State Department: Management Weaknesses at the U.S. Embassies in Panama, Barbados, and Grenada

Highlights

Pursuant to a congressional request, GAO reported on the management problems and issues affecting personal property accountability, financial controls, contracting, and procurement systems, and other areas of management and administration at the U.S. embassies in Panama, Barbados, and Grenada.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The system should be under the direction of the deputy chief of mission or another senior post official and provide for periodic post assessments of management processes, including the personal property systems to ensure inventory losses are minimized and key controls are in place and functioning.	Closed – Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts. For example, State's implementation guidance to overseas posts instructs embassy managers to document how they will address material weaknesses in administrative areas. The plans have an administrative section that highlights the status of key operational areas, such as warehousing and inventory, financial management, cashiering, and procurement and also summarize the progress being made in meeting administrative goals.
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The system should be under the direction of the deputy chief of mission or another senior post official and provide for periodic post assessments of management processes, including the cashiering operations, for example, documentation and oversight of cashier receipt forms and procedures to ensure proper verification of accounts.	Closed – Not Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts.
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The system should be under the direction of the deputy chief of mission or another senior post official and provide for periodic post assessments of management processes, including the status of unliquidated obligations to ensure timely and prompt financial action.	Closed – Not Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts.
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The system should be under the direction of the deputy chief of mission or another senior post official and provide for periodic post assessments of management processes, including the competition advocacy program to ensure contracting and procurement actions are in full compliance with applicable laws and regulations governing competition.	Closed – Not Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts.
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The system should be under the direction of the deputy chief of mission or another senior post official and provide for periodic post assessments of management processes, including the internal control assessment and reporting systems to ensure that embassy responses accurately reflect the status of management controls.	Closed – Not Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts.
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The system should be under the direction of the deputy chief of mission or another senior post official and provide for periodic post assessments of management processes, including the personnel systems to address the training needs of foreign service national employees and continuing need for personal services contractors.	Closed – Not Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts.
Department of State	To build on current embassy initiatives and ensure continuous attention to correcting management deficiencies and improving management processes, the Secretary of State should direct the Chiefs of Mission at the U.S. embassies in Panama, Barbados, and Grenada to establish a formal, proactive system for management improvement and cost control. The systems for management improvement should include annual post reports on the status of management processes and action plans for improvements where deficiencies are identified.	Closed – Not Implemented The State Department is now using Mission Program Plans as the main tool for strengthening embassy management and prioritizing resource allocations. This plan is the key instrument for addressing existing material weaknesses at all overseas posts.

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Accounts receivableCash managementCollection proceduresEmbassiesFederal property managementFinancial recordsEmployee trainingInternal controlsEmbassiesReal property