Audit of Nonexpendable Personal Property at U.S. Embassy Baghdad, Iraq

Submitting OIG:

Department of State OIG

Date Issued:

Friday, September 23, 2022

Agency Reviewed / Investigated:

Department of State

Submitting OIG-Specific Report Number:

AUD-MERO-22-44

Component, if applicable:

Bureau of Administration

Bureau of Near Eastern Affairs

Location(s):

Iraq

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$20,500,000

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
AUD-MERO-22-44.pdf	2.52 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, establish, implement, document, and communicate, to those conducting the annual physical inventory, a policy and procedures to ensure that the annual physical inventory includes all accountable property at the embassy, as required by 14 Foreign Affairs Manual 416.1.
2	Open	Yes
OIG recommends that the Bureau of Administration reconcile differences between the definitions for accountable property contained in the Integrated Logistics Management System – Annual Inventory Modernization module and 14 Foreign Affairs Manual 416.1 and communicate to overseas posts what property should be included in posts’ annual inventories.
3	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, develop, implement, document, and communicate a policy and procedures requiring Accountable Property Officers to conduct periodic physical inventory spot checks of nonexpendable property.
4	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, develop, implement, document, and communicate a policy and procedures to secure the keys and limit access to the destruction yard holding area at the Baghdad Diplomatic Support Center to only those people who need access to the area.
5	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, develop, implement, document, and communicate a policy and procedures requiring that, upon receipt, all (a) nonexpendable property is promptly inspected, documented, and affixed with a barcode label and (b) identifying information is added into the Integrated Logistics Management System – Asset Management module in a timely manner.
6	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, take actions to ensure that all existing property in storage facilities has been (a) affixed with a barcode label and (b) added into the Integrated Logistics Management System – Asset Management module.
7	Open	No
OIG recommends that the Bureau of Administration conduct a review of the integration of the Integrated Logistics Management System – Asset Management and the Computerized Maintenance Management System to ensure that all updated information is being communicated between systems.
8	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, develop, implement, document, and communicate a policy and procedures to designate sufficient staff with access to the Integrated Logistics Management System to maintain continuous property management operations in each office responsible for managing nonexpendable property.
10	Open	Yes
OIG recommends that U.S. Embassy Baghdad, Iraq, determine (a) how many of the 15,785 nonexpendable property assets, valued at $7.6 million, were used, how many remain in storage, and how many have been disposed of, along with the reasons for disposal, and (b) whether maintaining these 15,785 assets in storage is necessary and reasonable.
11	Open	No
OIG recommends that U.S. Embassy Baghdad, Iraq, develop, implement, document, and communicate a policy and procedures, consistent with 14 Foreign Affairs Manual 412, to require that personnel responsible for purchasing clearly demonstrate a bona fide need supporting the purchase of nonexpendable property.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

OIG recommends that U.S. Embassy Baghdad, Iraq, establish, implement, document, and communicate, to those conducting the annual physical inventory, a policy and procedures to ensure that the annual physical inventory includes all accountable property at the embassy, as required by 14 Foreign Affairs Manual 416.1.

Open

Yes

OIG recommends that the Bureau of Administration reconcile differences between the definitions for accountable property contained in the Integrated Logistics Management System – Annual Inventory Modernization module and 14 Foreign Affairs Manual 416.1 and communicate to overseas posts what property should be included in posts’ annual inventories.

Open

OIG recommends that U.S. Embassy Baghdad, Iraq, develop, implement, document, and communicate a policy and procedures requiring Accountable Property Officers to conduct periodic physical inventory spot checks of nonexpendable property.

Open