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State Department: Additional Actions Needed to Improve Overseas Real Property Management

NSIAD-95-128 Published: May 15, 1995. Publicly Released: May 15, 1995.
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Highlights

GAO reviewed the Department of State's management of its overseas properties, focusing on: (1) the problems State faces in managing its overseas real property; and (2) how State can strengthen its overseas real property management.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of State The Secretary of State should strengthen real property management by revising and clarifying State's policies and procedures governing the use of routine maintenance and repair funds, adding a checklist of appropriate and nonappropriate charges to the routine maintenance and repair allotment.
Closed – Implemented
State's Office of Foreign Buildings Operations has provided additional guidance to the overseas posts as part of its annual maintenance fund allotment cables.
Department of State The Secretary of State should strengthen real property management by expanding the Office of Foreign Buildings Operations' (FBO) financial audit program to ensure coverage of a greater number of overseas posts and use the FBO area manager program to have a more comprehensive check of posts' use of routine maintenance funds. Area managers' checklists should also be expanded to cover other key problems, including the extent posts: (1) conduct annual facility conditions surveys; and (2) use the automated real estate management system for work order management.
Closed – Implemented
State plans to pursue expansion of the FBO audit program. However, State also cautioned that expansion may not be possible given budget constraints and a personnel hiring freeze. The Area Management Post Checklist has been revised to: (1) include a review of the annual facility condition survey; (2) require an extensive check of use of routine maintenance funds; and (3) include a check to see if the post is properly operating the work order system.
Department of State The Secretary of State should strengthen real property management by using the FBO automated real estate management system to report on and monitor whether housing units at each post comply with existing space standards, approved housing profiles, and space waiver requirements. FBO should also be directed to use these reports to enforce compliance with State's space standards.
Closed – Implemented
State did not agree with the recommendation, stating that it is post management's role to enforce compliance with housing standards and profiles. However, State agreed in principle that the automated system has deficiencies, including the lack of historical data for trend analysis and posts' monitoring of compliance with housing standards. FBO is currently considering options to correct such shortcomings.
Department of State The Secretary of State should strengthen real property management by developing a plan of action with associated time frames for selling unneeded property in Nassau. The plan should: (1) require updated appraisals of the value of the former Office Building Chancery site and the ocean-front property near it; and (2) include supporting analysis and justification for retaining two properties for parking near the ambassador's residence, compared to the potential sales proceeds that could be realized from the sale of one of the properties.
Closed – Implemented
State has sold the office building site and ocean front property near it for $2.75 million. No action is planned on the properties near the ambassador's residence.

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Topics

Americans employed abroadFacility maintenanceFacility managementFederal property managementFunds managementStaff utilizationInternal auditsManagement information systemsReal propertySurveys