Federal Reports

What OIG Evaluated

The Office of Inspector General (OIG) performed this evaluation to (1) determine the nature and extent to which the Department funds and participates in international organizations, and (2) evaluate the Department’s use of oversight provisions for the funds it contributes to them.  

What OIG Found

OIG found that of the $9.3 billion provided to international organizations in FY 2024, $3.6 billion was assessed contributions levied by international organizations as requirements of membership. The remaining $5.7 billion was voluntary contributions, or discretionary financial assistance, designated for specific organizations and programs. According to Department officials, treaty obligations limited the Department’s ability to oversee or apply conditions to its $3.6 billion of assessed contributions. OIG found United Nations (UN) policies and legal requirements, including UN diplomatic privileges and immunities, the UN’s single audit principle, and the UN’s practice of commingling funding presented barriers to the Department’s ability to obtain detailed information about its contributions. Despite these limitations, the Department participated in international organizations’ executive boards, reviewed international organizations’ audit reports, and coordinated with other donors to strengthen oversight and reform.  The Department had greater flexibility to include oversight provisions for its $5.7 billion in voluntary contributions. However, it did not consistently include such provisions in its contribution agreements.

Specifically, OIG found that the Department inconsistently applied oversight provisions to its agreements, with provisions varying by Department bureau and type of mechanism used to provide the funds. In contrast, OIG found that other donors to international organizations, such as the European Commission and the U.S. Agency for International Development (USAID), included more stringent requirements in their own standard funding agreement provisions. The inconsistent oversight provisions created a barrier to the Department and State OIG’s ability to thoroughly oversee funds voluntarily contributed to international organizations. To enhance accountability for IO contributions, Congress included a requirement in the Further Consolidated Appropriations Act, 2024 for the Department and USAID to seek to enter into written agreements with each international organization receiving U.S. funding. These agreements were to grant timely access to financial data and to other information relevant to the Inspectors General of the Department and USAID, and to the Comptroller General of the United States. OIG found that the Department had taken limited action to implement the statutory requirement and, 16 months after the enactment of the law, had not made any request to any international organization to enter into an overarching written agreement to provide the two OIGs and Government Accountability Office (GAO) with access to financial data and other information related to U.S. contributions.  

What OIG Recommends

OIG made five recommendations to improve the Department’s oversight of voluntary contributions and strengthen its implementation of Section 7048(h). 

Background

The U.S. Postal Service paid out more than $866 million in resolution of almost 3.5 million grievance payments from fiscal years (FY) 2022-2024. Grievances are typically complaints lodged by individual employees or unions about the implementation or interpretation of collective bargaining and local agreements concerning wages, hours, and conditions of employment.

What We Did 

Our objective was to evaluate the Postal Service’s management of grievances. We analyzed data from various Postal Service systems to identify trends, risk areas, and anomalies. We reviewed 25 facilities and labor relations offices in eight districts and conducted interviews with management and employees at those locations to gain an understanding of their grievance payments.

What We Found

Although total grievance payments nationwide trended slightly downward from FYs 2022-2024, some districts and facilities incurred high payment amounts or experienced significant increases in payments. Grievance issues related to overtime and improper work assignments accounted for some of the most significant and recurring grievance payments nationwide. In addition, field management entered into binding local agreements with unions that contained escalating remedies, did not always align with current operational needs, and did not have defined end or revision dates. Lastly, management did not always maintain a standardized, centralized repository that contained local agreements and did not consistently complete all required elements of decision letters in the Grievance and Arbitration Tracking System for payments.

Recommendations and Management’s Comments 

We made eight recommendations for the Postal Service to improve its management of grievances, reduce recurring grievances, clarify policy, and improve tracking. Postal Service management agreed with seven and disagreed with one. We consider management’s comments responsive to recommendations 1, 2, 3, 4, 5, 7, and 8, and will pursue recommendation 6 through the audit resolution process. Management’s comments and our evaluation are at the end of each finding and recommendation.

In this year’s report, we identified five key challenges for NASA—returning humans to the Moon, sustaining a human presence in low Earth orbit, improving management of major programs and projects, managing cybersecurity risks and emerging technology, and sustaining mission critical capabilities.