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Diplomacy in Action

Net Cost of Operations Summary


Bureau of the Comptroller and Global Financial Services
Report
February 15, 2013

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The chart below shows each agency's gross costs less earned revenue called net cost, presented by each Joint Strategic Goal. These goals or objectives are consistent with the State-USAID Joint Strategic Goal 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 $26.5 billion is an increase of 14 percent or $3.3 billion over 2011. 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 of $376 million. The increase includes contractual expenses, educational grants and personnel costs. The Strengthening Consular and Management Capabilities goal accounted for $1.5 billion of the increase in total cost. This was comprised of support cost for Diplomatic and Consular Programs and Diplomatic Security functions. Our second largest goal, Investing in People, accounted for $1.2 billion of the total net cost increase. This was primarily the result of an increase in initiatives for Global Health Programs, formerly known as Global Health and Child Survival.

USAID: The Statement of Net Cost reflects the amounts spent on achieving the Agency's six objectives, which are consistent with the State-USAID Joint Strategic Goal Framework. In FY 2012, three objectives: Governing Justly and Democratically, Investing in People, and Economic Growth and Prosperity combined to represent 76 percent of total net cost, with the latter contributing 31 percent to the total.

NET COST OF OPERATIONS
For the Year Ended September 30, 2012
($ in millions)
Strategic Goal
STATE USAID
Net Cost Percent
of Total
Net Cost
Net Cost Percent
of Total
Net Cost
Achieving Peace and Security $8,272 31% $665 6%
Governing Justly and Democratically 722 3% 2,697 24%
Investing in People 7,711 29% 2,359 21%
Promoting Economic Growth and Prosperity 1,048 4% 3,462 31%
Providing Humanitarian Assistance 1,619 6% 1,306 12%
Promoting International Understanding 1,609 6% N/A N/A
Strengthening Consular and Management Capabilities 2,268 9% N/A N/A
Other Cost Category
Operating Unit Management N/A N/A 654 6%
Executive Direction and Other Costs Not Assigned 2,437 9% N/A N/A
Actuarial Loss on Pension Assumption Changes 770 3% N/A N/A
Total Net Cost of Operations $26,456 100% $11,143 100%
Pie chart summarizing Net Cost of Operations for the Department of State. Values are as follows ($ in millions): Strategic Goal 1: $8,272. Strategic Goal 2: $722. Strategic Goal 3: $7,711. Strategic Goal 4: $1,048. Strategic Goal 5: $1,619. Strategic Goal 6: $1,609. Strategic Goal 7: $2,268. Other Cost Category values are: Executive Direction and Other Costs Not Assigned: $2,437. Actuarial Loss on Pension Assumption Changes: $770. Total Net Cost of Operations: $26,456. Pie chart summarizing Net Cost of Operations for USAID. Values are as follows ($ in millions): Strategic Goal 1: $665. Strategic Goal 2: $2,697. Strategic Goal 3: $2,359. Strategic Goal 4: $3,462. Strategic Goal 5: $1,306. Other Cost Category values are: Operating Unit Management: $654. Total Net Cost of Operations: $11,143.

 




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