Department of State Consolidated Statement of Net Cost
For the Years Ended September 30, 2003 and 2002
(Dollars in Thousands)

	2003	2002
Achieve Peace and Security
Regional Stability
Total Cost	$   982,449	$   800,909
Earned Revenue	(46,567)	(31,054)
Net Program Costs	935,882	769,855
Counterterrorism
Total Cost	461,209	346,172
Earned Revenue	(21,861)	(13,423)
Net Program Costs	439,348	332,749
Homeland Security
Total Cost	450,960	860,906
Earned Revenue	(21,375)	(33,381)
Net Program Costs	429,585	827,525
Weapons of Mass Destruction
Total Cost	366,038	315,697
Earned Revenue	(17,350)	(12,241)
Net Program Costs	348,688	303,456
International Crime and Drugs
Total Cost	1,005,795	712,762
Net Program Costs	(32,127)	(12,799)
Earned Revenue	973,668	699,963
American Citizens
Total Cost	1,492,507	1,334,435
Earned Revenue	(1,442,760)	(1,011,048)
Net Program Costs	49,747	323,387
Advance Sustainable Development and Global Interests
Democracy and Human Rights
Total Cost	492,444	366,647
Earned Revenue	(23,341)	(14,216)
Net Program Costs	469,103	352,431
Economic Prosperity and Security
Total Cost	1,040,527	718,533
Earned Revenue	(49,319)	(27,860)
Net Program Costs	991,208	690,673
Social and Environment Issues
Total Cost	255,740	213,322
Earned Revenue	(12,121)	(8,271)
Net Program Costs	243,619	205,051
Humanitarian Response
Total Cost	775,718	845,205
Earned Revenue	(392)	454
Net Program Costs	775,326	845,659
Promote International Understanding
Public Diplomacy and Public Affairs
Total Cost	1,482,740	1,706,951
Earned Revenue	(129,811)	(109,986)
Net Program Costs	1,352,929	1,596,965
Executive Direction and Other Costs Not Assigned
Total Cost	3,416,513	2,616,296
Earned Revenue	(1,365,999)	(1,225,271)
Net Program Costs	2,050,514	1,391,025
Total Cost	12,222,640	10,837,835
Total Revenue	(3,163,023)	(2,499,096)
Total Net Cost	$ 9,059,617	$ 8,338,739
The accompanying notes are an integral part of this financial statement.