U.S. Department of State Fiscal Year 2018 Agency Financial Report
Total Page:16
File Type:pdf, Size:1020Kb
UNITED STATES DEPARTMENT OF STATE FISCAL YEAR 2018 Agency Financial Report Ensuring Prosperity for America’s Future Percent Change 2018* Highlights (dollars in billions) 2018 over 2017 2018 2017 2016 2015 Balance Sheet Totals as of September 30 Total Assets +5% $ 105.6 $ 100.6 $ 93.8 $ 90.6 Total Liabilities +12% 29.9 26.8 25.7 25.4 Total Net Position +3% 75.7 73.8 68.1 65.2 Results of Operations for the Year Ended September 30 Total Net Cost of Operations +8% $ 28.7 $ 26.5 $ 27.4 $ 25.6 Budgetary Resources for the Year Ended September 30 Total Budgetary Resources +2% $ 72.3 $ 71.0 $ 69.3 $ 65.9 Visas Issued at Foreign Posts 9.0 million 9.7 million 10.4 million 10.9 million * Throughout this report all use of year indicates fiscal year. Total Net Cost of Operations (dollars in billions) $30 $25 $20 $15 $10 $5 $0 2015 2016 2017 2018 ABOUT THE COVER The cover is a montage that presents the Department’s commitment in advancing and executing American’s interests and values. The images include: (top left) Secretary Pompeo meets first and second tour officers from Embassy Tel Aviv in Tel Aviv, Israel, April 29, 2018; (middle left) Secretary Pompeo greets embassy personnel and their families at the U.S. Embassy Beijing in Beijing, China, June 14, 2018; (middle right) Secretary Pompeo and NATO Secretary General Jens Stoltenberg host a meeting with the foreign ministers of select members of the Coalition to Defeat ISIS at the NATO summit in Brussels, Belgium, July 12, 2018; and (bottom left) Secretary Pompeo participates in joint press conference with Ambassador Nikki Haley at the 73rd Session of the United Nations General Assembly in New York City, New York, September 24, 2018. Secretary Pompeo poses with the U.S. Marine Security Guards in Amman, Jordan, April 30, 2018. Department of State Table of Contents 2 41 105 Introduction Section II: Financial Section Section III: Other Information 2 About This Report 41 Message from the Comptroller 105 Inspector General’s Statement on the Department’s Major OIG Transmittal and Independent 3 How This Report is Organized 43 Management and Auditor’s Report Performance Challenges Comptroller Response to the OIG 58 123 Management’s Response to 4 59 Principal Financial Statements Inspector General 60 Consolidated Balance Sheet 132 Summary of Financial Statement Message from the Secretary Audit and Management 61 Consolidated Statement of Assurances Net Cost 133 Payment Integrity and 62 Consolidated Statement of Other Laws and Regulations Changes in Net Position 7 139 Federal Civil Penalties 63 Combined Statement of Inflation Adjustment Act Section I: Management’s Budgetary Resources Discussion and Analysis 140 Fraud Reduction Report 64 Notes to the Principal Financial Statements 143 Grants Oversight and 7 About The Department New Efficiency Act 100 Required Supplementary 13 Strategic Goals and Government- Information 144 Resource Management Systems wide Management Initiatives Summary 17 Performance Summary and 150 Heritage Assets Highlights 23 Financial Summary and Highlights 154 Reduce the Footprint 33 Management Assurances and Other Financial Compliances 159 Appendices 159 A: Abbreviations and Acronyms 162 B: Department of State Locations INTRODUCTION | ABOUT THIS REPORT About This Report he U.S. Department of State’s Agency Financial The AFR is the first Report (AFR) for Fiscal Year (FY) 2018 provides of a series of two T an overview of the Department’s financial and annual financial and performance data to help Congress, the President, and the performance reports public assess our stewardship over the resources entrusted the Department will to us. This report is available at the Department’s website issue. The reports (www.state.gov/s/d/rm/rls/perfrpt/2018/index.htm) and include: (1) an includes sidebars, links, and information that satisfies the Agency Financial reporting requirements contained in the following legislation: Report issued in November 2018; ■ ■Federal Managers’ Financial Integrity Act of 1982, and (2) an agency ■■Chief Financial Officers Act of 1990, Annual Performance ■■Government Performance and Results Act (GPRA) of 1993, Plan and Annual ■■Government Management Reform Act of 1994, Performance Report. These reports will be available online ■■Federal Financial Management Improvement Act of 1996, at http://www.state.gov/s/d/rm/c6113.htm. ■■Reports Consolidation Act of 2000, Note: Throughout this report all use of year ■■ Improper Payments Information Act of 2002, indicates fiscal year. ■■GPRA Modernization Act of 2010, and ■■Grants Oversight and New Efficiency Act of 2016. Certificate of Excellence in Accountability Reporting n May 2018, the U.S. Department of State Ireceived the Certificate of Excellence in Accountability Reporting (CEAR) from the Association of Government Accountants (AGA) for its Fiscal Year 2017 Agency Financial Report. The CEAR is the highest form of recognition in Federal Government management reporting. The CEAR Program was established by the AGA, in conjunction with the Chief Financial Officers Council, to further performance and accountability reporting. This represents the eleventh time the Department has won the CEAR award. In addition, the Department’s AFR was awarded the Gold Award by the League of American Communications Professionals (LACP) for excellence within its industry. The LACP also ranked the AFR in their Top 100 Reports Worldwide (ranking at 99th overall from more than 6,000 entries). 2 | UNITED STATES DEPARTMENT OF STATE 2018 AGENCY FINANCIAL REPORT HOW THIS REPORT IS ORGANIZED | INTRODUCTION How This Report is Organized he State Department’s Fiscal Year 2018 Agency Financial Report (AFR) provides financial and performance information for the fiscal year beginning October 1, 2017, and ending on September 30, 2018, with comparative prior year data, T where appropriate. The AFR demonstrates the agency’s commitment to its mission and accountability to Congress and the American people. This report presents the Department’s operations, accomplishments, and challenges. The AFR begins with a message from the Secretary of State, Michael R. Pompeo. This introduction is followed by three main sections and appendices. In addition, a series of “In Focus” sidebars are interspersed to present useful information on the Department. SECTION I: MANAGEMENT’S DISCUSSION AND ANALYSIS Section I provides an overview of the Department’s performance and financial information. It introduces the vision and mission of the Department, includes a brief history, and describes the agency’s organizational structure. This section briefly highlights the Department’s goal areas, its focus on developing priorities, and provides an overview of major program areas. The section also highlights the agency’s financial results, and provides management’s assurances on the Department’s internal controls. SECTION II: FINANCIAL SECTION Section II begins with a message from the Comptroller. Secretary Pompeo participates in a press conference with This section details the Department’s financial status and President Trump during the NATO Foreign Ministerial in includes the audit transmittal letter from the Inspector Brussels, Belgium, July 12, 2018. Department of State General, the independent auditor’s reports, and the audited financial statements and notes. The Required Supplementary Information included in this section provides a combining statement of budgetary resources, the condition of heritage describes the Department’s financial legal requirements, asset collections, and a report on the Department’s year-end as well as payment integrity efforts, resource management deferred maintenance and repairs. systems, a summary of the Department’s heritage assets, and the status of OMB’s Reduce the Footprint policy. SECTION III: OTHER INFORMATION APPENDICES Section III begins with the Inspector General’s statement on the agency’s management and performance challenges The appendices include data that supports the main sections followed by management’s responses. The section also of the AFR. This includes a glossary of abbreviations and includes a summary of the results of the Department’s acronyms used in the report and a map of the Department financial statement audit and management assurances and of State’s locations across the globe. 2018 AGENCY FINANCIAL REPORT UNITED STATES DEPARTMENT OF STATE | 3 MESSAGE FROM THE SECRETARY Secretary Pompeo delivers remarks on the release of the 2017 International Religious Freedom Report in Washington, D.C., May 29, 2018. Department of State Message from the Secretary am pleased to present the Department of State’s Agency and, ultimately, threatening our way of life. Regardless of Financial Report (AFR) for Fiscal Year (FY) 2018. This the forms these threats take or the methods they use, the Ireport represents our commitment to American taxpayers dedicated men and women of the State Department continue that their money is being invested carefully and responsibly. to work together, day-by-day, to protect American citizens Their investment, and the trust that comes along with it, and secure our economic and security interests. ensures that the United States can maintain its stature in the world and continue to advance our country’s long-term To support the President’s “America First” vision in the interests in an age of rapidly evolving security threats and foreign policy realm, the State Department focuses its unprecedented technological and societal change. efforts on four key national priorities as outlined in the Department’s Joint Strategic