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

To help readers understand the Department’s principal financial statements, this section is organized as follows: ■ Balance Sheet: Overview of Financial Position, ■ Statement of Net Cost: Yearly Results of Operations, ■ Statement of Changes in Net Position: Cumulative Overview, ■ Combined Statement of Budgetary Resources, ■ The Department’s Budgetary Position, ■ Impact of COVID-19, and ■ Limitation of Financial Statements. B alance S heet : O verview of F inancial P osition The Balance Sheet provides a snapshot of the Department’s financial position. It displays, as of a specific time, amounts of current and future economic benefits owned or managed by the reporting entity (Assets), amounts owed (Liabilities), and amounts which comprise the difference (Net Position) at the end of the fiscal year. Assets. The Department’s total assets were $109.7 billion at September 30, 2020, an increase of $766 million (0.7 percent) over the 2019 total. Fund Balance with Treasury decreased $1.5 billion (2 percent). Property and Equipment increased by $726 million (3 percent) from September 30, 2019. New buildings, structures, and improvements accounted for most of this increase with the top ten New Embassy Compound projects accounting for $701 million of the increase. Real Property Projects – 2020 Capitalized Activity (dollars in millions) Project Name Amount Mexico City, Mexico $ 95 Erbil, Iraq 94 Ankara, Turkey 81 Beirut, Lebanon 79 Guatemala City, Guatemala 71 Dhahran, Saudi Arabia 65 Nassau, Bahamas 61 Tegucigalpa, Honduras 54 Hyderabad, India 52 Asuncion, Paraguay 49 TOTAL $ 701 Other assets increased $871 million (39 percent) as a result of an increase in advances under the Global Health and Child Survival program for $507 million. Investments increased $669 million (3 percent) because contributions and appropriations received to support the Foreign Service Retirement and Disability Fund (FSRDF) were greater than benefit payments. Fund Balance with Treasury, Investments, and Property and Equipment comprise 97 percent of total assets for 2020 and 2019. The six-year trend in the Department’s total assets is presented in the “Trend in Total Assets” bar chart. Total assets have increased an overall $19.1 billion (21 percent) since 2015. This upward trend resulted primarily from an $9.6 billion increase in Fund Balance with Treasury, a $6.1 billion increase in Property and Equipment, and a $1.9 billion increase in Investments. Many Heritage Assets, including art, historic American furnishings, rare books and cultural objects, are not reflected as assets on the Department’s Balance Sheet. Federal accounting standards attempt to match costs to accomplishments in operating performance, and have 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 23 FINANCIAL SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS