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Summary of FY 2004 Performance


FY 2004 Performance and Accountability Report
Bureau of Resource Management
November 2004
Report
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This overview presents the highlights of OIG's FY 2004 Performance Report. Detailed information on OIG's results in meeting performance indicator targets and achieving strategic and performance goals, as required by the Government Performance and Results Act, can be found in the full performance report, which has been published separately in conjunction with the Department's FY 2004 Performance and Accountability Report.

 

Vision

To effect positive change and promote sound management practices in the Department of State, Broadcasting Board of Governors (BBG), and foreign affairs operations abroad

 

Mission

To assess Department of State and Broadcasting Board of Governors operations and recommend ways to strengthen their integrity, effectiveness, and accountability

 

Strategic Goals

OIG's four strategic goals directly support the programs, operations, and activities of the Department and BBG, and are expressed in terms of their effect upon the agencies' ability to achieve their respective missions and strategic objectives. OIG's strategic goals are to support and assist the Department and BBG to:

  1. Effectively, efficiently, and economically advance the foreign policy interests of the United States.
  2. Adequately protect the people, information, and facilities under their control in the United States and abroad.
  3. Have the necessary financial management and support systems and controls to meet legal and operational requirements.
  4. Ensure accountability and prevent or eliminate fraud, waste, abuse, and mismanagement in programs and operations.

 

Resources

 

Budget Dollars Expended in Support of Each Strategic Goal

Strategic Goal Dollars Percentage
Foreign Policy $8.8 Million  28%
Security $7.5 Million  24%
Financial Management $7.2 Million  23%
Accountability $7.9 Million  25%

Staff Supporting Each Strategic Goal

Strategic Goal Number Percentage
Foreign Policy  61  29%
Security  47  21%
Financial Management  53  24%
Accountability  58  26%

 

 

Highlights of Results from OIG Reports and Investigations

During FY 2004, the Department and BBG made significant improvements in their security, programs, and operations as a result of OIG reviews and investigations. The table below shows some of the improvements that occurred in response to OIG recommendations and the challenges that still remain for OIG under each of our strategic goals.

 

FOREIGN POLICY


Results From OIG Reports and Investigations

  • The Department will be able to verify a passport applicant's social security number automatically through an agreement with the Social Security Administration.
  • The Department is establishing a permanent quality assurance program for passport applications that originate overseas.
  • The Department established an advisory board, of which OIG is a member, to review Multinational Force and Observers' management practices and controls.
  • The Kuwait Transmitting Station, working with Embassy Kuwait City, obtained a formal amendment to the bilateral agreement for broadcasting activities in Kuwait.

Challenges for OIG

  • To maintain a five-year post and bureau inspection schedule under existing and expected resource constraints.
  • To provide adequate oversight of Department and BBG operations in Iraq under unstable and insecure conditions.

 

SECURITY


Results From OIG Reports and Investigations

  • The Department began a worldwide review of security countermeasures at all U.S. mission lock-and-leave facilities.
  • The Department implemented improved procedures to protect Sensitive Compartmented Information (SCI) material and is including guidance for the protection of SCI material in current Foreign Affairs Manual updates.
  • The Department will use more rigorous methods to compile the data that appears in the Department's Patterns of Global Terrorism report.

Challenges for OIG

  • To provide adequate oversight of security, law enforcement and intelligence operations at overseas posts, and audits and special reviews of Department security operations, despite constraints in OIG resources.
  • To put in place an oversight strategy for security of personnel, facilities, and operations of the Department and the BBG in Iraq.

 

FINANCIAL MANAGEMENT AND ADMINISTRATIVE SUPPORT


Results From OIG Reports and Investigations

  • The Department, with OIG's assistance, met the accelerated deadline for the FY 2003 financial statements and received an unqualified opinion for the seventh straight year.
  • The Department implemented an Unliquidated Obligations System and procedures to facilitate the reconciliation, monitoring, reporting, and oversight of unliquidated obligations worldwide.
  • The Department de-obligated and requested as recoveries $1.8 million in multiple- and no-year obligations.
  • The Department has improved the accuracy of financial information and has addressed significant internal control and compliance issues, including system security.
  • The Department strengthened its internal controls over payment processing and identifying erroneous payments.

Challenges for OIG

  • To maintain the ability to conduct audits of Department and BBG operations beyond those that are legislatively mandated despite existing and expected resource constraints.

 

ACCOUNTABILITY


Results From OIG Reports and Investigations

  • The Department removed several senior officers from posts as a result of leadership or management deficiencies.
  • The Department recovered more than $3 million in questioned costs.
  • The United Kingdom and the Department reached a negotiated final settlement of Lockerbie trial costs that saved the United States $13 million from the original request.
  • Two individuals were convicted for alien smuggling and agreed to forfeit $750,000 in assets as a result of a joint investigation with the Bureau of Diplomatic Security and the Federal Bureau of Investigation.

Challenges for OIG

  • To identify, audit and investigate contracts and grants with the greatest risk of fraud, waste, and abuse using proactive methods despite resource constraints.

 

Performance Results

OIG's Performance Plan contains four strategic and one internal enabling goals, nine performance goals, and twenty-two indicators and targets used to evaluate its success in achieving its goals.

Summary of FY 2004 Strategic Goal Performance Target Results

Performance Rating Number of Results Percentage of Results
Significantly Above Target  6  27%
Above Target  1   5%
On Target  2   9%
Below Target  4  18%
Significantly Below Target  9  41%
Totals 22 100%

 

As shown in the chart above, 41 percent of OIG's performance results met or exceeded performance targets. This represents a decline from FY 2003, when 58 percent of results met or exceeded performance targets. However, as shown below, 64 percent of the FY 2004 results equaled or exceeded FY 2003 results.

Overall, 59 percent of the FY 2004 target results equaled or exceeded the best results of any prior year. OIG's most successful performance target results were under its strategic goals for Financial Management and Administrative Support and Foreign Policy. FY 2004 results met or exceeded 100 percent and 80 percent, respectively of their targets and, by the same percentages, equaled or exceeded the best results of any prior year.

 

Comparison of FY 2004 versus FY 2003 Target Results

Results Percentage
Better 55%
Equal  9%
Worse 36%

 

The results for the strategic goals related to security and accountability, and the internal enabling goal in support of management excellence, were less successful, falling short of targeted levels. As shown below, however, 33 percent of the results under these goals (20 percent, 33 percent, and 50 percent, respectively) equaled or exceeded the best results of prior years.

 

Percentage of FY 2004 Results that Equaled or Exceeded the Best Results of Prior Years
By Strategic Goal

Strategic Goal Percentage
Foreign Policy 80%
Security 20%
Financial Management 100%
Accountability 33%
Management Excellence 50%

 

Reasons for Performance Shortfalls, Continuing Challenges and How OIG Will Meet Them

There were three significant factors in performance targets not being met. These were:

  • The suspension, deferment, or cancellation of planned work due to a shortage of staff resulting from a higher than expected attrition rate and the temporary loss of several staff to service related to Iraq, either with the military reserves or the Office of Inspector General of the Coalition Provisional Authority;
  • Department and BBG failure to ensure timely completion of promised corrective actions; and
  • Targets based solely on meeting or exceeding the highest prior targeted or actual results when it was unlikely that they could be achieved.

OIG continues to face three major challenges to its ability to achieve its strategic and performance goals:

  • Obtaining the funding necessary to overcome a decade of static appropriations that has eroded OIG's oversight capabilities as its funding relative to that of the Department declined by over 30 percent;
  • Meeting oversight responsibilities that are current (such as the legislatively mandated five-year inspection schedule) and new (such as those activities related to Iraq) in an environment of increasing costs and declining resources; and
  • Identifying, attracting and retaining personnel with the requisite skills, abilities, and experience.

OIG will meet these challenges by actively making its case for the resources it needs to meet its oversight responsibilities while continuing efforts to use the resources it has more efficiently and effectively. The integrated post management, information security, and security and intelligence oversight inspection process introduced in FY 2004 will be further refined to build on the benefits achieved to date. Resource-and-time-intensive paper-driven processes such as those related to inspection surveys, audit workpapers, and OIG reports will be replaced or supplemented by electronic ones that are more cost-effective and easier and faster to use, store, and share. Accessing available Department and BBG data electronically from Washington rather than traveling to posts to collect it will become the rule rather than the exception. The scope, frequency and priority of audits and inspections will be determined by a risk-based analysis rather than traditional methodologies. Where appropriate, OIG will coordinate or participate in reviews with other OIGs in order to leverage resources and results. OIG staff will be encouraged to obtain professional certifications, to receive training that will allow them to become more expert in their own specialties and cross-trained in others as well, and to develop their leadership skills and abilities. OIG will meet its challenges by becoming more efficient, more effective and, for those who work here, more rewarding.

OIG is currently reevaluating its performance indicators and targets for FY 2005 and beyond.

 


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