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

The “Net Cost of Operations by Strategic Goal” pie chart illustrates the results of operations by strategic goal, as reported on the Statement of Net Cost. As shown, net costs associated with two of the strategic goals (Strategic Goal 3: Promote American Leadership through Balanced Engagement) and (Strategic Goal 4: Ensure Effectiveness and Accountability to the American Taxpayer) represents the largest net costs in 2020 – a combined $24.9 billion (76 percent). The largest increase was in Strategic Goal 1: Protect America’s Security at Home and Abroad. The net cost increased $1.4 billion resulting from the decrease in consular fee revenue due to the reduced travel from the global coronavirus pandemic. In Strategic Goal 3: Promote American Leadership through Balanced Engagement, net cost increased $653 million due to an increase in spending on humanitarian relief and global health programs. Earned Revenues Earned revenues occur when the Department provides goods or services to another Federal entity or the public. The Department reports earned revenues regardless of whether it is permitted to retain the revenue or remit it to Treasury. Revenue from other Federal agencies must be established and billed based on actual costs, without profit. Revenue from the public, in the form of fees for service (e.g., visa issuance), is also without profit. Consular fees are established on a cost recovery basis and determined by periodic cost studies. Certain fees, such as the machine readable Border Crossing Cards, are determined statutorily. Revenue from reimbursable agreements is received to perform services overseas for other Federal agencies. The FSRDF receives revenue from employee/employer contributions, a U.S. Government contribution, and investment interest. Other revenues come from ICASS billings and Working Capital Fund earnings. Earned revenues totaled $6.8 billion in 2020, and are depicted, by program source, in the “Earned Revenues by Program Source” pie chart. The major sources of revenue were from consular fees ($2.7 billion or 39 percent), reimbursable agreements ($2.3 billion or 34 percent), and ICASS earnings ($1.0 billion or 15 percent). These revenue sources totaled $6.0 billion (88 percent). Overall, revenue decreased by 23 percent – $2.0 billion from 2019 to 2020. This decrease is primarily a result of a decrease in revenue from consular fees due to a decrease in travel as a result of COVID-19. 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 25 FINANCIAL SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS