Audit of the Department of State Management and Monitoring of Federal Assistance Awards to For-Profit Organizations

Submitting OIG:

Department of State OIG

Date Issued:

Friday, May 6, 2022

Agency Reviewed / Investigated:

Department of State

Submitting OIG-Specific Report Number:

AUD-CGI-22-26

Component, if applicable:

Bureau of Administration

Bureau of Counterterrorism and Countering Violent Extremism

Bureau of Democracy, Human Rights, and Labor

Bureau of Near Eastern Affairs

Bureau of Political-Military Affairs

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
AUD-CGI-22-26web508.pdf	1.67 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	Yes
OIG recommends that the Bureau of Administration revise the Federal Assistance Directive to require Grants Officers (GO) and Grants Officer Representatives (GOR) to fully use the State Assistance Management System Domestic’s Post-Award Activities function to upload and review documentation for all post-award tasks, such as the review of Performance Progress Reports and Federal Financial Reports, GOR reports, annual reviews, other monitoring activities; and to document workflows for submitting, reviewing, and monitoring post-award activities among the GO, GOR, and award recipient.
2	Open	Yes
Concurrent with the implementation of Recommendation 1, OIG recommends that the Bureau of Administration require bureaus to perform quarterly reviews of the State Assistance Management System Domestic’s Post-Award Activities function reports. The reviews should verify that Grants Officers and Grants Officer Representatives have complied with oversight requirements such as the review of Performance Progress Reports and Federal Financial Reports, GOR reports, annual reviews, and other monitoring activities.
3	Open	Yes
Concurrent with the implementation of Recommendation 1, OIG recommends that the Bureau of Administration require bureaus to designate an official to review the State Assistance Management System’s Post-Award Activities function reports to verify that Grants Officers and Grants Officer Representatives comply with oversight requirements.
4	Open	Yes
OIG recommends that the Bureau of Administration modify the State Assistance Management System user training to include guidance on documenting the Grants Officer and Grants Officer Representative workflows within the State Assistance Management System using the Post-Award Activities function.
6	Open	No
Following implementation of Recommendation 5, OIG recommends that the Bureau of Administration analyze the results of the survey to identify the reasons hindering the use of State Assistance Management System Domestic’s Post-Award Activities function, including technical issues that need to be addressed and if appropriate, develop and implement a corrective action plan to increase the use of the State Assistance Management System Domestic’s Post-Award Activities function.
8	Open	No
OIG recommends that the Bureau of Administration develop and implement a communications strategy that provides Grants Officer Representatives with specific and detailed requirements for financial monitoring to improve their understanding of and compliance with those requirements. This communications strategy should underscore the importance of reviewing the Federal Financial Report to ensure that the amount of funds expended is commensurate with the work accomplished on the award.
9	Open	No
OIG recommends that the Bureau of Administration develop and implement a communications strategy that provides Grants Officers with specific and detailed requirements for financial monitoring to improve their understanding of and compliance with those requirements. This communications strategy should underscore the critical importance of reviewing and approving the Federal Financial Report in a timely manner within the Payment Management System, rather than allowing a default approval. It should further remind Grants Officers that Grants Officer Representatives could be delegated Federal Financial Report approval responsibility within the Payment Management System to ensure timely approval of reports.
11	Open	No
OIG recommends that the Bureau of Administration develop and implement a communications strategy that provides Grants Officers with specific and detailed audit requirements for foreign for-profit organizations to improve their understanding of and compliance with those requirements. This communications strategy should underscore the critical importance of requiring, obtaining, and reviewing audit reports to inform risk assessments and to formulate monitoring plans.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

OIG recommends that the Bureau of Administration revise the Federal Assistance Directive to require Grants Officers (GO) and Grants Officer Representatives (GOR) to fully use the State Assistance Management System Domestic’s Post-Award Activities function to upload and review documentation for all post-award tasks, such as the review of Performance Progress Reports and Federal Financial Reports, GOR reports, annual reviews, other monitoring activities; and to document workflows for submitting, reviewing, and monitoring post-award activities among the GO, GOR, and award recipient.

Open

Yes

Concurrent with the implementation of Recommendation 1, OIG recommends that the Bureau of Administration require bureaus to perform quarterly reviews of the State Assistance Management System Domestic’s Post-Award Activities function reports. The reviews should verify that Grants Officers and Grants Officer Representatives have complied with oversight requirements such as the review of Performance Progress Reports and Federal Financial Reports, GOR reports, annual reviews, and other monitoring activities.

Open

Yes