A recent audit by the U.S. State Department’s inspector general reveals significant gaps in oversight for the approximately $5.7 billion contributed to the United Nations and other international organizations in 2024. The findings, released on January 15, 2024, indicate that the department did not consistently enforce standards requiring recipients to report fraud or undergo regular audits.
According to the audit, State Department policy advises that all contributions to international bodies should ensure compliance with U.S. law, avoid funding terrorist organizations, and include robust mechanisms for financial oversight. However, the inspector general’s review of 18 contributions showed that these guidelines were applied inconsistently. Notably, some grants did not mandate recipients to report instances of fraud or adhere to U.S. audit protocols.
The audit highlighted that the State Department often depended on “non-binding commitments” for information regarding the expenditure of U.S. grants. This reliance on informal relationships, including personal connections between U.S. officials and UN personnel, raised concerns about the availability of financial documentation. With personnel changes or deteriorating relationships, crucial financial information might become inaccessible, increasing the risk of undetected waste, fraud, and abuse.
In comparison, the oversight language in State Department grants was weaker than that found in grants from the U.S. Agency for International Development (USAID) or the European Commission. Both USAID and the European Union typically include stringent requirements for fraud checks and audit compliance. While USAID has largely integrated into the State Department, they operated as distinct entities during the audit period.
The audit primarily addressed “voluntary” international funding, distinct from the $3.6 billion in “assessed” funding that the U.S. is obligated to provide to maintain its membership in the UN and similar organizations. Although the State Department also had limited oversight of this assessed funding, the audit noted that obtaining detailed information about its use is restricted by UN rules and diplomatic immunity.
In total, the State Department allocated $9.3 billion to 131 international organizations in 2024, with nearly half of that amount coming from the Bureau of Population, Refugees, and Migration. The challenges of identifying fraud in these transactions are evident, but simply requiring grant recipients to report all instances of fraud could enhance the safeguarding of taxpayer funds.
The audit underscores the need for a more structured approach to oversight, particularly in light of the substantial financial contributions made by the U.S. to international organizations. Enhanced transparency and accountability measures could help ensure that taxpayer money is used effectively and ethically.
