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U.S. Department of State

Diplomacy in Action

Net Cost of Operations Summary


Bureau of Resource Management
Report
April 21, 2011

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The charts show each agency’s net cost—gross costs less earned revenue, invested in each joint Strategic Goal. These goals, or objectives, are consistent with the State-USAID Strategic Planning Framework. Executive Direction and Operating Unit Management are costs that cannot be directly traced or reasonably allocated to strategic goals; however, these costs are captured and included in the total net cost of operations.

Department of State: Revenues earned through providing goods or services to the public or to another Government entity increased 7 percent or $429 million from FY 2009; gross costs rose by $196 million for the same period resulting in a net cost decrease of $233 million or 1 percent. Overall, most goals saw an increase in total costs as a result of cost increases in the Diplomatic and Consular, International Organizations and Diplomatic Security Programs. These cost increases were offset by cost decreases in the Investing in People Goal for the Global Health and Child Survival Fund and in Executive Direction and Other Costs Not Assigned for a lower actuarial loss amount on pension assumption changes in the Foreign Service Retirement and Disability Fund. The overall increase in revenue of $429 million is primarily due to increases in passport and visa fees and surcharges, and earned reimbursable revenue from other Government entities.

USAID: The Statement of Net Cost shows the amounts spent on meeting the Agency’s six Objectives. These Objectives are consistent with the State-USAID Strategic Planning Framework. The Investing in People and Economic Growth Objectives are the largest investments at 27 percent and 26 percent, respectively. The spending levels decreased slightly due to the timing of the receipt of appropriations and budget changes to align with the normal course of USAID’s operations. The 6 percent decrease in net cost of operations is a result of net cost decreases in the Economic Growth and in the Investing in People Objectives that were partially offset by increases in other program objectives. Complete details are provided in the AFR on page 25. The table below documents the net cost of operations by Strategic Goal.

NET COST OF OPERATIONS
For the Year Ended September 30, 2010
($ in millions)
Strategic Goal STATE USAID
Net Cost Percent
of Total
Net Cost
Net Cost Percent
of Total
Net Cost
Achieving Peace and Security $6,068 28% $1,072 10%
Governing Justly and Democratically 867 4% 1,768 17%
Investing in People 4,547 22% 2,848 27%
Promoting Economic Growth and Prosperity 1,417 7% 2,710 26%
Providing Humanitarian Assistance 1,786 8% 1,629 16%
Promoting International Understanding 2,380 11% N/A N/A
Strengthening Consular and Management Capabilities 1,251 6% N/A N/A
Other Cost Category
Operating Unit Management N/A N/A 378 4%
Executive Direction and Other Costs Not Assigned 2,452 11% N/A N/A
Actuarial Loss on Pension Assumption Changes 612 3% N/A N/A
Total Net Cost of Operations $21,380 100% $10,406 100%
Pie chart summarizing Net Cost of Operations for the Department of State. Values are ($ in millions): Strategic Goal 1: $6,068. Strategic Goal 2: $867. Strategic Goal 3: $4,547. Strategic Goal 4: $1,417. Strategic Goal 5: $1,786. Strategic Goal 6: $2,380. Strategic Goal 7: $1,251. Other Cost Category values are: Executive Direction and Other Costs Not Assigned: $2,452. Actuarial Loss on Pension Assumption Changes: $612. Total Net Cost of Operations: $21,380. Pie chart summarizing Net Cost of Operations for USAID. Values are ($ in millions): Strategic Goal 1: $1,072. Strategic Goal 2: $1,768. Strategic Goal 3: $2,848. Strategic Goal 4: $2,710. Strategic Goal 5: $1,629. Other Cost Category values are: Operating Unit Management: $378. Total Net Cost of Operations: $10,406.

 




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