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

In addition, the Department is responsible for environmental cleanup costs associated with asbestos and lead based paint. A liability is recognized for those costs that are both probable and reasonably estimable (see Note 8, Other Liabilities , for additional information). The following tables show each type of contingency, the likelihood of future events occurring, and the potential estimable range of losses at September 30, 2020 and 2019 (dollars in millions) . 2020 Accrued Liabilities Estimated Range of Loss Lower End Upper End Legal Contingencies: Probable $ 61 $ 62 $ 263 Reasonably Possible $ — $ — $ 60 Environmental Contingencies: Probable $ 52 $ 52 $ 52 Reasonably Possible $ — $ — $ — 2019 Accrued Liabilities Estimated Range of Loss Lower End Upper End Legal Contingencies: Probable $ 25 $ 25 $ 795 Reasonably Possible $ — $ — $ 60 Environmental Contingencies: Probable $ 54 $ 54 $ 54 Reasonably Possible $ — $ — $ — Commitments In addition to the future lease commitments discussed in Note 11, Leases , the Department is committed under obligations for goods and services which have been ordered but not yet received at fiscal year end; these are termed undelivered orders (see Note 15, Combined Statement of Budgetary Resources ). Rewards Programs: Under 22 U.S.C. 2708, the Department has the authority to operate rewards programs that are critical to combating international terrorism, narcotics trafficking, war crimes, and transnational organized crime. The Rewards for Justice (RFJ) is a 21st Century national security tool that is leveraged by the White House, the Department of State, and interagency partners throughout the U.S. Government. In 2020, RFJ became an office commensurate with its level of increased responsibilities. RFJ’s traditional mission since the 1980’s, counterterrorism, was dramatically expanded by Congress in 2017 to include countering malicious cyber activity and Democratic People’s Republic of Korea sanctions violators, essentially tripling the size of RFJ’s mandate and scope of the program. See further details at www.rewardsforjustice.net . The Narcotics Rewards Program has the authority to offer rewards for information leading to the arrest or conviction in any country of persons committing major foreign violations of U.S. narcotics laws or the killing or kidnapping of U.S. narcotics law enforcement officers or their family members. The War Crimes Rewards Program offers rewards for information leading to the arrest, transfer, or conviction of persons indicted by a judge of the International Criminal Tribunal for the former Yugoslavia, the International Criminal Tribunal for Rwanda, or the Special Court of Sierra Leone for serious violations of international humanitarian law. The Transnational Organized Crime Rewards Program offers rewards for information leading to the arrest or conviction of significant members of transnational criminal organizations involved in activities that threaten national security, such as human trafficking, and trafficking in arms or other illicit goods. Pending reward offers under the four programs total $1.3 billion. Under the programs, we have paid out $354 million since 2003. Reward payments are funded from Diplomatic and Consular Programs prior year expired, unobligated balances using available transfer authorities as necessary. Management and the Legal Advisor believe there is adequate funding for the amounts that may become due under the Rewards Program. 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 93 NOTES TO THE PRINCIPAL FINANCIAL STATEMENTS | FINANCIAL SECTION