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

To help readers understand the Department’s principal financial statements, this section is organized as follows: ■ ■ Balance Sheet: Overview of Financial Position, ■ ■ Statement of Net Cost: Yearly Results of Operations, ■ ■ Statement of Changes in Net Position: Cumulative Overview, ■ ■ Combined Statement of Budgetary Resources, ■ ■ The Department’s Budgetary Position, ■ ■ Resource Management Systems Summary, and ■ ■ Limitation of Financial Statements. B alance S heet : O verview of F inancial P osition The Balance Sheet provides a snapshot of the Department’s financial position. It displays, as of a specific time, amounts of future economic benefits owned or managed by the reporting entity (Assets), amounts owed (Liabilities), and amounts which comprise the difference (Net Position) at the end of the fiscal year. Assets. The Department’s total assets were $109.0 billion at September 30, 2019, an increase of $3.4 billion (3 percent) over the 2018 total. Fund Balance with Treasury increased $2.3 billion (4 percent) as a result of increased appropria- tions for International Peacekeeping Activities; Diplomatic and Consular Programs; International Narcotics Control; and Global Health and Child Survival. Property and Equipment increased by $1.3 billion (5 percent) from September 30, 2018. New buildings, structures and improvements accounted for most of this increase with the top nine New Embassy Compound projects and a training center accounting for $1.0 billion of the increase (see “Real Property Projects – 2019 Cost Activity”). In addition, land increased by $88 million due to the following land purchases: Adana, Turkey for $50 million; Windhoek, Namibia for $14 million; and Merida, Mexico for $13 million. Internal use software increased by $105 million due to new projects in 2019. These increases are offset by a decrease in personal property of $143 million. This decrease is predominately due to a decrease in aircraft for $86 million. Real Property Projects – 2019 Cost Activity (dollars in millions) Project Name Amount Foreign Affairs Security Training Center $ 369 Mexico City, Mexico 130 Beirut, Lebanon 80 Maputo, Mozambique 80 Dhahran, Saudi Arabia 76 Ankara, Turkey 75 Asuncion, Paraguay 71 Guatemala City, Guatemala 60 Colombo, Sri Lanka 54 Erbil, Iraq 52 TOTAL $1,047 Other assets decreased $178 million (7 percent) as a result of a decrease in advances under the Global Health and Child Survival program for $51 million. Investments increased $137 million (1 percent) because contributions and appropriations received to support the Foreign Service Retirement and Disability Fund (FSRDF) were greater than benefit payments. There was also an increase due to investments made by the Foreign Service National Defined Contributions Fund for the Variable Contribution Plan. Fund Balance with Treasury, Investments, and Property and Equipment comprise 97 percent of total assets for 2019 and 2018. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 25 FINANCIAL SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS