Summary

The State Department has not acted on recommendations by GAO and Congress to improve the management of its overseas posts. GAO suggested that each diplomatic post establish a proactive management improvement program. Although State has taken steps to improve embassy management controls, these initiatives were inconsistently implemented at embassies GAO visited. As a result, long-standing management deficiencies continue to hinder the efficiency and the effectiveness of many embassies' operations. By contrast, three embassies--those in Ankara, Turkey; Dhaka, Bangladesh; and Tunis, Tunisia--have implemented management practices to improve administrative operations. These practices, which include tracking accounts receivables and automating travel vouchers, have strengthened internal controls, improved compliance with regulations, reduced costs, and led to more efficient and effective operations. In addition, these embassies differed from other posts GAO visited because of the active involvement of senior management and the use of existing reporting mechanisms. These management practices could be replicated at other embassies.

GAO found that: (1) State has not responded to the recommendation that it establish proactive management improvement programs at its overseas posts because it believes that its approach of targeting specific areas for improvement is more appropriate and achieves comparable longterm results; (2) State has initiated action on some congressional recommendations to improve its embassy management, but deficiencies continue in controls over personal property, training for U.S. and foreign service personnel, contracting and procurement practices, controls over cashiering functions and medical insurance reimbursements, and senior-level oversight; (3) the embassies in Turkey, Bangladesh, and Tunisia have initiated management practices, such as tracking accounts receivable, automating travel vouchers, strengthening internal controls, improving regulation compliance, reducing costs, and enhancing efficiency and effectiveness; and (4) embassy senior managers participate in the day to day operations of their posts and use existing reporting requirements to document administrative problems and decide on appropriate corrective actions.