Office of Inspector General FY 2003 Annual Work Plan 39

Office of Inspector General

U.S. Department of State and

the Broadcasting Board of Governors

FY 2003 Annual Work Plan
Office of Inspector General FY 2003 Annual Work Plan 37

Table of Contents

FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

VISION AND MISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

STRATEGIC GOALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

ONGOING AND PLANNED PROJECTS FOR FY 2003 . . . . . . . . . . . . . . . . . . . . . . . 5

STRATEGIC GOAL 1: FOREIGN POLICY

PERFORMANCE GOAL 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

PERFORMANCE GOAL 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

STRATEGIC GOAL 2: SECURITY

PERFORMANCE GOAL 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

PERFORMANCE GOAL 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

STRATEGIC GOAL 3: FINANCIAL MANAGEMENT AND ADMINISTRATIVE SUPPORT SYSTEMS

PERFORMANCE GOAL 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

PERFORMANCE GOAL 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

STRATEGIC GOAL 4: ACCOUNTABILITY

PERFORMANCE GOAL 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

PERFORMANCE GOAL 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

PROJECTS RELATED TO INTERNATIONAL BROADCASTING . . . . . . . . . . . . . . . . . . 27

PROJECTS SUPPORTING PRESIDENT’S MANAGEMENT AGENDA INITIATIVES . . . . . . . 29

PROJECTS SUPPORTING OIG STRATEGIC AND PERFORMANCE GOALS . . . . . . . . . . 31

GLOSSARY OF ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Abbreviations Used in Categorizing Projects

AUD Office of Audits

IBO Office of International Broadcasting Oversight

ISP Office of Inspections

INV Office of Investigations

IT Office of Information Technology

SIO Office of Security and Intelligence Oversight

PMA President’s Management Agenda

BI Budget and Performance Integration

CS Competitive Sourcing

EG E-Government

FP Improved Financial Performance

HC Strategic Management of Human Capital

RS Rightsizing Overseas Presence
Office of Inspector General FY 2003 Annual Work Plan 1

Foreword

I am pleased to present the Office of Inspector General’s (OIG) FY 2003 annual

work plan for our oversight of the Department of State (Department) and the

Broadcasting Board of Governors (BBG). This plan identifies the new audits,

inspections, security reviews, and other activities that my office expects to

initiate, as well as prior years’ work that will be completed, during this fiscal year.

The projects in this plan are presented under the specific strategic and

performance goals that they support. They were developed in response to our

long-term strategies for achieving our goals, the results of prior years’ work, and

the concerns of Department and BBG managers. In addition, they reflect our

increased focus this year on the priority concerns of the President—as identified

in the President’s Management Agenda and the Office of Management and

Budget’s Program Assessment Review Tool—and the Congress, especially homeland security issues related to our consular, security, and intelligence oversight

responsibilities.

This year’s plan continues my commitment to conduct post management

inspections of all overseas missions and domestic bureaus and full or limitedscope security inspections of all overseas missions at least once every five years.

It expands the methodology for evaluating information security programs that

was successfully pilot-tested during FY 2002, to encompass information security

inspection evaluations of as many as 10 additional missions, as resources permit.

Where appropriate, it also coordinates our work with that of other OIGs, such as

the U.S. Agency for International Development, and the General Accounting

Office.

Typically, 10 percent or more of our work—and as much as 40 percent of our

non-inspections work—is unplanned and initiated in response to requests received during the year from the Congress, the Department, and the BBG. This

results in lower priority planned work being discontinued or deferred. Consequently, it should be emphasized that this work plan is just that—a plan which

will be adjusted as circumstances and resources dictate to ensure that our

work remains current and responsive to the changing needs and priorities of

the Department, the Administration, the Congress, and the foreign affairs

community.

Clark Kent Ervin
2 Office of Inspector General FY 2003 Annual Work Plan
Office of Inspector General FY 2003 Annual Work Plan 3

Vision

To support the Department of State and the Broadcasting Board of Governors in

achieving their missions as effectively, efficiently, and economically as possible.

Mission

The mission of the Office of Inspector General is to serve as an independent,

objective reviewer and evaluator of the operations and activities of the Department and the BBG. We analyze those operations and activities with a view

toward promoting effectiveness, efficiency, and economy. We seek out instances

of fraud, waste, abuse, and mismanagement, and we work to prevent them. We

report to the Secretary of State, the BBG, and the Congress, keeping them fully

and currently informed of significant developments and serious concerns.

Strategic Goals

The strategic goals of the Office of Inspector General are to ensure that the

Department and the BBG:

• effectively, efficiently, and economically advance the foreign policy of the

United States.

• adequately protect the people, information, and facilities under their control

in the United States and abroad.

• have the necessary financial and support systems and controls to meet

legal and operational requirements.

• ensure accountability and prevent or eliminate fraud, waste, abuse, and

mismanagement in programs and operations.
4 Office of Inspector General FY 2003 Annual Work Plan
Office of Inspector General FY 2003 Annual Work Plan 5

Ongoing and Planned Projects for FY 2003

STRATEGIC GOAL 1: THE DEPARTMENT AND BBG

EFFECTIVELY, EFFICIENTLY, AND ECONOMICALLY ADVANCE

THE FOREIGN POLICY OF THE UNITED STATES.

Performance Goal 1: Identify opportunities for improving the management and operations of overseas missions, domestic bureaus, and

international broadcasting activities through post management and

thematic inspections, audits, and program evaluations.

Inspections of Overseas Missions and Domestic Bureaus: OIG inspects

overseas missions and domestic bureaus of the Department of State and the

Broadcasting Board of Governors. These post management inspections review

policy implementation, resource management, management controls, and

rightsizing of U.S. overseas presence, in support of the President’s Management

Agenda. Specific posts and bureaus to be reviewed in FY 2003 are identified in

the table below. PMA:RS (ISP)

Post and Bureau Management Inspections

Africa Asia/Pacific Europe Latin America South Asia Bureaus

Abuja/Lagos Apia Belgrade Brasilia None DS/OFM

 (CFR) Canberra Copenhagen Georgetown planned EB

Antananarivo Phnom Penh Helsinki La Paz IO

Luanda (CFR) Rangoon Lisbon Mexico City L

Vientiane Madrid Paramaribo S/CPR

Wellington Oslo Port of Spain USUN New York

Pristina Quito WHA

Reykjavik USOAS

Skopje

Stockholm

Tirana
6 Office of Inspector General FY 2003 Annual Work Plan

Ongoing

Inspection of the Helsinki Regional Monitoring Office: In conjunction with

the management inspection of Embassy Helsinki, OIG will review the effectiveness of the International Broadcasting Bureau’s Helsinki Regional Monitoring

Office. The office is responsible for supporting and coordianting the wsork of

monitors who review broadcasts of the Voice of America and Radio Free Europe/

Radio Liberty in terms of BBG performance measures for signal strength, clarity,

and correct programming. (IBO)

Performance Goal 2: Evaluate at least nine U.S. Government operations and programs with foreign policy implications, especially those

under Chief of Mission authority or related to international broadcasting and the free flow of information around the world; identify obstacles to Chief of Mission, Department, or BBG oversight and coordination of the operations and programs; and recommend actions necessary to remove or overcome them.

Ongoing

Survey of Radio Free Asia Activities: Radio Free Asia (RFA) was created

through the U.S. International Broadcasting Act of 1994. Although OIG has

addressed specific issues involving RFA activities, RFA has not been reviewed by

OIG in-depth. The project also will provide RFA and Congress with an overall

assessment of RFA activities and will identify areas for further review. PMA:BI

(IBO)

Follow-up Survey of the Middle East Radio Network (MERN): In its

March 2002 Survey of the Broadcasting Board of Governors’ Middle East Broadcasting Activities and Initiatives, OIG noted the importance of the Middle East

Radio Network (MERN) initiative and made a commitment to conduct a follow-up

review of MERN one year after it became operational. The follow-up review will

examine whether MERN: 1) has increased the U.S. international broadcasting

audience in the Middle East; 2) presents a mix of programming that includes

policy components to offer an alternative to anti-American media in the region;

3) has the transmitting capability to reach a significant audience; and 4) has

complied with the previous OIG recommendations. PMA:BI (IBO)

Domestic Passport Operations, Phase II—Passport Fraud Prevention

Programs: This inspection provides a comprehensive appraisal of the Passport

Office (CA/PPT) domestic fraud prevention program. Objectives of this inspection are to determine whether: (1) fraud prevention is receiving appropriate

priority and management attention, guidance and training is consistently applied

among the regional agencies, and the Department is providing adequate guidance to fraud prevention managers; (2) the growing workload in the Bureau of
Office of Inspector General FY 2003 Annual Work Plan 7

Consular Affairs is impeding the ability of CA/PPT’s fraud prevention staff; and

(3) there is need for greater application of technology to detect fraud. (ISP)

Domestic Passport Operations, Phase III—Regional Passport Agency

Operations and Management: Phase III of the inspection of Domestic

Passport Office operations will examine how well the regional passport offices

have met the new challenges posed by increased demand for passports, passport fraud, and a new case tracking and retrieval system, the Travel Document

Information System. OIG will provide a comprehensive appraisal of the management of CA/PPT operations and whether recent innovations such as intraoffice workload sharing, implementation of the digital photo process, and automated case tracking have met the goals of improving customer service and

increasing productivity. (ISP)

Survey of Overseas Visa Operations: This review will survey nonimmigrant

visa procedures and policies, especially waiver of personal appearance programs,

travel agency referral programs, and the coordination between agencies in the

mission on visa-related issues such as the Visas Viper Program. The survey will

address several other aspects of visa processing at posts abroad as directed by

the Visa Office in the Bureau of Consular Affairs, in coordination with the Bureau

of Intelligence and Research. The survey will assess Department efforts to

address weaknesses and vulnerabilities in the visa process created by resource

deficiencies in staffing, training, and processing facilities. (ISP)

Immigrant Visa Diversity Lottery Program: The diversity visa (DV) lottery

originally was intended to diversify the nation’s immigrant pool by establishing

immigration flow from countries that did not send large numbers of immigrants

to the United States. This review will describe the current DV immigrant pool to

determine if the program is meeting its original goals. The review also will examine DV fraud, with special emphasis on identity, occupation, and education fraud

in applications, as well as duplicate entries in the lottery drawing. In addition,

inspectors will test DV processing practices at selected posts to determine

whether posts are adhering to regulations. (ISP)

Inspection of the Bureau of Consular Affairs Visa Office: This inspection,

which is part of the five-year inspection cycle of the entire Bureau of Consular

Affairs (CA), will review the current management and operations of the second

largest section of the bureau. Objectives are to appraise overall management,

the operational support for visa-issuing posts abroad, and the administration,

implementation, and interpretation of visa laws and regulations related to, and in

support of, immigrant and nonimmigrant visa operations, both domestically and

abroad; and to review and appraise the visa liaison work with Congress, other

elements of the Department, other executive branch agencies, the public, and

diplomatic missions. In response to congressional proposals for improving border

security, OIG also will review planning and coordination of the functions in this

office with the new Department of Homeland Security, as proposed in H.R.

1510. (ISP)
8 Office of Inspector General FY 2003 Annual Work Plan

Overseas Passport Operations: In order for all U.S. passports to be issued

with digitized photographs to prevent imposter fraud by passport photo substitution, the passport issuance process formerly performed at consular posts abroad

was repatriated to the United States in May 2002. The adjudication of these

overseas applications, however, remained with the accepting posts. Although

these passports are issued by CA/PPT facilities at Portsmouth, NH, the administration and oversight of the overseas adjudications is performed by a totally

separate entity within the CA Bureau, the Office of American Citizen Services.

This inspection will evaluate the impact this bifurcated management has on the

oversight of overseas passport operations, and the quality of adjudication of

claims to U.S. citizenship by consular officers at posts abroad. Fraud and the

faulty analysis of documentation submitted to support passport applications

abroad have been encountered by the Department and are a serious vulnerability directly related to homeland security and counter-terrorism programs. (ISP)

Status of the Merger of Worldnet TV with VOA: To obtain increased efficiencies in broadcasting, the Broadcasting Board of Governors notified Congress

in February 2000 of its decision to merge Worldnet Television and Film Service

with the Voice of America. A number of plans have been developed, but the

merger still is not complete. In August 2002, OIG initiated a review of the

merger to determine the status of the merger, its resource implications, and how

VOA-TV and programs have been integrated. PMA:BI (IBO)

Effectiveness and Implementation of OCB New Program Initiatives:

OIG reviewed information on audience listenership and evaluated Office of Cuba

Broadcasting (OCB) policies and procedures for acquiring additional contractor

resources to assess the effectiveness of the OCB programming changes. The

primary objectives of the review are to determine: 1) what the new programming changes were, 2) whether the changes had increased the audience size,

and 3) how well OCB had implemented the changes in compliance with government regulations covering the hiring of talent contractors. PMA:HC (IBO)

Enforcement of Export Controls: The National Defense Authorization Act for

FY 2000 contains a requirement for the Inspectors General of the Departments

of Commerce, Defense, Energy, and State to report annually with respect to the

export of technologies and technical information to countries and entities of

concern. OIG’s ongoing work in this area focuses on the enforcement of export

control laws. OIG will report its results by the legislatively mandated reporting

date of March 30, 2003. (AUD)

Planned

Refugee Admissions and Resettlement—Program Results: Each year the

United States resettles more than 85,000 refugees from 65 countries. The

Bureau of Population, Refugees, and Migration grants over $100 million to international organizations and nongovernmental organizations (NGOs). Ten national
Office of Inspector General FY 2003 Annual Work Plan 9

NGOs maintain a nationwide network of more than 400 affiliates that provide

basic services for refugee resettlement. OIG will assess the progress made by

the Department and its NGOs toward establishing and meeting appropriate

performance goals for the permanent resettlement of refugees. PMA:BI

(AUD)

Diplomatic Security/Consular Affairs Overseas Fraud Prevention

Programs: During the past three years, pilot projects at three posts abroad

have attempted to combine Bureau of Diplomatic Security (DS) investigative

resources with consular section fraud prevention programs to combat high levels

of visa fraud. Even with memoranda of understanding between CA and DS,

these pilot projects have had limited success. This project will review the program, as well as antifraud coordination in high-fraud posts without dedicated DS

staff, to determine what success, if any, the pilot project has achieved, and to

identify weaknesses in the implementation of the program. (ISP)

Inspection of the Bureau of Consular Affairs Executive Office and

Consular Lookout and Support System (CLASS): At the request of the

Department, OIG will review the Executive Office of the Bureau of Consular

Affairs. The inspection will include a review of CLASS, a name check system used

by consular officers to determine if visa applicants are suspected of being terrorists or could pose other security risks. (ISP)

Internet and New Technology Development—BBG: The transmission of

BBG programs is dependent on technology. However, BBG has moved slowly in

converting from shortwave to newer and different technologies for distributing its

message. New technology also may offer distribution options in some repressive

regimes where affiliates are not possible. OIG will review BBG’s use of the

Internet and new technology to determine whether BBG has a transmission

strategy based on the most cost-effective and efficient means of reaching

target audiences. PMA: EG (IBO)

Cumulative Effects of Munitions Exports: The National Defense Authorization Act for FY 2000 contains a requirement for the Inspectors General of the

Departments of Commerce, Defense, Energy, and State to report annually with

respect to the export of technologies and technical information to countries and

entities of concern. The tentative topic for the interagency OIG review to begin

in 2003 (with a legislatively mandated March 30, 2004, reporting date) is the

long-term, cumulative effect of munitions exports. (AUD)

Assignment Process for Hard-To-Fill Posts: The Department has

longstanding problems with staffing overseas. The General Accounting Office

(GAO) recently reported that problems with the Department’s open bidding

assignments system contribute to its staffing gaps at certain posts. The Director General has said that the Department will ensure that “fair share” assignment

bidding rules are enforced to help alleviate staffing disparities. OIG will determine

whether the Department has improved its ability to address staffing needs at
10 Office of Inspector General FY 2003 Annual Work Plan

hardship posts and other difficult-to-fill positions in the most recent assignment

cycle, and whether additional actions are needed. PMA:HC (AUD)

STRATEGIC GOAL 2: THE DEPARTMENT AND BBG

ADEQUATELY PROTECT THE PEOPLE, INFORMATION, AND

FACILITIES UNDER THEIR CONTROL IN THE UNITED STATES

AND ABROAD.

Performance Goal 1: Assess the adequacy of Department and BBG

security for their personnel, property, and information at overseas

missions and domestic locations and ensure that, as appropriate,

necessary corrective actions are implemented.

Security and Intelligence Oversight (SIO) Inspections: SIO inspections

assess the entire spectrum of security, including protection of personnel, classified and sensitive information, and U.S. facilities and operations. Security experts

analyze the full range of security programs under the chief of mission auspices,

including physical, personnel, procedural, technical, and information security and

emergency preparedness, and make recommendations to correct identified

vulnerabilities. During FY 2003, SIO inspections and compliance follow-up reviews

(CFRs) will be conducted at approximately 40 overseas missions. (SIO)

Security and Intelligence Oversight Inspections

Africa Asia/Pacific Europe Latin America Near East South Asia

Bujumbura Beijing (CFR) Belgrade* Brasilia* None None

Harare Kolonia Berlin (CFR) Hamilton planned planned

Kampala Koror Copenhagen* La Paz*

Khartoum Majuro Lisbon* Mexico City*

Kigali Phnom Pehn* Madrid* Port of Spain*

Lusaka Rangoon* Moscow (CFR) Quito*

Maseru Suva Pristina* USOAS

N’Djamena Vientiane* Reykjavik*

Yaounde USUN New York*

* Indicates limited-scope security inspection conducted in conjunction with a post management inspection.
Office of Inspector General FY 2003 Annual Work Plan 11

Ongoing

Management of Classified Holdings Overseas: Over the years SIO security oversight inspections have reported problems at overseas posts with excessive classified holdings, poor procedural controls, and frequent security incidents

(e.g. security infractions, classified information being processed outside controlled

access areas, close proximity of Foreign Service nationals to classified material).

In keeping with the intent of the Senate Select Committee on Intelligence’s

Report for the FY 2001 Intelligence Authorization Bill directing the OIG to conduct

annual follow-up reviews through 2006 of how well the Department protects

classified information, this review examines the management of classified holdings overseas and includes a separate study of the degree to which communications security material and electronic information are protected (see below).

(SIO)

Control of Communications Security Materials and Electronic Storage:

This review is a subset of OIG’s review of the management of classified holdings

overseas and focuses on the degree to which communications security material

and classified electronic data are protected. (SIO)

Secure Shipments of Classified Information Processing Equipment: This

review examined whether the Department was shipping classified information

processing equipment securely. The review determined that the process to ship

this and other classified material securely existed, but that the Department had

not fully complied with all aspects of shipping classified material securely. (SIO)

Review of the Department’s Unit Security Officer Program: Congress

has mandated that the OIG review annually how well the Department is protecting its classified information. While security is an individual responsibility, each

bureau has unit security officers (USOs) charged with overseeing the protection

of classified information in their bureaus. Previous SIO work has found these

individuals to be those in the lowest grades, with little training, and no real

authority. This review examines whether this situation has changed, including

whether training has improved; whether there are more senior people, including

security professionals, assuming USO duties; and whether individuals are more

aware of their responsibilities and fulfilling them conscientiously. (SIO)

Oversight of the Security of the Construction of a New Embassy Compound in Beijing: The Department is undertaking the construction of a new

embassy compound in Beijing, China. Stringent security measures will need to

be applied to all aspects of this project, from the shipment and on-site storage of

building materials to having appropriately cleared people work on the project.

The immensity of this undertaking cannot be underestimated, either by the

builders or by the Department’s security structure. OIG will provide close,

coordinated security oversight of this project to ensure that problems are identified early and corrected. (SIO)
12 Office of Inspector General FY 2003 Annual Work Plan

Management of Overseas Post Security Upgrade Projects: One of the

Department’s major challenges is bringing overseas diplomatic facilities into

compliance with established security standards. Currently, 80 percent of overseas facilities do not meet all physical security standards. This project will review

the Department’s management of physical security upgrades at overseas posts,

focusing on small-scale security upgrade projects that are not major construction

efforts. (SIO)

Protection of Classified Documents at State Department Headquarters:

The FY 2003 Intelligence Authorization Act mandates that OIG review the

Department’s progress in protecting classified information. OIG found that the

Department has made substantial progress in improving protection of classified

information, particularly sensitive compartmented information, following several

serious security breaches at its headquarters building between February 1998

and January 2000. (SIO)

FISMA 03—Department of State: The Federal Information Security Management Act (FISMA) of 2000 mandates a comprehensive review of the

Department’s information security program. This review will build on the results

of the FY 2002 OIG FISMA review in assessing progress made in implementing

FISMA and identifying possible obstacles to effective information security

management. (IT)

FISMA 03—BBG: The Federal Information Security Management Act (FISMA)

of 2000 mandates a comprehensive review of the BBG’s information security

program. This review will build on the results of the FY 2002 OIG FISMA review

in assessing progress made in implementing FISMA and identifying possible

obstacles to effective information security management. (IT)

Information Warfare Issues: There are increasing concerns that the United

States faces a so-called digital “sneak attack,” also known as a “Digital Pearl

Harbor,” aimed at disrupting U.S infrastructures and foreign interests. This

project will define information warfare (IW) from the Department’s perspective

and will identify the major issues and operations associated with IW within a

diplomatic context. OIG will evaluate the Department’s role in IW operations and

defenses and will assess its efforts to work with the foreign affairs community

and other interested entities. (IT)

Planned

Vulnerability of Department Systems through the USAID Network: In

early 2002, the U.S. Agency for International Development (USAID) OIG reported on the results of its general controls review of USAID systems. The

report noted significant deficiencies in USAID’s management of information

security and suggested that, not only were USAID systems vulnerable, but so,

too, were those operated by the Department because of connections between

the two agencies’ respective networks. OIG will collaborate with the USAID OIG
Office of Inspector General FY 2003 Annual Work Plan 13

in testing the vulnerability of Department systems to intrusion from USAID’s

network. (IT)

Intrusion Detection Effectiveness: One of the most critical security threats

to an organization’s operations is from the so-called IT insider—IT workers with

extraordinary access to computer systems and databases, who, for whatever

reason, decide to use that access to disrupt an organization’s IT operations.

This project will assess the effectiveness of the Department’s intrusion detection

systems, particularly their ability to mitigate the security risks posed by IT

insiders. (IT)

Monitoring Contractor Performance in Worldwide Local Guard Programs: The main objective of this project is to determine whether the Department has adequate systems and procedures in place to monitor contractor

performance of the Local Guard Programs (LGP). During this review, the team

will look at Diplomatic Security’s Program Management Reviews to date and at its

Guard Schedule Database initiative. Additional work at posts will focus on whether

the Regional Security Officer’s management of the LGP is adequately protecting

embassies and consulates and whether contract administration is adequate to

protect the Department’s interests. (AUD)

Background Investigations of Foreign Service Nationals (FSNs): FSNs,

who are essential to fulfilling the Department’s mission in U.S. diplomatic posts

overseas, must have security clearances. This review will examine the FSN

background investigative process to determine whether: 1) there are adequate

controls on background investigations; 2) these investigations are performed in

accordance with applicable security standards; and 3) these investigations are

performed in a timely manner. (SIO)

DS Overseas Technical Security Inspection Program: This review will

examine whether there are sufficient resources to perform technical security

inspections overseas; whether other duties of engineering services centers affect

their ability to conduct such inspections; and whether there are overlapping

requirements that may be eliminated by reducing the scope or frequency of

some inspections. (SIO)

Performance Goal 2: Identify vulnerabilities and recommend corrective action with respect to information systems and security at no

fewer than 15 overseas missions.

Ongoing

Pilot Test, Information Security Inspection and Evaluation Methodology–Lisbon: This project involves a pilot test of a comprehensive information

security methodology being developed to assess the effectiveness of post

information security programs. (IT)
14 Office of Inspector General FY 2003 Annual Work Plan

Pilot Test, Information Security Inspection and Evaluation Methodology–Madrid: This project involves a pilot test of a comprehensive information

security methodology being developed to assess the effectiveness of post information security programs. (IT)

Planned

Information Security Inspection Evaluations: The Department’s overseas

posts are connected to the Department’s information technology infrastructure

through both unclassified and classified networks. The objective of OIG IT

security inspections is to promote effective information security management

practices at Department field locations, using a detailed Information Security

Guide to evaluate the effectiveness of the post’s information security program.

In addition, at select posts, OIG will address specific issues, including the

ambassador’s role in ensuring effective information security practices (non-State

Department entities) and mission effectiveness in protecting against cyberterrorism threat to the post and host-country critical infrastructure. (IT)

Information Security Inspection Evaluations

Africa Asia/Pacific Europe Latin America Near East Domestic

Addis Ababa Hong Kong Athens Buenos Aires Cairo None

Dar Es Salaam Seoul Bucharest Montevideo planned

London

Sofia

Vienna

STRATEGIC GOAL 3: THE DEPARTMENT AND BBG HAVE THE

NECESSARY FINANCIAL AND SUPPORT SYSTEMS AND

CONTROLS TO MEET LEGAL AND OPERATIONAL REQUIREMENTS.

Performance Goal 1: Identify challenges and vulnerabilities, with

recommendations to address them, for at least 21 Department financial and administrative support programs and activities.

Ongoing

Government Paperwork Elimination Act: The Government Paperwork

Elimination Act requires federal agencies to take practicable steps toward egovernment by 2003. This review assesses the Department’s plans to achieve
Office of Inspector General FY 2003 Annual Work Plan 15

its e-government goals and will identify obstacles to successful implementation.

PMA:EG (IT)

Department Efforts to Implement Knowledge Management and

E-Diplomacy through FASI: Knowledge management, a process that promotes an integrated approach to identify, evaluate, and share information, is

considered to hold great promise for public and private sector organizations

seeking to leverage their experience across a wide variety of situations and

global locations. OIG is reviewing Department efforts—initiated, in part, in response to recommendations of the Overseas Presence Advisory Panel—to

integrate knowledge management and e-diplomacy into its organization.

PMA:EG (IT)

Review of Knowledge Management Initiatives: Knowledge management

is a process whereby an organization uses its intellectual assets to get the right

information to the right people at the right time. This review is assessing the

Department’s plans and project management structure for implementing and

coordinating knowledge management initiatives. OIG also is identifying comparable public and private sector initiatives to determine how leading practices from

these other efforts can be applied to the Department’s knowledge management

approach. PMA:EG (IT)

Review of Financial Assistance Management: Collectively, the Department

awards billions of dollars annually in financial assistance to a wide range of

recipients. Within the Department, various offices have responsibility for providing guidance related to managing financial assistance. OIG reviewed data

related to federal financial assistance awarded during FY 1998 through 2000 and

1) identified bureaus and offices within the Department providing financial

assistance; 2) ascertained the types of funding mechanisms used to award

assistance; 3) quantified the dollar value of assistance; and 4) identified policies,

procedures, and systems used to manage the assistance programs. In addition,

OIG reviewed actions the Department was taking to implement the Federal

Financial Assistance Management Improvement Act of 1999, which requires,

among other things, streamlining and simplifying the processes, administration,

and reporting procedures for federal financial assistance programs. PMA:FP

(AUD)

Overseas Building Operations (OBO) Design and Construction: The

review will be divided into two phases: design and construction. During the first

phase, the team will assess OBO’s capacity to carry out its new construction

program effectively and will evaluate the new design/build concept, including

related security issues. During the second phase, the team will determine

whether the program provides quality construction in a timely manner at a

reasonable price and whether construction contracts are properly administered

and incorporate security standards. During this review, OIG also will assess the

satisfaction level of the users and any suggestions that they have for changes

to the program. PMA:RS (AUD)
16 Office of Inspector General FY 2003 Annual Work Plan

Bogotá Vehicle Procurement: In August 2002, the Chairman of the House

Committee on Government Reform asked OIG to review the recent proposed

procurement of a sport utility vehicle for Embassy Bogotá. The congressional

request was made in response to several press reports criticizing the solicitation.

The Chairman expressed concern that the solicitation contained unnecessary

features, had an unusually short response time, and was canceled after press

reports highlighted the luxurious features. OIG is completing its work and will

issue a report during the next semiannual reporting period. (AUD)

Audits of the Department’s Financial Statements for FY 2001: Congress

passed the Chief Financial Officers (CFO) Act in 1990 and the Government

Management Reform Act in 1994. These laws required increasingly stringent

reviews of agencies’ financial statements, culminating in a requirement to audit

each agency’s Departmentwide financial statements annually. In addition, the

CFO Act requires that OIGs oversee any audits of other financial statements

issued. The objectives of these audits include: 1) expressing an opinion on the

financial statements; 2) evaluating and reporting on internal controls related to

the financial statements; 3) reporting on compliance with laws and regulations as

required during financial statement audits; and 4) reviewing controls in pertinent

computer systems. PMA:FP (AUD)

Consolidation of Financial Services at Charleston Financial Service

Center (FSC): In December 2000, the Under Secretary for Management approved the initial transfer of functions from FSC Paris and FSC Bangkok and

certain domestic financial services to the FSC complex in Charleston. As part of

this effort, the Department is converting all of the information on its two current

overseas financial management systems onto a new overseas regional financial

management system (RFMS). This is a significant initiative that will affect almost

all programs within the Department and almost all future financial managementrelated audits, including the financial statements. The Department has developed a plan to complete the consolidation that will be done in three phases, with

phase one projected to be completed in FY 2003. The review will determine

whether the Department is meeting interim deadlines during the consolidation

and will identify weaknesses that could affect critical financial processes and

preclude a smooth transition. PMA:FP (AUD)

Domestic Travel Card Program: A travel card is a credit card issued to a

government employee for expenses incurred while on official travel. Travel cards

recently have become a focus for review within the government because of

reports of credit card payment delinquencies and misuse. OIG’s objectives are

to evaluate: 1) the Department’s efforts to prevent and detect travel card

payment delinquencies, 2) internal controls for preventing and detecting misuse

of the cards, 3) processes for dealing with instances of travel card abuse, 4)

administrative oversight efforts to control the number of cardholders, and 5)

performance goals for this program. PMA:FP (AUD)
Office of Inspector General FY 2003 Annual Work Plan 17

Status of the Department’s Financial Management Remediation Plan: In

1996, Congress passed the Federal Financial Management Improvement Act

(FFMIA), which required each OIG to determine, during the annual financial

statement audit, whether its agency’s financial management systems substantially complied with federal financial management systems requirements, applicable federal accounting standards, and the Standard General Ledger. OIG

contractors reported that the Department did not comply with the FFMIA,

beginning with the audit of the Department’s FY 1997 financial statements. In

addition, the Department has reported finanical systems as a material noncompliance in its annual Federal Managers’ Financial Integrity Act report since 1983.

OIG will review the Department’s progress in meeting the plan’s target dates.

PMA:FP (AUD)

Review of Energy Conservation: The primary objectives of this review are to

assess the Department’s progress in meeting federal energy management goals

and to identify best practices that more Department offices could emulate

further to reduce energy consumption and costs. PMA:FP (AUD)

Monitoring Contractor Performance at the BBG: This audit represents an

effort to determine whether the BBG has effective systems and procedures in

place to monitor contractor performance. Specific objectives will determine

whether persons with performance monitoring responsibilities: 1) follow requisite

policies and procedures for monitoring contractor performance; 2) ensure that

contractor performance is in compliance with contract terms and conditions; and

3) possess the requisite training, technical expertise, and certification of qualifications to perform contractor performance monitoring. The audit universe

includes 88 BBG contracts, valued at more than $186 million, that were active

during FY 2000 and exceeded the simplified acquisition threshold of $100,000 in

the base year. PMA:FP (AUD)

Office of Foreign Missions Systems Contract: This review will examine

issues related to the award of a contract for the development and installation of

a new software system. (AUD)

DTS-PO Inventory: This review will determine the ability of the Diplomatic

Telecommunications Service Program Office (DTS-PO) to identify system assets

properly and will assess the interagency group’s methodology in establishing the

capital asset structure to be used in the valuation of DTS-PO property. The

evaluation will include property identification and control procedures integral to

the evaluation of inventory processes, particularly since DTS-PO has not conducted an inventory of its accountable assets during its 10 year existence. OIG’s

efforts will include physical inventories at a number of locations worldwide and

the observation and testing of inventories performed by contract personnel at all

stateside locations, including DTS-PO headquarters. (AUD)
18 Office of Inspector General FY 2003 Annual Work Plan

Electronic Records Management: Federal guidance requires agencies to

make and preserve records containing adequate and proper documentation of

the organization, functions, policies, decisions, procedures, and essential transactions of the agency. This includes not only electronic documents but e-mail

messages that: 1) document the formulation and execution of basic policies and

decisions, 2) document important meetings, 3) facilitate action by agency officials and their successors, and 4) make possible scrutiny by the Congress and

other authorized agencies of the government. During OIG’s recent review of

the events surrounding a failed coup in Venezuela, OIG found that electronic

records were not being maintained adequately by a number of Department

offices. This review will assess the extent to which the Department is complying

with federal guidelines concerning electronic records management. PMA:EG

(IT)

Review of Personnel Practices at RFE/RL: Personnel practices will be

evaluated to determine whether the system used to classify employees, including the assignment of salary and benefits at RFE/RL, is equitable and cost

effective. RFE/RL management uses temporary and contract workers to minimize the number of employees on payroll. OIG will determine whether temporary and contract workers are misclassified and will assess the assignment of

benefits to these workers as well as permanent employees. PMA:HC (IBO)

Audit of the National Endowment for Democracy: The National Endowment for Democracy (NED) Act (Public Law 102-138), as amended, mandates

that the OIG audit the annual financial transactions of the National Endowment

for Democracy. Congress established NED in 1983 as a private nonprofit organization to plan and administer grants promoting the development of democratic

goals and institutions around the world. To carry out its grantmaking activities,

NED receives an annual grant of about $30 million. To meet the Congressional

requirement, OIG will conduct an analytical review of NED’s 2000-02 OMB A-133

annual financial audits. PMA:FP (AUD)

Audits of the Department’s Financial Statements for FY 2002 and

2003: Congress passed the Chief Financial Officers (CFO) Act in 1990 and the

Government Management Reform Act in 1994. These laws required increasingly

stringent reviews of agencies’ financial statements, culminating in a requirement

to audit each agency’s Departmentwide financial statements annually. In addition, the CFO Act requires that OIGs oversee any audits of other financial

statements issued. The objectives of these audits include: 1) expressing an

opinion on the financial statements, 2) evaluating and reporting on internal

control related to the financial statements, 3) reporting on compliance with laws

and regulations as required during financial statement audits, and 4) reviewing

controls in pertinent computer systems. PMA:FP (AUD)

Review of Demining Contract Issues: The main objective of this project is

to examine whether the Integrated Mine Action Support Contract was awarded

in accordance with regulations and whether the contractor’s performance under

the contract is being adequately monitored. (AUD)
Office of Inspector General FY 2003 Annual Work Plan 19

Review of Demining Contract Issues II: This project is a follow-up on

procurement issues raised during the review begun in FY 2002. It will focus on

training for procurement administration, management controls over the humanitarian demining program, and contracts and grants issues. (AUD)

Unauthorized Commitments—Domestic: This audit represents an effort to

determine what impact unauthorized commitments have on the Department’s

acquisition system. Specific objectives will determine: 1) to what extent reported

unauthorized commitments occur within the Department, 2) whether the process

for ratifying unauthorized commitments is working as intended, 3) to what extent

unreported unauthorized commitments are occurring within the Department, and

4) whether the Department trains personnel in the prevention of unauthorized

commitments. The audit universe includes 122 unauthorized commitments,

valued at $6.8 million, that were made between 1997 and June 2002. PMA:FP

(AUD)

Unauthorized Commitments—Overseas: This audit represents the overseas phase of OIG’s audit of unauthorized commitments (see above).

PMA:FP (AUD)

ONDCP Attestation Review: The Office of National Drug Control Policy

(ONDCP) Circular on Drug Control Policy requires that OIGs express a conclusion

about the reliability of their respective agencies’ reporting under the circular. For

the Department, this primarily requires reviewing funding documents for the

Bureau of International Narcotics and Law Enforcement Affairs. OIG will review

the Department’s reporting to ONDCP for FY 2002 in accordance with Standards

of Attestation Engagements promulgated by the American Institute for Certified

Public Accountants. (AUD)

Planned

Messaging System Modernization: After more than 50 years, the

Department’s telegram system needs to be modernized. The Department is

considering various alternative approaches, including using the long-delayed

Defense Messaging System. Under this review, OIG will monitor the

Department’s planning to replace its aging messaging system. PMA:EG (IT)

Review of the Integrated Logistics Management System (ILMS): The

Department is spending millions of dollars on a new logistics system that will

replace more than 25 existing logistics management systems, including warehouse management, acquisitions, diplomatic pouch and mail, and property

management. Questions have arisen concerning the high cost, and whether the

system will meet the Department’s needs. OIG will assess the effectiveness of

the Department’s efforts to acquire and implement ILMS. PMA:EG (IT)
20 Office of Inspector General FY 2003 Annual Work Plan

Data Reviews, Quality Control Reviews, and Contract Audit Services

(Continuous): OIG will conduct various types of mandatory and requested

audits and reviews. These efforts include analytical reviews of Office of Management and Budget (OMB) Circular A-133 and Fulbright Commission audit

reports, quality control reviews to ensure that the audit was conducted in accordance with applicable standards and meets the Single Audit requirements, and

procurement of contract audit services with independent accounting firms and

the Defense Contract Audit Agency. Analytical reviews and contract audit services will be used to ensure that administrative costs are reasonable and accurately distributed between the federal and non-federal activities and that grantees and contractors properly account for federal funds. These reviews identify

grantees that require in-depth evaluations and external independent accounting

firms that do not meet established auditing standards and also assist the Department in negotiating and awarding procurement activities. PMA:FP (AUD)

Consolidation of Financial Services at Charleston FSC—RFMS Conversion: Although OIG does not intend to perform an overall review of the

Department’s new RFMS, it will keep abreast of the development of this important system. OIG’s primary objective is to maintain continuing oversight of the

RFMS conversion and provide feedback to Department officials, as appropriate.

PMA:FP (AUD)

Improper Payments: Improper payments indicate that agencies are spending

more than necessary to meet program goals. GAO recently issued a report that

indicated that improper payments are a significant and widespread problem.

GAO reported that the root cause of improper payments typically can be traced

to a lack of or breakdown in internal controls. Past OIG reports have identified

payments made without appropriate documentation, duplicate payments, and

payments for interest penalties that could have been avoided. The Department

has instituted a number of improvements; yet interest penalty payments remain

high, and complaints from serviced bureaus, offices, and other organizations

continue. Reducing improper payments is an important ongoing

governmentwide initiative. The overall objectives of the review would be to

evaluate the effectiveness and accuracy of the payment process. PMA:FP

(AUD)

Post Assignment Travel: The Post Assignment Travel allotment funds the

cost of travel, transportation, and related items in connection with the appointment, transfer, and separation of the Department’s American full-time permanent staff and their families. For FY 2002, the Department asked for approximately $107 million for post assignment travel. This audit would review the

overall program and evaluate the Department’s policies regarding post assignment travel, determine whether the Department is complying with travel regulations and procedures, and assess the Department’s progress in addressing

internal control weaknesses. PMA:FP (AUD)
Office of Inspector General FY 2003 Annual Work Plan 21

Audit of Unliquidated Obligations System and Procedures: As part of its

efforts to comply with the Federal Financial Management Improvement Act, the

Department developed and implemented an Unliquidated Obligations System and

procedures to facilitate the reconciliation, monitoring, reporting, and oversight of

unliquidated obligations worldwide. The Department reported that it used this

system to deobligate more than 60,000 items, totaling more than $180 million,

during FYs 2000 and 2001. However, the management of unliquidated obligations remains a reportable condition in the Department’s financial statement

audit reports. The FY 2001 report stated that, although the Department had

made significant improvements in this area, the internal control process related

to the management of unliquidated obligations was inadequate because it did

not provide effective control over funds. For example, the independent auditors

identified more than $300 million of undelivered orders that should have been

deobligated. The overall objective of this audit is to identify specific weaknesses

in internal controls over the management of unliquidated obligations and make

recommendations for improvements. PMA:FP (AUD)

Foreign Currency Management: The Department has the authority to

disburse payments in foreign currencies for all civilian agencies. To make these

foreign currency payments, the Department purchases more than $2 billion in

approximately 150 foreign currencies annually. The Department has taken steps

to consolidate the foreign currency purchasing function in FSC Charleston, including installing industry standard computer hardware and software in use at most

financial institutions and transferring foreign currency purchasing previously

based in FSC Bangkok and some previously based in FSC Paris to FSC Charleston. The objectives of this audit are to: 1) determine whether the methods used

to obtain currency are efficient and result in the best legal rate, 2) determine

whether foreign currency is maintained at low levels to reduce the risk of losses,

3) review internal controls over currency purchases, and 4) review the process

for standardization of the currency purchase process. PMA:FP (AUD)

Review of International Cooperative Administrative Support Services’

Budgeting and Billing: The International Cooperative Administrative Support

Services (ICASS) program allocates to each agency the full cost of its presence at

overseas missions. Through this program, the Department bills other agencies

for their share of ICASS costs ($229 million in FY 2001). During 1997, when

ICASS was still a pilot program, OIG reviewed its methodology for accumulating

overseas costs and some headquarters costs (e.g., salaries) and found that

ICASS was capable of delivering fair, understandable, reliable, timely, and

auditable financial information. However, since then, the billing process has

changed, and headquarters costs have greatly increased. In addition, although

ICASS costs were supposed to be transparent to all ICASS members, OIG has

been contacted by several other agencies that have said that they do not

understand how their bill is calculated. This audit will review the budgeting and

billing processes to determine the reasonableness of the cost allocation methodology and whether bills are appropriate and transparent. PMA:FP (AUD)
22 Office of Inspector General FY 2003 Annual Work Plan

Monitoring Expired and Canceled Accounts: The majority of funds appropriated to the Department are annual appropriations. If an agency fails to

obligate its annual funds by the end of the fiscal year for which they were appropriated, they cease to be available for obligation and are said to have “expired.”

Annual appropriations remain available for an additional five fiscal years beyond

expiration and then the funds are canceled and revert to the Department of the

Treasury. The objectives of this audit are to review controls to ensure they

provide reasonable assurance that the entity executes transactions in accordance

with budget authority and other applicable statutes for expired and closed (canceled) accounts. OIG would specifically review transactions in and adjustments

to expired accounts and assess how the Department monitors canceled accounts.

PMA:FP (AUD)

Vehicle Management: The objective of this survey is to determine the status

of the vehicle program and identify any major problems with the program that

would warrant a detailed review. OIG often has found abuses involving vehicle

use during the course of its inspections. In addition, vehicle fleets were allowed

to deteriorate for lack of repairs, and vehicles were retained past the optimal

retention point. (AUD)

DTS-PO Financial Contributions: In March 2002, a Memorandum of Agreement was signed by the partner agencies and OMB that changed the management and operational structure of DTS-PO and required an audit to determine, to

the maximum extent feasible, the financial contributions of each agency to

DTS-PO. PMA:FP (AUD)

FSN Compensation and Benefits: The Bureau of Human Resources, in

consultation with regional bureaus, sets wage rates and benefit levels for FSN

employees based on information submitted by overseas posts, including contractor surveys. Wages and benefits for FSNs account for a sizable portion of the

Department’s operating budget—almost $500 million per year. OIG will assess

the Department’s methodology for setting FSN wage rates and benefit levels.

(AUD)

State/USAID Financial Management Integration: The Department and

USAID, at the request of the Office of Management and Budget (OMB), will

form a working group to study the feasibilty of combining components of their

financial management systems, with the goal of better delivery of services and

possible reductions in the cost to procure these services from an outside contractor. In conformance with the President’s Management Agenda, the group

also will determine whether it is cost beneficial to outsource some of these

services. OMB has asked OIG and USAID OIG to serve as monitors on the joint

working group. The first phase, a feasibility study, is expected to take 30-45

days. (PMA:FP, CS) (AUD)
Office of Inspector General FY 2003 Annual Work Plan 23

Performance Goal 2: Evaluate Department and BBG progress in measuring performance and implementing the President’s Management

Agenda, and recommend improvements, as appropriate.

Ongoing

BBG’s Strategic Human Capital Management Plan: This is a comprehensive review of BBG’s personnel administration practices to determine how it:

1) uses its strategic plan, GPRA, and the Office of Personnel Management

scorecard to develop its workforce strategy to achieve program goals and 2) is

addressing the requirement in the Foreign Relations Authorization Act for FY

2002-03 (H.R. 1646) directing BBG to submit to appropriate congressional

committees semiannual reports in FY 2002 and 2003 regarding efforts to diversify its workforce. PMA:HC (IBO)

Planned

BBG Strategic Planning: Establishment and Verification of Performance Measures: Previous OIG reports have pointed out BBG weaknesses in

strategic planning. This review will seek to improve BBG’s approach to management. The improvements in strategic planning, especially with regard to the

establishment and verification of performance measures, are expected to

improve decision-making and link budgeting to performance. PMA:BI (IBO)

FAIR Act – Use of Domestic Staffing Model: The FAIR Act directs federal

agencies to issue an inventory each year of all commercial activities performed

by federal employees; that is, those activities that are not inherently governmental. OIG reported in 2002 that the Department had inconsistencies with its 2001

inventory. As a result, the Department began using the Domestic Staffing Model

in 2002 to generate its FAIR Act inventories. OIG will determine whether the

Domestic Staffing Model provides an appropriate and effective means for determining the inventories. PMA:CS (AUD)

STRATEGIC GOAL 4: THE DEPARTMENT AND BBG ENSURE

ACCOUNTABILITY AND PREVENT OR ELIMINATE FRAUD, WASTE,

ABUSE, AND MISMANAGEMENT IN PROGRAMS AND OPERATIONS.

Performance Goal 1: Identify a minimum of $7.8 million in potential

monetary benefits as a result of audit and investigative recommendations to improve the efficiency of Department operations and compliance with applicable contracts and grant agreements and to identify

and eliminate waste, fraud, abuse, and mismanagement, as necessary.
24 Office of Inspector General FY 2003 Annual Work Plan

Ongoing

Audits of Selected Grantees and Contractors (Continuous): The Department provides billions of dollars annually in federal assistance and contracts to

nongovernmental organizations that conduct federal programs and other related

activities. Past reviews of these organizations identified instances of fraud,

waste, and mismanagement, but many of these organizations are not subject

to audit or no longer will be subject to audit under OMB requirements. When

indications of problems exist or when requested by the Department, OIG will

conduct audits of selected grantees and contractors to determine whether the

organizations expended federal funds for the intended purpose of the agreements and in accordance with applicable federal laws and regulations related to

the agreement terms and conditions. In addition, OIG conducts reviews of

organizations’ proposed indirect cost rates. Currently, OIG has five grant reviews

ongoing for FY 2003. PMA:FP (AUD)

Planned

Audits of Selected Grantees and Contractors (Continuous): The Department provides billions of dollars annually in federal assistance and contracts to

nongovernmental organizations that conduct federal programs and other related

activities. Past reviews of these organizations identified instances of fraud,

waste, and mismanagement, but many of these organizations are not subject to

audit or no longer will be subject to audit under OMB requirements. When

indications of problems exist or when requested by the Department, OIG will

conduct audits of selected grantees and contractors to determine whether the

organizations expended federal funds for the intended purpose of the agreements and in accordance with applicable federal laws and regulations related to

the agreement terms and conditions. In addition, OIG conducts reviews of

organizations’ proposed indirect cost rates. Currently, OIG has two grant reviews

planned for FY 2003. PMA:FP (AUD)

Overseas Buildings Operations (OBO) Construction: As of August 2002,

OBO had 14 new office building projects under construction, totaling $920 million.

In addition, OBO planned to execute 10 more new office building projects,
Office of Inspector General FY 2003 Annual Work Plan 25

totaling $750 million, in FY 2002. OBO also had 45 rehabilitation projects valued

at $203 million and planned to execute 58 additional rehabilitation projects totaling

$50 million in FY 2002. OIG will select construction contracts, as appropriate,

and conduct financial and compliance audits to determine whether the contractors complied with the terms and conditions of the contracts. PMA:FP (AUD)

Performance Goal 2: Promote awareness and adherence to standards

of professional and ethical conduct and accountability; where necessary, conduct thorough and expeditious investigations of fraud, waste,

abuse, and mismanagement.

Ongoing

U.S. Direct Assistance to Colombian National Police: In May 2002, the

Co-Chairman of the Senate Caucus on International Narcotics Control asked OIG

to follow up on press reports that $2 million in U.S. aid to the Colombian National

Police counternarcotics efforts was discovered “missing.” OIG is completing its

work and will issue a report detailing the fraud during the next semiannual reporting period. (AUD)

Investigations

Investigations are conducted in response to allegations from various sources,

including Department or BBG management and employees, other OIG units, the

OIG Hotline, law enforcement agencies, Congress, and the public. Investigations examine objectively and thoroughly situations that may involve violations of

law, abuse of rules and regulations, or other actions that could compromise the

integrity and effectiveness of Department programs and operations. In addition,

the Office of Investigations promotes awareness, understanding, and adherence

to standards of conduct and accountability through various proactive endeavors,

including participating in employee training sessions and issuing management

implication reports and fraud alert bulletins. (INV)
26 Office of Inspector General FY 2003 Annual Work Plan
Office of Inspector General FY 2003 Annual Work Plan 27

Projects Related to International Broadcasting

• Inspections of Diplomatic Missions and Department Bureaus

• Status of the Merger of Worldnet TV with VOA

• Effectiveness and Implementation of OCB New Program Initiatives

• Internet and New Technology Development (BBG)

• Survey of Radio Free Asia Activities

• Follow-up Survey of the Middle East Radio Network (MERN)

• Review of Personnel Practices at RFE/RL

• Federal Information Security Management Act Review for FY 2003—BBG

• Monitoring Contractor Performance at the BBG

• BBG’s Strategic Human Capital Management Plan

• BBG Strategic Planning: Establishment and Verification of Performance

Measures
28 Office of Inspector General FY 2003 Annual Work Plan
Office of Inspector General FY 2003 Annual Work Plan 29

Projects Supporting President’s Management

Agenda Initiatives

Strategic Management of Human Capital (HC)

• Effectiveness and Implementation of OCB New Program Initiatives

• Assignment Process for Hard-to-Fill Posts

• Review of Personnel Practices at RFE/RL

• BBG’s Strategic Human Capital Management Plan

Competitive Sourcing (CS)

• FAIR Act – Use of Domestic Staffing Model

• State/USAID Financial Management Integration

Improved Financial Performance (FP)

• Review of Financial Assistance Management

• Audits of the Department’s Financial Statements for FY 2001

• Consolidation of Financial Services at Charleston Financial Service Center

• Domestic Travel Card Program

• Status of the Department’s Financial Management Remediation Plan

• Data Reviews, Quality Control Reviews and Contract Audit Services

• Audit of the National Endowment for Democracy

• Audits of the Department’s Financial Statements for FY 2002 and 2003

• Oversight of the Regional Financial Management System Conversion

• Improper Payments

• Post Assignment Travel

• Audit of Unliquidated Obligations System and Procedures

• Foreign Currency Management

• Review of International Cooperative Administrative Support Services’

Budgeting and Billing

• Monitoring Expired and Canceled Accounts

• Review of Energy Conservation

• Monitoring Contractor Performance at the BBG
30 Office of Inspector General FY 2003 Annual Work Plan

• Unauthorized Commitments—Domestic

• Unauthorized Commitments—Overseas

• DTS-PO Financial Contributions

• Audits of Selected Grantees and Contractors

• Overseas Buildings Operations Construction

• State/USAID Financial Management Integration

Expanded Electronic Government (EG)

• Internet and New Technology Development—BBG

• Government Paperwork Elimination Act

• Department Efforts to Implement Knowledge Management and

E-Diplomacy through FASI

• Review of Knowledge Management Initiatives

• Electronic Records Management

• Messaging System Modernization

• Review of the Integrated Logistics Management System

Budget and Performance Integration (BI)

• Status of the Merger of Worldnet TV with VOA

• Refugee Admissions and Resettlement: Program Results

• Survey of Radio Free Asia Activities

• Followup Survey of the Middle East Radio Network

• BBG Strategic Planning: Establishment and Verification of Performance

Measures

Rightsizing U.S. Overseas Presence (RS)

• Inspections of Overseas Missions and Domestic Bureaus

• Overseas Building Operations Design and Construction
Office of Inspector General FY 2003 Annual Work Plan 31

Projects Supporting OIG Strategic and

Performance Goals

(Bold indicates project supports an initiative in the President’s Management Agenda)

 PG1 PG2

• Post/Bureau Management Inspections & Compliance

Follow Up Reviews (ISP)

• Inspection of the Helsinki Regional Monitoring Office (IBO)

• Security and Intelligence Oversight Inspections and

Compliance Followup Reviews (SIO)

• Review of the Management of Classified Holdings

Overseas (SIO)

• Control of Communications Security Materials and

Electronic Storage (SIO)

• Secure Shipments of Classified Information Processing

Equipment (SIO)

• Review of the Department’s Unit Security Officer

Program (SIO)

• Oversight of the Security of the Construction of a New

Embassy Compound in Beijing (SIO)

• Management of Overseas Post Security Upgrade

Projects (SIO)

• FISMA 03–Department of State (IT)

• FISMA 03–BBG (IT)

• Information Warfare Issues (IT)

• Vulnerability of Department Systems through USAID

Network (IT)

• Intrusion Detection Effectiveness (IT)

• Monitoring Contractor Performance in Worldwide

Local Guard Programs (AUD)

• Background Investigations of FSNs (SIO)

• DS Overseas Technical Security Inspection

Program (SIO)

• Survey of Radio Free Asia Activities (IBO)

• Follow Up Survey of th Middle East

Radio Network (IBO)

• Refugee Admissions and Resettlement–

Program Results (AUD)

• Domestic Passport Operations, Phase II–Passport Fraud

Prevention Programs (ISP)

• Domestic Passport Operations, Phase III–Regional

Passport Agency Operations and Management (ISP)

• Survey of Overseas Visa Operations (ISP)

• Immigrant Visa Diversity Lottery Program (ISP)

• Inspection of Bureau of Consular Affairs Visa Office (ISP)

• Overseas Passport Operations (ISP)

• Diplomatic Security/Consular Affairs Overseas Fraud

Prevention Program (ISP)

• Inspection of the Bureau of Consular Affairs Executive

Office and Consular Lookout and Support System (ISP)

• Status of Merger of Worldnet TV with VOA (IBO)

• Effectiveness and Implementation of OCB

New Program Initiatives (IBO)

• Internet and New Technology Development (IBO)

• Enforcement of Export Controls (AUD)

• Cumulative Effects of Munitions Exports (AUD)

• Assignment Process for Hard-To-Fill Posts (AUD)

• Pilot Test, Information Security Inspection and

Evaluation Methodology-Lisbon (IT)

• Pilot Test, Information Security Inspection and

Evaluation Methodology-Madrid (IT)

• Information Security Inspection Evaluations

SG

1

SG

2
32 Office of Inspector General FY 2003 Annual Work Plan

 PG 1

• Government Paperwork Elimination Act (IT)

• Department Efforts to Implement Knowledge

Management & E-Diplomacy through FASI (IT)

• Review of Knowledge Management Initiatives (IT)

• Review of Financial Assistance Management (AUD)

• Overseas Building Operations (OBO) Design and

Construction (AUD)

• Bogota Vehicle Procurement (AUD)

• Audits of the Department’s Financial Statements

2001 (AUD)

• Consolidation of Financial Services at Charleston

Financial Service Center (FSC) (AUD)

• Domestic Travel Card Program (AUD)

• Status of the Department’s Financial Management

Remediation Plan (AUD)

• Review of Energy Conservation (AUD)

• Monitoring Contractor Performance at the BBG (AUD)

• Office of Foreign Missions Systems Contract (AUD)

• DTS-PO Inventory (AUD)

• Electronic Records Management (IT)

• Messaging System Modernization (IT)

• Review of the Integrated Logistics Management

System (IT)

• Review of Personnel Practices at RFE/RL (IBO)

• Data Reviews, Quality Control Reviews (QCRs) and

Contract Audit Services (AUD)

• Audit of the National Endowment for Democracy

(AUD)

• Audits of the Department’s Financial Statements

2002 and 2003 (AUD)

• Consolidation of Financial Services at Charleston

FSC–RFMS Conversion (AUD)

• Improper Payments (AUD)

• Post Assignment Travel (AUD)

• Audit of Unliquidated Obligations System and

Procedures (AUD)

• Foreign Currency Management (AUD)

• Review of International Cooperative Administrative

Support Services’ Budgeting and Billing (AUD)

• Monitoring Expired and Canceled Accounts (AUD)

• Review of Demining Contract Issue (AUD)

• Unauthorized Commitments–Domestic (AUD)

• Review of Demining Contract Issues II (AUD)

• Vehicle Management (AUD)

• Unauthorized Commitments–Overseas (AUD)

• DTS-PO Financial Contributions (AUD)

• ONDCP Attestation Review (AUD)

• FSN Compensation and Benefits (AUD)

• State/USAID Financial Management Integration (AUD)

 PG 2

• BBG’s Strategic Human Capital Management

Plan (IBO)

• BBG Strategic Planning: Establishment and

Verification of Performance Measures (IBO)

• FAIR Act–Use of Domestic Staffing Model (AUD)

S G

3
Office of Inspector General FY 2003 Annual Work Plan 33

 PG1

• Audits of Selected Grantees and Contractors

(AUD)

• Overseas Buildings Operations (OBO) Construction

(AUD)

 PG2

• U.S. Direct Assistance to Colombian National Police

(AUD)

• Outreach Activities

• Investigations and Hotline Activities

SG

4
34 Office of Inspector General FY 2003 Annual Work Plan
Office of Inspector General FY 2003 Annual Work Plan 35

Glossary of Acronyms

BBG Broadcasting Board of Governors

BI Budget and Performance Integration

CA/PPT Office of Passport Services

CFR Compliance Followup Review

CLASS Consular Lookout and Support System

CS Competitive Sourcing

DS Bureau of Diplomatic Security

DV Diversity Visa

EB Bureau of Economic and Business Affairs

EG E-Government

FASI Foreign Affairs System Integration

FISMA Federal Information Security Management Act

FP Improved Financial Performance

FSC Financial Services Center

FSN Foreign Service National

GAO General Accounting Office

HC Strategic Management of Human Capital

ICASS International Cooperative Administrative

Support Service

IBB International Broadcasting Bureau

ILMS Integrated Logistics Management Systems

IO Bureau of International Organization Affairs

L Office of the Legal Adviser

LGP Local Guard Programs

MERN Middle East Radio Network
36 Office of Inspector General FY 2003 Annual Work Plan

NIS The New Independent States

OBO Office of Overseas Building Operations

OCB Office of Cuba Broadcasting

OMB Office of Management and Budget

ONDCP Office of National Drug Control Policy

PMA President’s Management Agenda

RFA Radio Free Asia

RFE/RL Radio Free Europe/Radio Liberty

RS Rightsizing Overseas Presence

S/CPR Office of the Chief of Protocol

USAID U.S. Agency for International Development

USUN U.S. Mission to the United Nations, New York

VOA Voice Of America

WHA Bureau of Western Hemisphere Affairs
38 Office of Inspector General FY 2003 Annual Work Plan