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

Supplemental funds also facilitated travel and covered support costs for State Department employees and families on authorized departure and ordered departure, as well as enhancing information technology support for telework and remote access so that employees could continue to deliver on the Department’s mission while following Federal, state, and local public health guidance. Funds were also used to prevent and respond to exposure at State Department facilities through increased decontamination, disinfection, and cleaning. In addition, funds supported the tracking and response to adversarial narratives and disinformation related to COVID-19, as well as providing enhanced intelligence analysis, and extending foreign language training to online class offerings. Internally, the Department implemented its Diplomacy Strong framework, a phased approach and methodology for COVID-19 mitigation in our domestic and overseas operations and facilities. As noted, the impact to Department visa and passport fee-based revenue has been significant. Nonimmigrant visa and passport revenue declined by more than $1.4 billion in 2020 from 2019. In addition to the supplemental resources appropriated to the Department, the CARES Act temporarily expanded expenditure authority for the passport security surcharge and the immigrant visa security surcharge to enable carryforward amounts from those fees to also offset expenses necessary to maintain consular operations with a priority on U.S. citizen services. These expenses would otherwise have been covered by machine readable visa fees generated from nonimmigrant visa applications. L imitation of F inancial S tatements Management prepares the accompanying financial statements to report the financial position and results of operations for the Department of State pursuant to the requirements of Chapter 31 of the U.S. Code Section 3515(b). While these state- ments have been prepared from the books and records of the Department in accordance with FASAB standards using OMB Circular A-136, Financial Reporting Requirements , revised, and other applicable authority, these statements are in addition to the financial reports, prepared from the same books and records, used to monitor and control the budgetary resources. These statements should be read with the understanding that they are for a component of the U.S. Government, a sovereign entity. Secretary Pompeo meets Israeli Prime Minister Benjamin Netanyahu in Jerusalem, Israel, August 24, 2020. Department of State 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 31 FINANCIAL SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS