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GAO-02-790R 1 (2002-07-11)

handle is hein.gao/gaobaamad0001 and id is 1 raw text is: I im ~GAO Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 July 11, 2002 The Honorable Christopher Shays Chairman Subcommittee on National Security, Veterans Affairs, and International Relations Committee on Government Reform House of Representatives Subject: Current Law Limits the State Department's Authority to Manage Certain Overseas Properties Cost Effectively Dear Mr. Chairman: The Department of State is the central manager for real estate at U.S. embassies and consulates and has the statutory authority to sell properties and use the sales proceeds to acquire and maintain other overseas properties. Section 738 in the fiscal year 2001 Agriculture Appropriations Act prohibits State from selling residences purchased to house agricultural attaches without approval from the Foreign Agricultural Service (FAS) and requires the department to use the proceeds from such sales to purchase residences for these attaches.' Legislation currently before the Congress would repeal section 738.2 At your request, this report discusses the effect of section 738 on State's management of overseas properties. We examined this issue as part of our review of the Department of State's performance in identifying and selling unneeded overseas real estate. In conducting this assignment, we interviewed officials and analyzed records at the Department of State, FAS, and the Office of Management and Budget (OMB). Results in Brief Section 738 limits the Department of State's authority to implement cost-effective decisions about sales of unneeded overseas property and the use of sales proceeds. 'P.L. 106-387, section 738, 114 stat. 1549A-34. 2Both the Senate and House versions of the fiscal years 2002 and 2003 Foreign Relations Authorization Act contain language repealing section 738. See S. 1401, section 207, and H.R. 1646, section 205. 3See U.S. General Accounting Office, State Department: Sale of Unneeded Property Has Increased but Further Improvements Are Necessary, GAO-02-590 (Washington, D.C.: June 11, 2002). GAO-02-790R Management of Overseas Property

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