U.S. Department of State Fiscal Year 2020 Agency Financial Report

Table of Contents 2 Introduction 2 About This Report 3 How This Report is Organized 4 Message from the Secretary 7 Section I: Management’s Discussion and Analysis 7 About The Department 13 Strategic Goals and Government- wide Management Initiatives 17 Performance Summary and Highlights 22 Financial Summary and Highlights 33 Management Assurances and Other Legal Compliances 42 Section II: Financial Section 42 Message from the Comptroller 44 OIG Transmittal and Independent Auditor’s Report 61 Comptroller Response to the OIG 63 Principal Financial Statements 64 Consolidated Balance Sheet 65 Consolidated Statement of Net Cost 66 Consolidated Statement of Changes in Net Position 67 Combined Statement of Budgetary Resources 68 Notes to the Principal Financial Statements 110 Required Supplementary Information 115 Section III: Other Information 115 Inspector General’s Statement on the Department’s Major Management and Performance Challenges 130 Management’s Response to Inspector General 139 Summary of Financial Statement Audit and Management Assurances 140 Payment Integrity and Other Laws and Regulations 144 Grants Programs 145 Federal Civil Penalties Inflation Adjustment Act 146 Resource Management Systems Summary 152 Heritage Assets 155 Real Property 159 Appendices 159 A: Abbreviations and Acronyms 162 B: Department of State Locations A virtual G20 Foreign Ministers meeting in Washington, D.C., September 3, 2020. Department of State