Completed Program Evaluations for FY 2003 - Strategic Goal 12: Management and Organizational Excellence

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003
Report

Strategic Goal 12: MANAGEMENT AND ORGANIZATIONAL EXCELLENCE
Title or Topic Domestic Travel Card Program (AUD/FM-03-022)
Evaluator Office of Inspector General, Department of State
Department Contact Cameron Weber, Chief, Financial Oversight, Bureau of Resource Management
Major Findings
  • Although the Department had instituted a number of initiatives to improve oversight of the travel card program, OIG found that it did not have a process in place to address delinquencies in the 60-day past due category before the cards are automatically suspended.
  • OIG found that the Department had not done enough to prevent and detect misuse of the cards but was working to establish a process to notify the Bureaus of Human Resources and Diplomatic Security and OIG about misuse and delinquency so that these bureaus could take appropriate action.
  • OIG found that the Department did not have controls in place to ensure that the administrative oversight of the travel card program was adequate. For instance, the Department needed to ensure that the program coordinators were managing the appropriate number of accounts, transferring or canceling accounts as needed, and identifying multiple accounts.
  • Also, the Department had not developed measurable performance goals specific to the travel card program. Although performance goals are not required for this program, developing objectives and identifying performance measures are useful management tools.
Major Recommendations
  • OIG recommended that RM develop guidelines to address travel card delinquencies in the 60-day past due category, provide program coordinators with clear written guidance on an Intranet site and through formal training, and improve the oversight of the travel card program by checking for multiple accounts and transferring or canceling travel cards when an employee leaves a bureau.
Major Actions Taken or That Will be Taken
  • The Department has already implemented several of OIG's recommendations. The Department has developed written policies and procedures for bureau program coordinators and cardholders and has made them centrally available on an Intranet site. The Department has also developed guidelines for addressing individually billed travel card accounts that are in the 60-day past due category and guidance on when and how to transfer cardholders from one bureau to another or to an overseas mission.
Expected Result
  • If the Department implemented all of OIG's recommendations, it would significantly increase the controls over this high-profile area.
Title or Topic Audit Of The U.S. Department Of State 2002 And 2001 Principal Financial Statements (AUD/FM-03-18)
Evaluator Office of Inspector General, Department of State
Department Contact Christopher Flaggs, Deputy Chief Financial Officer, Bureau of Resource Management
Major Findings
  • The financial statements were fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles.
  • Four reportable conditions related to internal controls, of which one is a material weakness regarding information system security.
  • The Department's financial management systems did not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996.
  • Instances of noncompliance with selected provisions of applicable laws and regulations involving the Department's financial management systems.
Major Recommendations
  • This is an opinion on the Department's financial statements and does not include formal recommendations.
Major Actions Taken or That Will be Taken
  • As a result of OIG's efforts and the work of its contractor, the Department was able to meet the accelerated due date of February 1, about one month earlier than the previous year. Also, because of this work, the Department is focusing additional attention on computer security issues.
Expected Result
  • As a result of these annual audits, the Department is significantly improving the accuracy, reliability, and availability of its financial information. In addition, the Department is focusing efforts to address several significant internal control and non-compliance issues, including system security.