U.S. Department of State Fiscal Year 2019 Agency Financial Report

For the Year Ended September 30, 2019 (dollars in millions) Intragovernmental With the Public Total Net Cost $ (858) $ 30,567 $ 29,709 Components of Net Cost that are not Part of Net Outlays: Property, Plant, and Equipment Depreciation — (1,228) (1,228) Property, Plant, and Equipment Disposal & Revaluation — (137) (137) Year-end Credit Reform Subsidy Re-estimates — (1) (1) Unrealized Valuation loss/(gain) on Investments — — — Other 1,123 774 1,897 Increase/(decrease) in Assets: Accounts Receivable (307) (45) (352) Loans Receivable — — — Investments — — — Other Assets (43) (83) (126) (Increase)/decrease in Liabilities: Accounts Payable 182 (56) 126 Salaries and Benefits (270) (27) (297) Insurance and Guarantee Program Liabilities — — — Environmental and Disposal Liabilities — 41 41 Other Liabilities 1 (2,456) (2,455) Other Financing Sources: Federal Employee Retirement Benefit Costs paid by OPM and imputed to the Agency — — — Transfers out(in) Without Reimbursement (1) — (1) Other Imputed Financing — — — Total Components of Net Cost that are not Part of Net Outlays 685 (3,218) (2,533) Components of Net Outlays that are not Part of Net Cost: Acquisition of Capital Assets — 2,637 2,637 Acquisition of Inventory — — — Acquisition of Other Assets — — — Other — 3,472 3,472 Total Components of Net Outlays that are not Part of Net Cost — 6,109 6,109 Other Temporary Timing Differences — — — Net Outlays $ (173) $ 33,458 $ 33,285 17  R econciliation of N et C ost to N et O utlays The reconciliation of the net cost of operations to the budget- ary outlays is required by SFFAS No. 53, Budget and Accrual Reconciliation , amended SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting and SFFAS No. 24, Selected Standards for the Consolidated Financial Report of the United States Government , and rescinded SFFAS No. 22, Change in Certain Requirements for Reconciling Obligations and Net Cost of Operations . Budgetary accounting used to prepare the State- ment of Budgetary Resources and proprietary accounting used to prepare the other principal financial statements are comple- mentary, but both types of information about assets, liabilities, net cost of operations and the timing of their recognition are different. The reconciliation of net outlays and net cost clarifies the relationship between budgetary and financial accounting information. The reconciliation starts with the net cost of operations as reported on the Statement of Net Cost and adjusted by components of net cost that are not part of net outlays. The first section of the reconciliation below presents components of net cost that are not part of net outlays. Common components can include depreciation, imputed costs, or changes in assets and liabilities. The second section adjusts the budget outlays that are not part of net operating cost. Components of budget outlays that are not part of net operating cost include acquisition of capital assets, inventory, and others assets. 102 | U nited S tates D epartment of S tate 2019 A gency F inancial R eport FINANCIAL SECTION | NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS