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

I t is an honor to present the Fiscal Year (FY) 2019 Financial Statements on behalf of the Department of State. As noted in the Secretary’s message, the FY 2019 Agency Financial Report (AFR) is our key accountability document and principal publication and report to the President, Congress, and the American people to disclose our financial status over the assets and resources entrusted to us. It illustrates our firm commitment, resolve, and rigor in delivering the highest standard of financial accountability and transparency to the American public. The AFR provides a comprehensive view of the Department’s financial activities set against the backdrop of the global issues and engagements we face as an institution and as a country. Notably, it represents the diligence and dedication demonstrated daily by the Department’s professionals – One Team – around the world in some of the most difficult operating environments. The Department’s financial operating context is complex. We operate in over 270 embassies and consulates, located in more than 180 countries around the world. We conduct business on a 24/7 basis in over 135 currencies through 224 bank accounts around the world; account for more than $108 billion in assets in over 500 separate fiscal accounts; and manage real and personal property assets with historical costs of more than $38 billion. We provide the shared administrative operating platform for more than 45 other U.S. Government entities overseas; and pay more than 100,000 Foreign and Civil Service, Locally Employed Staff, and Foreign Service annuitants. These financial activities support and further our ability to advance America’s interests on a broad range of foreign policy challenges and engagements that demand our attention. For the Department’s financial management platform and programs, we strive to prioritize, manage, and implement vital investments in modern, transformative financial systems and operations that improve our global financial operations, reporting, and compliance. These investments provide a standardized and economical enterprise-wide financial business framework for accurate and timely financial data. Further automation and the use of data as a resource will be central to the Department’s ongoing transformational efforts and our ability to improve accountability, measure performance and enhance data- informed decision making. Our support of these efforts, together with our need to be responsible stewards of data, requires that we continuously assess and enhance our financial systems and data. To that end, as required by the Digital Accountability and Transparency Act of 2014 (DATA Act), the Department reports financial and payment information on the Department’s spending to the public using USASpending.gov, and continues to work to achieve 100 percent accuracy of this data submitted from all around the world. We are dedicated to delivering quality financial services, backed by our ISO-9001 certified operations and Capability Maturity Model Integration (CMMI) standard for financial systems development. These quality management programs allow us to continuously improve our services and drive new automation and efficiencies into mission furthering support services. Message from the Comptroller FINANCIAL SECTION | PRINCIPAL FINANCIAL STATEMENTS 42 | U nited S tates D epartment of S tate 2019 A gency F inancial R eport Financial Section SECTION II: