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ORGANIZATION

Congress established the U.S. Department of State ("Department of State" or "Department"), the senior executive department of the United States Government in 1789, replacing the Department of Foreign Affairs, which was established in 1781. The Department advises the President in the formulation and execution of foreign policy. As head of the Department, the Secretary of State is the President?s principal advisor on foreign affairs. The Department?s primary objective is to promote the security and well-being of the United States.

The following are the twenty two notes to the principal financial statements:

Note 1. Summary of Significant Accounting Policies

Note 2. Reporting Improvements

Note 3. Assets

Note 4. Fund Balances with Treasury

Note 5. Investments

Note 6. Accounts Receivable

Note 7. Loan Receivable

Note 8. Cash and Other Monetary Assets

Note 9. Inventory

Note 10. Property and Equipment, Net

Note 11. Other Assets

Note 12. Liabilities

Note 13. Foreign Service Retirement Actuarial Liability

Note 14. Liabilities to International Organizations

Note 15. Leases

Note 16. Commitments and Contingencies

Note 17. Unexpended Appropriations

Note 18. Statement of Net Cost

Note 19. Statement of Budgetary Resources

Note 20. Statement of Financing

Note 21. Custodial Activity

Note 22. Dedicated Collections