The U.S. State Department did not implement consistent oversight for the $5.7 billion allocated to the United Nations and various international organizations in 2024, according to a recent audit released by the agency’s inspector general on January 15, 2024. This lack of oversight raises concerns about potential fraud and abuse of taxpayer funds.
The audit examined 18 contributions made by the U.S. and revealed that the State Department’s policy, which recommends that recipients adhere to U.S. law and executive orders, was not uniformly enforced. Specifically, some grants did not require recipients to report fraud or comply with U.S. audit requirements. Instead, the department often depended on “non-binding commitments” to obtain financial information regarding the use of U.S. grants.
The inspector general noted the risks associated with this approach, stating that if relationships with UN officials deteriorate or if there is staff turnover, financial information may become inaccessible. This could potentially allow waste, fraud, and abuse to go undetected.
In contrast, grants from the U.S. Agency for International Development (USAID) and the European Commission included stronger oversight provisions, typically mandating fraud checks and compliance with auditing processes. Although USAID has largely merged with the State Department, they operated as separate entities during the audit period.
Concerns Over Voluntary Funding
The oversight issues primarily pertain to “voluntary” international funding, distinct from the $3.6 billion in “assessed” funding required for U.S. membership in the UN and other international organizations. While the State Department exercised limited oversight over the assessed funding, this was largely unavoidable due to UN rules and the constraints of diplomatic immunity, which prevent the U.S. from obtaining detailed information about how its membership dues are utilized.
In 2024, the State Department disbursed a total of $9.3 billion to 131 international organizations, with nearly half of that amount originating from the Bureau of Population, Refugees, and Migration. The audit highlighted that identifying fraud is inherently challenging, but implementing a requirement for recipients of U.S. grants to report all instances of fraud is a straightforward measure to enhance the safeguarding of taxpayer funds.
The report from the inspector general emphasizes the importance of robust oversight in international funding to ensure accountability and prevent misuse of resources. As the U.S. continues to navigate its role in global partnerships, establishing clear and enforceable guidelines for grant recipients will be crucial in maintaining trust and transparency.
