Each year, Federal agencies follow the guidance published in the Office of Management and Budget’s (OMB) Circular No. A-136, Financial Reporting Requirements, as amended, when preparing and submitting audited financial statements to OMB. Agencies may choose to produce a consolidated Performance and Accountability Report (PAR) or an alternate approach to produce a separate Agency Financial Report (AFR) and Annual Performance Report (APR). Beginning with FY 2007, the Department of State chose to participate in OMB’s alternate approach and has been producing a separate AFR in November and the APR as well as a Summary of Performance and Financial Information, three months later, in February.
The U.S. Department of State’s AFR provides an overview of the financial and performance data to help Congress, the President, and the public assess our stewardship over the resources entrusted to us. The AFR provides financial and performance information for the fiscal year beginning October 1 and ending on September 30, with comparative prior year data, where appropriate. It demonstrates the agency’s commitment to its mission and accountability to Congress and the American people, and candidly presents the Department’s operations, accomplishments, and challenges. It includes four sections: Management’s Discussion and Analysis, Financial Section, Other Information, and Appendices.