Inspector General Act Amendments - Management Follow-up to OIG Recommendations

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003
Report

The information on the Department's follow-up on audit recommendations covers 2003. 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 2003, the Department of State tracked 22 audit reports that were more than one year old and included a total of 73 recommendations in which final action was not taken, which would have brought closure to the reports. These audits contain over $10,581,619 in disallowed costs. The Department is working to bring closure to the 22 audits and recognizes that the follow-up actions and compliance to the recommendations are essential to improving the effectiveness and efficiency of program operations.

Management Statistical Summary
22 Audits Over One Year Old Requiring Final Action
Program Area Number of Audit
Reports
Recommendations
Counterintelligence  1  8
Financial Management  8 30
Information Management  3 13
Security Oversight  7 19
Support Programs  1  1
Property Management and Procurement  1  1
Contracts and Grants  1
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 1
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TOTALS

22
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73
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Status of Audits with Recommendations that Funds Be Put to Better Use

On October 1, 2002, there was one audit with recommendations to put funds to better use, with a dollar value of $70,000, in which management had not taken final action. During the year, final action was taken. Therefore, on September 30, 2003, there were no audits with recommendation to put funds to better use.

Status of Audits of Disallowed Costs

On October 1, 2002, there was one audit with management decision on which final action had not been taken with a dollar value of disallowed costs totaling $195,000. During the year, one audit with a value of $195,000 was resolved. During the year, three audits were completed that included disallowed costs of $10,581,619. The resulting balance on September 30, 2003 was $10,581,619.

 

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  1  $ 70,000  1 $   195,000 
New Audits  -         -  3  10,581,619 
Implemented Actions (1)
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(70,000)
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(1)
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   (195,000)
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Ending Balance  - 
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$      - 
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3
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$10,581,619 
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