Question

Read your agency’s most recent financial statement and associated Government Performance and Results in Act reports. Post: How is your agency performing? What did their fiscal audit identify? Any weaknesses? My agency is the department of the state.

Answer 1

Government agencies such as Department of State, publish Agency Financial Report as well as Agency Performance Report each year to keep all important stakeholders the Congress, the President and the public informed of the usage of resources allotted to them. These reports can be found on the agency’s website. For this particular question one may refer to United States Department of State’s Agency Financial report for the fiscal year 2017.

For a proper performance review it is important to understand agency’s mission and goals. Department of State’s primary mission is to ‘Shape and sustain a peaceful, prosperous, just and democratic world and foster conditions for stability and progress for the benefit of the American people and people everywhere’. The agency has 4 strategic goals as is mentioned in its performance report –

1.       Protecting America’s Security at Home and Abroad

2.       Renewing America’s Competitive advantage for Sustained Economic Growth and Job Creation

3.       Promoting American Leadership Through Balanced Engagement

4.       Ensuring effectiveness and Accountability to the U.S. Taxpayer

Agency has undertaken several programs to meet these goals. The report mentions some of these programs and provides an overview of the impact these programs have made or are expected to make. Some areas of focus are Peace and Security, Democracy, Human Rights and Governance, Health, Education and Social Services etc. Some of the programs undertaken include raising a Global fund to end human trafficking and use of USAID and diplomacy to prevent child and maternal deaths abroad. Such programs intend to promote stability in other countries thereby enhancing international security.

It is difficult to objectively assess this particular agency’s performance mainly because it is difficult to quantify its goals and most of its programs are expected to bear fruits in the long run. The agency however is trying to encourage use of data and collection of evidence in its program evaluation (Evidence and Evaluation, p19). This would help in performance evaluation in future.

Sources of funds: The financial report mentions details of budgetary resources provided to the agency, it mainly raises funds through appropriations, spending authority from offsetting collections, unobligated balances brought forward. In past two years agency’s budget has been raised by 2%, providing additional resources of $1.7 Billion for the agency.    

Usage of Funds: Financial statement for the agency indicate that the agency added new assets while limiting its liabilities. Assets were increased by 7% in one year, so was the agency’s fund balance with treasury. The agency also added property and equipment worth $1.7 billion in one year. On the liabilities side the agency has experienced only a minor raise which has been mainly accounted to increase in after employment benefit liability. Financial report also identifies agency’s appending on the programs. These costs are classified on the basis of the programs. Much of agency’s resources are spent on promoting health, education and social services in other countries.

Weakness: While financial performance of the agency is sound yet it is important to discuss weaknesses, one main weakness is that for preparations of financial statement the agency has to use estimates. This is done mainly because programs implemented by the agency are complex and massive in size. The agency estimates its assets, liabilities, net position, revenues, financial sources etc. based on management’s past experience. Actual results may vary.