Peacekeeping: Multinational Force And Observers Maintaining Accountability, but State Department Oversight Could Be Improved

State and MFO officials noted that this problem had been previously addressed to State and MFO's satisfaction in 2006. Moreover, State's mandatory requirement for postings in the Middle East have increased the number of interested applicants because MFO is now a much more attractive assignment for senior staff given the alternatives (Iraq). State took three actions to address this concern: First, State raised the grade level of the position from Foreign Service Officer-2 to FSO-1 to open the post to more seasoned candidates over two years ago. The selected candidate in 2006 was considered by both State and MFO to have performed ably in the position, and had successfully addressed a number of the morale issues GAO had identified in the report. Second, knowing how difficult it could be to find a qualified candidate for the summer 2008 bidding cycle, NEA did early outreach in the fall of 2007 to attract candidates; also, NEA elevated the position to the OC (Foreign service equivalent of the Senior Executive Service) to attract the best candidates (and to give the CCOU the same rank as his military counterpart in the MFO). Third, State also made the salary negotiations more flexible.

In its July 2004 report (Peacekeeping: Multinational Force and Observers (MFO) Maintaining Accountability, But State Department Oversight Could Be Improved), GAO recommended that State ensure that staff with accounting expertise are available to carry out the Bureau of Near Eastern Affairs' financial oversight responsibilities for the MFO and, if necessary, review the terms of MFO's external audits to ensure that they are appropriate. GAO noted that State had not provided employees who possess the expertise to carry out many of its financial oversight responsibilities for the MFO. In response, the State MFO Advisory Board included representatives from the Office of the Inspector General (OIG) to review MFO audits. OIG reviewed MFO's latest annual external audit and financial statements in August 2004 and found no problems. A State official said that OIG will routinely participate on the Advisory Board and will check on the quality of MFO's audits through an annual financial desk review of MFO audited financial statements and relate them to prior year statements. Moreover, any irregularities will be brought to the attention of MFO, Bureau of Near Eastern Affairs, U.S. Department of State (NEA), and the Advisory Board.

In its July 2004 report (Peacekeeping: Multinational Force and Observers (MFO) Maintaining Accountability, But State Department Oversight Could Be Improved), GAO recommended that State's MFO Advisory Board should monitor and document Bureau of Near Eastern Affairs, U.S. Department of State (NEA) compliance with its oversight guidelines. In response, State's new MFO Advisory Board adopted a mission statement to ensure adequate and documented review and analysis of the MFO's activities and budget in accordance with established guidelines of the bureau. At an October 2004 Advisory Board Meeting, the NEA's Officer in Charge of MFO affairs noted that he would provide to all members of the Advisory Board written copies of his reports on his biannual monitoring trips to MFO facilities.

MFO and State officials noted that the dispute between MFO and the U.S. Army over responsibility for the costs of deploying new U.S. Army helicopters to the MFO and the long-term dispute over responsibility for covering special U.S. Army pays associated with the deployment of U.S. Army troops to the Sinai were largely resolved by 2007. The U.S. Army agreed to pay about $6.2 million in unprogrammed, one time costs associated with the transfer of the helicopters . According to the 2007 MFO Annual Report, the U.S. government agreed to pay for some of the higher annual maintenance costs of the helicopters as well. The U.S. government and MFO also have come to an agreement on how to update and reconcile the long-term cost sharing arrangements, and have reconciled the long-standing dispute between the Army and MFO over the cost of providing special pays for U.S. troops and reservists deployed to the MFO.