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

For the Years Ended September 30, 2020 2019 (dollars in millions) Intragovernmental With the Public Total Total Net Cost $ (1,088) $ 33,725 $ 32,637 $ 29,709 Components of Net Cost that are not Part of Net Outlays: Property, Plant, and Equipment Depreciation — (1,346) (1,346) (1,228) Property, Plant, and Equipment gain/(loss) on Disposal & Revaluation — (280) (280) (137) Year-end Credit Reform Subsidy Re-estimates — (1) (1) (1) Other 1,104 625 1,729 1,897 Increase/(decrease) in Assets: Accounts Receivable (19) 40 21 (352) Loans Receivable — 5 5 — Other Assets 629 252 881 (126) (Increase)/decrease in Liabilities: Accounts Payable (49) 1,018 969 126 Salaries and Benefits 258 2 260 (297) Environmental and Disposal Liabilities — 2 2 41 Other Liabilities (4) (1,579) (1,583) (2,455) Other Financing Sources: Transfers out(in) Without Reimbursement 14 — 14 (1) Total Components of Net Cost that are not Part of Net Outlays 1,933 (1,262) 671 (2,533) Components of Net Outlays that are not Part of Net Cost: Acquisition of Capital Assets — 2,386 2,386 2,637 Other — 1,986 1,986 3,472 Total Components of Net Outlays that are not Part of Net Cost — 4,372 4,372 6,109 Net Outlays $ 845 $ 36,835 $ 37,680 $ 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and SFFAS No. 24, Selected Standards for the Consolidated Financial Report of the United States Government , and rescinded SFFAS No. 22, Change in Certain Requirements for Reconciling Obligations and Net Cost of Operations .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. 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 103 NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS | FINANCIAL SECTION