State Department

Additional Actions Needed to Improve Overseas Real Property Management Gao ID: NSIAD-95-128 May 15, 1995

In February 1995, GAO removed overseas real property management from its list of federal programs most vulnerable to waste, fraud, abuse, and mismanagement. GAO based that decision on several factors, including steps taken by the State Department to strengthen real property programs. However, State's management of overseas property still needs to be monitored closely. This report (1) discusses the progress made and some of the problems still facing State in real property management and (2) contains recommendations on ways to strengthen management by State.

GAO found that: (1) many of State's improvements in overseas real property management have focused on facility maintenance; (2) State's maintenance improvements include assigning skilled maintenance personnel overseas, conducting global maintenance surveys, a 5-year major rehabilitation plan, a comprehensive maintenance plan for new buildings, additional maintenance funding, establishing maintenance assistance centers, and implementing a facilities evaluation and assistance program; (3) although State has strengthened its real property management program, significant problems still exist including questionable or inappropriate use of routine maintenance funds, and overseas posts' failure to conduct or complete annual assessments of government-owned and long-term leased facilities, deobligate unneeded funds, properly use the real estate management system to manage routine and preventive maintenance programs, and adequately plan for the sale or use of undeveloped properties in State's inventory; (4) State implemented a financial audit program in 1990 that improved its oversight of overseas posts' real property programs and resulted in the return of nearly $4 million in unused funds; and (5) State has implemented an information resources management system to strengthen its budgeting and planning process and has continued to upgrade its real estate management system, but its information systems still contain weaknesses.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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