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

to anonymously report suspicious activity through the OIG hotline, which is prominently displayed on the Department’s intranet website in an easy to use reporting tool. Fraud risk management is an important aspect of the Depart- ment’s strategy to achieve its mission and goals. During 2020, Bureaus collaborated with each other to advance an organizational culture to combat fraud across components, programs, and levels. The Department will continue to dedicate resources to this important initiative in 2021. D ebt M anagement Outstanding debt from non-Federal sources (net of allowance) increased from $59.7 million at September 30, 2019 to $79.3 million at September 30, 2020. Direct Loans, IBWC, and Administrative Loans increased by $22.4 million while Civil Monetary Penalties and Passport non-sufficient funds decreased by $2.8 million at September 30, 2020, resulting in an increase overall to the non-Federal source figures. Non-Federal receivables consist of debts owed to the Inter- national Boundary and Water Commission, Civil Monetary Fund, and amounts owed for repatriation loans, medical costs, travel advances, and other miscellaneous receivables. The Department uses installment agreements, salary offset, and restrictions on passports as tools to collect its receivables. It also receives collections through its cross-servicing agreement with the Department of the Treasury (Treasury). In 1998, the Department entered into a cross-servicing agreement with Treasury for collections of delinquent receivables. In accordance with the agreement and the Debt Collection Improvement Act of 1996 (Public Law No. 104-134), the Department referred $3.8 million to Treasury for cross-servicing in 2020. Of the current and past debts referred to Treasury, $1.9 million was collected in 2020. Receivables Referred to the Department of the Treasury for Cross-Servicing 2020 2019 2018 Number of Accounts 2,512 2,823 1,377 Amounts Referred (dollars in millions) $3.8 $2.7 $4.3 Amounts Collected (dollars in millions) $1.9 $1.6 $1.6 E lectronic P ayments For 2020, the Department disbursed over 4 million payments and 99.3 percent of them were processed through Electronic Funds Transfer (EFT). For overseas operations, the EFT percentage increased from a 2019 percentage of 99.01 percent to a 2020 percentage of 99.36 which is a major accomplishment given the complexities of banking operations in some foreign countries. Domestic operations EFT percentage remained constant at 99.3 percent from 2019 to 2020. Secretary Pompeo meets with the Taliban Delegation in Doha, Qatar, September 12, 2020. Department of State 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 143 PAYMENT INTEGRITY AND OTHER LAWS AND REGULATIONS | OTHER INFORMATION