Audit of Department of State Procedures To Establish Program Fees for the Furniture and Appliance Pool Program

Submitting OIG:

Department of State OIG

Date Issued:

Monday, July 3, 2023

Agency Reviewed / Investigated:

Department of State

Submitting OIG-Specific Report Number:

AUD-FM-23-22

Component, if applicable:

Bureau of Administration

Bureau of the Comptroller and Global Financial Services

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
AUD-FM-23-22.pdf	4.17 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
OIG recommends that the Bureau of Administration develop and implement a process to improve oversight of posts’ Furniture and Appliance Pool program management activities. The process should include oversight controls that address Furniture and Appliance Pool data issues.
2	Open	No
OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services, develop and implement oversight controls to prevent overseas posts from maintaining Furniture and Appliance Pool program assets in ineligible locations. The oversight controls should include a plan of action to consult with the Bureau of Overseas Buildings Operations when necessary.
3	Open	No
OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services and the Foreign Service Institute, enhance current Furniture and Appliance Pool program training to provide detailed guidance on asset classification; asset lifecycles; asset replacement dates; spending plans; furniture and appliance pool eligible and ineligible assets; maintenance of the furniture, furnishings, appliances, and equipment listing; and data, asset, and financial management.
4	Open	No
OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services and the Foreign Service Institute, annually disseminate information to all personnel with Furniture and Appliance Pool program responsibilities at overseas posts regarding the availability of and expectation to complete furniture and appliance pool-specific training developed in response to Recommendation 3.
5	Open	No
OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services, reevaluate existing policy requirements for furniture and appliance pool asset lifecycles and update policies and procedures with clarifying language related to adjusting furniture and appliance pool asset lifecycles from the standards specified.
6	Open	No
OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services, develop and disseminate guidance that instructs overseas posts to periodically review and update the furniture, furnishings, appliances, and equipment listing in posts’ Furniture and Appliance Pool program policies.
7	Open	No
OIG recommends that the Bureau of the Comptroller and Global Financial Services revise Furniture and Appliance Pool (FAP) program policy to clarify the requirement for overseas posts to maintain multi-year FAP program spending plans.
8	Open	No
OIG recommends that the Bureau of the Comptroller and Global Financial Services update policies and procedures for retaining overseas posts’ Furniture and Appliance Pool program fee-related records so the information is readily available and accessible upon request for a period of time specified in the guidance.
9	Open	No
OIG recommends that the Bureau of Administration develop and implement controls within the Integrated Logistics Management System that require the use of mandated, minimum replacement standards for furniture and appliance pool asset lifecycles.
10	Open	No
OIG recommends that the Bureau of Administration implement controls within the Integrated Logistics Management System that ensure periodic updates to the replacement dates for furniture and appliance pool assets.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

OIG recommends that the Bureau of Administration develop and implement a process to improve oversight of posts’ Furniture and Appliance Pool program management activities. The process should include oversight controls that address Furniture and Appliance Pool data issues.

Open

OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services, develop and implement oversight controls to prevent overseas posts from maintaining Furniture and Appliance Pool program assets in ineligible locations. The oversight controls should include a plan of action to consult with the Bureau of Overseas Buildings Operations when necessary.

Open

OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services and the Foreign Service Institute, enhance current Furniture and Appliance Pool program training to provide detailed guidance on asset classification; asset lifecycles; asset replacement dates; spending plans; furniture and appliance pool eligible and ineligible assets; maintenance of the furniture, furnishings, appliances, and equipment listing; and data, asset, and financial management.

Open

OIG recommends that the Bureau of Administration, in coordination with the Bureau of the Comptroller and Global Financial Services and the Foreign Service Institute, annually disseminate information to all personnel with Furniture and Appliance Pool program responsibilities at overseas posts regarding the availability of and expectation to complete furniture and appliance pool-specific training developed in response to Recommendation 3.