This overview presents the highlights of OIG's FY 2005 Performance Report. Detailed information on OIG's results in meeting performance targets and achieving strategic and performance goals, as required by the Government Performance and Results Act, can be found in our full performance report, which has been published separately as an annex to the Department's FY 2005 Performance and Accountability Report.

Vision

To be a world-class organization promoting effective management, accountability, and positive change in the Department of State, the Broadcasting Board of Governors, and the foreign affairs community.

Mission

The Office of Inspector General conducts independent audits, inspections, and investigations that advance the missions of the Department of State and the Broadcasting Board of Governors. OIG provides leadership to: promote integrity, efficiency, effectiveness, and economy; prevent and detect waste, fraud, abuse, and mismanagement; identify vulnerabilities and recommend constructive solutions; offer expert assistance to improve Department and BBG operations; communicate timely, useful information that facilitates decision-making and achieves measurable gains; and keep the Department, BBG and the Congress fully and currently informed.

Strategic Goals

OIG's four strategic goals directly support the programs, operations, and activities of the Department and BBG, and are expressed in terms of their effect upon the agencies' ability to achieve their respective missions and strategic objectives. OIG's strategic goals are to support and assist the Department and BBG to:

1. Effectively, efficiently, and economically advance the foreign policy interests of the United States.
2. Adequately protect the people, information, and facilities under their control in the United States and abroad.
3. Have the necessary financial management and support systems and controls to meet legal and operational requirements.
4. Ensure accountability and prevent or eliminate fraud, waste, abuse, and mismanagement in programs and operations.

Resources¹

Budget Dollars Expended in Support of Each Strategic Goal Strategic Goal Dollars Percentage Foreign Policy $9.1 Million  29% Security $4.6 Million  15% Financial Management $10.6 Million  33% Accountability $7.4 Million  23%		Staff Supporting Each Strategic Goal Strategic Goal Number Percentage Foreign Policy  52  26% Security  29  15% Financial Management  70  35% Accountability  51  24%
1Includes $1.698 million in supplemental funding for work related to Iraq. (back to text)

Highlights of OIG's Most Significant Results and Outcomes

During FY 2005, the Department and BBG made significant improvements in their security, programs, and operations as a result of OIG reviews and investigations. The table below shows some of the improvements that occurred in response to OIG recommendations in support of our strategic goals.

Performance Results

OIG's Performance Plan contains four strategic goals and one internal management goal, eight performance goals, and nineteen indicators and targets used to evaluate its success in achieving its goals.

As shown above, 68 percent of OIG's performance results met or exceeded performance targets. This represents a significant improvement over FY 2004, when 41 percent of results met or exceeded performance targets, and is higher than the prior OIG best of 58 percent in FY 2003. In addition, 50 percent of the FY 2005 results exceeded FY 2004 results.

OIG's most successful performance target results were under its strategic goals for Accountability, Foreign Policy, and Security. FY 2005 results for these goals exceeded 100 percent, 75 percent and 67 percent, respectively of their targets. The results for the strategic goal related to Financial Management and Administrative Support and the internal goal in support of Management Excellence, were less successful, falling short of targeted levels. However, as shown in the bar graph below, 50 percent of the results for Foreign Policy, Accountability, and Management Excellence and 33 percent of the results for Security exceeded the best results of prior years.

Performance Shortfalls, Continuing Challenges and How OIG Will Meet Them

There were three significant factors in performance targets not being met. These were:

• The suspension, deferment, or cancellation of planned work due to unanticipated resource constraints resulting from significantly increased travel costs, a declining dollar, and a decline in staff on board due to budgetary shortages;
• Department and BBG failure to ensure timely agreement with recommended corrective actions; and
• Targets based solely on meeting or exceeding the highest prior targeted or actual results, when it was unlikely that they could be achieved.

OIG continues to face three major challenges to its ability to achieve its strategic and performance goals:

• Obtaining the funding necessary to overcome a decade of static appropriations that has eroded OIG's oversight capabilities as its funding relative to that of the Department declined by over 30 percent;
• Meeting oversight responsibilities that are ongoing (such as the legislatively mandated five-year inspection schedule) and new (such as activities related to Iraq and Afghanistan) in an environment of increasing costs and declining resources; and
• Identifying, attracting, and retaining personnel with the requisite skills, abilities, and experience.

OIG will meet these challenges by actively making its case for the resources it needs to meet its oversight responsibilities while continuing efforts to use the resources it has more efficiently and effectively. The reorganization introduced in FY 2005 to combine related operations, flatten the organization and structure and reduce redundant layers of management will be further refined to build on the benefits achieved to date. Resource and time-intensive, paper-driven processes such as those related to inspection surveys, audit work papers, and OIG reports will be replaced or supplemented by electronic ones that are more cost-effective and easier and faster to use, store, and share. Accessing available Department and BBG data electronically from Washington rather than traveling to posts to collect it will become the rule rather than the exception. The scope, frequency, and priority of audits and inspections will be determined by a risk-based analysis rather than traditional methodologies.

Where appropriate, OIG will coordinate or participate in reviews with other OIGs to leverage resources and results. OIG staff will be encouraged to obtain professional certifications, to receive training that will allow them to become more expert in their own specialties and cross-trained in others, and to develop their leadership skills and abilities. OIG will meet its challenges by becoming more efficient, more effective and, for those who work here, more rewarding.

OIG currently is reevaluating its performance indicators and targets for FY 2006 and beyond.

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