Summary: The State Department recognizes many of its critical management challenges and has devoted substantial resources to overcoming them. State has made considerable progress in many difficult areas but still faces significant obstacles. Specifically, State needs to improve the security of U.S. personnel and facilities at overseas locations in a cost-effective and timely manner. It also needs to determine the right size and location of the U.S. overseas presence to both improve the efficiency of operations and reduce the security burden. In addition, State should better utilize the Government Performance and Results Act by demonstrating its level of success in achieving desired outcomes or the way in which its actions actually led to achieving desired goals. State had made many improvements in its information and financial management systems but faces continuing challenges in working with U.S. agencies operating overseas to standardize information capabilities and to correct weaknesses in its information security and financial management systems.