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

has also recognized the Chinese Communist Party (CCP) as a sustained threat to American security. That’s why we’ve refused to legally recognize the CCP’s claims regarding the South China Sea, and worked with our allies and partners to get more than forty countries on board the Clean Network – countries committed to keeping untrusted 5G vendors like Huwaei out of their telecommunications networks. Renewing America’s Competitive Advantage for Sustained Economic Growth and Job Creation. Robust international trade is in America’s economic interest. We continue to work with key partners throughout the world to ensure that the rules that govern commerce between nations are fair and reciprocal. We’ve also made the case to American companies for their role in American security. Our companies shouldn’t do deals that strengthen the military capability of competitors such as China. So too must we ensure that American partnerships and technological exports do not contribute to the CCP’s oppression of its own people. We also know that the private sector is an essential force for bringing sustainable prosperity to the developing world, and to that end have worked in concert with the revamped U.S. Development Finance Corporation to help American companies make new inroads around the world. Promoting American Leadership through Balanced Engagement. This year’s AFR is built around the theme of Safeguarding Unalienable Rights . Unalienable rights are at the core of the American experiment and American foreign policy. I established the Commission on Unalienable Rights to help re-ground American diplomacy in a commitment to our founding principles. By doing so, we will uphold the best American traditions of defending freedom and human rights worldwide, and remain a powerful moral witness to the world. Ensuring Effectiveness and Accountability to the American Taxpayer. The State Department’s professionals, like all Americans, have been challenged to adapt to the conditions brought by the COVID-19 pandemic. I’m proud of the resilience our team has shown in continuing to fulfill its mission. Rallying under the banner of Diplomacy Strong , our workforce has deployed new technology and demonstrated creativity to ensure that the work of American diplomacy has moved forward. We also have implemented new ways to coordinate our efforts, for example, holding quarterly strategic reviews through virtual formats to ensure that financial management, information systems, human resources, and other key organizational elements are aligned. This AFR is our principal report to the President, Congress, and the American people on our leadership in managing and stewarding well the public funds entrusted to us. To ensure this AFR is complete and reliable, the Department maintains a robust system of management controls. The Department conducted its assessment of the effectiveness of internal controls over financial reporting in accordance with Appendix A of OMB Circular A-123. Based on the results of this assessment and the results of the independent audit, the Department can provide reasonable assurance that the FY 2020 Financial Statements are complete and reliable. Similarly, the reliable reports on performance and additional financial information in the AFR should further bolster confidence in the Department’s management. The Message from the Comptroller in this AFR underscores our improvements in FY 2020 and includes the results of the independent audit of our FY 2020 Financial Statements. The Department of State, in concert with our interagency partners, will continue to meet the complex challenges that our country faces today and in the future in every corner of the world. We will continue to be a force for good. Michael R. Pompeo Secretary of State November 16, 2020 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 5 MESSAGE FROM THE SECRETARY