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Inspector General's Act Amendments -- Management Follow-Up to OIG Recommendations


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The information on the Department's follow-up on audit recommendations covers 2002. It includes information on the status of recommendations more than one year old without final management decisions, and the dollar value of those reports in which funds could be put to better use or costs could be disallowed.

During 2002, the Department of State tracked 26 audit reports that were more than one year old and included a total of 134 recommendations in which final action was not taken, which would have brought closure to the reports. These audits contain over $195,000 in disallowed costs and recommended actions, which when implemented, could result in up to $70,000 of funds put to better use. The Department is working to bring closure to the 26 audits and recognizes that the follow-up actions and compliance to the recommendations are essential to improving the effectiveness and efficiency of program operations.

Status of Audits with Recommendations that Funds Be Put to Better Use

On October 1, 2001, there were five audits with recommendations to put funds to better use, with a dollar value of $2.2 million, in which management had not taken final action. During the year, four audits had final actions taken in 2002 resulting in savings of $2.0 million. Therefore, on September 30, 2002, there was one audit with recommendation to put funds to better use, which was awaiting final action with a dollar value of $70,000.

Management Statistical Summary 26 Audits Over One Year Old Requiring Final Action
Program Area
Number of Audit Reports
Recommendations
Counter Intelligence
6
30
Financial Management
9
57
Security Oversight
6
34
Support Programs
2
6
Property Management and Procurement
1
3
Contracts and Grants
2
4
TOTALS
26
134

Status of Audits of Disallowed Costs

On October 1, 2001, there were two audits with management decision on which final action had not been taken with a dollar value of disallowed costs totaling $340,000. During the year, one audit with a value of $145,000 was resolved. Therefore, the balance at September 30, 2002 was reduced to $195,000.

Funds Put to Better Use and Disallowed Costs in Audit Reports
 
Number of Audit Reports Identifying
Amount of Funds Put to Better Use
Amount of Funds
Put to Better Use
Number of Audit Reports
Identifying Disallowed Costs
Disallowed Costs
Beginning Balance
5
$2,219,330
2
$340,000
New Audits
-
-
-
-
Implemented Actions
(4)
(2,149,330)
1
(145,000)
Ending Balance
1
$70,000
1
$ 195,000

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