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ID-81-37 1 (1981-04-29)

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BY THE COMPTROLLER GENERAL


RELEASED


Report To The House Subcommittee

On Legislation And National Security


UNITED STATES


Fundamental Changes Needed

To Achieve Shared Support Services

For Federal Agencies Overseas


The State Department offers support services
such as security, housing and motor pools to
most Federal agencies overseas on a reim-
bursable basis. WIi le agencies endorse the con-
cept of shared services, they have developed
extensive and costly duplicate capabilities.
At 12 posts, GAO identified about 800 per-
sons employed by agencies at a combined
annual salary of over $8 million to perform
services which essentially duplicated those
offered by the State Department.
The State Department's system of charging
for services is based on estimated rather than
actual costs, and its process for allocating
costs to other agencies produces questionable
and confusing charges. While the Department
has not submitted the system for approval to
GAO, it plans to submit a redesigned system
as requi'red.
GAO recommends fundamental changes in
the administrative operations of agencies over-
seas, including mandatory participation in
consolidated services, and modifications .to
the State Department's accounting and finan-
cial management system.


15404l I II
    115404


     ID-81-37
APRIL 29, 1981


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