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

The permanent indefinite appropriation provides payments to the FSRDF to finance the interest on the unfunded pension liability for the year, Foreign Service Pension System, and disbursements attributable to liability from military service. Reconciliation of the Combined Statement of Budgetary Resources to the Budget of the U.S. Government The reconciliation of the Combined Statement of Budgetary Resources and the actual amounts reported in the Budget of the U.S. Government (Budget) as of September 30, 2019 is presented in the table below. Since these financial statements are published before the Budget, this reconciliation is based on the 2019 Combined Statement of Budgetary Resources because actual amounts for 2019 are in the most recently published Budget (i.e., 2021). The Budget with actual numbers for September 30, 2020 will be published in the 2022 Budget and available in early February 2021. The Department of State’s Budget Appendix includes this information and is available on OMB’s website ( http://www.whitehouse.gov/omb/budget ) . As shown in the table below, Expired Funds are not included in the Budget of the United States. Additionally, the International Assistance Program, included in these financial statements, is reported separately in the Budget of the United States. Other differences represent financial statement adjustments, timing differences, and other immaterial differences between amounts reported in the Department’s Combined SBR and the Budget of the United States. For the Fiscal Year Ended September 30, 2019 (dollars in millions) Budgetary Resources Obligations Incurred Distributed Offsetting Receipts Net Outlays Combined Statement of Budgetary Resources (SBR) $ 74,929 $ 43,642 $ 3,831 $ 29,454 Distributed Offsetting Receipts — — (3,831) 3,831 Funds not Reported in the Budget: Expired Funds (1,091) — — — Undelivered Orders Adjustment (285) — — — Other and Rounding errors (8) (3) — (2) Budget of the United States $ 73,545 $ 43,639 $ — $ 33,283 16 C ustodial A ctivity The Department administers certain custodial activities associated with the collection of non-exchange revenues. The revenues consist of interest, penalties and handling fees on accounts receivable; fines, civil penalties and forfeitures; and other miscellaneous receipts. The Department does not retain the amounts collected. Accordingly, these amounts are not reported as financial or budgetary resources for the Department. At the end of each fiscal year, the accounts close and the balances are deposited and recorded directly to the General Fund of the Treasury. The custodial revenue amounts are considered immaterial and incidental to the Department’s mission. In 2020 and 2019, the Department collected $16 million and $25 million, respectively, in custodial revenues that were transferred to Treasury. 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 101 NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS | FINANCIAL SECTION