (P&PD CM 01) to include procedures for identifying and approving instances in which it is appropriate to issue the certificate of substantial completion before commissioning has been fully completed. Specifically, these protocols should include mechanisms that (a) require a formal waiver be issued by the construction executive to proceed with substantial completion and occupancy even though commissioning is not yet complete, (b) establish milestones for completing the commissioning process after substantial completion and occupancy, and (c) execute a contract modification requiring the contractor to grant an extended warranty for those systems that were not commissioned at the time of substantial completion.
Recommendation Number

6

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations update its Policy and Procedures Directive for the Commissioning and Transition to Occupancy of Overseas Facilities (P&PD CM 01) as well as its Guide to Excellence in Diplomatic Facilities to ensure that references to the commencement of the warranty period are consistent with FAR 52.246-21, Warranty of Construction. Specifically, existing policies and procedures should be updated to indicate that the warranty period either begins at final acceptance unless the Government takes possession of any part of the work before final acceptance, in which case, the warranty shall begin at the date the Government takes possession. The Bureau of Overseas Buildings Operations should also explicitly define when the Government officially takes possession of the completed work, including whether possession occurs at substantial completion or at the time of occupancy.
Recommendation Number

7

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations establish requirements in its Policy and Procedures Directive for the Commissioning and Transition to Occupancy of Overseas Facilities (P&PD CM 01) for the preparation and submission of key project documents for newly constructed facilities, including (a) owner’s project requirements, (b) a Basis of Design document, (c) systems manuals, (d) a commissioning plan, and (e) a final commissioning report. These documents should be prepared and submitted at the appropriate interval of construction for each building or facility constructed by the Bureau of Overseas Buildings Operations. Additionally, the requirements should indicate the parties responsible for preparation, review, and approval of each of the key project documents.
Recommendation Number

8

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations update its Policy and Procedures Directive for the Commissioning and Transition to Occupancy of Overseas Facilities (P&PD CM 01) to require its project directors and facility managers to establish a memorandum of agreement 9 months prior to the estimated substantial completion target date to facilitate the building turnover process. This memorandum of agreement should, at a minimum, (a) define the type of access that Facility Management personnel and operations and management contractors should be given to new buildings prior to substantial completion; (b) specify relevant documentation, such as punch lists, lists of equipment to be maintained, and commissioning documentation that should be provided to facility managers and operations and management contractors; and (c) establish timelines for providing building access and documentation to facility personnel and operations and management contractors prior to substantial completion and occupancy.
Recommendation Number

9

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations update its Policy and Procedures Directive for the Commissioning and Transition to Occupancy of Overseas Facilities (P&PD CM 01) to require its project directors and facility managers to hold a pre-turnover meeting approximately 60 days prior to substantial completion. The entire project team should be included in this meeting with participants discussing the status of construction, commissioning, required turnover documentation, and the planned schedule and outstanding actions required to ensure a smooth and successful turnover of facilities.
Recommendation Number

10

Closed Implemented

OIG recommends that the Bureau of Overseas Buildings Operations develop requirements mandating the use of a phased approach for projects that involve the construction of multiple buildings or facilities. This approach should outline specific phasing requirements for each building or facility constructed, including separate and distinctive commissioning, substantial completion, turnover, and acceptance requirements. This approach should also include protocols for a phased operations and management turnover process, requiring the contractor to provide key operations and management deliverables at the completion of each building if multiple buildings or facilities are being constructed under a single Bureau of Overseas Buildings Operations construction contract.

Audit of the National Endowment for Democracy and Its Core Institutes’ Use of Grant Funds During FYs 2015 and 2016

AUD-FM-18-24 January 2018

Recommendation Number

1

Closed Implemented $52,000

OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management (AQM), (a) require the National Endowment for Democracy (NED) to follow up with one of its discretionary grantees to obtain the required support regarding a missing 2016 quarter one invoice, (b) require NED to determine the disposition of the $52,000 provided to the grantee and report its conclusion to AQM, and (c) recover any costs determined to be unsupported.
Recommendation Number

2

Closed Implemented

OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, instruct the National Endowment for Democracy to review its “Compliance Policies and Procedures” to identify outdated procedures and update the policy document, as appropriate, as well as verify that the policies have been updated. At a minimum, the sections on the Risk Matrix and Invoice Verification should be updated.
Recommendation Number

3

Closed Implemented $718

OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, (a) determine whether the questioned costs of $718 identified related to August 2015 rent payments for the Zimbabwe Field Office under Solidarity Center’s FO-544-Zimbabwe NED 15 Project were allowable and (b) recover any costs determined to be unallowable.
Recommendation Number

4

Closed Implemented

OIG recommends that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, (a) instruct the National Endowment for Democracy (NED) to develop and implement procedures requiring core institutes to report questioned costs identified subsequent to expensing by the core institute to NED for review and action and (b) verify that the procedures were implemented.

Management Assistance Report: Lapse in Oversight at Embassy Islamabad, Pakistan, Allowed Design Change To Proceed Without the Contracting Officer’s Knowledge

AUD-MERO-18-01 December 2017

Recommendation Number

1

Closed Implemented Significant

OIG recommends that the Bureau of Administration instruct BL Harbert International, LLC, to provide to the contracting officer a detailed written request of all proposed material substitutions that change or alter the final design documents for the construction of staff diplomatic apartments 1, 2, and 3 as part of the New Embassy Compound and Housing construction project in Islamabad, Pakistan, in accordance with the contract terms and conditions prescribed in the contract No. SAQMMA-10-C0284.
Recommendation Number

2

Closed Implemented Significant

OIG recommends that the Bureau of Administration, in coordination with the Bureau of Overseas Buildings Operations, reviews the proposed material substitutions that change or alter the final design documents (as referenced in Recommendation 1) from BL Harbert International, LLC, and, if the proposed material substitution is accepted, follow contract modification procedures to execute the decision in accordance with the Federal Acquisition Regulation with an appropriate adjustment in contract price. If it is determined that the proposed substitution is not in the public interest, then direct BL Harbert to immediately cease its plans to substitute building materials until such time that the Bureau of Administration and Bureau of Overseas Buildings Operations can determine the best course of action that is compliant with contract requirements.
Recommendation Number

3

Closed Implemented Significant

OIG recommends that the Bureau of Administration, in coordination with the Bureau of Overseas Buildings Operations, review the contract oversight activities of the contracting officer, Bureau of Overseas Buildings Operations project directors, contracting officer’s representatives, and alternate contracting officer’s representatives assigned to the New Embassy Compound and Housing construction project in Islamabad, Pakistan, between September 2010 and February 2017 to determine if unauthorized changes or alterations to the final design documents that require the contracting officer’s approval have occurred and to take action to address those found not to be duly authorized.
Recommendation Number

4

Closed Implemented Significant

OIG recommends that the Bureau of Administration, in coordination with the Bureau of Overseas Buildings Operations, a) review the lines of communication between the contracting officer and oversight personnel in Islamabad, Pakistan, including the contracting officer’s representative and his assistant, b) determine whether communication mechanisms are in place and understood by all officials who keep the contracting officer appropriately aware of contractual proceedings related to contract oversight, and c) develop and implement corrective actions to address any deficiencies identified.
Recommendation Number

5

Closed Implemented Significant

OIG recommends that the Bureau of Administration, in coordination with the Bureau of Overseas Buildings Operations, establish and implement internal controls to ensure that the contracting officer for the New Embassy Compound and Housing construction project in Islamabad, Pakistan, designates replacement contracting officer’s representatives for contract oversight prior to the departure of the incumbents.

Inspection of Embassy Beijing and Constituent Posts, China

ISP-I-18-04 December 2017

Recommendation Number

1

Closed Implemented

Embassy Beijing, in coordination with the Bureau of East Asian and Pacific Affairs, should determine whether Consulate General Shanghai requires a deputy principal officer, and if so, formally establish the position and delineate its duties, including supervisor responsibilities.
Recommendation Number

2

Closed Implemented

Embassy Beijing, in coordination with the Bureau of East Asia and Pacific Affairs, should review the outreach officer function to determine whether these positions directly and substantially support mission objectives.
Recommendation Number

3

Closed Implemented

Embassy Beijing, in coordination with the Bureau of International Information Programs, should require the consulates general to develop annual resource development and program plans for their American Spaces.
Recommendation Number

4

Closed Not Implemented

Embassy Beijing, in coordination with the Bureau of East Asian and Pacific Affairs, should suspend new funding for American Cultural Centers and conduct a formal evaluation of the American Cultural Center program.
Recommendation Number

5

Closed Implemented

Embassy Beijing, in coordination with the Bureau of Administration, should require all Public Affairs Section locally employed staff with responsibility for grants management at Consulate General Chengdu to complete introductory grants training, including training on the use of the State Award Management System.
Recommendation Number

6

Closed Implemented

Embassy Beijing, in coordination with the Bureau of Educational and Cultural Affairs, should implement a written policy on how the Regional Educational Advising Coordinator should support Mission China’s EducationUSA activities.
Recommendation Number

7

Closed Implemented

The Bureau of Educational and Cultural Affairs should clarify and reissue guidance on the preparation and distribution of EducationUSA site visit reports and enforce compliance with this requirement.
Recommendation Number

8

Closed Implemented

The Bureau of Consular Affairs should issue guidance in 9 Foreign Affairs Manual for consular officers explaining how to determine potential visa ineligibilities under 8 U.S.C. 1182e.
Recommendation Number

9

Closed Implemented

The Bureau of Democracy, Human Rights and Labor, in coordination with the Bureau of Consular Affairs, should implement a plan to eliminate the backlog of advisory opinion requests for visa applicants who are potentially ineligible under 8 U.S.C. 1182e.
Recommendation Number

10

Closed Implemented

Embassy Beijing should provide a closed-circuit TV monitoring system or other means to enable consular managers to visually observe the activities within the Consular Section’s subcashier booth.
Recommendation Number

11

Closed Not Implemented

Embassy Beijing, in coordination with the Bureau of Overseas Buildings Operations and the Bureau of Consular Affairs, should provide a wheelchair-accessible interview window for consular applicants at Consulate General Chengdu.
Recommendation Number

12

Closed Not Implemented

Embassy Beijing, in coordination with the Bureau of Overseas Buildings Operations and the Bureau of Consular Affairs, should provide a privacy booth in the consular waiting room at Consulate General Chengdu.
Recommendation Number

13

Closed Implemented

Embassy Beijing should realign responsibilities for the Assistant Regional Security Officer Investigator at Consulate General Chengdu to ensure the requirements in the 2012 memorandum of agreement are met.
Recommendation Number

14

Closed Implemented $581,634

Embassy Beijing should deobligate unliquidated obligations totaling $581,634 and put the funds to better use.
Recommendation Number

15

Closed Implemented

Embassy Beijing should implement procedures outlining the human resource support services provided and the frequency of visits at each of the five constituent posts.
Recommendation Number

16

Closed Implemented

Embassy Beijing, in coordination with the Bureau of Administration, should require Consulate General Wuhan to report its own location-specific survey data for post allowances.
Recommendation Number

17

Closed Implemented

Embassy Beijing, in coordination with the Bureau of Administration, should require Consulates General Chengdu and Wuhan to submit updated post consumables allowances justifications.
Recommendation Number

18

Closed Implemented

Embassy Beijing, in coordination with the Bureau of Overseas Buildings Operations, should review Mission China residential leases to ensure an accurate determination of non-rent and building operating expenses costs.
Recommendation Number

19

Closed Implemented

Embassy Beijing should implement a standard operating procedure for employees to pay for housing-related services that are not the responsibility of the U.S. Government.
Recommendation Number

20

Closed Implemented

Embassy Beijing should conduct an annual assessment of its furniture and appliance pool and, if deemed necessary, reduce its furniture and appliance pool charges.
Recommendation Number

21

Closed Implemented

Embassy Beijing should establish an annual acquisition plan and include the consulates general in the planning process.
Recommendation Number

22

Closed Implemented

Embassy Beijing should require that all contracting officer representatives and government technical monitors be properly trained and administer their contracts in accordance with Department standards.
Recommendation Number

23

Closed Implemented

The Bureau of Administration, in coordination with Embassy Beijing, should require that all contracting officers in Mission China have the correct warrants.
Recommendation Number

24

Closed Implemented

Embassy Beijing should institute access controls at its offsite warehouse in accordance with Department standards.
Recommendation Number

25

Closed Implemented

Embassy Beijing should implement a corrective action plan to bring all chauffeurs and incidental drivers into compliance with the Department’s Motor Vehicle Safety Management Program.
Recommendation Number

26

Closed Implemented

Embassy Beijing should require that all mission drivers have valid medical clearances in order to operate official vehicles.
Recommendation Number

27

Closed Implemented

Embassy Beijing should require that all drivers assigned to operate armored vehicles complete required Department training.
Recommendation Number

28

Closed Implemented

The Bureau of Overseas Buildings Operations, in coordination with Embassy Beijing, should implement a long-term strategy to evaluate seismic safety of residential buildings in the embassy housing pool.
Recommendation Number

29

Closed Implemented

Embassy Beijing, in coordination with the Bureau of Overseas Buildings Operations, should require that all designated post occupational safety and health officers receive required training.

Inspection of Consulate General Hong Kong, China

ISP-I-18-06 November 2017

Recommendation Number

1

Closed Implemented

Consulate General Hong Kong should improve the intake process for nonimmigrant visa applicants in the Consular Section.
Recommendation Number

2

Closed Implemented

Consulate General Hong Kong, in coordination with the Bureau of Consular Affairs, should conduct an analysis of its staffing needs in the Nonimmigrant Visa Unit and adjust staffing levels accordingly.
Recommendation Number

3

Closed Implemented

Consulate General Hong Kong, in coordination with the Bureau of Human Resources, should update the position descriptions for the visa assistant positions in the Consular Section’s Nonimmigrant Visa Unit in accordance with Department standards.
Recommendation Number

4

Closed Implemented

Consulate General Hong Kong should provide the chief of the Nonimmigrant Visa Unit with an office that allows for line of sight control of the unit’s operations.
Recommendation Number

5

Closed Implemented

Consulate General Hong Kong should locate cubicles for consular officers among the cubicles for locally employed staff throughout the Nonimmigrant Visa unit.
Recommendation Number

6

Closed Implemented

Consulate General Hong Kong, in coordination with the Bureau of Overseas Buildings Operations and the Bureau of Consular Affairs, should provide a wheelchair-accessible interview window for consular customers.
Recommendation Number

7

Closed Implemented

Consulate General Hong Kong, in coordination with the Bureau of Consular Affairs, should implement a policy for consular fee collections during outreach events that complies with Department standards.
Recommendation Number

8

Closed Implemented

Consulate General Hong Kong should update its standard operating procedure for grants administration to include checking the Excluded Parties List system and preparing a Grants Officer’s Delegation of Authority Letter.
Recommendation Number

9

Closed Acceptable Alternative $2,000,000

The Bureau of East Asian and Pacific Affairs, in coordination with Consulate General Hong Kong and the Bureau of Human Resources, should determine the number and levels for language designated positions at Consulate General Hong Kong in accordance with Department standards, and put up to $2 million to better use.
Recommendation Number

10

Closed Implemented

Consulate General Hong Kong should translate any policies affecting locally employed staff into Cantonese.
Recommendation Number

11

Closed Implemented

Consulate General Hong Kong should justify continued provision of accommodation exchange services in accordance with Department standards.
Recommendation Number

12

Closed Implemented

Consulate General Hong Kong, in coordination with the Bureau of Administration, should clarify whether transportation of non-U.S. Government employees to representational events is appropriate, and then document the justification in accordance with Department standards.
Recommendation Number

13

Closed Implemented

Consulate General Hong Kong should implement a system to store, issue, and return keys for official vehicles.
Recommendation Number

14

Closed Implemented

Consulate General Hong Kong should require all drivers to be trained and medically cleared in accordance with the Department’s Motor Vehicle Safety Management Program.
Recommendation Number

15

Closed Implemented

Consulate General Hong Kong should limit driver duty hours to 10 hours per day.
Recommendation Number

16

Closed Implemented

Consulate General Hong Kong should establish an air conditioning preventative maintenance program for all U.S. Government-owned residential complexes
Recommendation Number

17

Closed Implemented

Consulate General Hong Kong should designate and train additional contracting officer’s representatives to assist with contract oversight.
Recommendation Number

18

Closed Implemented

Consulate General Hong Kong should implement procedures to inventory and store controlled substances in accordance with Department standards.
Recommendation Number

19

Closed Acceptable Alternative

Consulate General Hong Kong should implement knowledge management procedures for capturing, sharing, transferring, and retaining information related to its information management programs.

Management Assistance Report: Although Progress Has Been Made, Challenges Remain in Monitoring and Overseeing Antiterrorism Assistance Program Activities in Afghanistan

AUD-MERO-18-16 November 2017

Recommendation Number

1

Closed Implemented

OIG recommends that the Bureau of Diplomatic Security develop and implement a policy to require that Contracting Officers and Contracting Officer’s Representatives overseeing Antiterrorism Assistance programs document program progress obtained from meetings and phone conferences held in lieu of contractor-submitted formal written program and financial reports, contract status reports, and annual reports.

Audit of the Broadcasting Board of Governors Implementation of the Digital Accountability and Transparency Act of 2014

AUD-FM-IB-18-04 November 2017

Recommendation Number

1

Closed New Report

OIG recommends that the Broadcasting Board of Governors improve guidance and procedures in the Broadcasting Administrative Manual for Contracting Officers related to entering accurate and complete procurement award transaction data into the Federal Procurement Data System–Next Generation.
Recommendation Number

2

Closed Implemented

OIG recommends that the Broadcasting Board of Governors develop and issue guidance and procedures in the Broadcasting Administrative Manual for personnel responsible for entering accurate and complete financial assistance award transaction data into the Award Submission Portal.
Recommendation Number

3

Closed Implemented

OIG recommends that the Broadcasting Board of Governors formally document quality control procedures to include (a) explaining how the Digital Accountability and Transparency Act Files are created, (b) recording reconciliation results, and (c) reviewing of the accuracy of data contained in DATA Act Files D1 and D2 generated from the Federal Procurement Data System–Next Generation and the Award Submission Portal.
Recommendation Number

4

Closed Implemented

OIG recommends that the Broadcasting Board of Governors designate a Senior Accountable Official who is an official on the Senior Management Council and is capable of providing “reasonable assurance that their internal controls support the reliability and validity of the agency account-level and award-level data,” as required by the Office of Management and Budget.

Audit of the Department of State’s Implementation of the Digital Accountability and Transparency Act of 2014

AUD-FM-18-03 November 2017

Recommendation Number

1

Closed Implemented

OIG recommends that the Bureau of the Comptroller and Global Financial Services complete the implementation of system interfaces and new procedures that are designed to improve financial data collection overseas.
Recommendation Number

2

Closed Implemented

OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of Administration, update and issue guidance for Contracting Officers and Grants Officers related to entering accurate and complete procurement and financial assistance award transaction data into the Federal Procurement Data System – Next Generation and the Award Submission Portal.
Recommendation Number

3

Closed Implemented

OIG recommends that the Bureau of the Comptroller and Global Financial Services, in coordination with the Bureau of Administration, modify existing quality control procedures to include a requirement to verify the accuracy of data contained in DATA Act Files D1 and D2 generated from the Federal Procurement Data System – Next Generation and the Award Submission Portal.
Recommendation Number

4

Closed Implemented

OIG recommends that the Bureau of the Comptroller and Global Financial Services develop and implement procedures to verify that the quarterly DATA Act File C submission includes only transactions that occurred within the applicable quarter.

(U) Audit of the Department of State Information Security Program

AUD-IT-18-12 October 2017

Recommendation Number

1

Closed Not Implemented Significant

Sensitive Information Redacted
Recommendation Number

2

Closed Implemented Significant

Sensitive Information Redacted
Recommendation Number

3

Closed New Report Significant

Sensitive Information Redacted
Recommendation Number

4

Closed New Report Significant

Sensitive Information Redacted
Recommendation Number

5

Closed New Report Significant

Sensitive Information Redacted

(U) Audit of the Broadcasting Board of Governors Information Security Program

AUD-IT-IB-18-13 October 2017

Recommendation Number

1

Closed Implemented Significant

Sensitive Information Redacted
Recommendation Number

2

Closed Implemented Significant

Sensitive Information Redacted
Recommendation Number

3

Closed Implemented Significant

Sensitive Information Redacted

444

$15,045,004

134

$0

416

$218,173,822

0

$0

36

$0

0

$0