Required Supplementary Information

Bureau of the Comptroller and Global Financial Services
Report
November 15, 2016


 

 

 



Combining Statement of Budgetary Resources

Department of State Combining Statement of Budgetary Resources
For the Year Ended September 30, 2016
(dollars in millions)
  Administration
of Foreign
Affairs
International Organizations International Commissions Foreign Assistance Other Total
Budgetary Resources:            
Unobligated balance brought forward, October 1 $11,312 $329 $93 $1,146 $10,346 $23,226
Adjustment to unobligated balance brought forward, October 1 (+ or -)
Unobligated balance brought forward, October 1, as adjusted 11,312 329 93 1,146 10,346 23,226
Recoveries of unpaid prior year obligations 1,377 7 6 (18) 331 1,703
Other changes in unobligated balance (+ or -) 98 (4) (52) (39) 3
Unobligated balance from prior year budget authority, net 12,787 332 99 1,076 10,638 24,932
Appropriations (discretionary and mandatory) 12,638 3,906 124 1,847 13,314 31,829
Borrowing authority (discretionary and mandatory) 1 1
Spending authority from offsetting collections (discretionary and mandatory) 12,424 10 64 22 12,520
Total Budgetary Resources $37,850 $4,238 $233 $2,987 $23,974 $69,282
Status of Budgetary Resources:            
New obligations and upward adjustments (total) $25,170 $3,874 $141 $1,690 $14,745 $45,620
Unobligated balance, end of year:            
Apportioned, unexpired accounts 11,432 358 82 918 8,815 21,605
Exempt from apportionment, unexpired accounts 60 266 326
Unapportioned, unexpired accounts 188 6 3 24 295 516
Unexpired unobligated balance, end of year 11,680 364 85 1,208 9,110 22,447
Expired unobligated balance, end of year 1,000 7 89 119 1,215
Unobligated balance, end of year (total) 12,680 364 92 1,297 9,229 23,662
Total Budgetary Resources $37,850 $4,238 $233 $2,987 $23,974 $69,282
Change in Obligated Balance:            
Unpaid Obligations:            
Unpaid obligations, brought forward, October 1 $13,567 $122 $64 $1,298 $12,293 $27,344
Adjustments to unpaid obligations, start of year (+ or -)
New obligations and upward adjustments 25,170 3,874 141 1,690 14,745 45,620
Outlays (gross) (-) (24,384) (3,838) (133) (1,546) (13,988) (43,889)
Recoveries of prior year unpaid obligations (-) (1,377) (7) (6) 18 (331) (1,703)
Unpaid obligations, end of year $12,976 $151 $66 $1,460 $12,719 $27,372
Uncollected payments:            
Uncollected payments, Federal sources, brought forward, October 1 (-) $(435) $— $(1) $(1) $(51) $(488)
Adjustments to uncollected payments, Federal sources, start of year (+ or -)
Change in uncollected payments, Federal sources (+ or -) 200 (3) 1 1 199
Uncollected payments, Federal sources, end of year (-) $(235) $— $(4) $— $(50) $(289)
Memorandum (non-add) entries:            
Obligated balance, start of year (+ or -) $13,132 $122 $63 $1,297 $12,242 $26,856
Obligated balance, end of year (+ or -) $12,741 $151 $62 $1,460 $12,669 $27,083
Budget Authority and Outlays, Net:            
Budget authority, gross (discretionary and mandatory) $25,063 $3,906 $134 $1,911 $13,336 $44,350
Actual offsetting collections (discretionary and mandatory) (-) (12,723) (8) (68) (41) (12,840)
Change in uncollected payments, Federal sources (discretionary and mandatory) (+ or -) 200 (3) 1 1 199
Recoveries of prior year obligations (discretionary and mandatory) 99 1 4 18 122
Budget authority, net (total) (discretionary and mandatory) $12,639 $3,906 $124 $1,848 $13,314 $31,831
Outlays, gross (discretionary and mandatory) $24,384 $3,838 $133 $1,546 $13,988 $43,889
Actual offsetting collections (discretionary and mandatory) (-) (12,723) (8) (68) (41) (12,840)
Outlays, net (total) (discretionary and mandatory) 11,661 3,838 125 1,478 13,947 31,049
Distributed offsetting receipts (-) (232) (232)
Agency outlays, net (discretionary and mandatory) $11,429 $3,838 $125 $1,478 $13,947 $30,817

Heritage Assets

The condition of the Department’s heritage assets is based on professional conservation standards. The Department performs periodic condition surveys to ensure heritage assets are documented and preserved for future generations. Once these objects are conserved, regular follow-up inspections and periodic maintenance treatments are essential for their preservation. The categories of condition are Poor, Good, and Excellent.

Condition of Heritage Assets
As of September 30, 2016
Category Number of Assets Condition
Diplomatic Reception Rooms Collection 1,818 Good to Excellent
Art Bank Program 2,600 Good to Excellent
Art in Embassies Program 1,149 Good to Excellent
Cultural Heritage Collection 18,338 Good to Excellent
Library Rare & Special Book Collection 1,191 Poor to Good
Secretary of State’s Register of Culturally Significant Property 33 Poor to Excellent
U.S. Diplomacy Center 4,036 Good to Excellent
Blair House 2,605 Good to Excellent
International Boundary and Water Commission 140 Poor to Good

Deferred Maintenance and Repairs

Deferred Maintenance and Repairs (DM&R) are maintenance and repairs that were not performed when they should have been, that were scheduled and not performed, or that were delayed for a future period. Maintenance and repairs are activities directed towards keeping Property, Plant, and Equipment (PP&E) in acceptable operating condition. These activities include preventive maintenance, normal repairs, replacement of parts and structural components, and other activities needed to preserve the asset so that it can deliver acceptable performance and achieve its expected life. Maintenance and repairs exclude activities aimed at expanding the capacity of an asset or otherwise upgrading it to serve needs different from, or significantly greater, than those originally intended.

The Department occupies more than 3,000 government-owned or long-term leased real properties at more than 270 overseas locations, numerous domestic locations, and at the IBWC.

Deferred Maintenance and Repairs Policy – Measuring, Ranking and Prioritizing

The Department’s process to identify deferred maintenance for Overseas Real Property begins with an Annual Facility Condition Survey (AFCS) of all properties whether capitalized or not or fully depreciated. The facility manager at each post conducts the AFCS, examining all facilities, building systems, and equipment to determine if their current condition and capacity achieves their intended function. Deficient facilities or systems are identified, specifics about the deficiencies are documented, and recommendations for addressing the deficiencies and corresponding cost estimates for labor and materials are included in the survey. The facility manager obtains cost estimates of the maintenance.

These repair and improvement requests submitted by posts are reviewed by Area Management Officers and then evaluated using 14 factors to prioritize and assign the items a score based on life safety, security, functionality and business sense. An ensuing review is conducted by subject matter experts before they are included in the Repair & Improvement (R&I) spending plan, which is the first piece of the overall deferred maintenance calculation. If a requirement is not funded in the fiscal year in which it was originally scheduled, it becomes a “deferred maintenance requirement” and is rescheduled for remediation in a future year. Posts are also able to send maintenance requests at any point during the year in case of an emergency.

In addition to funding repair projects from the R&I account, the Department allots each post an amount of “routine maintenance and repair” funding each year. This is to accomplish preventive maintenance activities, repairs due to normal wear and tear, and recurring maintenance (e.g., painting and weather stripping) for work that does not require a review and which is exempt from permitting requirements. These are bulk allotments for routine maintenance activities described above that are not considered “projects” and therefore do not go through the prioritization process. These funds are adjusted for type of space (e.g., office vs. residential), condition of the facility (using the annual Facility Condition Index as the baseline), and overseas location.

The sum of each post’s calculated allocation is the total worldwide routine maintenance requirement. The difference between this global routine maintenance and repair funding requirement and the amount of the routine maintenance funding available in a given year is considered deferred maintenance.

Factors Considered in Determining Acceptable Condition

The Department’s PP&E mission is to provide secure, safe, functional, and sustainable facilities that represent the U.S. Government and provide the physical platform for U.S. Government employees at our embassies, consulates and domestic locations as they work to achieve U.S. foreign policy objectives. Domestic real property and equipment are maintained and managed in a safe and effective manner and required maintenance and repairs are adequately funded such that DM&R is insignificant.

Due to the widely varying conditions and strategic objectives of U.S. missions overseas, each post is essentially unique. The facility management of U.S. diplomatic and consular facilities overseas is a complex endeavor, in which the impact of the failure of facilities and infrastructure on human life, welfare, morale, safety, and the provision of essential operations and services is widely recognized. Also, facilities conditions have a large impact on the environment and on budgets, requiring a facility management approach that is neither reactive nor passive, but results in buildings and infrastructure that are efficient, reliable, cost effective, and sustainable over their life cycle. This occurs at facilities of varying age, configuration, and construction quality in every climate and culture in the world. Some posts have the task of keeping an aging or historic facility in good working order; others must operate a complex new building that may be the most technologically advanced in the country.

Fundamentally, the Department considers all of its overseas facilities to be in an “acceptable condition” in that they serve their required mission. Adopting standard criteria for a classification of acceptable condition is difficult due to the complex environment in which the Department operates.

Deferred Maintenance and Repairs
As of September 30, 2016
(dollars in millions)
Asset Category 2016
Ending Balance
DM&R
2016
Beginning Balance
DM&R
General PP&E $92 $184
Heritage Assets 4 4
Total $96 $188