What OIG Audited
Individuals outside the United States seeking admission as refugees are typically processed through the United States Refugee Admissions Program, which is managed by the Department of State (Department), Bureau of Population, Refugees, and Migration (PRM). PRM funds organizations to manage overseas refugee Resettlement Support Centers (RSC) that assist in the processing of refugee applications.

The Office of Inspector General (OIG) conducted this audit to determine whether selected recipients of cooperative agreement funds supporting RSCs adhered to applicable federal requirements, Department policies and guidance, and award terms and conditions. To perform the audit, OIG conducted fieldwork at three RSCs with offices in Bangkok, Thailand; Istanbul, Turkey; Kuala Lumpur, Malaysia; and Nairobi, Kenya.

What OIG Recommends
OIG offered 13 recommendations to address the deficiencies identified in this report and to determine the allowability of costs claimed. On the basis of PRM?s response to a draft of this report, OIG considers all 13 recommendations resolved, pending further action. A synopsis of management?s responses to the recommendations offered and OIG?s reply follow each recommendation in the Audit Results section of this report. Responses received from PRM are included in their entirety in Appendix C.

What OIG Found
The selected recipients of cooperative agreement funds supporting RSCs did not always adhere to federal requirements, Department guidance, and award terms and conditions. Specifically, OIG found that, of 60 refugee applications reviewed, 39 (65 percent) had deficiencies primarily related to administrative requirements. In addition, OIG found instances in which the RSCs did not maintain consistent information between the case management system and the physical case file as required. Specifically, 12 of 36 (33 percent) cases reviewed had differences. Furthermore, OIG found that none of the 12 RSC caseworkers observed conducted prescreening interviews in accordance with requirements. These deficiencies occurred, in part, because PRM?s quality control processes did not address all applicable requirements. In addition, RSC caseworkers at times misinterpreted PRM guidance. Noncompliance with requirements could result in inconsistent refugee application information, applicants who are not fully informed about the refugee admissions process, and delays to an application process that can take years to complete.

OIG also found the selected award recipients did not always submit accurate performance reports. This occurred primarily because the performance report template provided by PRM did not include sufficient guidance for calculating performance data. As a result, performance reporting did not always represent the recipient?s actual performance when underperforming or overperforming.

Finally, OIG found that selected award recipients did not always spend funds in accordance with federal requirements and award terms and conditions. Specifically, OIG tested 144 expenditures, totaling $1,941,605, and found 24 expenditures (17 percent) were unallowable. Generally, recipients claimed these costs because they believed them to be justified. Nonetheless, OIG is questioning $759,000 in costs considered unsupported or unallowable.