United States Department of State Office of Inspector General

Information Report: Oversight Observations To Inform Department of State Realignment of U.S. Agency for International Development Functions

05/12/2025 11:27 AM EDT

Summary of Review

On March 28, 2025, the Department of State (Department) notified Congress of its intent to realign selected U.S. Agency for International Development (USAID) functions within the Department. The information report, which was developed as part of an Office of Inspector General (OIG) evaluation of the Department’s initial realignment efforts, is designed to highlight OIG observations from its prior work, and the work of other federal oversight bodies, that could help the Department more efficiently and effectively realign USAID functions.

OIG concluded that the Department is undertaking a significant and multi-faceted integration of select USAID functions concurrent with a reorganization of domestic offices and bureaus in the Department.

Individually, these tasks would be daunting.
But together, these initiatives could be overwhelming to the organization without a well thought out plan of action.

During its work, OIG observed that senior Department leaders involved in the realignment are aware of the challenges that they face. Additionally, OIG recognizes that the Department’s Assistance Transition Working Group has established workstreams related to many of the topics discussed in the OIG report.

Although OIG did not make formal recommendations in the report, OIG encourages the Department to consider how issues identified by OIG and other oversight organizations might impact the success of the Department’s efforts.
Considering previously identified issues will allow the Department to implement best practices.

Although the focus of the information report is the realignment of USAID functions within the Department, the information may also be applicable to the Department’s efforts to implement its internal reorganization.

ADDED RELATED INTEREST