Inspection of Embassy Budapest, Hungary (01-FP-R-090)
For the past several years, Embassy Budapest has pursued an initiative-based approach to policy management. At the urging of the former Ambassador, the Mission launched a series of related activities to advance specific objectives. Some accomplished much. Others were less impressive. Embassy Budapest, under new leadership now, should initiate a mission-wide review and establish a new Embassy work program reflecting U.S. priorities and changed circumstances within Hungary and the Mission.
There was a long period during which there was no U.S. Ambassador in Budapest. The absence of a Chief of Mission hampered Embassy Budapest?s ability to coordinate and manage U.S. policy in Hungary. The problem was further complicated by the lack of senior officers at the post and by the departure of several experienced country team members. The Department needs to review procedures for executive-level assignments and to develop and implement a plan to ensure that anticipated gaps in the leadership of diplomatic missions are covered by experienced officers of appropriate rank.
Embassy Budapest, at the direction of the former Chief of Mission, raised significant sums of money for cultural programming under authorities transferred from USIA to the Department following consolidation. The post, in several instances, went beyond guidelines for both the solicitation and acceptance of gifts. Solicitations were made to firms that did not meet established criteria. Some donors were involved with both the Mission and the host country. Others were not U.S. organizations. The same donors were repeatedly approached, and some funds had to be returned. The Department needs to review its guidance and strengthen its oversight procedures in this area.
Embassy Budapest needs to reassess its cultural programming and bring these activities into better balance with U.S. interests and the Mission?s ability to sustain them. Although the USAID mission has closed its doors in Budapest, significant U.S.- funded assistance activities continue. Embassy Budapest is hard pressed to track, much less coordinate, these activities. There is an extensive network of other government and private sector donors. The Embassy has some contact with these groups, but the effort is far less comprehensive than when the USAID mission was present. Embassy Budapest needs to improve coordination with other donors and ensure that U.S.-funded activities are consistent with mission priorities. Embassy Budapest is host to a growing number of U.S. Government agencies with responsibilities outside Hungary. This has generated increased demands on the Mission for support and office space. While there are good reasons to select Budapest as a center for regional activities, neither the Department nor the Embassy has a plan that defines the post?s regional role and establishes a framework for the post?s future development. Without such a strategy, sound judgments cannot be made about staffing, infrastructure, and other resource needs. Embassy Budapest, in its search for additional workspace for an expanding staff, has proposed a property trade to acquire two buildings adjacent to the chancery. Funds have not been identified for the extensive renovations needed to make these buildings usable. An alternate, interim location would have to be found for the Marine security guard detachment, which currently occupies the property to be traded. The Department and Embassy Budapest must determine future staffing needs in Hungary before a decision is made on this or any other proposal to expand facilities at Embassy Budapest.
The nonimmigrant visa workload has risen by 30 percent in the last two years, as has the related refusal rate. This has reduced Hungary?s prospects for participation in the Visa Waiver Program, leading to increased pressures from Hungarian authorities for the United States to find a way to include Hungary in the program despite the high refusal rate. Embassy Budapest, which is doing a commendable job so far, needs to redouble its efforts to explain U.S. visa laws and procedures, the reasons for refusals, and the factors affecting Hungary?s accession to the Visa Waiver Program. Embassy Budapest deserves great credit for the outstanding support it provided to the Office of Yugoslav Affairs. By providing an effective platform for U.S. efforts to restore democracy to Yugoslavia, while still pursing its bilateral agenda, Embassy Budapest made a major contribution to a critical U.S. objective in the region. Others can benefit from this experience, and Embassy Budapest needs to prepare a report on lessons learned.
There are few management controls for nonexpendable property. Shortages in excess of $160,000 were reported and still have to be fully resolved. In addition, controls for funds needed to support the Office of Yugoslav Affairs, as well as controls over the collection, expenditure, and reporting of monies raised for cultural events, need strengthening. The certification of management controls by the former Chief of Mission did not identify these weaknesses.
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