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

NOTE 3: Investments (continued) The Department’s activities that have the authority to invest cash resources are Funds from Dedicated Collections (see Note 13). The Federal Government does not set aside assets to pay future benefits or other expenditures associated with funds from dedicated collections. The cash receipts collected from the public for funds from dedicated collections are deposited in the Treasury, which uses the cash for general Government purposes. Treasury securities are issued to the Department as evidence of its receipts. Treasury securities are an asset to the Department and a liability to the Treasury. Because the Department and the Treasury are both parts of the Government, these assets and liabilities offset each other from the standpoint of the Government as a whole. For this reason, they do not represent an asset or a liability in the U.S. Government-wide financial statements. Treasury securities provide the component entity with authority to draw upon the Treasury to make future benefit payments or other expenditures. When the Department requires redemption of these securities to make expenditures, the Government finances those expenditures out of accumulated cash balances, by raising taxes or other receipts, by borrowing from the public or repaying less debt, or by curtailing other expenditures. The Government finances most expenditures in this way. 4 A ccounts and L oans R eceivable , N et The Department’s Accounts and Loans Receivable, Net at September 30, 2020 and 2019, are summarized below (dollars in millions) . All are entity receivables. 2020 2019 Entity Receivables Allowance for Uncollectible Net Receivables Entity Receivables Allowance for Uncollectible Net Receivables Intragovernmental Accounts Receivable $ 129 $ (19) $ 110 $ 148 $ — $ 148 Non-Intragovernmental Accounts and Loans Receivable 168 (43) 125 127 (43) 84 Total Receivables $ 297 $ (62) $ 235 $ 275 $ (43) $ 232 The Accounts and Loans Receivable, Net of allowance for uncollectible accounts as of September 30, 2020 and 2019, is $235 million and $232 million, respectively. The allowance for uncollectible accounts are recorded using aging methodologies based on analysis of historical collections and write-offs. The allowance recognition for intragovernmental receivables does not alter the statutory requirement for the Department to collect payment. The Intragovernmental Accounts Receivable are amounts owed to the Department from other Federal agencies for reimbursable agreements for goods and services. The Non-Intragovernmental Accounts and Loans Receivable are amounts due from non-Federal entities for value added taxes, emergency COVID-19 evacuations, IBWC receivables for Mexico's share of activities, civil monetary fines and penalties, and repatriation loans and associated administrative fees (see Accounts and Loans Receivable in Note 1.F). In 2020, the Department estimated $4 million in accounts receivable to be collectible for criminal restitution. 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 79 NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS | FINANCIAL SECTION