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

7 O ther A ssets The Department’s Other Assets as of September 30, 2020 and 2019, are summarized below (dollars in millions) . Other Assets 2020 2019 Intragovernmental: Other Advances and Prepayments $ 1,847 $ 1,235 Non-Intragovernmental: Salary Advances 9 6 Travel Advances 10 15 Other Advances and Prepayments 1,226 971 Inventory 21 15 Total Other Assets $ 3,113 $ 2,242 The Department’s Other Assets are primarily comprised of advances and prepayments as described in Note 1.H. The majority of Intragovernmental Assets are prepayments to USAID in support of the Global Health and Child Survival program and the Defense Security Cooperation Agency in support of Peacekeeping Operations and the Pakistan Counterinsurgency Capability programs. The Non-Intragovernmental Other Advances are predominantly prepayments to grantees in support of the Global Health and Child Survival program. Other Non-Intragovernmental Advances include prepayments for the Population, Refugee and Migration Assistance program and the Overseas Buildings Operations real property rent and acquisitions. 8 O ther L iabilities The Department’s Other Liabilities at September 30, 2020 and 2019, are summarized below (dollars in millions) . 2020 2019 Current Non-Current Total Current Non-Current Total Intragovernmental Deferred Revenue $ 293 $ — $ 293 $ 277 $ — $ 277 Custodial Liability 15 — 15 8 — 8 Other Liabilities 28 25 53 34 23 57 Total Intragovernmental 336 25 361 319 23 342 Federal Employees Compensation Act Benefits 98 — 98 91 — 91 Capital Lease Liability 10 39 49 12 52 64 Accrued Salaries Payable 229 — 229 230 — 230 Contingent Liability — 61 61 — 25 25 Pension Benefits Payable 67 — 67 66 — 66 Accrued Annual Leave — 536 536 — 418 418 Environmental Liability — 52 52 — 54 54 Other Liabilities 480 65 545 731 60 791 Deferred Revenue 49 — 49 68 — 68 Subtotal 933 753 1,686 1,198 609 1,807 Total Other Liabilities $ 1,269 $ 778 $ 2,047 $ 1,517 $ 632 $ 2,149 Environmental Liability Associated with Asbestos Cleanup and Other The Department has estimated both friable, $6 million, and nonfriable, $45 million, asbestos-related cleanup costs and recognized a liability and related expense for those costs that are both probable and reasonably estimable as of September 30, 2020, consistent with the current guidance in the Statement of Federal Financial Accounting Standards (SFFAS) No. 5, Accounting for Liabilities of the Federal Government ; SFFAS No. 6, Accounting for Property, Plant, and Equipment, Chapter 4: Cleanup Costs ; and Technical Release (TR) 2, Determining Probable and Reasonably Estimable for Environmental Liabilities in the Federal Government . The remaining $1 million in environmental liability is non-asbestos related cleanup costs for lead based paint. 84 | U ni ted S tates D epartment of S tate 2020 A gency F inanci al R eport FINANCIAL SECTION | NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS