Department of State Consolidated Statement of Net Cost (Note 16)
(Dollars in Thousands)

As of September 30,	2007	2006
Achieve Peace and Security
Total Cost	$ 5,761,110	$ 5,663,920
Earned Revenue	(849,177)	(694,911)
Net Program Costs	4,911,933	4,969,009
Governing Justly and Democratically
Total Cost	696,812	631,846
Earned Revenue	(46,704)	(55,020)
Net Program Costs	650,108	576,826
Investing in People
Total Cost	2,321,731	1,328,527
Earned Revenue	(21,083)	(24,791)
Net Program Costs	2,300,648	1,303,736
Promoting Economic Growth and Prosperity
Total Cost	1,138,891	1,032,707
Earned Revenue	(76,335)	(89,926)
Net Program Costs	1,062,556	942,781
Providing Humanitarian Assistance
Total Cost	1,099,132	924,589
Earned Revenue	(31)	(122)
Net Program Costs	1,099,101	924,467
Promoting International Understanding
Total Cost	1,925,025	1,638,788
Earned Revenue	(151,451)	(165,591)
Net Program Costs	1,773,574	1,473,197
Strengthening Consular and Management Capabilities
Total Cost	2,609,552	2,380,822
Earned Revenue	(2,661,992)	(2,332,238)
Net Program Costs	(52,440)	48,584
Executive Direction and Other Costs Not Assigned
Total Cost	3,472,286	3,481,740
Earned Revenue	(1,581,683)	(1,227,677)
Net Program Costs	1,890,603	2,254,063
Total Cost	19,024,539	17,082,939
Total Revenue	(5,388,456)	(4,590,276)
Total Net Cost	$13,636,083	$12,492,663

The accompanying notes are an integral part of this financial statement.