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

Performance Summary and Highlights P erformance R eporting The Department of State reports annual progress and results toward achieving the strategic objectives and performance goals articulated in the JSP via the Annual Performance Plan/ Annual Performance Report (APP/APR). The latest reporting on the JSP – including performance goals, performance indicators, and a narrative explanation of progress – can be found in the FY 2021 APP/FY 2019 APR at https://www. state.gov/plans-performance-budget/performance-plans-and- reports/ . In summer 2020, Department of State held internal strategic review meetings (Strategy and Resource Reviews) and provided the Office of Management and Budget (OMB) with a summary of findings. In addition, the Department of State continually reviews performance progress against the JSP’s 16 strategic objectives in a variety of complementary fora throughout the year, and thereby leverage planning, performance, evaluation, and budgeting processes to strengthen the use of data and evidence to inform decisions. These cumulative reviews foster a culture of continuous review and improvement. The next section provides an overview of major program areas that are aligned with the four strategic goals of the State-USAID Joint Strategic Plan. These programs are also included in the Financial Section, Section II of this AFR, on the Consolidated Statement of Net Cost. M ajor P rogram A reas Strategic Goal 1: Protect America’s Security at Home and Abroad The United States faces ever-evolving and multi-dimensional security challenges. To meet these challenges, we support and collaborate with both new and old partners to defend shared interests and to adapt to the changing international environment. This means working to advance nonprolifera- tion, antiterrorism, demining, and related programs, global threat reduction, and security assistance. The Department is focusing its efforts on strategically vital regions to prevent crises and foster resilience in ways that align to our broader commitments and that secure our borders. Strategic Goal 2: Renew America’s Competitive Advantage for Sustained Economic Growth and Job Creation American national security requires sustained economic prosperity. As new challenges and opportunities emerge in a changing international landscape, our economic engagement with the world must be comprehensive, forward-looking, and flexible. The United States can advance its economic and security goals only through robust diplomacy, assertive trade and commercial policies, and broad-based engagement with governments and societies. Growth and economic security among U.S. allies and partners also builds markets for U.S. goods and services and strengthens the ability to confront global challenges. We must counter models promoted by other nations by offering a clear choice: The American approach is to help our partners prosper. Our economic diplomacy and development assistance are key tools in projecting this leadership to enhance security and prosperity at home. Strategic Goal 3: Promote American Leadership through Balanced Engagement America First does not mean America alone. The United States is a beacon of liberty, freedom, and opportunity. Since the conclusion of the Second World War, the United States has led the development of a rules-based international order that allows nations to compete peacefully and cooperate more effectively with one another. We worked together with allies and partners to build the institutions and structures to defend the sovereignty, self-governance, security, and prosperity of 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 17 PERFORMANCE SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS