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

Earned revenues for the years ended September 30, 2019 and 2018, consist of the following (dollars in millions) : 2019 2018 Earned Revenues Total Prior to Eliminations Intra- Departmental Eliminations Total Total Prior to Eliminations Intra- Departmental Eliminations Total Consular Fees: Passport, Visa and Other Consular Fees $ 707 $ — $ 707 $ 686 $ — $ 686 Machine Readable Visa 1,894 — 1,894 1,915 — 1,915 Expedited Passport 270 — 270 249 — 249 Passport, Visa and Other Surcharges 1,568 — 1,568 1,593 — 1,593 Fingerprint Processing, Diversity Lottery, and Affidavit of Support 19 — 19 21 — 21 Subtotal – Consular Fees 4,458 — 4,458 4,464 — 4,464 FSRDF 1,382 739 643 1,353 718 635 ICASS 3,575 2,508 1,067 3,546 2,509 1,037 Other Reimbursable Agreements 2,590 242 2,348 2,459 345 2,114 Working Capital Fund 1,282 1,089 193 1,308 1,091 217 Other 98 58 40 201 58 143 Total $ 13,385 $ 4,636 $ 8,749 $ 13,331 $ 4,721 $ 8,610 Pricing Policies Generally, a Federal agency may not earn revenue from outside sources unless it obtains specific statutory authority. Accord- ingly, the pricing policy for any earned revenue depends on the revenue’s nature, and the statutory authority under which the Department is allowed to earn and retain (or not retain) the revenue. Earned revenue that the Department is not authorized to retain is deposited into the Treasury’s General Fund. The FSRDF finances the operations of the FSRDS and the FSPS. The FSRDF receives revenue from employee/employer contributions, a U.S. Government contribution, and interest on investments. By law, FSRDS participants contribute 7.25 percent of their base salary, and each employing agency contributes 7.25 percent; FSPS participants contribute 1.35 percent of their base salary and each employing agency contributes 20.22 percent. Employing agencies report employee/employer contributions biweekly. Total employee/employer contributions for 2019 and 2018 were $404 million and $392 million, respectively. The FSRDF also receives a U.S. Government contribution to finance (1) FSRDS benefits not funded by employee/ employer contributions; (2) interest on FSRDS unfunded liability; (3) FSRDS disbursements attributable to military service; and (4) FSPS supplemental liability payment. The U.S. Government contributions for 2019 and 2018 were $425 million and $414 million, respectively. FSRDF cash resources are invested in special non-marketable securities issued by the Treasury. Total interest earned on these investments for 2019 and 2018 were $552 million and $548 million, respectively. Consular Fees are established primarily on a cost recovery basis and are determined by periodic cost studies. Certain fees, such as the machine readable Border Crossing Cards, are determined statutorily. Reimbursable Agreements with Federal agencies are established and billed on a cost-recovery basis. ICASS billings are computed on a cost recovery basis; billings are calculated to cover all operating, overhead, and replacement costs of capital assets, based on budget submissions, budget updates, and other factors. In addition to services covered under ICASS, the Department provides administrative support to other agencies overseas for which the Department does not charge. Areas of support primarily include buildings and facilities, diplomatic security (other than the local guard program), overseas employ- ment, communications, diplomatic pouch, receptionist and selected information management activities. The Department receives direct appropriations to provide this support. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 99 NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS | FINANCIAL SECTION