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: Total net cost of $23.3 billion is an increase of 8 percent or $1.7 billion over 2010. The goals of Achieving Peace and Security, Investing in People, and Strengthening Consular and Management Capabilities account for most of this change. As seen in the Net Cost by Strategic Goal chart, the goal of Achieving Peace and Security is the largest. This goal included an International Narcotics and Law Enforcement (INL) cost increase by $525 million. The increase includes contractual expenses, educational grants and personnel costs. Our second largest goal, Investing in People, accounted for a $1.8 billion net cost increase. This was primarily the result of initiatives with the fund established in 2008 for Global Health and Child Survival. Additionally, passport and visa issuance included in the goal of Strengthening Consular and Management Capabilities contributed to $457 million of the increase in earned revenue.
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 represent the largest investments at 27 percent and 29 percent of total net costs, respectively. USAID's net costs increased 8 percent over last year due to the expenditure of funds appropriated in prior years primarily as a result of additional expenditures related to the Economic Growth objective. Complete details are provided in the AFR on page 27. The table below presents the net cost of operations by strategic goal.
|Achieving Peace and Security||$6,490||28%||$937||8%|
|Governing Justly and Democratically||887||4%||1,835||16%|
|Investing in People||6,340||27%||3,063||27%|
|Promoting Economic Growth and Prosperity||1,450||6%||3,249||29%|
|Providing Humanitarian Assistance||1,967||8%||1,632||15%|
|Promoting International Understanding||2,562||11%||N/A||N/A|
|Strengthening Consular and Management Capabilities||865||4%||N/A||N/A|
|Other Cost Category|
|Operating Unit Management||N/A||N/A||528||5%|
|Executive Direction and Other Costs Not Assigned||2,255||10%||N/A||N/A|
|Actuarial Loss on Pension Assumption Changes||444||2%||N/A||N/A|
|Total Net Cost of Operations||$23,260||100%||$11,244||100%|