FBO’s responsibilities include (1) overseeing the acquisition, design, construction, sales, operations, and maintenance of properties and (2) establishing policies and procedures for overseas posts to follow in managing real property programs. Since the early 1960s, we have reported serious deficiencies in FBO’s management of overseas real property. Our December 1992 report on overseas real property identified the chronic and long-standing management weaknesses that had affected overseas real property programs, including insufficient maintenance, lax oversight of overseas operations, inadequate information systems, and poor planning. Progress cited by the Inspector General included a new group of skilled maintenance professionals in the State Department responsible for overseeing post maintenance and repair operations, a systematic global facility review program to assess the condition of U.S.-owned and long-term leased facilities, a 5-year plan for major rehabilitations, a comprehensive maintenance plan for newly constructed buildings, and additional funding for maintenance programs. These problems include the questionable and/or inappropriate use of routine maintenance funds by overseas posts and the failure of some posts to either conduct or complete annual surveys documenting the condition of government-owned and long-term leased facilities. Overall, FBO estimates that its financial audit program has resulted in nearly $4 million in uncommitted post funds being returned to FBO for use in other projects and programs. For example, we found that State has kept undeveloped properties in Nassau without adequate justification or plans for their use. Its current value is not identified in the real estate management system. FBO has also developed an information resource management system, which consists of several integrated applications, including project management and budget planning and allocation. We reviewed pertinent records and documents, including the FAM and FBO’s guidance on use of funds; global maintenance surveys and facilities evaluation and assistance program reports; FBO’s financial audit, real estate management system, and area management trip reports; and posts’ status of obligation reports, purchase orders, and work order reports.
Why GAO Did This Study

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.

What GAO Found

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.