The U.S. Department of State (State) has chosen to produce this Agency Financial Report (AFR) as an alternative to the consolidated Performance and Accountability Report, and elected to participate in the Office of Management and Budget's (OMB) Fiscal Year (FY) 2007 pilot pursuant to OMB Circular A-136. The AFR is one in a series of reports to convey our budget, performance, and financial information in a way that we hope is more useful to our constituents. The AFR for FY 2007 provides an overview of the Department's financial performance and results to help Congress, the President and the public assess our stewardship over the financial resources entrusted to us. Additional comprehensive performance information will be included in State's Annual Performance Report, to be incorporated into the FY 2009 Congressional Budget Justification, which will be available in February, 2008, at www.state.gov. A Joint State-USAID document, summarizing high-level budget, performance, and financial information, will also be posted to our Web site by February 1, 2008. We believe that this approach will improve our reporting by making the information more meaningful and transparent to the public, and by providing a more succinct and easily understood analysis of the Department's accountability over its resources.