Performance and Accountability Highlights

Fiscal Year 2005

United States

Department of State

SECURITY

DEMOCRACY

PROSPERITY

Transformational Diplomacy

UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 1

 Message from the Secretary 2

 Message from the Acting Assistant Secretary for 

 Resource Management and Chief Financial Offi cer 4

 Our Mission and Organization 5

 Performance Summary and Highlights 8

FY 2005 Key Foreign Policy Achievements 8

Performance Management – A Leadership Priority 12

How We Assess Performance 14

Strategic Planning Framework 15

Summary of FY 2005 Performance 16

 Program Assessment Rating Tool (PART) Status 17

 The President’s Management Agenda 19

PERFORMANCE SECTION 21

 Strategic Goal 1: Regional Stability 22

 Strategic Goal 2: Counterterrorism 26

 Strategic Goal 3: Homeland Security 30

 Strategic Goal 4: Weapons of Mass Destruction 34

 Strategic Goal 5: International Crime and Drugs 38

 Strategic Goal 6: American Citizens 42

 Strategic Goal 7: Democracy and Human Rights 46

 Strategic Goal 8: Economic Prosperity and Security 50 

 Strategic Goal 9: Social and Environmental Issues 54

 Strategic Goal 10: Humanitarian Response 58

 Strategic Goal 11: Public Diplomacy and Public Affairs 62

 Strategic Goal 12: Management and 

 Organizational Excellence 66

FINANCIAL SECTION 71

 Resource Highlights 72

 Management Controls, Financial Management 

 Systems and Compliance with Laws and Regulations 73

 Financial Highlights 82

 Financial and Personnel Highlights 88

TABLE OF CONTENTS

ABOUT THIS REPORT

he United States Department of State 

Performance and Accountability Highlights 

for Fiscal Year 2005 offers a high-level, 

comprehensive summary of fi nancial information and 

performance results reported in the Department’s 

FY 2005 Performance and Accountability Report (PAR).

The Highlights is designed for use by a wide variety 

of audiences and stakeholders within and outside 

government. The Highlights, and the FY 2005 PAR 

enclosed on CD, help readers assess the Department’s 

performance relative to our mission and stewardship 

of resources entrusted to us. The report also provides 

readers a sense of the Department’s highest priorities 

in the conduct of U.S. foreign policy, and our strengths 

and challenges in implementing programs that pursue 

the President’s foreign policy agenda.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 2

Message from the Secretary

am pleased to present the Department of State’s Performance and Accountability Highlights for fi scal year 2005. This report 

describes the Department’s achievements and challenges in this extraordinary moment for America and for the world. It also 

highlights our efforts to manage taxpayer dollars responsibly in support of our nation’s endeavor to support the aspirations for 

liberty and democracy of people all around the world.

In his Second Inaugural Address, President Bush laid out a bold vision for American diplomacy: “It is the policy of the United States to 

seek and support the growth of democratic movements and institutions in every nation and culture, with the ultimate goal of ending 

tyranny in our world.” The President understands that one of history’s clearest lessons is that America is safer, and the world more 

secure, whenever and wherever democratic principles prevail. 

In these momentous times, America’s diplomats are working to create a balance of power in 

the world that favors freedom. They are dedicated to building a more secure, democratic, and 

prosperous world for the benefi t of the American people and the international community. The 

success of this mission rests on three great tasks, and in the past year, the men and women of the 

State Department have helped our nation advance each of these important objectives.

First, we are uniting the community of democracies in building an international system that is 

based on our shared principles and the rule of law. The United States is joining together in common 

cause to solve common problems with our partners in NATO and the European Union, and with 

our democratic allies in East Asia and around the world. We are supporting and upholding the 

system of international rules and treaties that allow us to take advantage of our freedom, to build 

our economies, and to keep us safe and secure.

Second, we are strengthening the community of democracies to fi ght the threats to our common security and alleviate the hopelessness 

that feeds terror. From the Philippines to Colombia to the nations of Africa, we are strengthening counterterrorism cooperation with 

countries that have the will to fi ght terror but need help with the means. We are spending billions to fi ght AIDS, tuberculosis, malaria, and 

other diseases. We are joining with developing nations to fi ght corruption, instill the rule of law, and create a culture of transparency. In 

much of Africa and Latin America, we are working with democratic reformers and insisting that leaders who are elected democratically 

have an obligation to govern democratically.

Finally, we are supporting people throughout the globe who desire freedom and democracy. This past year has been marked by truly 

unprecedented democratic transformations in places like Ukraine, Afghanistan, Iraq, Kyrgyzstan, Lebanon, and the Palestinian territories. 

More are still to come. But as exhilarating as these events are, we are mindful that the path to sustainable, institutionalized democracy 

remains long, hard, and different for all of these nations. At the same time, we are making it clear that the United States stands with all 

people who demand their democratic rights in places like Belarus, Burma, Cuba, Iran, and Zimbabwe.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 3

As this report describes, the State Department has taken specifi c new steps in the past year to further these three great objectives of 

American diplomacy. For one, we are devising new ways to stop terrorists before they can do harm to our citizens and our allies. In 

Iraq, we established a terrorist watch list that helped Iraqi offi cials to capture some of the leaders of the insurgency. We also increased 

our counterterrorism cooperation with free nations and frontline defenders around the world, and we identifi ed suspected terrorists 

attempting to transit air, land, or seaports of entry. Searching database entry records in Pakistan, we were able to locate three individuals 

associated with the July 2005 London bombings. 

In fi scal year 2005, we also began developing an active response corps of civilians with technical expertise to respond quickly and 

effectively to help nations that are emerging from confl ict. In time, these teams will help the citizens of war-torn, strife-ridden nations to 

stabilize and rebuild their societies and set a sustainable course to a future of peace, democracy, and economic development. This is an 

extension of our Department’s efforts to lead the U.S. Government’s response to the challenge posed by weak and failing states.

In the past fi scal year, we have also initiated several efforts to engage foreign audiences in a dialogue about the universal principles of 

democracy and human rights. We are enlisting the support of private American citizens, whether they are traveling abroad or welcoming 

an exchange student into their home. We are encouraging more young Americans to study other languages and cultures, much as we 

did in the early days of the Cold War. By reaching out to foreign citizens and media to discredit rumors and conspiracy theories, we have 

improved our capabilities to confront hateful propaganda that the enemies of freedom use against us. 

Finally, we have continued to take steps to eliminate shortages of critical skills among our diplomatic corps. In fi scal year 2005, our 

specialized training facility, the Foreign Service Institute, conducted over 462,000 hours of training in critical needs languages, including 

Arabic, Chinese, Russian, Turkish, Urdu, Hindi, and Persian (Farsi). After all, public diplomacy is not a monologue. It is a conversation that 

America’s diplomats must be prepared to conduct in the local languages of the countries in which they serve.

In all that we do, the men and women of the State Department are mindful to manage the resources entrusted to us in a responsible, 

effi cient, and effective manner. I am personally involved in the planning and resource allocation process. I have chaired senior-level 

bureau performance meetings, overseen resource plans, and made performance management a leadership priority. I am pleased to 

provide an unqualifi ed statement of assurance that the Department’s management controls and fi nancial systems meet the objectives of 

the Federal Managers’ Financial Integrity Act (FMFIA). The fi nancial and performance data presented herein are complete and reliable in 

keeping with guidance from the Offi ce of Management and Budget and the Reports Consolidation Act. 

The report that follows details how American diplomacy is helping to transform the world for the better in a time of unprecedented 

historical change and opportunity. It is an impressive record of achievement—one of which I am very proud, and one of which America 

can be proud as well. 

 Condoleezza Rice

 Secretary of State
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 4

he past year has proven to be an exciting period in which to serve the American people as a member of Secretary Rice’s 

management team, implementing transformational diplomacy and advancing the President’s foreign policy and management 

agenda. Very few agencies or corporations have the depth and variety of challenges that the men and women of the Department 

of State face daily as we work to create a more secure, democratic, and prosperous world for the benefi t of the American people and 

the international community. 

The Department operates in over 260 locations in 172 countries, while conducting business in 150 

currencies and an even larger number of languages. One hundred and eighty-four missions abroad 

submit business plans each year that demonstrate their achievements and describe their initiatives, 

while thousands of fi nancial professionals around the globe plan, budget, obligate, disburse, and 

account for billions of dollars in annual appropriations. Despite these complexities, the Department 

pursues a commitment to integrity, transparency, and accountability that is the equal of any multinational corporation. 

For the past fi ve years, the President has challenged us to meet new rigorous standards through 

the President’s Management Agenda (PMA). The Department has made great strides in meeting the 

goals of the PMA, as evidenced by “double green” scores on the scorecard for three of the fi ve USGwide Presidential initiatives at the end of FY 2005. 

The Department has a proud tradition of being effective and accountable stewards of the taxpayer’s money. We have obtained unqualifi ed 

opinions on our annual fi nancial statements from our independent auditors for the better part of the last decade. However, late in 

FY 2005, the Department became aware of potentially material amounts of Department-owned personal property held by host countries and 

contractors, including aircraft and spare parts inventories, which had not been refl ected in our fi nancial statements. Due to the need for a 

complete and thorough analysis, the complexity of the matters involved, and the accelerated fi nancial reporting requirements, the Department 

was unable to satisfy our independent auditors with regard to the presentation of personal property by November 15, 2005. 

As a result, and as more fully explained in the Independent Auditor’s Report included in the Department’s FY 2005 Performance and 

Accountability Report (PAR), the independent auditors issued a qualifi ed opinion on our FY 2005 and FY 2004 fi nancial statements released 

on November 15, 2005, and reported the personal property area as a material weakness in internal controls. Since then, the independent 

auditors have satisfi ed themselves about the amounts presented as personal property in our FY 2005 and FY 2004 fi nancial statements and 

issued an unqualifi ed opinion thereon, dated December 14, 2005, which has cleared the way for updating the FY 2005 PAR.

The independent auditor also identifi ed Information System Security as a material weakness in internal controls due to the vulnerability 

of our information system networks to unauthorized access. The Department recognizes the importance of effective internal controls 

and is committed to resolving the material weaknesses identifi ed by the independent auditor as quickly as possible. The Department will 

implement remedies to these areas and track our progress through the Management Control Steering Committee – the body charged 

with overseeing the Department’s management control program under the Federal Managers’ Financial Integrity Act.

The Report that follows details how American diplomacy is helping to transform the world for the better during a time of unprecedented 

historical change and opportunity. This Report and the achievements that it describes could not have been accomplished without the 

extraordinary efforts of the Department’s dedicated staff.

 Sidney L. Kaplan

 Acting Assistant Secretary for Resource Management and Chief Financial Offi cer

 December 15, 2005

Message from the Acting CHIEF FINANCIAL Offi cer
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 5

MISSION AND ORGANIZATION

OUR Mission

reate a more secure, democratic, and prosp erous world for the 

benefi t of the American people and the international community.

OUR ORGANIZATION

merican diplomacy is based on the fundamental beliefs that our freedom is best protected when others are free; our prosperity 

depends on the prosperity of others; and our security relies on a global effort to defend the rights of all. In this extraordinary 

moment in history, when the rise of freedom is transforming societies around the world, we recognize that the United States has

an immense responsibility to use its diplomatic infl uence constructively to advance security, democracy, and prosperity around the globe.

The Department of State is the lead institution for the conduct of American diplomacy, and the Secretary of State is the President’s 

principal foreign policy advisor. All foreign affairs activities – U.S. representation abroad, foreign assistance programs, countering 

international crime, foreign military training programs, and services the Department provides to American citizens abroad – are paid 

for by the foreign affairs budget, which represents little more than 1% of the total federal budget, or about 12 cents a day for each 

American citizen. 

LOYALTY

Commitment to the United States and the American people.

CHARACTER 

Maintenance of high ethical standards and integrity.

SERVICE 

Excell ence in the formulation of policy and management pract ices 

with room for creative dissent. Implementation of policy and 

management pract ices, regardless of personal views.

ACCOUNTABILITY 

Responsibility for achieving United States foreign 

policy goals while meeting the highest performance standards.

COMMUNITY 

Dedication to teamwork, professionalism, and the customer persp ective.

OUR values
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 6

At our headquarters in Washington, D.C., the Department’s mission is 

carried out through six regional bureaus, the Bureau of International 

Organization Affairs, and numerous functional and management 

bureaus. These bureaus provide policy guidance, program management, 

administrative support, and in-depth expertise in matters such as law 

enforcement, economics, the environment, intelligence, arms control, 

human rights, counternarcotics, counterterrorism, public diplomacy, 

humanitarian assistance, and consular services.

The Department operates approximately 260 embassies, consulates, 

and other posts worldwide. In each Embassy, the Chief of Mission 

(usually an Ambassador) is responsible for executing U.S. foreign policy 

goals and coordinating and managing all U.S. Government functions in 

the host country. The Diplomatic Mission serves the needs of Americans traveling and working abroad. The Mission is the primary U.S. 

Government contact for foreign nationals of the host country. 

The Department operates national passport centers in Portsmouth, New Hampshire and Charleston, South Carolina; a national visa center in 

Portsmouth, New Hampshire and a consular center in Williamsburg, Kentucky; two foreign press centers; one reception center; 13 passport 

agencies; fi ve offi ces that provide logistics support for overseas operations; 20 security offi ces; and two fi nancial service centers.

our people

n the business of diplomacy, people are critical. The Department’s success in achieving its mission is directly tied to the creativity, 

knowledge, skills and integrity of our dedicated team of employees. The Foreign Service and the Civil Service in the Department of State 

and U.S. missions abroad represent the American people. They work together to achieve the goals and implement the initiatives of American 

foreign policy. 

Foreign Service Offi cers are dedicated to representing America and responding 

to the needs of American citizens living and traveling around the world. A 

Foreign Service career is a way of life that requires uncommon commitment. 

Members of the Foreign Service can be sent to any diplomatic mission around 

the world, at any time, to serve the diplomatic needs of the United States. 

The Department’s Civil Service corps provides continuity and expertise in 

accomplishing all aspects of the Department’s mission. Civil Service offi cers, 

most of whom are headquartered in Washington, DC., are involved in virtually 

every policy area of the Department. They also are the domestic counterpart to 

consular offi cers abroad, issuing passports and assisting U.S. citizens overseas. 

Foreign Service National (host country) employees contribute to advancing 

the work of the Department overseas. These essential employees perform vital 

services for U.S. citizens and ensure the effective operation of our diplomatic 

posts.

State Department/Ann Thomas

Secretary Rice congratulates honorees at the 

State Department’s Employee Awards Ceremony. 

State Department/Michael Gross 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 7

Employee Composition and Numbers

he tables below show the distribution of the Department’s workforce by employment category, as well as what proportion of the 

workforce is located overseas.

FULL-TIME PERMANENT EMPLOYEES AS OF SEPTEMBER 30, 2005

Foreign

Service

40%

Foreign

Service

National

32%

Civil

Service

28%

Workforce Composition Workforce Location

Domestic

42%

Overseas

58%

Since FY 1997, the total number of employees at the Department has increased by 38% with the greatest increase manifested in the 

Department’s Civil Service staff, which has increased by 63%. During that time, the Foreign Service increased by 45% and the Foreign 

Service National staff increased by 14%. The overall increases in staffi ng refl ect the Department’s increased emphasis on security, public 

diplomacy, counterterrorism, and management reforms.

SUMMARY OF FULL-TIME PERMANENT EMPLOYEES1

25,000

20,000

15,000

10,000

0

30,000

Foreign

Service

Nationals

Foreign

Service

Civil

Service

5,000

2

 Reflects integration of employees of the United States Information Agency and the Arms Control and Disarmament Agency .

FY 1998

7,637

7,769

5,165

20,571

FY 1999

7,192

8,169

5,498

20,859

FY 20002

9,730

9,023

6,486

25,239

FY 2001

9,852

9,162

6,590

25,604

FY 2002

9,526

9,931

6,999

26,456

FY 2003

9,897

10,579

7,731

28,207

FY 2005

8,964

11,238

8,092

28,294

1

 These numbers do not include Foreign Service Nationals employed under personal service agreements or as personal service contractors.

FY 2004

8,419

10,988

7,831

27,238

FY 1997

7,872

7,724

4,977

20,573
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 8

performance summary and highlights

FY 2005 KEY FOREIGN POLICY ACHIEVEMENTS

n FY 2005, the Department of State contributed signifi cantly to creating a more secure, democratic, and prosperous world for the 

benefi t of the American people and the international community. These efforts were designed to fulfi ll the President’s National Security 

Strategy objectives by furthering democracy, advancing economic prosperity, and promoting religious and human rights throughout the 

world – especially in states transitioning toward democracy.

The United States continued to lead vital and successful efforts to counter 

threats of terrorism and weapons of mass destruction (WMD) proliferation. 

Through the Six Party Talks, the United States, China, Russia, Japan, the 

Republic of Korea, and the Democratic People’s Republic of Korea, signed a 

joint statement of principles unanimously reaffi rming the goal of verifi able, 

peaceful, and irreversible denuclearization of the Korean Peninsula. 

The Department continued to expand participation in the President’s 

Proliferation Security Initiative, with more than seventy nations now 

supporting the initiative. The United States has worked to support efforts 

of the European Union, the International Atomic Energy Agency and the 

international community to end Iran’s pursuit of nuclear weapons capability 

by pressing Iran diplomatically to cease its pursuit of sensitive nuclear fuel 

cycle capabilities. Through the Trilateral Steering and Cooperation Committee, we worked with the Government of Libya in implementing its 

commitment to abandon WMD programs, promoting a “Libya Model” for rogue states to follow. With the Government of Russia, the U.S. 

continued implementing the Strategic Arms Reduction Treaty and the Moscow Treaty, further reducing the numbers of deployed strategic 

nuclear weapons. 

In the Middle East, the Department’s efforts promoted peace and stability in the region. The U.S. Government’s strong support for Iraq’s 

transition to a permanent constitutional democracy, its increasing responsibility for security operations, and the reconstruction of its economy 

and essential services has set a path toward democracy, stability, and prosperity. In January, millions of Iraqis voted in the country’s fi rst free 

and democratic elections in over half a century, and October’s constitutional referendum solidifi ed Iraq’s commitment to democracy. American 

efforts to resolve the Arab-Israeli confl ict, working towards our goal of two democratic states – Israel and Palestine – living side by side in 

peace, leaped forward when Israel peacefully withdrew from the Gaza Strip. For the fi rst time, Egypt also held its fi rst competitive presidential 

elections, with opposition parties allowed to register, organize and mobilize voters. 

In South Asia, the United States continued military and diplomatic efforts to combat extremism and to eliminate remaining al Qaeda elements. 

With U.S. and international assistance, Afghanistan successfully conducted Provincial Council and National Assembly elections. More than 1.5 

million new voters registered, and the new National Assembly should be seated before the end of the year. The United States continues to 

devote considerable resources to Afghanistan’s reconstruction and transition towards a democracy that is open to all of its citizens, regardless 

of religion, ethnicity, or gender. U.S. relations with India reached an historic high with Prime Minister Singh’s July visit to Washington and our 

AP/Wide World Photo
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 9

bilateral agreements to pursue greater cooperation along a number of fronts, including the “Next Steps in Strategic Partnership,” promising 

broader cooperation owing to India’s efforts to strengthen export controls and to prevent the onward proliferation of sensitive materials and 

technologies. In addition, we announced our intention to further bring India into the global nonproliferation mainstream by way of a bilateral 

civil nuclear cooperation initiative. Relations with Pakistan are excellent, as demonstrated by our close cooperation in the aftermath of the 

devastating October earthquake. We committed $156 million to Pakistan earthquake relief efforts for reconstruction, airlift and other logistical 

support. The funds have been used for medical supplies, winterized tents, food, blankets, heavy road-building equipment, and other relief 

supplies. Our strong partnerships lend support to the Indo-Pakistani process of rapprochement and offer additional opportunities to build 

stability and development in other countries of concern, including Nepal, Sri Lanka, and Bangladesh.

In East Asia, the United States continues to enjoy strong relations with allies Japan, South Korea, Australia, Thailand, and the Philippines 

– as well as its security partnership with Singapore. The threat of terrorism in the region, as evidenced by this year’s bombings in Bali, 

continues to produce close cooperation and information sharing between the United States and Southeast Asian nations, and we continue 

to work together on an array of shared transnational challenges. The expanded relationship between the United States and China is being 

demonstrated by coordination on negotiations with North Korea to denuclearize the Korean peninsula.

In Europe, NATO took on a greater role in Iraq through a training mission, and expanded the NATO-led International Security Assistance Force 

in Afghanistan, which is key to stability and development there. The United States continued to promote transformation of the Alliance to 

enhance further its ability to deal with 21st century challenges such as terrorism, WMD proliferation, and security crises outside Europe, while 

promoting better coordination with the European Union. 

The United States continued to work closely with the European Union on the full range of issues worldwide, including promoting democracy, 

good governance, and shrewd economic policies. The United States supported the European Union’s decision to open negotiations with 

Turkey on EU accession and, using diplomatic tools and assistance under the Support for East European Democracies Act, helped move former 

communist countries, such as Croatia, Serbia-Montenegro, Bosnia, Macedonia, Romania and Bulgaria further along the road of Euro-Atlantic 

integration. After ten years of U.S.-led effort, the Baku-Tbilisi-Ceyhan oil pipeline was inaugurated, opening a new era of energy security and 

regional stability. Assistance from the FREEDOM Support Act in support of democratic and economic reforms and strong U.S. support for the 

OSCE and its objective election observation role helped to promote democratic developments in Georgia, Ukraine, and Kyrgyzstan.

The United States maintains a strong commitment to peace and stability in Africa. The President’s Emergency Plan for AIDS Relief delivered 

HIV/AIDS assistance to bilateral programs in over 120 countries. The Department continues to work towards ending the 20-year civil war 

in Sudan and obtain NATO agreement to support the African Union’s peacekeeping expansion in Darfur. The U.S. provided peace support 

operations training and capacity building for several African states under the African Contingency Operations Training and Assistance program 

and adopted the Action Plan on Expanding Global Capability for Peace Support, which will allow us to work in conjunction with the Group of 

Eight to train 75,000 peace support troops by 2010.

The United States has worked successfully with its western hemisphere partners to create a community of nations characterized by democratic 

institutions, respect for individual freedoms and human rights, market-oriented economic institutions, and cooperation against terrorism and 

crime. Together with its regional partners, the United States is committed to defending and promoting democracy through the Organization 

of American States Inter-American Democratic Charter and the Inter-American Convention Against Corruption. We promoted economic

opportunity through the Central American-Dominican Republic Free Trade Agreement, the negotiation of additional free trade agreements, 

and the U.S.-Mexico Partnership for Prosperity. Through hemispheric cooperation in programs such as the Andean Counterdrug Initiative, the 

newly developed Western Hemisphere Travel Initiative, and the Security and Prosperity Partnership with Canada and Mexico, our regional 

diplomacy has advanced a number of priority U.S. interests.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 10

The U.S. and Mexico

launch the Security and

Prosperity Partnership

to enhance continental

security and promote

economic growth.

Civil violence in

Colombia drops

dramatically as the

government’s security

presence reaches

throughout the country.

Liberia successfully

holds presidential

elections, becoming

the first African

country to elect a

female head of state.

Libya continues

to eliminate its

nuclear, chemical,

and biological

weapons and long

range missiles.

Egypt holds its first

competitive presidential

elections; opposition

parties register and

organize voters.

Israel withdraws

from the Gaza Strip.

Signifi cant Results 

for FY 2005
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 11

Burundi sees

a successful

presidential

transition and

the return of

refugees.

The Comprehensive

Peace Agreement

for Sudan

concludes in

January 2005.

India agrees

to adopt strong

and effective

export controls

on nuclear

materials.

The Afghan National

Army fully establishes

influence throughout

the country, with 39

battalions operational

and thousands of militia

members disarmed

and demobilized.

China and

Vietnam release

religious prisoners.

The Government of

Thailand partners with

the U.S. to create an

enforcement network in

Southeast Asia against

the illegal trade in

endangered species.

North Korea signs with the

U.S. and our partners a joint

statement of principles reaffirming

the goal of verifiable, peaceful,

and irreversible denuclearization

of the Korean Peninsula.

The U.S. and Russia reduce

the number of deployed

strategic nuclear weapons

through implementation of the

Strategic Arms Reduction

Treaty and the Moscow Treaty.

Iraq holds free

and democratic

elections for the

first time in over half

a century, followed

by a constitutional

referendum.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 12

Performance Management - A Leadership Priority

or the Secretary of State and her management team, strategic and performance planning is more than a series of activities to fulfi ll 

congressionally mandated requirements under the 1993 Government Accountability and Results Act (GPRA). Although complying 

with GPRA is a responsibility the Department takes seriously, the Secretary and Deputy Secretary set strategic and performance 

management as a leadership priority to ensure the Department achieves its desired objectives and goals for the benefi t of the American 

people and the international community. The Department’s strategic objectives and goals lead toward a future of greater peace, security, 

sustainable development, international understanding, and increased diplomatic strength. 

For fi scal years 2004-2009, the Department of State issued a joint Strategic Plan in conjunction with USAID that governs the activities 

of both agencies. The Strategic Plan utilizes a strategic goal framework that captures and articulates high priority goals and objectives 

shared by both agencies. Guided by the Strategic Plan, the planning and resource allocation process receives the personal attention 

of the Secretary on an ongoing basis as she leads senior level Policy, Performance, and Resource Reviews of bureau performance and 

resource plans. The Department and USAID are in the process of revising the Strategic Plan, which will be completed in FY 2006.

To help achieve U.S. diplomatic, development, and management 

priorities and eliminate duplication, the Department and USAID have 

established joint policy and management councils as recommended 

in the Strategic Plan. The Secretary’s leadership in establishing these 

councils is ensuring the alignment of foreign policy and development 

assistance, and is improving the necessary management and 

organizational coordination and collaboration between the two 

agencies.

Each year, the Department’s diplomatic missions and Washingtonbased bureaus submit Mission Performance Plans (MPPs) and Bureau 

Performance Plans (BPPs) respectively that describe their policy and 

program goals, priorities and resource requirements, and evaluate 

performance. In FY 2005, the Department installed new application 

and database servers supporting the MPP and BPP applications, 

providing missions, bureaus, and senior offi cials the benefi t of more 

reliable service and faster response times. The Department also 

launched the Global Affairs Dashboard, an executive reporting tool 

that allows the sharing of performance and budget data among the 

Department’s bureaus and missions. The Dashboard allows managers to effi ciently review, extract and organize data found in the

Department’s thirty-eight bureau performance plans and one hundred eighty-four mission performance plans to assess trends and 

performance outcomes. 

The Department has now fully integrated and institutionalized PART into the budget and planning processes. This enables State to 

systematically track PART fi ndings and recommendations and has resulted in a number of management actions that address program 

performance defi ciencies. PART effi ciency measures enable program managers to monitor the administrative cost of achieving a given 

Budget and

Performance

Integration

Department of

State and USAID

Strategic Plan

and Councils

Department

Performance and

Accountability

Report

Department

and USAID

Performance

Plan

Senior

Reviews

State Bureau

Performance

Plans (PMA

and PART)

PART and

Program

Evaluation

Mission

Performance

Plans

Performance Planning Cycle
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 13

outcome or output. The Department delivers a comprehensive review of effi ciency measures, including both those developed for the 

PART in consultation with OMB and those developed internally by non-PART program managers, to OMB via quarterly management 

reports.

Since the President’s Management Agenda (PMA) was initiated in 2001, the Department has measurably improved performance on the 

PMA’s fi ve government-wide initiatives: human capital; e-government; competitive sourcing; fi nancial performance; and budget and 

performance integration. The Department now ranks in the top tier of the 26 PMA agencies. The Department is able to match personnel 

and fi nancial requirements against policy objectives better than ever and continues to deliver services electronically to employees and 

the public in ways that are faster, cheaper, and more effective. These efforts support the Department’s IT vision — empower diplomacy 

with tools and information available anytime, anywhere. We have accelerated our competitive sourcing program, as evidenced by 

the improvement in status on the PMA scorecard from red to yellow in December 2004, and we will continue our sustained focus on

competitive sourcing goals to move from yellow to green. The Department’s improved fi nancial performance has enhanced our ability to 

track where every dollar comes from and where every dollar goes in a timely and accurate manner. Accurate and timely information is 

critical to managing our programs on a day-to-day basis, obtaining the best performance, and ensuring accountability to the American 

public. 

The Department of State has been a leader in using fi nancial and performance information to support decision-making at all managerial 

levels. The Department’s FY 2007 budget submission includes chapters that further integrate performance measures and targets into the 

Department’s resource request. The resulting budget is a more analytical and robust document, framing priorities and accomplishments in 

terms of performance goals. The Department and USAID’s fi scal year 2006 and 2007 Joint Performance Plans (JPP) describe Department 

and USAID plans to advance their common mission, long-term strategic goals, and performance goals. Performance targets relate to the 

most critical efforts on which the agencies will focus. The Joint Performance Plan is built upon the long-term State and USAID strategic 

planning framework, and supports the Administration’s efforts to better integrate foreign policy and development assistance. The annual 

Joint Performance Plan process will lead to: increased strategic collaboration and communication between agencies; standardization of 

evaluation tools, indicators, and benchmarks; and effectiveness and effi ciency gains from more integrated program execution.

Underlying the Department’s performance management processes is senior leadership’s commitment to use funds effi ciently and 

judiciously to produce outstanding results. The American public has a right to know how much time, talent and treasure it costs to 

achieve key U.S. foreign policy goals. In fi scal year 2005, the Department continued to enhance our capacity to evaluate the cost of 

achieving goals and results, including:

The Department’s Consolidated Statement of Net Cost – breaks down revenue and expenditures by strategic objective and 

strategic goal, so it is possible to see at a glance, for example, how much the Department spent to promote Democracy and Human

Rights in FY 2004 and FY 2005. The Consolidating Schedule of Net Cost further allocates revenue and cost by program area, so the 

American public can see how much the Department of State spent on Arms Control activities to promote the strategic goal of Regional 

Stability, for example.

Resource allocation. At all levels of annual performance planning – mission, bureau and agency – Department managers are mindful 

of the link between requested resources and strategic goals. This promotes coordination and cooperation, since multiple Department 

bureaus and federal agencies collaborate on crosscutting issues under each strategic goal. Linking resources to performance also 

encourages government program managers to justify their budget requests based on expected return. The FY 2005 PAR estimates the

number of staff and dollars applied toward each of the Department’s 12 strategic goals and 38 performance goals using percentage 

allocations derived from the most recent information available. 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 14

HOW WE ASSESS PERFORMANCE

Six-Tiered Performance Measurement Methodology

he Department is committed to utilizing the funds it receives from taxpayers through the Congress to produce successful results. 

To assess performance, the Department employs a performance management methodology depicted in the pyramid below. Each 

component of the pyramid is defi ned as follows: 

Strategic Objectives High-level, broad categories of action through which the Department carries out its strategic and 

performance goals.

Strategic Goals The Department’s twelve long-term goals as detailed in the Strategic Plan.

Performance Goals The desired outcomes the Department is planning to achieve in order to attain its strategic goals. The 

Department has thirty-eight performance goals.

Initiatives/Programs Specifi c functional and/or policy areas, including programs as defi ned by the OMB Program Assessment 

Rating Tool (PART), which contribute to the achievement of performance and strategic goals, and to 

which the Department devotes signifi cant attention. Initiatives/Programs (I/Ps) provide greater clarity 

and better linkage in terms of how specifi c performance indicators and targets relate to given policies 

or functions.

Performance Indicators Values or characteristics that the Department utilizes to measure progress achieved towards stated 

annual performance goals. The indicators are drawn from bureau and mission performance plans. 

Performance Targets Expressions of desired performance levels or specifi c desired results targeted for a given fi scal year. 

Achievement of targets defi nes success. Where possible, targets are expressed in quantifi able terms. 

The FY 2005 Performance and Accountability Report reports on how well the Department achieved its 

FY 2005 targets.

Performance Management Model

INITIATIVES/PROGRAMS

(includes PART)

PERFORMANCE GOALS

STRATEGIC GOALS

PERFORMANCE TARGETS

PERFORMANCE INDICATORS

STRATEGIC

OBJECTIVES

EXECUTION

PLANNING

MISSION
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 15

Strategic Planning Framework

Strategic Objectives and Strategic Goals

he Department focuses its work around twelve strategic goals that capture both the breadth of its mission and its specifi c 

responsibilities. As depicted below, the Department’s twelve strategic goals are centered around four core strategic objectives.

Public

Diplomacy and

Public Affairs

Promote

International

Understanding

Management and

Organizational

Excellence

Strengthen Diplomatic

and Program

Capabilities

Regional Stability

Counterterrorism

Homeland Security

Weapons of Mass

Destruction

International Crime

and Drugs

American Citizens

Achieve Peace

and Security

Democracy and

Human Rights

Economic Prosperity

and Security

Social and

Environmental Issues

Humanitarian

Response

Advance Sustainable

Development and

Global Interests

Mission

Create a More Secure, Democratic, and Prosperous

World for the Benefit of the American People

and the International Community

Strategic Goals

Legend

Strategic Objectives
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 16

Summary of FY 2005 Performance

he following pie chart shows the ratings distribution for all performance indicators reported across all strategic goals in 

FY 2005. As shown below, 78% of the ratings were “On Target” or above, meaning that these initiatives or programs met or 

exceeded performance targets. 

Summary of FY 2005 Performance Results

Significantly

Above Target

1%

Significantly

Below Target

Below Target 2%

21%

On Target

59%

Above Target

17%

RATINGS DISTRIBUTION

Significantly Above Target 2

Above Target 34

On Target 116

Below Target 40

Significantly Below Target 3

Total Number of Ratings 195

his table shows the allocated resources and average performance ratings for all strategic goals. The performance rating shown 

here is the average of all ratings for initiatives/programs under each strategic goal as opposed to the pie chart above which shows 

results by indicators. Positions are U.S. direct hire only. 

SUMMARY BUDGET AUTHORITY AND HUMAN RESOURCES BY STRATEGIC GOAL

FY 2004 FY 2005 Change

Positions Dollars 

Performance 

Rating Positions Dollars 

Performance 

Rating

Performance 

Rating

1 Regional Stability 1,270 $ 6,641 Below Target 1,282 $ 7,092 On Target

2 Counterterrorism 898 1,160 On Target 906 1,768 On Target

3 Homeland Security 562 237 On Target 567 262 On Target

4 Weapons of Mass Destruction 514 431 Below Target 519 422 On Target

5 International Crime and Drugs 695 1,482 On Target 702 1,918 On Target

6 American Citizens 551 60 On Target 556 66 On Target

7 Democracy and Human Rights 822 1,100 On Target 830 1,500 On Target

8 Economic Prosperity and Security 1,539 3,270 On Target 1,553 2,654 On Target

9 Social and Environmental Issues 281 2,367 On Target 284 2,306 On Target

10 Humanitarian Response 547 1,126 On Target 552 1,179 On Target

11 Public Diplomacy and Public Affairs 2,230 538 On Target 2,251 597 On Target

12 Management and Organizational Excellence 9,585 4,861 On Target 9,675 5,418 On Target

Total 19,494 $ 23,273 19,677 $ 25,182 Net +2 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 17

program assessment rating tool (PART) status

he Offi ce of Management and Budget (OMB) uses the Program Assessment Rating Tool (PART) to assess federal programs. The 

PART is a series of diagnostic questions used to assess and evaluate programs across a set of performance-related criteria, 

including program design and purpose, strategic planning, program management, and results. PART results are then used to 

inform the budget process and improve program management to ensure the most effective and effi cient usage of taxpayer dollars.

To date, State and OMB have conducted 39 PART reviews for State’s programs. Twelve new PART reviews were conducted in 2005 

for inclusion in the President’s FY 2007 budget submission to Congress. No reassessments were conducted for programs reviewed in 

previous years. Preliminary scores for the current-year assessments rate three State programs as “Effective,” one program as “Moderately 

Effective’” and eight programs as “Adequate.”

Recent results from PART reviews conducted by OMB are summarized below by strategic goal. Information is provided describing how 

bureaus have addressed and implemented fi ndings and recommendations for each of the PART programs.

PART Program Scores and Ratings

CY 2002 - 2005 (39 programs)

RESULTS by PART

Assessment Categories

Effective 22

Moderately Effective 5

Adequate 12

Total Number of Assessments 39

Adequate

31%

Moderately

Effective

13%

Effective

56%
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 18

PART PROGRAMS CY 2002 – 2005: SCORES AND RATINGS

Strategic Goal Bureau Program Name Scores and Rating as 

of October 19, 2005

Public Diplomacy ECA Educational and Cultural Exchange Programs – Near East and South Asia 98% – Effective

Public Diplomacy ECA Educational and Cultural Exchange Program – Global 97% – Effective

Management Excellence OBO Capital Security Construction 97% – Effective

Regional Stability AF Security Assistance in Sub-Saharan Africa 97% – Effective

Humanitarian Response PRM Migration and Refugee Assistance: Protection 96% – Effective

Humanitarian Response PRM United Nations High Commission for Refugees 96% – Effective

Regional Stability SA Security Assistance 93% – Effective

Humanitarian Response PM Humanitarian Demining 93% – Effective

Humanitarian Response PRM Migration and Refugee Assistance - Other PRM Programs 93% – Effective

Homeland Security CA Border Security Program – Visa and Consular Services 92% – Effective

Management Excellence DS Worldwide Security Upgrades 92% – Effective

Humanitarian Response PRM Humanitarian Migrants to Israel 91% – Effective

Regional Stability IO United Nations Development Program 91% – Effective

Regional Stability WHA Security Assistance 90% – Effective

Weapons of Mass Destruction ISN Export Controls 90% – Effective

Weapons of Mass Destruction ISN Non Proliferation and Disarmament Fund 89% – Effective

Democracy and Human Rights EUR Freedom Support Act/Support for East European Democracy 88% – Effective

Regional Stability IO Contributions to International Peacekeeping Activities 86% – Effective

Management Excellence OBO Regular Construction/Asset Management 86% – Effective

Humanitarian Response PRM Refugee Admissions to the U.S. 86% – Effective

Counterterrorism S/CT Terrorist Interdiction Program 85% – Effective

Counterterrorism S/CT Anti-Terrorism Assistance 85% – Effective

Regional Stability EUR North Atlantic Treaty Organization 83% – Moderately Effective

Regional Stability EUR New NATO Countries and Aspirant Countries 80% – Moderately Effective

Weapons of Mass Destruction ISN Nonproliferation of Weapons of Mass Destruction Expertise 79% – Moderately Effective

Management Excellence DS Protection of Foreign Missions and Offi cials 72% – Moderately Effective

Economic Prosperity WHA Economic Support Funds 71% – Moderately Effective

Democracy and Human Rights DRL Human Rights and Democracy Fund 67% – Adequate

Management Excellence RM International Cooperative Administrative Support Services 65% – Adequate

Social and Environmental S/GAC The President’s Emergency Program for AIDS Relief - Focus Countries 65% – Adequate

Social and Environmental S/GAC The President’s Emergency Program for AIDS Relief - Global Fund 60% – Adequate

Social and Environmental OES International Fisheries Commissions 59% – Adequate

Economic Prosperity AF Economic Support Funds 58% – Adequate

Public Diplomacy R Public Diplomacy 56% – Adequate

International Crime and Drugs INL Andean Counterdrug Initiative 53% – Adequate

International Crime and Drugs INL International Narcotics Control and Law Enforcement: Africa/Asia 53% – Adequate

International Crime and Drugs INL International Narcotics and Law Enforcement in the Western Hemisphere 52% – Adequate

Social and Environmental S/GAC The President’s Emergency Program for AIDS Relief - Other Bilateral 58% –Adequate

Public Diplomacy IIP International Information Programs 50% –Adequate

Programs in bold type were assessed in 2005.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 19

The President’s Management agenda

he President’s Management Agenda (PMA) is the President’s strategy for improving the management and performance of the 

federal government. Each quarter, the Offi ce of Management and Budget (OMB) releases an executive scorecard that rates 

agencies’ progress and overall status on initiatives under the PMA. OMB uses a color-coded grading scale of red, yellow, and 

green to rate agencies’ progress and status based on OMB-established criteria. For more information on the PMA and the executive 

scorecard, please visit www.whitehouse.gov/results/.

The Department has made substantial progress on each of the fi ve government-wide PMA initiatives, as well as on two additional 

initiatives for which State plays a key role. The following is a brief overview of the Department’s overall PMA progress: 

Progress STRATEGIC MANAGEMENT OF HUMAN CAPITAL Status

Build, sustain, and deploy effectively a skilled, knowledgeable, diverse, and high-performing workforce aligned 

with mission objectives and goals.

Progress IMPROVED FINANCIAL PERFORMANCE Status

World-class financial services that support strategic decision-making, mission performance, and improved 

accountability to the American people.

Progress COMPETITIVE SOURCING Status

Achieve efficient, effective competition between public and private sources and establish infrastructure to 

support competitions.

Progress BUDGET AND PERFORMANCE INTEGRATION Status

Improve the performance and management of the federal government by linking performance to budget 

decisions and improve performance tracking and management. The ultimate goal is better control of resources 

and greater accountability over results.

Progress EXPANDED ELECTRONIC GOVERNMENT Status

Expand the federal government’s use of electronic technologies (such as e-procurements, e-grants, and 

e-regulation), so that Americans can receive high-quality government service.

Progress FEDERAL REAL PROPERTY ASSET MANAGEMENT INITIATIVE Status

Promote the efficient and economical use of America’s real property assets.

Progress RIGHT-SIZED OVERSEAS PRESENCE (OMB LEAD) Status

Reconfigure U.S. Government overseas staff allocation to the minimum necessary to meet 

U.S. foreign policy goals. 

 Have a government-wide comprehensive accounting of total overseas personnel costs and accurate 

mission, budget, and staffing information.

 Ensure that accurate projected staffing patterns determine embassy construction needs.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 20

milestones of american diplomacy

1778: Treaty of Alliance with France, 

engineered by Benjamin Franklin, enabled 

the fl edgling republic to continue its struggle 

for independence.

1783: Treaty of Paris-Great Britain 

recognized American independence and 

control over western lands as far as the 

Mississippi.

1795: Jay’s Treaty required Great Britain to 

remove troops from northwestern frontier; 

Pinckney’s Treaty with Spain opened mouth 

of Mississippi River to U.S. navigation. 

1803: Louisiana Purchase removed foreign 

control of Mississippi’s mouth and doubled 

U.S. territory.

1819: Adams-Onis Treaty with Spain, 

transferring Florida, extended the U.S. to 

present boundaries in southeast.

1823: Monroe Doctrine established U.S. 

policy of opposing European intervention or 

new colonization in Western Hemisphere.

1842: Webster-Ashburton Treaty with Great 

Britain delimited northeastern U.S. (Maine) 

boundary. 

1846: Oregon Treaty with Great Britain 

extended U.S. sole dominion to the Pacifi c.

1848: Treaty of Guadalupe-Hidalgo, ending 

1846-48 war with Mexico, confi rmed U.S. 

claim to Texas and completed U.S. expansion 

to Pacifi c.

1867: Alaska purchase ended Russian 

territorial presence and completed U.S. 

expansion on North American mainland.

1898: Treaty of Paris, at end of SpanishAmerican War, transferred to the United 

States Puerto Rico, Guam, and the 

Philippines, expanding U.S. power into the 

Pacifi c. 

1918: Allies and Germany accepted Wilson’s 

14 points as basis for just and lasting peace 

ending World War I.

1945: U.S. and 50 other countries founded 

the United Nations.

1947: Truman Doctrine asserted U.S. policy 

of containing Soviet expansion through 

economic and military aid to threatened 

countries. 

1947: Marshall plan of aid to Europe set 

foundation for economic cooperation among 

industrial democracies. 

1948: Ninth International Conference of 

American States created the Organization of 

American States (OAS) to intensify U.S. and 

Latin American collaboration in all fi elds.

1948: NATO, fi rst U.S. alliance concluded 

in peacetime, provided integrated force 

for defense of Western Europe and North 

America.

1963: Limited Nuclear Test Ban Treaty, fi rst 

major-power agreement regulating atomic 

weapons testing, banned explosions in 

the atmosphere, in outer space and under 

water.

1967: Nonproliferation Treaty, now signed 

by 110 governments, banned the spread of 

atomic weapons.

1972: Strategic Arms Limitation Talks 

(SALT) agreements with U.S.S.R. prescribed 

mutual limitations on defensive and 

offensive weapons and established SALT as 

a continuing process.

1972: President Nixon’s February visit 

to China followed Secretary Kissinger’s 

earlier negotiations in Peking, marking fi rst 

important step in the process of normalizing 

relations with the People’s Republic of 

China.

1979: U.S. established diplomatic relations 

with the People’s Republic of China ending 

30 years of nonrecognition.

1979: Israel-Egypt Peace Treaty (Camp 

David Accords) ended 30 years of confl ict 

between the two countries and provided 

possible framework for comprehensive 

peace in the Middle East.

1986: The U.S. Congress implemented 

strong economic sanctions against South 

Africa, which helped to bring an end to 

apartheid in 1991.

1989-1991: As President George H.W. Bush 

stated a desire to integrate the Soviet Union 

into the community of nations, the Cold War 

ended when communist regimes collapsed 

across Eastern Europe and the Soviet Union 

disintegrated.

1990-1991: In response to the Iraqi 

invasion of Kuwait, the United States built 

an international coalition to defend Saudi 

Arabia and, after United Nations approval, 

to eject Iraq from Kuwait through Operation 

Desert Storm.

1992: Representatives of more than 175 

nations, including the United States, met at 

the Earth Summit in Rio de Janeiro, which 

produced a treaty on climate change and 

was the largest international meeting on 

the environment ever convened. 

1994: The North American Free Trade 

Agreement (NAFTA) between the United 

States, Canada, and Mexico took effect and 

the United States joined another structure 

that promoted global free trade, the World 

Trade Organization.

1995: The General Framework Agreement 

for Peace in Bosnia and Herzegovina ended 

the Bosnian civil war by providing for NATO 

troops to serve as peacekeepers.

2001: The United States led a global 

coalition that fought a war against terrorism 

in the wake of the September 11 terrorist 

attacks in New York and Washington D.C.

2003: After Iraq’s repeated refusals to 

comply with UN resolutions, the United 

States led a coalition to depose the regime 

of Saddam Hussein.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 21

Performance Section

This section provides a high-level summary of the Department’s FY 2005 results and performance on initiatives 

and programs under twelve strategic goal chapters. Each chapter provides: a concise narrative on the public 

benefi t of Department programs; a summary of performance results and resources invested; an analysis of 

performance outcomes, key trends, and performance shortfalls; and a “Report Card” showing ratings and results 

for indicators that best refl ect Department priorities and performance. Performance goals managed by USAID are 

not included in the PAR Highlights. For complete details, please see the FY 2005 Performance and Accountability 

Report, or contact the Offi ce of Strategic and Performance Planning at PAR@state.gov or (202) 647-0300. 
2005 Performance and Accountability Highlights 22

Strategic Goal 1: REGIONAL STABILITY

Avert and resolve local and regional confl icts to preserve peace and minimize 

harm to the national interests of the United States

I. Public Benefit

The United States must provide for the safety of Americans at home and abroad, protect against threats to its interests worldwide, 

and honor commitments to its allies and friends. The Department works with international partners to enhance and ensure stability 

in all regions of the world so that Americans are less threatened by the ripple effects of regional volatility and global violence. Failed 

or failing states become voids that may be fi lled by terrorism, trade in narcotics, traffi cking in people, and other illegal activities that 

threaten our national interests. Early action to address failing, failed, and recovering states, or “fragile states,” is central to promoting 

regional stability and addressing the source of one of our nation’s most pressing security threats. Department activities are designed to 

assess and respond early to the causes and consequences of violent confl ict and 

fragile states. Through diplomacy and development assistance, the U.S. builds and 

strengthens relations with neighbors and allies worldwide to prevent, manage, 

and mitigate confl icts, and reduce state fragility. Building capacity of bilateral 

and coalition partners through military assistance to 120 countries is key to 

enhancing regional stability and reducing demand on U.S. forces. The engagement 

of foreign partners also substantially contributes and provides legitimacy to our 

stabilization and reconstruction efforts.

Secretary Rice speaking at NATO headquarters in Brussels, February 2005. 

AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Regional Stability strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

Below Target

23%

Above Target

6%

Significantly

Below Target

6%

On Target

65%

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 1

On Target 11

Below Target 4

Significantly Below Target 1

Total Number of Ratings 17

PERFORMANCE SECTION STRATEGIC GOAL ONE: REGIONAL STABILITY
2005 Performance and Accountability Highlights 23

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

500

750

1,000

1,250

1,500

(Direct Funded Positions)

$0

$2,000

$4,000

($ in Millions) $6,000

$8,000

$10,000

LEGEND

Performance Goals

Close Ties with Allies and Friends

Resolution of Regional Conflicts

FY 2005 FY 2004 FY 2005

488

794

1,282

TOTAL

250 3,520

3,572

7,092

TOTAL

FY 2004

483

787

1,270

TOTAL

3,270

3,371

6,641

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. Three signifi cant performance trends in Regional Stability are noteworthy: (1) the number of foreign military 

offi cers participating in International Military Education and Training (IMET) programs has steadily increased, surpassing the FY 2005 

targets by 216 individuals; (2) the number of U.S.-trained African military units deployed to Peace Support/Humanitarian Response has 

increased by 53% since FY 2004; (3) the per-battalion cost of training African peacekeepers has decreased by 15% from FY 2004 to 

FY 2005. 

OUTCOME-LEVEL RESULTS. The Department made demonstrable progress toward achieving desired outcomes in promoting strong 

and effective ties with transatlantic allies, training and equipping foreign military personnel, and working with partner countries to 

restrict conventional weapon transfers. All of the programs in these areas performed at or above target in FY 2005.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. While no indicator was rated signifi cantly above target, one indicator was rated 

signifi cantly below target. Indicator three, of initiative/program #7 (An Enhanced and Expanded Euro-Atlantic Partnership), monitors 

the progress on the implementation of the Adapted Conventional Forces in Europe (CFE) Treaty. This indicator required Russia to make 

progress toward fulfi lling its remaining Istanbul commitments by withdrawing military forces from Moldova and Georgia. Once Russia 

did so, the U.S. would ratify the Adapted CFE Treaty. This indicator was rated signifi cantly below target because Russia has yet to make 

the political decisions necessary to withdraw its forces from Moldova.

RESOURCES INVESTED. In FY 2005, the Department allocated an estimated 28.2% of its budget to this strategic goal. This percentage 

allocation equates to $7.092 billion, an increase of 6.8% from FY 2004. 

PERFORMANCE SECTION STRATEGIC GOAL ONE: REGIONAL STABILITY
2005 Performance and Accountability Highlights 24

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: CLOSE, STRONG, AND EFFECTIVE U.S. TIES WITH 

ALLIES, FRIENDS, PARTNERS, AND REGIONAL ORGANIZATIONS

Number of Individuals Receiving Training Under IMET

(PART Program)

Above Target

Target 11,484 individuals

Results Approximately 11,700 individuals. 

Impact The increase in IMET students has increased the likelihood that future leaders will be drawn from these students and will 

therefore possess an appreciation for the interests of the United States.

Status of Chinese Cooperation on Regional Stability On Target

Target Full Chinese cooperation with U.S. and international community in reaching settlement of Korean peninsula, South China 

Sea and Burma issues.

Results

China’s active diplomacy continues to result in forward progress in Six-Party talks. China-ASEAN enhanced confi dencebuilding measures on trade and maritime ties; and China, Association of Southeast Asian Nations (ASEAN) and UN promoted 

Burma political opening.

Impact

China hosted several rounds of Six-Party talks and played a major positive role in facilitating negotiations that led to an 

agreement in September 2005. China increased visits of high-level offi cials to Pyongyang to urge North Korea to follow 

through on implementation of its commitments. China publicly supports and remains a host for the talks process, but needs 

to exert the full range of its infl uence in talks with North Korea. China has not been willing to join in isolating the regime 

in Burma.

PERFORMANCE GOAL TWO: EXISTING AND EMERGENT REGIONAL 

CONFLICTS ARE CONTAINED OR RESOLVED 

Free, Democratic, and Whole Iraq at Peace with Itself and Its Neighbors Below Target

Target

Elections for constitutional convention held; constitution drafted and ratifi ed; elections for new, permanent government 

held; rule of law and civil society take root; free media serves as responsible watchdog on governmental power; Iraq 

assumes primary responsibility for its own security, able to defend itself without being a threat to its neighbors.

Results

Credible elections for Transitional National Assembly (TNA) and local governments were held on time; the change of 

government occurred in an orderly fashion and ahead of schedule; preparations are on track for constitutional referendum 

and December election; the rule of law and civil society are being established more fi rmly as time goes on; free media has 

been a responsible watchdog on governmental power; Iraq has progressively assumed increasing responsibility for own 

security.

Impact Promoting democracy and enhancing security in Iraq has contributed to increased security, economic and social development, 

and political reform in the region.

Continued on next page

PERFORMANCE SECTION STRATEGIC GOAL ONE: REGIONAL STABILITY
2005 Performance and Accountability Highlights 25

Reason for 

Shortfall

Two of the political targets (constitution drafting and ratifi cation) have been met, and the third (elections for a government 

under the constitution) is clearly on target to happen by December 15, 2005. With regard to rule of law, civil society, and 

media development, progress is also being made. It is only in the security fi eld that the USG could be considered to be 

below target and that is largely because the target established in 2003 was unrealistic since it did not take into account 

the persistence of the insurgency and foreign terrorists. Iraq is making progress toward assuming full responsibility for 

its security, but this will not happen in 2005, and indeed any assessment of transition must be based on conditions, not 

timetables.

Steps to 

Improve

Over the past two years, the USG has shifted resources toward addressing these fundamental security concerns, and has 

made signifi cant strides in integrating its political, economic and security strategies to bring about the desired end state. 

Specifi c and recent progress includes a continued increase in the number of Iraqi units able to take the lead in combat 

operations against the insurgency. In addition, 88 Iraqi Army and special operations battalions are conducting operations 

against the enemy, with 36 of them assessed to be “in the lead” or fully independent. There are 28 Special Police Force 

battalions capable of combat operations and the Iraqis have the lead in roughly 87 square miles in Baghdad and over 450 

square miles in other provinces.

Implementation of Sudan Peace Process On Target

Target A sustained international aid and development program is established to support the implementation of the peace 

agreement leading up to elections. Refugees and IDPs returning home.

Results

The Comprehensive Peace Agreement was concluded in January 2005. The donors conference in April succeeded in obtaining 

pledges to support the Comprehensive Peace Agreement above request. The UN Mission in Sudan is deploying. Despite 

the untimely death of former Vice President John Garang in late July, the process continues to move forward under new 

leadership. Violence in Darfur and disruption of humanitarian assistance continue, despite some improvements. In spite of 

some diffi culty, Darfur peace talks in Abuja continue.

Impact

Failure to implement the Comprehensive Peace Agreement and bring a political settlement to Darfur will likely result in a 

return to wholesale civil confl ict, causing humanitarian suffering and providing an opportunity for harmful elements to once 

again operate with great strength in Sudan.

 Security in Haiti

n response to the urgent need for security and stability in Haiti, a total of eleven countries in the Western Hemisphere have 

contributed troops, police, or both. The Hemispheric community has embraced this mission as an opportunity to provide 

security and stability in the region. Brazil, for example, is providing the military commander to the U.N. Stabilization Mission to 

Haiti, while Canada leads the mission’s police contingent. U.S. 

leadership has been essential to the international response to 

the Haiti Crisis. Our political engagement through multilateral 

organizations, our role as the leading international donor, and 

our strong support for the electoral process and democratic 

transition is a key element to returning Haiti to stability after the 

departure of ex-president Aristide. The on-going commitment 

to Haiti of the U.S. and our partners in the Hemisphere will 

provide the Haitian people with the opportunity to hold free 

and fair elections and pursue economic development.

People wait in line to register to vote while a U.N. 

peacekeeper stands guard in Port-au-Prince, Haiti, 

July, 2005. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL ONE: REGIONAL STABILITY
2005 Performance and Accountability Highlights 26

Strategic Goal 2: Counterterrorism

Prevent attacks against the United States, our allies, and our friends, and strengthen 

alliances and international arrangements to defeat global terrorism

I. Public Benefit

The tragic events of 9/11 demonstrated the gravity of the threat international terrorists pose 

to the United States and its citizens at home and abroad. The Department is the lead on foreign 

policies and programs to combat global terrorism. Across the globe, the Secretary, the USAID 

Administrator, other senior offi cials, Ambassadors, and USAID mission directors have pressed their 

counterparts for expanded cooperation and intensifi ed efforts against terrorists. This has included 

support for protection of the homeland beyond America’s borders; programs such as the Container 

Security Initiative, Immigration Security Initiative, and Customs-Trade Partnership Against Terrorism; 

inspections of foreign ports; sharing of terrorist watchlist information; and other counterterrorism 

efforts. To date, the Department has mobilized 180 countries and territories in the war on terrorism 

to identify, disrupt and destroy international terrorist organizations. Over 3,000 terrorist suspects 

have been arrested and over $138 million in terrorists’ assets have been blocked by forty foreign 

governments. Since 9/11, these programs, including antiterrorist assistance, terrorist interdiction, 

and anti-terrorist fi nance have signifi cantly improved our partners’ counterterrorism capabilities. 

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Counterterrorism strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 0

On Target 11

Below Target 5

Significantly Below Target 0

Total Number of Ratings 16

Below Target

31%

On Target

69%

Friends and relatives of the victims of the September 11 attacks hold up signs before the September 11th Commemoration Ceremony

at the World Trade Center in New York, September 2005. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL TWO: COUNTERTERRORISM
2005 Performance and Accountability Highlights 27

III. Resources Invested

HUMAN RESOURCES

0

200

400

600

800

1,000

(Direct Funded Positions)

($ in Millions)

LEGEND

Performance Goals

Active Anti-Terrorist Coalitions

Frozen Terrorist Financing

Prevention and Response to

Terrorism

Stable Conditions in

Fragile/Failing States

(USAID resources not shown in

Department of State PAR)

FY 2005

906

TOTAL

642

50

214

FY 2004

898

TOTAL

41

608

47

202

0

BUDGET AUTHORITY

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1,595

158

1,768

TOTAL

92

956

102

1,160

TOTAL

10

0

15

$1,700

$1,800

FY 2004 FY 2005

IV. Performance Analysis

PERFORMANCE TRENDS. Two signifi cant performance trends in the area of Counterterrorism are noteworthy: (1) the number of 

groups designated as Foreign Terrorist Organizations (FTOs) has steadily increased since FY 2001; (2) the number of Terrorist Interdiction 

Program Installations has increased, from 18 in FY 2004 to 23 in FY 2005. 

OUTCOME-LEVEL RESULTS. The Department made demonstrable progress toward achieving high-level outcomes in such areas as 

training partner countries to monitor and combat terrorist fi nancing activities and identifying terrorist groups and subjecting such 

groups to UN sanctions. Programs in these areas performed at or above target in FY 2005.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. While no single indicator was rated signifi cantly above target, a component of 

one indicator was rated signifi cantly below target. Indicator four, of initiative/program fi ve (Combating Terrorist Financing), evaluates 

the number and effectiveness of training and assistance programs in combating terrorist fi nancing. This indicator rated part three, the 

number of countries that have fully implemented technical assistance and training plans, signifi cantly below target. This was due to the 

fact that only one country out of seven has fully implemented such plans. Overall, the initiative/program was rated Below Target.

RESOURCES INVESTED. In FY 2005, fi nancial allocations to Counterterrorism were estimated to be 7% of the entire State Department 

budget, or $1.768 billion. Budget allocations to this strategic goal increased approximately 52% from FY 2004 to FY 2005. 

PERFORMANCE SECTION STRATEGIC GOAL TWO: COUNTERTERRORISM
2005 Performance and Accountability Highlights 28

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: COALITION PARTNERS IDENTIFY, DETER, 

APPREHEND, AND PROSECUTE TERRORISTS

Number of Countries with a System for Measuring Counterterrorism Capacity 

(PART Program)

On Target

Target 1. Quantifi able needs assessment and program review rating system is applied to 12 countries. 

2. Country Assistance Plans are developed with 12 countries. 

Results Needs assessment programs and country assistance plans were completed in the twelve identifi ed priority countries for 

the year. 

Impact Initial FY 2005 fi ndings determined that the anti-terrorism assistance training programs teaches effective ways to counter 

terrorist threats in the countries participating in the basic training program. 

PERFORMANCE GOAL TWO: U.S. AND FOREIGN GOVERNMENTS 

ACTIVELY COMBAT TERRORIST FINANCING 

Number and Effectiveness of U.S. Training and Assistance Programs and 

Assessments Delivered to Priority States to Help Combat the Financing of Terrorists

1. Below Target

2. Above Target 

3. Signifi cantly 

 Below Target

Target

1. Six countries assessed by Financial Systems Assessment Teams (FSATs) and six training assistance plans developed. 

2. Eight countries at least partially implement technical assistance and training plans. 

3. Seven countries fully implement technical assistance and training plans (training received in at least all fi ve of the 

functional areas).

Results

1. One country assessed by an FSAT and 1 training and technical assistance plan developed.

2. Ten countries have at least partially implemented technical assistance and training plans. 

3. One country has fully implemented technical assistance and training plans (training received in at least all 5 of the 

functional areas).

Impact

1. This will not have a major affect on the Department’s eventually achieving this goal. Training and technical assistance 

programs have been delivered or offered to some of the countries that were not assessed.

2. This has enhanced the Department’s success and bodes well for the program overall. The success of the programs has 

resulted in more requests for assistance from priority and non-priority countries alike.

3. This will not have an adverse impact on the Department’s eventual success. Training and technical assistance programs 

are adjusted to ensure maximum effect and to address immediate needs of recipient countries.

Reason for 

Shortfall

1. Due to the dynamic nature of the threat and increased demand for training and technical assistance, we added additional 

countries to our list. However, it took longer to amend the priority country list than expected, and funding did not 

become available for assessments until September 2005.

3. Lack of funding and lack of participation by some countries to attend or schedule necessary training. 

Steps to 

Improve

1. Get funding earlier and obligate it quicker.

3. Continue working closely with post to coordinate host nation participation.

PERFORMANCE SECTION STRATEGIC GOAL TWO: COUNTERTERRORISM
2005 Performance and Accountability Highlights 29

PERFORMANCE GOAL THREE: COORDINATED INTERNATIONAL PREVENTION AND 

RESPONSE TO TERRORISM, INCLUDING BIOTERRORISM

Implementation of Counterterrorism Financing Regimes in the 19 Countries 

Most Involved in al Qaeda Financing

On Target

Target Develop comprehensive anti-money laundering regimes (AML) in fi ve terrorist fi nancing priority countries designated in 

FY 2002. 

Results The fi ve countries will implement comprehensive anti-money laundering regimes by the end of the calendar year.

Impact Training to these fi ve countries will help achieve the Department’s progress towards its goal of combating terrorist fi nancing 

abroad and receiving assistance from our allies overseas.

PERFORMANCE GOAL FOUR: DIMINISHED POLITICAL AND ECONOMIC CONDITIONS 

THAT PERMIT TERRORISM TO FLOURISH

The U.S. Agency for International Development is reporting results for this goal.

Terrorist Interdiction

n some countries, the Terrorist Interdiction Program serves as the cornerstone of the U.S. mission’s counterterrorism 

relationship with the host government, fostering increased counterterrorism cooperation and action around the world. The 

program provides host country immigration authorities 

– front line defenders against terrorism – with a computer 

database system that enables identifi cation of suspected 

terrorists attempting to transit air, land or sea ports of 

entry. For example, in FY 2005, three suspects in the July 

7 U.K. bombings, all from the northern England area of 

Leeds, were located by the terrorist interdiction database 

in Pakistan when they entered into that country. 

President Bush greets Pakistani President General Pervez 

Musharraf, left, during their meeting in the Oval Offi ce 

of the White House, December, 2004 in Washington. 

AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL TWO: COUNTERTERRORISM
2005 Performance and Accountability Highlights 30

Strategic Goal 3: Homeland security

 Secure the homeland by strengthening arrangements that govern the fl ows of people, goods, 

and services between the United States and the rest of the world

I. Public Benefit

The events of 9/11 proved how susceptible the United States and its allies are to 

those who would do us harm. The Department, together with the Department of 

Homeland Security (DHS) and other U.S. Government agencies, is addressing U.S. 

vulnerabilities to terrorist attacks and other transnational threats to the United 

States. The Department is protecting our homeland by strengthening the visa process 

as a tool to identify potential terrorists and others who should not receive visas and 

prevent those people from entering the United States. Strengthening U.S. physical 

and cyber borders against people who threaten U.S. security requires the security 

of the global networks of commerce, travel, and communications that enable the 

vital free fl ow of bona fi de travelers and goods. At the same time, the Department is 

combating the ability of terrorists to travel, fi nance their activities, plan and conduct 

attacks, and attract and train new recruits.

Children show their biometric, machine-readable visa cards in El Paso, Texas. 

Credit: AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Homeland Security strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 2

On Target 8

Below Target 0

Significantly Below Target 0

Total Number of Ratings 10

On Target

80%

Above Target

20%

PERFORMANCE SECTION STRATEGIC GOAL THREE: HOMELAND SECURITY
2005 Performance and Accountability Highlights 31

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

200

400

600

800

(Direct Funded Positions)

$0

$50

$150

($ in Millions)

$200

$250

$300

LEGEND

Performance Goals

Proper Visa Adjudication

Border Agreements

Infrastructure Network Protection

$100

FY 2005

21

14

227

262

TOTAL

FY 2005

71

47

449

567

TOTAL

FY 2004

19

13

205

237

TOTAL

FY 2004

70

47

445

562

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. Two performance trends in the area of Homeland Security are signifi cant: (1) the Department continues 

to protect our homeland by strengthening the visa process – for example, the number of posts assessed by Consular Management 

Assistance Teams to ensure proper visa practices has steadily increased from 32 in FY 2004 to 38 in FY 2005; (2) the Department of 

State and the Department of Homeland Security are working to secure shipping ports - for instance, the number of ports in the Container 

Security Initiative doubled from FY 2004 to FY 2005. 

OUTCOME-LEVEL RESULTS. The Department made demonstrable progress toward achieving high-level outcomes in such areas as 

implementing a comprehensive border security agreement with neighboring countries and expanding data sharing capabilities with 

federal agencies involved in homeland security efforts. Both of these programs performed at or above target in FY 2005.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. There were no results signifi cantly above or below target, although the 

Department continues to face challenges in: (1) addressing U.S. vulnerabilities to terrorist attacks and other transnational threats; 

(2) strengthening physical and cyber borders; and (3) combating the ability of terrorists to travel, fi nance their activities, and perform 

attacks. 

RESOURCES INVESTED. In FY 2005, the Department allocated approximately 1% of the entire budget to homeland security operations. 

This equates to $262 million, as well as an increase of $25 million from FY 2004. 

PERFORMANCE SECTION STRATEGIC GOAL THREE: HOMELAND SECURITY
2005 Performance and Accountability Highlights 32

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: DENIAL OF VISAS TO FOREIGN CITIZENS WHO WOULD ABUSE OR 

THREATEN THE UNITED STATES, WHILE FACILITATING ENTRY OF LEGITIMATE APPLICANTS

 Number of Agencies With Access to Consular Consolidated Database On Target

Target Expand data sharing with other agencies and internationally.

Results

As of September 2005, the Department continued to partner with DHS in discussions with Canada, Mexico, Visa Waiver 

Program (VWP) countries and others about sharing terrorist and visa lookout data. The Terrorist Threat Information Center 

(TTIC) is now the National Counter Terrorism Center (NCTC). Department initiated new discussions with Japan, Spain, Italy 

and Germany and concluded agreements with Canada and the U.K.

Impact The effort to share terrorist and visa lookout data internationally has strengthened border security.

PERFORMANCE GOAL TWO: IMPLEMENTED INTERNATIONAL AGREEMENTS STOP THE 

ENTRY OF MATERIALS THAT COULD HARM THE UNITED STATES, WHILE ENSURING THE 

TRANSFER OF BONA FIDE MATERIALS 

Status of the Border Security Initiatives On Target

Target

1. Full implementation of Border Accord and successful implementation of any new initiatives developed in FY 2004. 

Continued U.S.-Canada cooperation on security efforts. No incidents of terrorist exploitation of Canadian territory to 

attack the U.S. or its interests. Launch and implementation of Security and Prosperity Partnership for North America 

(SPP) begins; 25% of goals reached.

2. SPP formally launched. Short-term SPP counterterrorism initiatives accomplished, including all tasks within a 22-point 

action plan. Government of Mexico (GOM) develops its own watchlist and shares information with the U.S. Government 

for inclusion in Consular CLASS lookout system. Leads on aliens of interest routinely passed by GOM to the U.S. 

Government. No incident of terrorist exploitation of Mexican territory to attack U.S. or its interests. 

Results

1. Border security program with Canada launched March 2005. Work plan approved at Ministerial in June 2005.

2. Remaining items of Action Plan with Mexico completed and institutionalized. Short-term objectives within SPP on track 

to be established by June 2005 and completed by December 2005.

Impact

The implementation of the SPP, which incorporates the aims of existing bilateral agreements, will further shared security and 

economic aims in Canada and Mexico. The 30-point U.S.-Canada Border Accord is designed to improve security in travel, 

communications, and infrastructure while enhancing the vital economic, cultural, and personal relationships. The U.S.-

Mexico Border Partnership addresses 22 action items on border security, border safety, and infrastructure for cross-border 

travel and commerce.

PERFORMANCE SECTION STRATEGIC GOAL THREE: HOMELAND SECURITY
2005 Performance and Accountability Highlights 33

 Full Implementation and Expansion of Container Security Initiative (CSI) On Target

Target Additional partner countries deploy teams to the U.S. under the reciprocity aspects of CSI. CSI best practices (as embodied 

in the World Customs Organization Framework) adopted at non-CSI ports.

Results

1. Discussions are underway with other countries who are interested in sending personnel to the National Targeting Center. 

World Customs Organization adopts the “Framework of Standards to Secure and Facilitate Global Trade” which is based 

on the principles underlying CSI. Four Customs Administrations agree to participate. Some agreements are still in the 

process of being fi nalized. As a result, projection will likely be reached/exceeded prior to the end of the calendar year. 

In addition, Customs and Border Protection and the Department of Energy are reviewing the probability of signing 

agreements with some countries that will include both CSI and the Megaports initiative.

2. CSI is now operational in 40 ports and screens more than two-thirds of U.S.-bound containerized cargo.

3. New Declarations of Principles: 4.

4. New Operational Ports: 14.

Impact The result is that now over seventy percent of U.S. bound cargo is prescreened for terrorism prior to being laden for shipment 

to U.S.

PERFORMANCE GOAL THREE: PROTECTION OF CRITICAL PHYSICAL AND CYBER 

INFRASTRUCTURE NETWORKS THROUGH AGREEMENTS AND ENHANCED COOPERATION

Critical Infrastructure Protection (CIP) Principles Implemented by Bilateral Partners Above Target

Target 40.

Results 45 countries, including 19 from the Sao Paulo conference, 13 from the Berlin conference, and 12 from the Asia-Pacifi c 

Economic Cooperation group.

Impact

Adherence to international CIP principles puts governments in a better position to deter and respond to threats to globally 

connected critical infrastructures such as ports, telecommunications systems, energy grids and computer networks. Ensuring 

the viability of these systems will help reduce the impact of catastrophic events such as a terrorist attack or natural disaster, 

which may result in saved lives, speedy recovery, and political stability.

Container Security Initiative

he Department spearheaded global efforts to protect transportation 

networks through stronger shipping and aviation security rules. 

Twenty of the world’s largest ports committed to participate in the 

Container Security Initiative (CSI). In addition, the program expanded 

to other strategic ports including Malaysia and South Africa. CSI is now 

operational in 38 ports and at least two countries, Canada and Japan, 

have utilized the reciprocal aspects of the program to have their customs 

offi cials present at U.S. ports to observe cargo bound for their countries.

A security ship passes next to a container boat on Panama Canal waters in 

Panama City, Panama, February 2005. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL THREE: HOMELAND SECURITY
2005 Performance and Accountability Highlights 34

Strategic Goal 4: Weapons of mass destruction

 Reduce the threat of weapons of mass destruction to the United States, our allies, and our friends

I. Public Benefit

Weapons of mass destruction (WMD) including nuclear, chemical, biological and radiological weapons and their delivery systems 

threaten our territory and citizens, our armed forces, our national interests, and our allies and friends overseas – especially if such weapons 

ever fi nd their way into the hands of terrorists. The Department combats this threat by working with other countries to fi ght WMD and 

missile proliferation, to defend against WMD attack, and to deny them 

to terrorist groups and outlaw states. The Department’s efforts protect 

the safety and security of the United States and its friends and allies by 

lowering the risk of confl ict; minimizing the destruction caused by an 

attack or confl ict; denying outlaw state and terrorist groups access to 

such indiscriminate weapons and the expertise necessary to develop 

them; and preventing potentially devastating WMD-related accidents.

South Korean Foreign Minister Ban Ki-moon, left, shakes hands with 

Christopher Hill, the U.S. assistant secretary of state for East Asian and 

Pacifi c Affairs, during their meeting to discuss six-way talks aimed 

at curbing North Korea’s nuclear program, at the foreign ministry in 

Seoul, April 2005. AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Weapons of Mass Destruction strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 0

On Target 10

Below Target 6

Significantly Below Target 0

Total Number of Ratings 16

Below Target

37%

On Target

63%

PERFORMANCE SECTION STRATEGIC GOAL FOUR: WEAPONS OF MASS DESTRUCTION
2005 Performance and Accountability Highlights 35

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

200

400

500

600

(Direct Funded Positions)

$0

$200

($ in Millions)

$300

$400

$500

LEGEND

Performance Goals

Bilateral Measures

Multilateral Agreements and

Nuclear Safety

Verification and Compliance

$100

100

FY 2005

87

219

213

519

TOTAL

300

FY 2005

279

122

422

TOTAL

21

FY 2004

272

141

431

TOTAL

18

FY 2004

86

217

211

514

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. Two signifi cant performance trends in the area of Weapons of Mass Destruction are noteworthy: (1) the 

number of States-Parties in the Chemical Weapons Convention increased from 164 in FY 2004 to 174 in FY 2005; (2) the number of 

countries that have signed the IAEA Additional Protocol has steadily increased from 52 in FY 2001 to 104 in FY 2005. 

OUTCOME-LEVEL RESULTS. The Department made demonstrable progress toward achieving high-level outcomes in such areas as 

working with allies to develop cooperation on missile defense and promoting safe and secure nuclear cooperation. Both of the programs 

in these areas performed at or above target in FY 2005.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. There were no results signifi cantly above or below target, although the 

Department continues to face challenges in strengthening the implementation of arms control, nonproliferation and disarmament 

treaties, ensuring international agreements reduce current nuclear weapon stockpiles and improving export controls which prohibit 

illicit WMD traffi cking. The Department must continue to work in close partnership with other U.S. Government agencies, international 

organizations, and host governments to confront these challenges. 

RESOURCES INVESTED. The Department allocated an estimated 1.7% of the FY 2005 budget to Strategic Goal 4, Weapons of Mass 

Destruction. This equates to $422 million, as well as an increase of 7.9% from FY 2004.

PERFORMANCE SECTION STRATEGIC GOAL FOUR: WEAPONS OF MASS DESTRUCTION
2005 Performance and Accountability Highlights 36

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: BILATERAL MEASURES, INCLUDING THE PROMOTION 

OF NEW TECHNOLOGIES, COMBAT THE PROLIFERATION OF WEAPONS OF MASS 

DESTRUCTION AND REDUCE STOCKPILES

Number of Institutes and Scientists Graduated Into Commercially Sustainable Ventures On Target

Target

1. Gain access to at least two new previously inaccessible biological weapons and/or chemical weapons institutes in 

Russia/Eurasia via the Bio-Chem Redirect Program, and at least four new high-priority former WMD institute in member 

countries Azerbaijan and Tajikistan.

2. Graduate 2-3 institutes or groups of scientists from Nonproliferation/Science Center Program assistance. Identify 

candidates among chemical and biological institutes for graduation in FY 2006.

Results

1. First-ever access obtained to formerly closed Pavlodar Chemical Plant in Kazakhstan in November 2004. First ever U.S. 

Government access to an additional eight bio-chem institutes in Azerbaijan. First ever Science and Technology Center 

in Ukraine project funding granted to an additional high-priority institute in Ukraine. Engagement of fi ve high-priority 

institutes the Kyrgyz Republic.

2. Three bio institutes and one chemical institute graduated in 2005, one year ahead of schedule for the Bio-Chem Redirect 

program. That brings the cumulative total of WMD institutes graduated to commercially sustainable ventures to 22.

Impact This indicator measures the success in re-directing WMD expertise toward legitimate non-lethal enterprises. This is expertise 

that might otherwise be available for exploitation by terrorists and rogue nations.

PERFORMANCE GOAL TWO: STRENGTHENED MULTILATERAL WMD AGREEMENTS AND 

NUCLEAR ENERGY COOPERATION UNDER APPROPRIATE CONDITIONS

Number of States-Parties That Incorporate U.S. Proposals in Their National 

Approaches to Controlling the Biological Weapons Threat

On Target

Target Forty to forty-fi ve of the 150 total States-Parties incorporate U.S. alternative proposals in their national approaches to controlling 

the BW threat.

Results

The 2003-2005 work program, derived from U.S. proposals, has been remarkably successful in raising awareness of StatesParties to the urgency of establishing and/or strengthening national measures to combat the growing biological weapons 

threat. 40 countries incorporated U.S. proposals into their national efforts.

Impact

Traditional inspection regimes are not effective in determining compliance with bans on biological weapons. The U.S. 

therefore devised alternative ways to improve BWC implementation, focusing on coordinating and expanding national 

implementation efforts through a multi-year work program. In 2004, the focus changed to disease surveillance, suspicious 

outbreaks, and alleged use. In 2005 the focus was on codes of conduct. The fact that all States-Parties are acknowledging 

the need for improvement in national implementation holds promise that the BWC will be strengthened.

PERFORMANCE SECTION STRATEGIC GOAL FOUR: WEAPONS OF MASS DESTRUCTION
2005 Performance and Accountability Highlights 37

PERFORMANCE GOAL THREE: VERIFICATION INTEGRATED THROUGHOUT THE NEGOTIATION AND 

IMPLEMENTATION OF NONPROLIFERATION AND ARMS CONTROL AGREEMENTS AND COMMITMENTS 

AND RIGOROUS ENFORCEMENT OF COMPLIANCE WITH IMPLEMENTATION AND INSPECTION REGIMES

Status of Implementation of a Global Norm of Adherence to and Compliance with 

Arms Control and Nonproliferation Agreements and Commitments

On Target

Target Continue coordination of U.S. efforts to assist Libya in ensuring and verifying the elimination of its weapons of mass 

destruction and Missile Technology Control Regime (MTCR)-class missile programs. 

Results

Libya — Destruction of its chemical stockpile continues. Chemical Weapons Destruction Facility construction completed. 

Conversion of production facilities to non-WMD use continues. Adherence to its December 19, 2003 commitment, limiting 

its missile programs to missile systems below Category 1 specifi cations is monitored according to the long-term monitoring 

plan. The complete, verifi able, and irreversible dismantlement of its declared weapons-related nuclear program concluded.

Impact

The Department’s efforts to focus on the process of making compliance determinations and the collection of objective 

information, together with the responsibility by all States Parties to enforce compliance, present a signifi cant opportunity 

to enhance the global norm of adherence to and compliance with arms control and nonproliferation agreements and 

commitments.

Libya Eliminates Weapons of Mass Destruction

ince December 2003, Libya has taken several steps to eliminate its nuclear, chemical, and biological weapons, and 

its long-range missiles. Libya has cooperated with the U.S. and U.K. to remove equipment from its nuclear weapons 

program, acceded to the Chemical Weapons Convention, destroyed chemical weapon munitions, eliminated its SCUDC missile force, and agreed to ultimately eliminate its 

SCUD-B missiles. The Department launched the Scientist 

Engagement Initiative to integrate former weapons 

experts into the global science community and deter 

them from transferring their expertise to terrorists or 

states of concern. Libya’s strategic decision to forego 

and dismantle weapons of mass destruction has resulted 

in positive benefi ts accruing to Libya. This “Libyan model” 

of dismantlement offers the promise of a better future 

for other states that make a similar strategic decision.

Destroyed Libyan Missles AP/Wide World photo

PERFORMANCE SECTION STRATEGIC GOAL FOUR: WEAPONS OF MASS DESTRUCTION
2005 Performance and Accountability Highlights 38

Strategic Goal 5: INternational crime and drugs

 Minimize the impact of international crime and illegal drugs on the United States and its citizens

I. Public Benefit

Americans face growing security threats, both at home and abroad, from international terrorist networks and their allies in the illegal 

drug trade and international criminal enterprises. The events of 9/11 and their aftermath highlighted the close connections and overlap 

among international terrorists, drug traffi ckers, and transnational criminals. All three groups jeopardize peace and freedom, undermine the 

rule of law, menace local and regional stability, and threaten the U.S. and its friends and allies. To meet these challenges, the Department 

supports a robust and comprehensive range of public-private, bilateral, regional, and global initiatives and assistance programs to build 

up the law enforcement capabilities of foreign governments to help stop these threats before they reach U.S. soil. The Department 

works with other U.S. Government agencies and foreign governments to break up drug traffi cking and other international crime groups, 

disrupt their operations, arrest and imprison their leaders, and seize their assets. It also provides small farmers in drug producing areas 

the means to abandon illicit crop production permanently by developing viable economic 

alternatives and improving social conditions of farm families. The Department works with 

foreign governments to set international anti-crime standards, close off safe-havens to 

criminal groups, pool skills and resources, and improve cross-border cooperation. Finally, 

to help strengthen law enforcement in key countries and areas emerging from a state of 

violent confl ict, the Department also provides American civilian police and other justice 

sector experts to UN, regional, or other peacekeeping operations to establish or rebuild 

democratic and professional police forces and rule of law in those areas.

A man detained in connection with a ton of confi scated marijuana, cocaine and heroin sits behind a police line in Panama City, 

Panama, August 2005. AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the International Crime and Drugs strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 4

On Target 4

Below Target 4

Significantly Below Target 0

Total Number of Ratings 12

Below Target

33%

Above Target

33%

On Target

33%

PERFORMANCE SECTION STRATEGIC GOAL FIVE: INTERNATIONAL CRIME AND DRUGS
2005 Performance and Accountability Highlights 39

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

200

400

600

800

(Direct Funded Positions)

$0

$800

($ in Millions) $1,000

$1,200

$1,800

LEGEND

Performance Goals

Disruption of Criminal

Organizations

Law Enforcement and Judicial

Systems

FY 2005

414

288

702

TOTAL

$600

$400

$200

$1,400

$1,600

FY 2005

1,508

410

1,918

TOTAL

FY 2004

1,163

319

1,482

TOTAL

FY 2004

410

285

695

TOTAL

$2,000

V. Performance Analysis

PERFORMANCE TRENDS. There are two trends in the Department’s efforts to fi ght international crime and drugs. First, law enforcement 

training and anticorruption activities operate somewhat effectively both at the output level (e.g., the number of offi cials trained at 

International Law Enforcement Academies), and at the outcome level (greater professionalization of the Mexican justice system, for 

example). Second, returns from supply-side counterdrug measures are diminishing. Indicators for both cultivation and production of 

illicit drugs suggest that, perhaps due to U.S. and host country successes in eradicating drug crops, criminals have found new ways 

to circumvent aerial spraying and other methods. However, the Department’s efforts contributed to the reduction of opium poppy 

cultivation in Afghanistan. 

OUTCOME-LEVEL RESULTS. The Department made progress toward improving the capacity of foreign law enforcement agencies to 

respond to international crime. Increased training and pay for foreign offi cers as well as greater cooperation with the U.S. through 

international anticorruption and anti-crime agreements contributed to this outcome. Programs in these areas performed at or above 

target in FY 2005.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. Although no results were rated signifi cantly above or below target, the Department 

undoubtedly faces challenges in combating the illicit drug production in South America. The Department must continue to work in close 

partnership with host governments, other U.S. Government agencies, and international organizations.

RESOURCES INVESTED. The Department continued to invest in the battle against international crime and drugs in FY 2005. In particular, 

funding for the International Narcotics Control and Law Enforcement (INCLE) account increased from approximately $460 million in FY 

2004 to $946 million in FY 2005. 

PERFORMANCE SECTION STRATEGIC GOAL FIVE: INTERNATIONAL CRIME AND DRUGS
2005 Performance and Accountability Highlights 40

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: INTERNATIONAL TRAFFICKING IN DRUGS, PERSONS, AND 

OTHER ILLICIT GOODS DISRUPTED AND CRIMINAL ORGANIZATIONS DISMANTLED

Foreign Cultivation of Coca in Hectares

(PART Program)

Below Target

Target

Total Coca: 132,000.

Colombia: 75,000.

Peru 32,500.

Bolivia: 25,000.

Results

Aerial herbicidal spray operations have been stepped up and are well above the 2004 rate; 122,000 hectares had been 

sprayed for the fi rst half of calendar year 2005 versus 130,000 for the entire (calendar) year of 2004. At this point, data is 

pending; however, based on the limited amount of reporting received at this time, it is unlikely that the targets for lower 

coca cultivation will be met. 

Impact If fi nal results indicate lessened effectiveness of coca eradication, the impact could be a greater supply of cocaine 

production.

Reason for 

Shortfall

Recent successes may be driving coca cultivation into places where it is more diffi cult to detect, such as deeper into the 

jungle. Higher-yielding and herbicide-resistant varieties of coca may also be emerging. 

Steps to 

Improve

Eradication efforts may focus on manual removal of coca plants. Pacifi cation efforts are crucial to this process, since 

elimination teams would need access to farms, most of which are in guerilla or paramilitary-occupied territories.

Seizures of Cocaine, Measured in Metric Tons, from Bolivia, Colombia, Ecuador, and Peru 

(PART Program)

Above Target

Target 125 metric tons.

Results Based on preliminary reporting, seizures are running ahead of the 2004 record year and are up signifi cantly in some 

countries, such as Ecuador. Final data will be available in February 2006.

Impact The increased number of seizures in some ways compensates for higher cultivation and production rates of cocaine. The net 

effect is to restrict supply of cocaine available for traffi cking to the U.S.

Cultivation of Illicit Opium Poppy in Hectares in Afghanistan Above Target

Target 190,000

Results

UN fi gures, which were released in September, indicated a 21% drop in opium poppy cultivation over the UN estimates for 

2004. This suggests a cultivation level below the FY 2005 target, possibly 160,000 hectares. Final fi gures will be available 

December 2005.

Impact Lower cultivation of illicit opium will result in less indigenous opium poppy available for heroin production inside 

Afghanistan.

PERFORMANCE SECTION STRATEGIC GOAL FIVE: INTERNATIONAL CRIME AND DRUGS
2005 Performance and Accountability Highlights 41

PERFORMANCE GOAL TWO: STATES COOPERATE INTERNATIONALLY TO SET AND 

IMPLEMENT ANTI-DRUG AND ANTI-CRIME STANDARDS, SHARE FINANCIAL AND 

POLITICAL BURDENS, AND CLOSE OFF SAFE HAVENS THROUGH JUSTICE SYSTEMS 

AND RELATED INSTITUTION BUILDING

Status of Financial Action Task Force on Money Laundering (FATF) 

List of Non-Cooperative Countries and Territories (NCCT)

On Target

Target FATF removes all but three countries designated as NCCTs prior to 2003.

Results FATF removed three countries from list in February 2005; three countries remain on list.

Impact

Three countries improved their anti-money laundering rules, regulations, and practices suffi ciently to be removed from 

the FATF list. Myanmar, Nauru and Nigeria improved their anti-money laundering regimes, but not enough to meet FATF 

standards. A strengthened global anti-money laundering regime helps the Department disrupt the activities of criminal 

organizations and improve the capabilities of host country law enforcement and judicial systems.

Andean Counterdrug Initiative

he U.S. investment in the Andean Counterdrug Initiative to combat narco-terrorism in South America is paying 

important political, security and economic dividends. This is particularly apparent in Colombia, which faced a frontal 

assault by major narco-terrorist organizations in the 1990s. Today, the World Bank lists Colombia as one of the world’s ten 

most attractive investment climates. For the fi rst time ever, the Colombian Government has established a security presence 

in all of the country’s municipalities (equivalent to county seats), including many previously dominated by narco-terrorist 

groups. Civil violence—terrorist attacks, kidnapping, 

and homicides—has dropped dramatically over the 

past two years. Our most steadfast ally in the fi ght 

against illicit drugs, the Colombian Government 

extradited more than 250 drug traffi ckers to the 

U.S. over the past two years, including the leader of 

the infamous Cali Cartel. 

Undersecretary of State Nicholas Burns, left, talks 

with Colombia’s President Alvaro Uribe during 

a meeting at the presidential palace in Bogota, 

Colombia, July 2005. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL FIVE: INTERNATIONAL CRIME AND DRUGS
2005 Performance and Accountability Highlights 42

Strategic Goal 6: American Citizens

 Assist american citizens to travel, conduct business, and live abroad securely

I. Public Benefit

Approximately four million Americans reside abroad, and Americans make about sixty million trips outside the United States each 

year. The Department issues passports that identify individuals as U.S. citizens and enables them to travel internationally. U.S. embassies 

and consulates offer a broad range of services that protect U.S. citizens. Such services include the provision of assistance to U.S. citizens 

who die, fall ill, become destitute, or who are arrested. To alert Americans 

to conditions that may affect safety and travel abroad, the Department 

disseminates threat assessments to posts abroad and announcements to 

the public as quickly as possible using a wide range of available means—

its websites, its Consular Information Program, a global Internet-based 

registration system, and its overseas American citizen warden program. The 

Overseas Security Advisory Council, a government-private sector partnership, 

fosters creative solutions to security related issues affecting U.S. private sector 

interests. The Department uses threat information and security expertise 

overseas to protect its personnel, property, proprietary information, and 

other assets, thereby better ensuring continuity of services to the public. The 

Department is making its websites increasingly accessible and interactive and 

encourages the traveling American public to register with posts abroad.

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the American Citizens strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 0

On Target 6

Below Target 0

Significantly Below Target 0

Total Number of Ratings 6

On Target

100%

PERFORMANCE SECTION STRATEGIC GOAL SIX: AMERICAN CITIZENS
2005 Performance and Accountability Highlights 43

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

200

400

600

700

(Direct Funded Positions)

$0

$30

($ in Millions)

$40

$50

$80

LEGEND

Performance Goals

Assistance for U.S. Citizens Abroad

Passport Issuance and Integrity

$20

$10

$60

$70

500

100

300

FY 2005

55

11

66

TOTAL

FY 2005

87

469

556

TOTAL

FY 2004

50

10

60

TOTAL

FY 2004

86

465

551

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. The Department provides information, assistance, and passports to American Citizens traveling overseas, 

and it made qualitative improvements to all three. The Department has had some notable success improving the integrity of the 

passport issuance process. In particular, the Department’s efforts to double-check applications against Social Security Administration 

death records and the development of biometric identifi cation systems for eventual use in passports are making U.S. passports more 

reliable identifi cation documents. These successes come against a backdrop of greater demand; in FY 2005 the Department adjudicated 

10.1 million passports and anticipates demand will reach 17 million by FY 2007. 

OUTCOME-LEVEL RESULTS. The Department made progress toward the high-level outcome of protecting American citizens overseas, 

particularly through online registration. All results in this area were on target. 

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. There were no results signifi cantly above or below target. However, the 

Department will undoubtedly face some challenges producing passports with biometric information, which is to be expected with such 

a new technology. This program could also encounter delays due to non-technological factors, such as litigation. 

RESOURCES INVESTED. The Department has increased its investment in passport and American citizen services from FY 2004 

levels. Support for passport operations has risen overall in response to rising demand for passports; applications have increased from 

8.8 million in FY 2004 to 10.1 million in FY 2005. 

PERFORMANCE SECTION STRATEGIC GOAL SIX: AMERICAN CITIZENS
2005 Performance and Accountability Highlights 44

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: U.S. CITIZENS HAVE THE CONSULAR INFORMATION, 

SERVICES, AND PROTECTION THEY NEED WHEN THEY RESIDE, CONDUCT 

BUSINESS, OR TRAVEL ABROAD

Percentage of Consular Information Sheets Revised on an Annual Basis

(PART Program)

On Target

Target 100%.

Results 100%.

Impact Americans have access to comprehensive, complete, and up-to-date information on conditions affecting their travel 

overseas.

Status of Online Registration System 

(PART Program)

On Target

Target Online registration system begins to deliver Consular Information Program documents to citizens when they register.

Results

By the end of FY 2005, more than 300,000 U.S. citizen travelers have registered in response to global events such as natural 

disasters and security concerns. Travel information, such as Consular Information Program documents, is automatically 

delivered to all registrants. With continuing deployment of the new ACS+ software to overseas consular posts, long-term 

travel information entered automatically interfaces with the appropriate posts’ systems.

Impact As the number of registrants continues to rise and more posts receive the ACS+ application, the Bureau of Consular Affair’s 

ability to locate, contact and assist American citizen travelers during an emergency increases.

Status of Hague Convention on Intercountry Adoption On Target

Target

Adoption accreditation regulations fi nalized for interagency review and should be published in fi nal by the end of 2005; 

Adoption visa processing regulations drafted; Adoption case registry and tracking software developed and testing underway; 

Begin negotiations with potential Accrediting Entities; U.S. instrument of accession deposited in 2007. (Revised. See 

Appendix for explanation.)

Results

Adoption accreditation regulations fi nalized; Adoption visa processing regulations drafted; Adoption case registry and 

tracking software developed and in test phase; Negotiations with potential accrediting entities toward signing agreements 

begun. 

Impact Performance directly supports and advances the Department’s ability to ratify the Hague Convention on Intercountry 

Adoption. 

PERFORMANCE SECTION STRATEGIC GOAL SIX: AMERICAN CITIZENS
2005 Performance and Accountability Highlights 45

Serving Citizens, Managing Crises

he Department’s Bureau of Consular Affairs (CA) provides support and assistance to citizens and families when 

tragedy strikes Americans overseas. In FY 2005, CA provided support to families in conjunction with the deaths of 

5,687 Americans overseas and followed 2,776 new overseas arrest cases. CA played a major role in the interagency 

response to the December 2004 tsunami that struck South Asia. CA organized a massive task force that followed up on over 

15,000 specifi c welfare and whereabouts inquiries 

resulting from the crisis. The task force worked 

with the Departments of Homeland Security, 

Health and Human Services, Defense, and other 

U.S. Government agencies to confi rm the safety of 

Americans, identify deceased American victims, and 

provide assistance to survivors and the families of 

those killed.

Offi cers on the Consular Affairs Task Force track 

missing Americans during the tsunami crisis. State 

Department Photo

PERFORMANCE SECTION STRATEGIC GOAL SIX: AMERICAN CITIZENS

PERFORMANCE GOAL TWO: EFFECTIVE AND TIMELY PASSPORT ISSUANCE, 

WITH DOCUMENT INTEGRITY ASSURED 

Development of a Biometrics Collection Program for U.S. Passports

 (PART Program)

On Target

Target Issue fi rst full validity electronic passports by end of calendar year 2005 in Special Issuance Agency Pilot. 

Results

Pilot testing of biometric passport issuance process and operational fi eld testing of prototype e-passports begun in mid2005, with successful completion of the operational fi eld test. Progress in conducting the pilot at the Special Issuance 

Agency (SIA) may be delayed due to a vendor protest. The Department will work with Department of Justice attorneys to 

conclude litigation issues as soon as possible, so that the Bureau of Consular Affairs can proceed to initial production of 

biometric passports at SIA by January 1, 2006.

Impact

Incorporating biometrics strengthens U.S. security by ensuring that the person carrying a U.S. passport is the person to 

whom the passport was issued. These measures make the U.S. passport, one of the most valuable identity and citizenship 

documents in the world, less susceptible to manipulation and more diffi cult to counterfeit.

Number of Days Between Receipt of Routine Passport Application by 

Passport Services and Issuance of a Passport

 (PART Program Effi ciency Measure)

On Target

Target 90% of passport applications within 19 business days of receipt.

Results

In FY 2005, the Department issued 87.1% of passports within 19 business days of receipt. As a result of Hurricane Katrina 

in August 2005 and the subsequent closure of the New Orleans Passport Agency - our most productive passport processing 

facility, we lost 17% of our productive capacity and experienced system-wide disruptions. In the wake of Hurricane Katrina 

and increased demand, we missed our more aggressive target for this fi scal year by only 2.9 percentage points.

Impact Our efforts to reach this target in FY 2005 demonstrate the Department’s commitment to serving the American public 

effectively and effi ciently in routine and extraordinary circumstances.
2005 Performance and Accountability Highlights 46

Strategic Goal 7: Democracy and human rights

 Advance the growth of democracy and good governance, including civil society, 

the rule of law, respect for human rights, and religious freedom

I. Public Benefit

America’s experience affi rms our conviction that all people can live and prosper in peace when guided by a commitment to freedom

and democracy. Protecting human rights and promoting democracy is a cornerstone of a U.S. foreign policy that seeks to end oppression, 

combat terrorism, and advocate democratic ideals and freedoms worldwide. Together with our allies, like-minded governments, and

partners in the public and private sectors, we employ a range of diplomatic and program tools to promote democracy and human 

rights worldwide. Our partners include the United Nations, where the U.S. led 

the effort to establish a UN Democracy Fund in 2005. We seek opportunities to 

encourage and support human rights advocates and policy makers to facilitate 

positive change in countries that routinely ignore international human rights. This 

principle guides our decisions about international cooperation, the character of our 

foreign assistance, the allocation of resources, and our actions in international fora. 

The Department’s annual report, Supporting Human Rights and Democracy: The 

U.S. Record, catalogues these combined efforts, strategies, policies and programs 

to promote democracy and human rights. While the U.S. plays a leading role to 

promote democracy and human rights, the Department recognizes that these 

values are not uniquely American. Democratization must ultimately be a process 

driven by a society’s citizens. Toward that end, the Department works to ensure that 

democratic reforms refl ect a representative political process.

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Democracy and Human Rights strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 4

On Target 6

Below Target 4

Significantly Below Target 1

Total Number of Ratings 15

Below Target

27%

Above Target

27%

On Target

40%

Significantly

Below Target

6%

Ukrainians demonstrate outside the Parliament 

in Kiev, November, 2004. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL SEVEN: DEMOCRACY AND HUMAN RIGHTS
2005 Performance and Accountability Highlights 47

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

400

600

800

1,000

(Direct Funded Positions)

$0

$800

$1,000

($ in Millions)$1,200

$1,400

$1,600

LEGEND

Performance Goals

Democratic Systems and Practices

Respect for Human Rights

200

FY 2005

377

1,123

1,500

TOTAL

$600

$400

$200

FY 2005

299

531

830

TOTAL

FY 2004

310

790

1,100

TOTAL

FY 2004

296

526

822

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. The most notable trend in democracy and human rights is the increase in democratic activity around the 

globe. Freedom House’s freedom index scores and the increasing number of elections held or planned in countries with scores “not 

free” or “partly free” under that index are examples of this activity. However, the Department must ensure that such elections are free 

and fair, and that these activities create institutions that refl ect and respond to the will of those governed. An encouraging sign is the 

steady increase in political participation by women (particularly in Iraq and Afghanistan), which is the fi rst step toward broader political 

discourse. 

OUTCOME-LEVEL RESULTS. The Department made progress supporting democratization and women’s rights in Afghanistan and the 

Middle East. High-level outcomes include the appointment of several women to new cabinet positions in Afghanistan and Iraq and 

peaceful elections in Iraq, Afghanistan, Saudi Arabia, Lebanon, and Egypt. All of the programs in these areas performed at or above 

target in FY 2005.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. No results scored signifi cantly above target. The Department’s pressure and 

support for political freedom yielded a marked increase in elections—many of them the fi rst of their kind—in the Middle East in

FY 2005. The Department scored signifi cantly below target in its ability to use Economic Support Funds in a timely manner. The Department 

must continue to press for political liberty, religious freedom, and human rights in bilateral and multilateral discussions and to continue 

its support for civil society groups and independent media. 

RESOURCES INVESTED. The Department continues to support important democracy and human rights activities. In FY 2005, the 

Department allocated $1.5 billion, or an estimated 6% of its budget to this strategic goal. This represents a signifi cant increase of 36% 

from FY 2004. 

PERFORMANCE SECTION STRATEGIC GOAL SEVEN: DEMOCRACY AND HUMAN RIGHTS
2005 Performance and Accountability Highlights 48

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: MEASURES ADOPTED TO DEVELOP TRANSPARENT AND ACCOUNTABLE 

DEMOCRATIC INSTITUTIONS, LAWS, AND POLITICAL PROCESSES AND PRACTICES 

Progress Toward Constitutional Democracy in Afghanistan On Target

Target

1. New National Government takes offi ce with a clear popular mandate. Preparations for local/regional elections move 

forward in accordance with relationship defi ned in Constitution.

2. A select number of women occupy positions of local authority (i.e. at the city level or within the central government at 

the judicial, legislative, or executive level) inside Kabul.

Results

1. Presidential elections held in October 2004. More than 10 million Afghans registered and 8 million participated in the 

election, 40 percent of whom were women. Provincial Council and National Assembly elections scheduled for September 

18, 2005. 1.69 million new voters registered for upcoming parliamentary elections.

2. Two women are Cabinet Ministers (Minister of Women’s Affairs and Minister of Martyrs and Disabled); fi rst female 

governor appointed (Bamiyan).

Impact With a democratically elected president and new government in place, successful National Assembly elections were held on 

September 18th, which further solidifi ed Afghanistan’s progress toward democracy.

Status of Democracy in the Middle East Above Target

Target Municipal elections in Tunisia are held as scheduled and are free and fair. Presidential elections in Yemen are held as 

scheduled and are free and fair.

Results

Elections that were scheduled to date have occurred and were free, fair and competitive. Unanticipated free and fair elections 

also occurred in Saudi Arabia. Saudi Arabia held its fi rst municipal elections and elections are now scheduled in additional 

municipalities. Many other countries have scheduled elections and through Middle East Partnership Initiative (MEPI), the 

Department will work to ensure they are free, fair and competitive, including: 

 Senate elections in Tunisia, 

 Parliamentary elections in Egypt, 

 Parliamentary elections in Lebanon, 

 Municipal and parliamentary elections in West Bank/Gaza.

Impact Holding free, fair, competitive elections is the fi rst step in achieving participatory democracy and opens opportunity for 

increased democracy programming including political party and civil society strengthening.

PERFORMANCE SECTION STRATEGIC GOAL SEVEN: DEMOCRACY AND HUMAN RIGHTS
2005 Performance and Accountability Highlights 49

PERFORMANCE GOAL TWO: UNIVERSAL STANDARDS INCREASE RESPECT FOR HUMAN 

RIGHTS, INCLUDING THE RIGHTS OF WOMEN AND ETHNIC MINORITIES, RELIGIOUS 

FREEDOM, WORKER RIGHTS, AND THE REDUCTION OF CHILD LABOR 

Level of Engagement with Foreign Governments and NGOs to Promote and Advocate 

on Behalf of Religious Freedom in Keeping with Foreign Policy Directives such as the 

International Religious Freedom Act (IRFA)

Below Target

Target

1. The U.S. builds a coalition of like-minded countries that actively cooperates to promote international religious freedom 

issues in multilateral forums. 

2. More prisoners are released because of U.S. Government intervention. 

3. At least two additional bilateral or regional international religious freedom initiatives are undertaken laying the 

groundwork for signifi cant policy changes in those countries or regions.

Results

1. Initiative begun with Saudi Arabia on religious freedom issues; efforts on Uzbekistan and Eritrea as part of broader 

international efforts on human rights in those countries; continued religious freedom dialogue with China.

2. Religious prisoners were released in Vietnam, Saudi Arabia, China, and other countries.

3. Intensive diplomacy with Vietnam resulted in a binding agreement. Commitments were secured on religious freedom 

in key areas of concern. Initial work by international religious freedom Offi ce to explore possibilities for working on 

religious freedom issues in appropriate multilateral forums, including the UN.

Impact

1. Initiatives with Vietnam and Saudi Arabia signifi cantly raised the profi le of religious freedom issues in these countries. 

2. Efforts to develop constructive working relationships with the EU, the UN Special Rapporteur on Religious Freedom, and 

the OSCE have improved multilateral cooperation on religious freedom.

3. Successful U.S. diplomatic efforts to win release of religious prisoners has discouraged the practice of imprisonment in 

some countries; demonstrated U.S. commitment to religious communities to address the issue; and opened an avenue 

for talks on systemic changes that may help remove the threat of imprisonment on religious grounds.

Reason for 

Shortfall

Bilateral initiatives (Vietnam, Saudi Arabia, Eritrea, Uzbekistan, China, Russia, and others) proved to be more labor-intensive

than initially anticipated. Production of the Congressionally-mandated Annual Report on Religious Freedom took personnel 

away from other priority initiatives because staffi ng was not at full complement.

Steps to 

Improve

IRF is in the process of hiring additional staff, which may include 1-2 people who would be devoted full time to multilateral 

initiatives. 

Middle East Partnership Initiative

he Middle East Partnership Initiative (MEPI) made strong strides to bolster democracy in FY 2005. Nearly 100 Arab women 

legal professionals from sixteen countries participated in the launch of the Arab Women’s Legal Network in Amman, Jordan 

in July 2005. MEPI quickly responded to the spring 2005 elections in Lebanon by mounting a program to increase electoral 

transparency through effective monitoring, public opinion polls and a nationwide 

voter education campaign. In Egypt, MEPI supported civil society organizations 

in domestic election monitoring, youth training to develop advocacy skills, 

and voter education ahead of fall 2005 elections. Additionally, MEPI launched 

multiple projects to strengthen the role of indigenous civil society organizations 

in North Africa and the Middle East, particularly in the Persian Gulf. 

An election offi cial empties a ballot box in front of election observers in Tripoli, 

northern Lebanon, June 2005. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL SEVEN: DEMOCRACY AND HUMAN RIGHTS
2005 Performance and Accountability Highlights 50

Strategic Goal 8: economic prosperity and security

 Strengthen world economic growth, development, and stability, while expanding opportunities for 

U.S. businesses and ensuring economic security for the nation

I. Public Benefit

Continued economic prosperity for the United States cannot be assured in the 

absence of prosperity, freedom, and economic opportunity worldwide. As the war 

against terrorism has become central for U.S. foreign policy, we have focused on 

increasing U.S. economic security by supporting front-line states, tightening the noose 

around terrorist fi nancing, increasing energy security, and improving the security of 

our transportation and information networks. We promote prosperity through marketexpanding agreements, through international cooperation to promote sound fi nancial 

markets, by fi ghting bribery and corruption, and through assisting developing countries 

to govern wisely and create favorable climates for trade and investment. Offi cial 

development assistance can play an important role in helping countries on the road 

to economic prosperity and political stability. The Department works on reconstruction 

in post-confl ict or post-disaster situations, serving the vital role of coordinating 

relevant agencies and donors. Our deep and comprehensive economic engagement 

with developing countries – through trade, investment, assistance, and debt relief - 

enhances the prosperity and security of those countries, and therefore our own.

IV. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Economic Prosperity and Security strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 3

On Target 9

Below Target 1

Significantly Below Target 0

Total Number of Ratings 13

Below Target

8%

Above Target

23%

On Target

69%

Under Secretary for Economic, Business, 

and Agricultural Affairs Josette Shiner and 

Japanese Deputy Foreign Minister Yabunaka 

answer questions at the State Department.

State Department Photo/Ann Thomas 

PERFORMANCE SECTION STRATEGIC GOAL EIGHT: ECONOMIC PROSPERITY AND SECURITY
2005 Performance and Accountability Highlights 51

VI. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

500

1,000

1,500

2,000

(Direct Funded Positions)

$0

$500

$1,500

$2,000

$2,500

($ in Millions)

$3,000

$3,500

$4,000

LEGEND

Performance Goals

Economic Growth and

Development

Trade and Investment

Secure and Stable Markets

Food Security and Agricultural

Development

(USAID resources not shown in

Department of State PAR)

$1,000

FY 2005

302

2,038

314

2,654

TOTAL

FY 2005

487

422

644

1,553

TOTAL

FY 2004

537

295

2,123

315

3,270

TOTAL

FY 2004

184

425

368

562

1,539

TOTAL

0 0

V. Performance Analysis

PERFORMANCE TRENDS. Much of the Department’s performance in promoting economic prosperity depends on the success of its 

negotiations, whether in multilateral settings, in bilateral discussions with other countries, or on behalf of individual U.S. companies. 

Particularly noteworthy is the Department’s success leading the United Nations to affi rm that the promotion of economic freedom

through anti-corruption efforts and improved investment climates is central to economic growth. However, in FY 2005, the Department’s 

negotiations achieved mixed results overall. The Doha round of multilateral trade negotiations remained behind schedule due to the 

breakdown in talks in September 2003; in FY 2005, negotiations accelerated but remained short of an agreement. 

OUTCOME-LEVEL RESULTS. The Department remained actively engaged with other countries to press for fewer restrictions on private 

enterprise and more open markets as necessities for greater prosperity. Debt crisis countries and Millennium Challenge Account-eligible 

and threshold countries have continued to reform and remove barriers to entrepreneurship and economic freedom. 

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. Two results were signifi cantly above target, although below-target results 

within the same indicators somewhat offset the gains in both cases. The Department successfully negotiated more open-skies agreements, 

but it did not meet its target for other types of transport liberalization. The Department also increased its advocacy on behalf of U.S. 

businesses by approximately 81%, although the success rate fell from 31.5% in FY 2004 to 22.5% in FY 2005. 

RESOURCES INVESTED. Much of the Department’s activity on behalf of economic freedom and prosperity takes place within the 

context of international organizations. Overall, U.S. contributions to these organizations remained steady in FY 2005, although the 

situations vary from organization to organization. U.S. funding for the Asia-Pacifi c Economic Cooperation forum increased by six percent, 

while the World Trade Organization received a larger increase of 19.5% (for a projected FY 2005 total of $22.2 million.)

PERFORMANCE SECTION STRATEGIC GOAL EIGHT: ECONOMIC PROSPERITY AND SECURITY
2005 Performance and Accountability Highlights 52

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: INSTITUTIONS, LAWS, AND POLICIES FOSTER PRIVATE 

SECTOR GROWTH, MACROECONOMIC STABILITY, AND POVERTY REDUCTION.

Reduce the Number of Days to Start a Business in Millenium Challenge Account (MCA) 

Eligible and Threshold Countries 

On Target

Target Lower the median number of days to start a business by 5% to 43 days.

Results 42 days.

Impact A reduction in the number of days to start a business directly refl ects the government’s commitment to increase economic 

prosperity by removing obstacles to economic growth. 

PERFORMANCE GOAL TWO: INCREASED TRADE AND INVESTMENT ACHIEVED THROUGH 

MARKET-OPENING INTERNATIONAL AGREEMENTS AND FURTHER INTEGRATION OF 

DEVELOPING COUNTRIES INTO THE TRADING SYSTEM 

Number of Companies for whom Advocacy Services were Provided. Number of 

Commercial Advocacy Successes in Helping U.S. Companies Win Foreign Tenders; 

Enforce Contract Agreements; Gain Fair Treatment; and/or Enter New Foreign Markets

1. Signifi cantly 

 Above Target

2. Below Target

Target 1. Advocacy services provided for 185 company-specifi c cases; 

2. 80 advocacy success stories.

Results 1. Advocacy services provided for 275 company-specifi c cases;

2. 62 advocacy success stories.

Impact Advocacy support ensures transparency and fair play so that U.S. companies can compete on a level playing fi eld.

Reason for 

Shortfall

Advocacy success stories is below target because the Department’s Economic and Business Bureau (EB) Advocacy Database 

is not fully operational to provide count of fi nal success stories.

Steps to 

Improve The Department will incorporate effective “success story” count mechanism in EB Advocacy Database during FY 2006.

PERFORMANCE SECTION STRATEGIC GOAL EIGHT: ECONOMIC PROSPERITY AND SECURITY
2005 Performance and Accountability Highlights 53

PERFORMANCE GOAL THREE: SECURE AND STABLE FINANCIAL AND ENERGY MARKETS

World Emergency Oil Stocks On Target

Target International Energy Agency and non-International Energy Agency emergency oil stocks are at or above FY 2004 levels.

Results International Energy Agency members held stocks of 114 days of imports, prior to September 2nd emergency release of 

stocks to counter supply disruptions of Hurricane Katrina.

Impact Healthy oil stock allowed for a robust response to oil supply disruptions caused by Hurricane Katrina, calming markets 

ensuring continued supplies of oil.

PERFORMANCE GOAL FOUR: ENHANCED FOOD SECURITY AND AGRICULTURAL DEVELOPMENT

The U.S. Agency for International Development is reporting results for this goal.

Iraq Reconstruction and Development

he Department led an international group of major donors for Iraq’s reconstruction, which organized donors meetings 

in Tokyo in October 2004 and the Dead Sea in July 2005. At these meetings, over 60 countries and international 

organizations coordinated their reconstruction assistance and agreed to align and accelerate their assistance along Iraqi 

priorities. By the end of FY 2005, donors other than the United States had disbursed about $3 billion in reconstruction 

assistance to Iraq. The meetings also set in place 

a central role for Iraq in coordinating donor 

assistance. The Department’s joint efforts with 

the Department of Treasury to secure an historic 

Paris Club debt-reduction agreement in November 

2004 was a vital step in relieving Iraq of its 

overwhelming debt burden.

Secretary Rice looks toward Iraq’s Planning and 

Development Cooperation Minister Barham Salih 

at a press conference in Washington, May, 2005. 

AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL EIGHT: ECONOMIC PROSPERITY AND SECURITY
2005 Performance and Accountability Highlights 54

Strategic Goal 9: Social and Environmental Issues

 Improve health, education, environment, and other conditions for the global population

I. Public Benefit

Strengthening international cooperation to ensure stable, prosperous societies is critical to 

U.S. national security. Disease, poverty, displacement, lack of education, and environmental 

degradation destroy lives, ravage societies, destabilize regions, and cheat future generations 

of prosperity. By integrating economic growth with social development and environmental 

stewardship worldwide, we are extending to the international community the basic values 

American citizens hold dear: prosperity in balance with sustainable management of our landbased and marine natural resources, healthy lifestyles, an informed society, and cooperation to 

advance research frontiers and stimulate innovation.

Children participate in a rally in New Delhi, India for debt relief and resources for 

education, July, 2005. AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Social and Environmental Issues 

strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 1

Above Target 5

On Target 10

Below Target 0

Significantly Below Target 0

Total Number of Ratings 16

Significantly

Above Target

6%

On Target

63%

Above Target

31%

PERFORMANCE SECTION STRATEGIC GOAL NINE: SOCIAL AND ENVIRONMENTAL ISSUES
2005 Performance and Accountability Highlights 55

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

100

150

250

350

(Direct Funded Positions)

$0

$500

$1,000

($ in Millions) $1,500

$2,000

$3,000

LEGEND

Performance Goals

Global Health

Environmental Protection

Access to Quality Education

(USAID resources not shown in

Department of State PAR)

Migration Policies and Systems

$2,500

FY 2005

1,803

378

125

2,306

TOTAL

FY 2005

109

157

18

284

TOTAL 300

200

50

FY 2004

310

1,601

343

113

2,367

TOTAL

FY 2004

42

92

132

15

281

TOTAL

0 0

IV. Performance Analysis

PERFORMANCE TRENDS. Performance under the President’s Emergency Program for AIDS Relief (PEPFAR) has exceeded expectations 

for treatment (235,000 were treated during the fi rst half of 2005, versus the June 2005 target of 200,000). In addition, more than 120 

million people have been reached with HIV/AIDS prevention messages/programs, exceeding the year one goal of reaching 47.8 million 

people with prevention messages/programs by 250 percent. The percentage of the world’s population with access to tuberculosis care 

and treatment continued its steady three-year increase from 63% to 75%. There has also been an unmistakable trend toward more 

effective implementation of treaties and agreements on natural resources management (marine, forest, climate, etc), as demonstrated 

by an increase in partners, cooperation, transparency, standards, and assessments.

OUTCOME-LEVEL RESULTS. The Department has made signifi cant progress toward PEPFAR’s fi ve-year goals of supporting treatment 

for 2 million people infected with HIV, prevention of 7 million new HIV infections, and care for 10 million people infected and affected 

by HIV/AIDS, including orphans and vulnerable children. As a result of the U.S. Water for the Poor Initiative (launched at the 2002 

World Summit on Sustainable Development), over 12 million people have received improved access to water and more than 12 million 

people have received improved access to adequate sanitation. Other outcome-level results were achieved in FY 2005 in sustainable 

development and climate change.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. The Department signifi cantly exceeded its performance target for international 

cooperation to reduce persistent organic pollutants, an important global health issue. We expected twenty additional countries to ratify the 

Stockholm Convention in 2005 and 31 actually did so, bringing the number of States-Parties to 110 countries, a remarkably fast pace for a 

global environmental agreement. There were no results signifi cantly below target in this strategic goal area in 2005.

RESOURCES INVESTED. The U.S. Government continued to invest signifi cant resources in social and environmental programs in 2005. 

In FY 2005, the Department allocated an estimated 9.1% of its budget to this strategic goal, or $2.3 billion. This represents a slight decrease 

of 3% from FY 2004.

PERFORMANCE SECTION STRATEGIC GOAL NINE: SOCIAL AND ENVIRONMENTAL ISSUES
2005 Performance and Accountability Highlights 56

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: IMPROVED GLOBAL HEALTH, INCLUDING CHILD, 

MATERNAL, AND REPRODUCTIVE HEALTH, AND THE REDUCTION OF ABORTION 

AND DISEASE, ESPECIALLY HIV/AIDS, MALARIA, AND TUBERCULOSIS

The Number of People Receiving HIV/AIDS Treatment in the 15 Focus Countries

(PART Program)

On Target

Target 470,000

Results

Data collected for the fi rst half of FY 2005 shows that the Emergency Plan is supporting treatment to 235,000 individuals. 

The Emergency Plan is on target to achieving its FY 2005 treatment goal. Updated end of FY 2005 result data will be 

available no later than November 30, 2005.

Impact

With its severe social, economic, and political consequences, HIV/AIDS presents a security threat and violates a basic principle 

of development that each generation do better than the one before. HIV/AIDS treatment mitigates the consequences of HIV/

AIDS by dramatically improving health and therefore productivity. With every person receiving treatment, life is extended, 

families are held intact, and nations move forward with development.

PERFORMANCE GOAL TWO: PARTNERSHIPS, INITIATIVES, AND IMPLEMENTED 

INTERNATIONAL TREATIES AND AGREEMENTS THAT PROTECT THE ENVIRONMENT 

AND PROMOTE EFFICIENT ENERGY USE AND RESOURCE MANAGEMENT 

Status of Bilateral Regional, and Global Climate Change Partnerships and Initiatives1 Above Target

Target

1. Establish partnerships with additional targeted countries as necessary and strengthen existing partnerships, with 

particular emphasis on activities and deliverables related to international initiatives on adaptation, science, and energy 

technologies. 

2. Continued implementation of U.S. initiatives on earth observation, carbon capture and storage, and the hydrogen 

economy.

Results

1. Each of the existing bilateral partnerships involves multiple discrete initiatives, and we are meeting timelines and 

deliverables established in previous years in order to continue advancing them. Cooperative activities under the bilateral 

partnerships now total over 400, and within each partnership the number of activities has tended to grow at a gradual 

and manageable pace. Reviews of partnerships are ongoing, and activities are being adjusted to enhance effectiveness. 

The U.S. initiated its 15th bilateral working group on climate change with the implementation of the “U.S.-Germany 

Working Group on Energy, Development, and Climate Change.”

2. The U.S. announced the launch of a new Asia-Pacifi c Partnership on Clean Development and Climate Change that 

currently encompasses countries that in addition to the U.S. represent approximately 50% of global economic activity 

and greenhouse gas emissions (China, India, Japan, Australia, South Korea).

3. Work on multilateral partnerships focused on observation, carbon capture and storage, and the hydrogen economy 

continues to develop with international meetings and workshops. 

4. Second Asian regional workshop on climate and energy convened, working in collaboration with a number of bilateral 

partners as well as with APEC.

Impact

Our climate change partnerships assist key developing countries to build capacity on a full range of technical aspects that 

are essential to permit them to undertake meaningful commitments to address global climate change, while advancing the 

development of new technologies to mitigate greenhouse gas emissions and address global climate change in a manner 

consistent with economic growth.

 1 Climate change partnerships defi ned as offi cially established bilateral relationships on climate change. 

PERFORMANCE SECTION STRATEGIC GOAL NINE: SOCIAL AND ENVIRONMENTAL ISSUES
2005 Performance and Accountability Highlights 57

PERFORMANCE GOAL THREE: BROADER ACCESS TO QUALITY EDUCATION WITH 

EMPHASIS ON PRIMARY SCHOOL COMPLETION

The U.S. Agency for International Development is reporting results for this goal.

PERFORMANCE GOAL FOUR: EFFECTIVE AND HUMANE MIGRATION 

POLICIES AND SYSTEMS

Percentage of Initiatives Agreed Upon at Regional Migration 

Dialogues that are Implemented

On Target

Target Seventy percent of activities agreed to in the Regional Conference on Migration in North and Central America (RCM) are 

implemented.

Results

Approximately 80% (17 of 21) activities agreed to by RCM member states have been implemented or are in the process of 

implementation in FY 2005. Nearly 100% of the activities agreed upon by members of the Intergovernmental Consultations 

on Asylum, Refugee and Migration Policies in Europe, North America and Australia have been implemented or are in the 

process of implementation.

Impact An increased number of governments committed to pursuing regional migration dialogues helps pave the way for humane 

and effective migration regimes for the 150 million migrants in the world today.

HIV/AIDS

s President Bush has said, “Confronting HIV/AIDS is the responsibility of every nation and a moral imperative for the 

United States.” HIV/AIDS is not only a human tragedy of enormous magnitude, it is also a threat to the stability of 

entire countries and to entire regions of the world. To turn the tide against this devastating pandemic, President Bush 

launched his historic $15 billion Emergency Plan for AIDS Relief—the largest commitment any nation has ever made to 

an international health initiative. The Emergency 

Plan is combating HIV/AIDS in 123 countries 

around the world through prevention, treatment, 

and care, placing special emphasis on 15 countries 

where the need is most urgent. Assistance 

is also provided for HIV/AIDS research and to 

multilateral organizations such as the Global 

Fund to Fight AIDS, Tuberculosis, and Malaria. 

In FY 2005, the Emergency Plan supported over 

235,000 people on treatment, well exceeding its 

June 2005 target.

President Bush and First Lady Laura Bush greet 

children at the AIDS Support Organization in 

Entebbe, Uganda. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL NINE: SOCIAL AND ENVIRONMENTAL ISSUES
2005 Performance and Accountability Highlights 58

Strategic Goal 10: Humanitarian Response

 Minimize the human costs of displacement, confl icts, and natural disasters

I. Public Benefit

The United States commitment to humanitarian response 

demonstrates America’s compassion for victims of armed confl ict, 

landmines, forced migration, human rights violations, widespread 

health and food insecurity, and other threats. The strength of this 

commitment derives from both our compassion and our responsibility 

as a global leader. The Department actively participates in the 

multilateral response to humanitarian crises and regularly monitors 

and evaluates humanitarian programs to ensure that the needs of 

refugees, internally displaced persons, and other victims of confl ict or 

natural disasters are met. The Department’s management and support 

of overseas refugee admissions programs provide an important 

durable solution for refugees, and serve as a leading model for other 

resettlement countries. The United States’ leadership and humanitarian 

response provides a positive standard for the donor community and 

hope for a better future for the people suffering as a result of natural 

or human-made disasters.

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Humanitarian Response strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 3

On Target 6

Below Target 1

Significantly Below Target 0

On Target Total Number of Ratings 10

60%

Below Target

10%

Above Target

30%

Trucks carry U.S. humanitarian aid through the Libyan desert 

on a 2,800 kilometer journey to refugee camps in Chad.

State Department Photo

PERFORMANCE SECTION STRATEGIC GOAL TEN: HUMANITARIAN RESPONSE
2005 Performance and Accountability Highlights 59

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

300

400

500

600

700

(Direct Funded Positions)

$0

$500

$1,000

($ in Millions)$1,250

$1,500

$1,750

LEGEND

Performance Goals

Assistance for Refugees and

Other Victims

Disaster Prevention and Response

Through Capacity Building

(USAID resources not shown in

Department of State PAR) 200

100

$750

$250

FY 2005

552

552

TOTAL

FY 2005

1,179

1,179

TOTAL

FY 2004

265

282

547

TOTAL

FY 2004

152

974

1,126

TOTAL

0 0

V. Performance Analysis

PERFORMANCE TRENDS. Three signifi cant performance trends in the area of Humanitarian Response are worthy of note: 

(1) administrative and program management costs have declined over a four-year period; (2) the range and impact of the Department’s 

response to crises and disasters has increased – for example, in FY 2005, the Department assisted refugees, asylum seekers, and

displaced persons in dozens of countries worldwide; and (3) inter-agency and international cooperation have increased, as evidenced by 

the unprecedented scale and complexity of the Indian Ocean Tsunami relief and reconstruction program.

OUTCOME-LEVEL RESULTS. The Department made demonstrable progress toward high-level outcomes such as assisting and protecting 

refugees, carrying out humanitarian demining operations, and responding to humanitarian crises. All of the programs in these areas 

performed at or above target in FY 2005, with the exception of our efforts to prevent global acute malnutrition, which was rated below 

target.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. There were no results signifi cantly above or below target, although the 

Department continues to face challenges in reducing crude mortality rates and improving the nutritional status of children in complex 

humanitarian emergencies. The Department alone cannot affect these outcomes and works in close partnership with host governments, 

other U.S. Government agencies, international organizations and non-governmental organizations to achieve the desired outcomes.

RESOURCES INVESTED. Although performance has improved in Humanitarian Response, funding levels for some activities have 

declined. For example, funding for migration and refugee assistance, which is provided to international organizations such as the UN 

High Commissioner for Refugees (UNHCR) and the International Committee of the Red Cross (ICRC), declined by 2% from $780 million 

to $763 million.

PERFORMANCE SECTION STRATEGIC GOAL TEN: HUMANITARIAN RESPONSE
2005 Performance and Accountability Highlights 60

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: EFFECTIVE PROTECTION, ASSISTANCE, AND 

DURABLE SOLUTIONS FOR REFUGEES, INTERNALLY DISPLACED PERSONS, 

AND CONFLICT VICTIMS

Crude Mortality Rates (CMR) On Target

Target

Complex humanitarian emergencies do not exceed a CMR of 1/10,000 people/day. Support efforts to improve data collection, 

e.g., expand pilot data collection effort to other countries and partner organizations, and to take other measures to address 

any problems of excess mortality.

Results

1. Where data are available, CMR does not exceed regional emergency thresholds in over 98% of targeted refugee sites. 

In FY 2005, CMR was reported above the regional emergency threshold in four sites (three in Chad and one in Kenya) 

out of over 225 refugee camps and settlements worldwide. There has been a decline in CMR among Sudanese refugees 

from Darfur, although it remains an issue of concern in selected sites in Chad.

2. The Complex Emergencies Database (CE-DAT) is operational and contains data on mortality, nutritional status, morbidity 

and vaccination coverage for sixteen pilot countries. It is expanding data coverage and improving its online interface.

Impact

The Department’s contributions to international humanitarian efforts saved refugee lives, as indicated by CMR below 

emergency thresholds. In a few cases, CMR exceeded emergency thresholds. In complex humanitarian crises, this is typically 

due to high rates of malnutrition, outbreaks of disease, and in some cases, insecurity in refugee camps and settlements. In 

some Sudanese refugee camps in Chad, for example, severe acute malnutrition (including Kwashiorkor) and outbreaks of 

Hepatitis E caused deaths at a rate that exceeded acceptable levels. In these cases, the Department will target funding and 

programming to address these major causes of death and bolster health and nutrition services.

Nutritional Status of Children Under 5 Years of Age Below Target

Target In complex humanitarian emergencies, less than 10 percent of children under fi ve suffer from Global Acute Malnutrition 

(GAM).

Results In 7% of targeted sites (16 sites out of over 225 refugee camps and settlements worldwide), more than 10% of children 

under age fi ve suffered from global acute malnutrition.

Impact

Elevated rates of GAM directly contribute to increased rates of morbidity and mortality in children under fi ve years of age. 

Malnutrition may also threaten refugee protection in terms of camp security, vulnerability to exploitation, and in extreme 

cases, involuntary return.

Reason for 

Shortfall

1. Inadequate resources for the World Food Program’s (WFP) refugee feeding operations frequently result in reduced food 

rations or pipeline breaks.

2. Malnutrition may be endemic in refugee hosting communities, where food security, water, sanitation and health conditions 

are poor; an infl ux of refugees may strain existing coping mechanisms and resources.

Steps to 

Improve

1. Work with WFP, UNHCR, and non-governmental partners to develop an urgent and coordinated emergency response to 

reduce GAM to below 10 percent in all refugee sites.

2. Prioritize funding therapeutic and supplementary feeding, as well as other health and nutrition programs in refugee sites 

where GAM exceeds acceptable levels.

PERFORMANCE SECTION STRATEGIC GOAL TEN: HUMANITARIAN RESPONSE
2005 Performance and Accountability Highlights 61

Refugees Resettled in the U.S. (PART Program)1 Above Target

Target 100% of the regionally allocated ceiling of 50,000 refugees. This number is set by the President for each fi scal year. 

Results 107% of the regionally allocated ceiling of 50,000 refugees (53,813) have been resettled to the U.S. as of 

September 30, 2005. 

Impact Refugees and their families achieved a durable solution and started new lives in communities across the United States. 

 1 The annual ceiling is established by Presidential determination each year through consultations with voluntary agencies, Congress, the Department of 

Homeland Security, and the Department of Health and Human Services.

PERFORMANCE GOAL TWO: DISASTER PREVENTION AND 

RESPONSE THROUGH CAPACITY BUILDING

The U.S. Agency for International Development is reporting results for this goal.

Protecting Women from Violence in Sudan

he United States remains gravely concerned about sexual violence against women in the Darfur region of Sudan and 

the Government of Sudan’s refusal to address the problem and protect the lives of its people. Secretary Rice and 

Deputy Secretary Zoellick have both urged the government to bolster its efforts to stop the violence, to hold perpetrators 

accountable, and to provide help for victims. 

In FY 2005, the United States initiated a twoyear project to fund eight centers for displaced 

women living in camps in the Darfur region. 

The centers provide a safe haven for women 

and a range of services, including literacy 

classes, health education, income-generating 

activities, and treatment for sexual violence. 

Victims of rape and other forms of sexual 

violence also receive medical, psychosocial and 

case management services that protect their 

privacy.

Sudanese women distribute American 

vegetable oil in Zalengie, West Darfur. 

State Department Photo

PERFORMANCE SECTION STRATEGIC GOAL TEN: HUMANITARIAN RESPONSE
2005 Performance and Accountability Highlights 62

Strategic Goal 11: Public Diplomacy and Public Affairs

 Increase understanding for American values, policies, and initiatives to create a 

receptive international environment

I. Public Benefit

The four pillars of our public diplomacy are engagement, exchange, education, and empowerment. We vigorously engage, listening as 

well as advocating, responding rapidly and aggressively to inaccuracies and hate messaging. The power of exchanges to change lives 

makes people-to-people exchanges our most important public diplomacy program. We will expand our two-way exchanges so that more

Americans and American organizations can fi nd common values and common interests with foreign counterparts around the world. 

Through education programs we will offer both hope and opportunity for a better life, while increasing mutual understanding. We will 

also educate ourselves to be better citizens of the world. We will empower the individuals whose lives our programs touch to pursue 

their goals as citizens of the world and we will work closely with the private 

sector to foster greater communication and dialogue by empowering our 

most important national asset—the individual American citizen. Through 

public affairs programs, the Department also informs the American people 

of U.S. foreign policy and initiatives that have a direct impact on their lives 

and provides opportunities for Americans to participate in programs that 

build individual capacity and deeper resources for the nation. 

Under Secretary of State for Public Diplomacy and Public Affairs Karen 

Hughes chats with Turkish children as she gives them books during her 

visit to Istanbul, Turkey, September, 2005. AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Public Diplomacy and Public Affairs strategic goal.

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 0

Above Target 3

On Target 18

Below Target 2

Significantly Below Target 0

Total Number of Ratings 23

On Target

79%

Below Target

8%

Above Target

13%

PERFORMANCE SECTION STRATEGIC GOAL ELEVEN: PUBLIC DIPLOMACY AND PUBLIC AFFAIRS
2005 Performance and Accountability Highlights 63

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

0

500

1,000

1,500

3,000

(Direct Funded Positions)

$0

$200

$300

($ in Millions)

$400

$500

$700

LEGEND

Performance Goals

International Public Opinion

Mutual Understanding

American Values Respected Abroad

Domestic Understanding of

Foreign Policy

$600

2,000

$100

2,500

FY 2005

88

156

317

36

597

TOTAL

FY 2005

252

838

887

274

2,251

TOTAL

FY 2004

79

141

286

32

538

TOTAL

FY 2004

250

830

879

271

2,230

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. The Department’s academic and professional exchange programs continue to increase in popularity worldwide. 

In particular, there was a signifi cant increase in the number of exchange students from the Middle East in FY 2005. Furthermore, the 

Department continues to assess the impact of exchange programs; in addition to counting the number of participants, for example, the 

Department tracks the percentage of participants who gain a better understanding of the United States, those who remain in contact 

with host country colleagues over time, and the number of those who initiate change in their home countries after completing an

exchange program. The two-year performance trend has been positive.

OUTCOME-LEVEL RESULTS. Due to the long term and complexity of results, it can be diffi cult to measure the impact of U.S. public 

diplomacy and public affairs programs, but many Department programs have achieved their desired result. For example, public opinion 

polls and surveys taken in Indonesia in the aftermath of the tsunami showed that for the fi rst time ever in a major Muslim nation, more 

people favored U.S.-led efforts to fi ght terrorism than opposed them. The fact that more than 85% of exchange program participants 

remain in contact with their American hosts as long as 15 years or more after the completion of their program also indicates that the 

Department is having some success improving understanding and appreciation of U.S. values and policies.

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. There were no results rated signifi cantly below target in the strategic goal of 

Public Diplomacy and Public Affairs, although the percentage of readers of Hi Magazine with an interest in learning more about U.S. 

society and values was less than expected in FY 2005 (76% versus a target of 90%). Results above target included:

 A 30% increase in International Information Programs listserv subscribers; 

 98.63% of exchange participants initiated positive change in their community within fi ve years of their program experience; 

and 

 78.74% of program participants demonstrated an affi nity for democratic values three or more years after their 

program experience.

RESOURCES INVESTED. The Department continued to increase its investment in public diplomacy and public affairs, targeting audiences 

in the Middle East in particular. For example, resources invested in academic, professional and cultural exchanges increased 12.4% from 

FY 2004 to FY 2005 (from $316 million to $356 million).

PERFORMANCE SECTION STRATEGIC GOAL ELEVEN: PUBLIC DIPLOMACY AND PUBLIC AFFAIRS
2005 Performance and Accountability Highlights 64

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: PUBLIC DIPLOMACY INFLUENCES GLOBAL PUBLIC 

OPINION AND DECISION-MAKING CONSISTENT WITH U.S. NATIONAL INTERESTS

Degree of Independent Media in Afghanistan On Target

Target

1. Reporters without Borders notes no incidences of government harassment of journalists in annual report on media 

freedom. 

2. Seventy-fi ve percent of electronic media are privately controlled and no incidences of government harassment.

Results

1. According to Reporters without Borders, the Afghan media continued to develop but independent journalists ran afoul of 

old enemies in 2003: warlords, conservative judges and the Taliban. The draft constitution guaranteed press freedom but 

provided for prison sentences for press offences. The blasphemy law continues to be the biggest menace for journalists. 

Two were sentenced to death for what they had written and had to fl ee the country. According to Reporters without 

Borders, the government also intervened to halt “Islamicly incorrect” television broadcasts.

2. At least 75% of electronic media are privately controlled. The U.S. Government is supporting an emerging independent 

media, with 45 independent radio stations established and broadcasting programs to 52% of the Afghan population. 

40,000 radios have been distributed to hard-to-reach populations including rural women. Our programs provided 

training to almost 2,000 media professionals. 4,500 women have graduated from a community literacy program. 

Impact

1. There is marked and continued progress in the emergence of an independent media. Radio is the most important 

medium in Afghanistan, with 79 percent of respondents listening “yesterday”; 54 percent watched television.

2. Newspapers and the Internet are not comparatively important information sources. In addition, Internet access 

in Afghanistan is scarce. Users can log on in Internet cafes in provincial capitals. Various NGOs and international 

organizations are opening public access points as well. However, computer literacy and ownership rates are miniscule, 

and internet infrastructure is in the fi rst days of its development. Internet use by demographic group conforms to user 

profi les in most developing countries, with users tending to be younger and better-educated. However, unlike in most 

developing countries, women in Afghanistan are more likely to use the internet than are men.

PERFORMANCE GOAL TWO: INTERNATIONAL EXCHANGES INCREASE MUTUAL 

UNDERSTANDING AND BUILD TRUST BETWEEN AMERICANS AND PEOPLE AND 

INSTITUTIONS AROUND THE WORLD

Number of Foreign Youth Participants in Regions With Signifi cant Muslim and Arab 

Populations in Youth Exchange and Study Program (PART Program)

Above Target

Target

30% increase in new participants in youth exchange programs from 2004.

NEA: 245

EAP: 150

SA: 130

AF: 50

EUR: 25

Total: 600

Results 660

Impact By providing opportunities for foreign youth to participate in exchange programs, doors are opening in new sectors of 

foreign societies and exposing them to U.S. values, culture and society.

PERFORMANCE SECTION STRATEGIC GOAL ELEVEN: PUBLIC DIPLOMACY AND PUBLIC AFFAIRS
2005 Performance and Accountability Highlights 65

PERFORMANCE GOAL THREE: BASIC HUMAN VALUES EMBRACED BY AMERICANS 

ARE RESPECTED AND UNDERSTOOD BY GLOBAL PUBLICS AND INSTITUTIONS 

Percentage of Participants Who Improve Their Understanding of U.S. Society and Values Below Target

Target 90%

Results

1. A survey of Hi Magazine’s online readers shows increased interest in learning more about the United States (76%).

2. 736 speakers, 449 digital video conferences and 650,000 publications reached their intended target audiences with 

 information about U.S. policy, society and values. 

Impact By reaching out to the successor generation and opinion leaders, the Department will improve perceptions and acceptance 

of U.S. policy, society and values. 

Reason for 

Shortfall: 

90% target was a worldwide goal under which regional variations were expected. Currently the Department only has data 

for an audience largely located in the Near East region, a region that presents major challenges for U.S. public diplomacy. 

Steps to 

Improve: Data must be gathered from worldwide audiences to more accurately assess the performance of these programs.

PERFORMANCE GOAL FOUR: AMERICAN UNDERSTANDING AND SUPPORT FOR U.S. 

FOREIGN POLICY, DEVELOPMENT PROGRAMS, THE DEPARTMENT OF STATE, AND THE 

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT 

Number of Interviews and Contacts With U.S. Media On Target

Target 16,000 interviews/contacts per year with the media.

Results Daily and special press briefi ngs; 15,200 inquiries from the press; and 1,151 print, radio and TV interviews.

Impact

Daily press briefi ngs and responses to journalists’ policy questions give the press accurate, authoritative statements of 

U.S. policy. Transcripts of press briefi ngs and the Secretary’s remarks are available to an enormous number of readers 

via the Department’s website. Press events with Department offi cials explain U.S. foreign policy to the broadest possible 

audience.

Former Exchange Participants Form New Government in Kyrgyz Republic

hen protests following March 2005 parliamentary elections led to the end of President Akayev’s rule, the new 

Kyrgyz Government included eight people who had been on International Visitor Leadership Programs between 

1994 and 2004, including current President Bakiyev. Democracy Commission and other Embassy grants supported the 

initiatives of Kyrgyz civil society groups to promote free and fair elections, 

the highlight of which was a series of “Rock the Vote” concerts held across 

Kyrgyzstan in the run up to the July presidential election. Widely attended 

and nationally televised, these concerts helped raise awareness of election 

fraud and voter rights, and encouraged young voters to participate in the 

July 2005 presidential election.

Kyrgyz President Bakiyev, left, greets supporters during a meeting in Balykchi, 

east of the capital, Bishkek, July 2005. AP/Wide World Photo

PERFORMANCE SECTION STRATEGIC GOAL ELEVEN: PUBLIC DIPLOMACY AND PUBLIC AFFAIRS
2005 Performance and Accountability Highlights 66

Strategic Goal 12: Management and Organizational Excellence

 Ensure a high quality workforce supported by modern and secure infrastructure and operational capacities

I. Public Benefit

The 30,000 Foreign Service, Civil Service, and Foreign Service National employees posted in over 260 locations around the world are 

our most signifi cant resource. The Department is committed to building, deploying, and sustaining a knowledgeable, diverse, and highperforming workforce. The Department also continues to maintain and develop skills in foreign languages, public diplomacy, leadership 

and management. To fulfi ll our mission effectively, the Department of State invests in systems that facilitate the collection, analysis, 

communication, and presentation of information to the public, businesses, other U.S. Government agencies, foreign governments, and 

our employees. In addition, the Department ensures security in the workplace through a broad scope of global activities, including the 

protection of the Secretary of State and other senior offi cials; foreign missions in the U.S.; American embassies/consulates overseas; 

and special events. The provision of secure, safe, and functional domestic and overseas facilities enables U.S. Government employees to 

pursue the vital interests of the American public more effectively. Finally, integrated 

budgeting, planning and performance measurement, together with effective fi nancial 

management and fi nancial accountability, enhance the Department’s management 

practices and performance. Together, this investment in management and 

organizational excellence helps ensure that resources entrusted to the Department 

are well managed and judiciously used.

Under Secretary for Management Henrietta Fore gestures during an interview in 

Washington. AP/Wide World Photo

II. Performance Summary

The chart below shows the performance rating distribution of the FY 2005 results for the Management and Organizational Excellence 

strategic goal. 

STRATEGIC GOAL RESULTS ACHIEVED FOR FY 2005

RATINGS DISTRIBUTION

Significantly Above Target 1

Above Target 9

On Target 17

Below Target 13

Significantly Below Target 1

Total Number of Ratings 41

Significantly

Above Target

2%

On Target

42%

Below Target

32%

Above Target

22%

Significantly

Below Target

2%

PERFORMANCE SECTION STRATEGIC GOAL TWELVE: MANAGEMENT AND ORGANIZATIONAL EXCELLENCE
2005 Performance and Accountability Highlights 67

III. Resources Invested

HUMAN RESOURCES BUDGET AUTHORITY

Human Resources and Training

0

2,000

4,000

8,000

9,000

11,000

(Direct Funded Positions)

$0

$1,000

$2,000

$3,000

$4,000

($ in Millions)

$5,000

$6,000

LEGEND

Performance Goals

Information Technology

Diplomatic Security

Overseas and Domestic Facilities

Resource Management

Administrative Services

FY 2005

472

574

2,344

770

663

595

5,418

TOTAL

FY 2005

1,302

1,213

2,128

897

1,492

2,643

9,675

TOTAL

6,000

10,000

7,000

5,000

3,000

1,000

FY 2004

406

514

2,117

695

598

531

4,861

TOTAL

FY 2004

1,290

1,202

2,108

889

1,478

2,618

9,585

TOTAL

IV. Performance Analysis

PERFORMANCE TRENDS. Among the key trends in the strategic goal area of Management and Organizational Excellence is a steady, 

four-year increase in leadership, language, and public diplomacy training. In FY 2005, the Foreign Service Institute and the Human 

Resources bureau placed greater emphasis on identifying and developing appropriate skill sets and both have become better at 

measuring the impact of training rather than the training event itself. The Department saw a slight decline in the number of individuals 

taking the Foreign Service Written Exam – particularly minority candidates – and a decline in the number of Americans employed 

by international organizations. Positive trends continued in overseas building operations, as administrative effi ciency and embassy 

construction increased. There was also a notable increase in security awareness and effectiveness for networks, individuals, and 

facilities. 

OUTCOME-LEVEL RESULTS. The Department achieved signifi cant results in the following areas:

 People: increased skills and abilities

 Technology: continuous upgrades

 Security: increased awareness

 Facilities: effi cient management, increased construction and renovation

 Management: enhanced budget and performance integration, increased competitive sourcing

RESULTS SIGNIFICANTLY ABOVE OR BELOW TARGET. The Department’s program to develop and deploy a new electronic worldwide 

messaging system was rated signifi cantly below target and the Department continues to face challenges recruiting and placing talented 

minority candidates in the Foreign Service. Results signifi cantly above target include a higher-than-expected increase in the number of 

applicants to Foreign Service specialist positions.

RESOURCES INVESTED. Investment in worldwide security upgrades increased by 1.5% in FY 2005, from approximately $640 million 

to $650 million, while funding for security construction increased 2.8%, from $753 million to $774 million. Funding for the IT Central 

Fund declined approximately 3.5%, from $251 million in FY 2004 to $242 million in FY 2005.

PERFORMANCE SECTION STRATEGIC GOAL TWELVE: MANAGEMENT AND ORGANIZATIONAL EXCELLENCE
2005 Performance and Accountability Highlights 68

FY 2005 Performance Report Card

The indicators below are representative of the Department’s priorities and overall performance for this Strategic Goal. 

The CD-ROM contains all indicators with detailed performance information.

PERFORMANCE GOAL ONE: A HIGH PERFORMING, WELL-TRAINED, 

AND DIVERSE WORKFORCE ALIGNED WITH MISSION REQUIREMENTS

Number of Applicants to Foreign Service Specialist Positions

Signifi cantly 

Above Target

Target 4,200

Results 5,966

Impact The increase indicates more interest in the Department of State as an employer of choice and, possibly, provides a greater 

pool of qualifi ed applicants from which to hire.

Foreign Language and Leadership Training

hrough FY 2005, the Department provided leadership training to over 6,700 Foreign Service and Civil Service mid-level 

employees. Since its inception in 2004, the Senior Policy Seminars division has continued to expand opportunities 

for advanced professional development, policy discussions, and networking opportunities to senior leaders in the Civil and 

Foreign Services. Crisis Management remains a key component of the Department’s leadership training program. 

The Department’s School of Language Studies delivers 450,000 hours of training to Department personnel in Critical Needs 

Languages, including Arabic, Chinese, Korean, Russian, Ukrainian, as well as Turkic, Indic and Iranian languages. The Foreign 

Service Institute developed innovative options for more advanced language skill development through targeted overseas 

immersions and focused offerings to meet specifi c needs, such as language media skills. “Continuing education” and 

non-traditional training are being strengthened through 

pilot iterations of short-term in-country “transition” 

immersions, and growing delivery of distance language 

learning offerings, currently numbering 18 courses in 11 

languages.

Instructors from the U.S. Embassy in Dar es Salaam teach 

members of the American community Swahili language 

and culture during a three-day immersion visit to 

Zanzibar, an island off the coast of Tanzania. 

State Department Photo

PERFORMANCE SECTION STRATEGIC GOAL TWELVE: MANAGEMENT AND ORGANIZATIONAL EXCELLENCE
2005 Performance and Accountability Highlights 69

PERFORMANCE GOAL TWO: MODERNIZED, SECURE, AND HIGH QUALITY 

INFORMATION TECHNOLOGY MANAGEMENT AND INFRASTRUCTURE THAT MEET 

CRITICAL BUSINESS REQUIREMENTS

System Authorization (Certifi cation and Accreditation) Below Target

Target Adopt a three-year recurring centrally-monitored process.

Results

The Department reported 97% of General Support Systems (GSS) and Major Applications (MA) certifi ed and authorized. 

OMB mandated a 100% requirement for the E-Government Scorecard in the President’s Management Agenda by the Fourth 

Quarter FY 2005. The Department was lowered from Green to Yellow after not meeting this requirement. The Department is 

re-categorizing IT assets in conformance with Federal standards and anticipates this effort will verify our initial categorization 

of systems in 2003. This effort will assist the Department in determining and ultimately utilizing common security controls 

in conformance with Federal standards. Currently the Department is re-categorizing IT assets in conformance with national 

standards and anticipates this effort will verify our initial categorization of systems in 2003. This effort will assist the 

Department in determining and ultimately utilizing Common Security Controls. 

Impact A robust certifi cation and accreditation process ensures the confi dentiality, integrity, and availability of the Department’s 

information technology systems.

Reason for 

Shortfall

The Department certifi ed and authorized 97% of General Support Systems and Major Applications, falling short of the OMB 

mandated 100% mark.

Steps to 

Improve

The Department will redouble efforts to identify, categorize, certify and authorize 100% of General Support and Major 

Applications as required by OMB.

PERFORMANCE GOAL THREE: PERSONNEL ARE SAFE FROM PHYSICAL HARM AND 

NATIONAL SECURITY INFORMATION IS SAFE FROM COMPROMISE

Installation of Technical Security Upgrade Equipment On Target

Target TSUs completed for 47% (i.e., 60/127 identifi ed as requiring upgrades) of facilities that house foreign affairs personnel (i.e., 

facilities other than embassies or consulates).

Results

Of the more than 260 U.S. facilities overseas, 180 are designated as highly vulnerable. Of these facilities, 48 have a Critical 

(highest level) Security Rating and 52 have a High (second highest level) Security Rating. More than 50 facilities have had 

security upgrades either fi nished, under construction, or have new construction contracts in place.

Impact Improving the technical security of 50 posts overseas has contributed directly to the increased safety and security of 

personnel at post and has indirectly contributed to the effectiveness of U.S. foreign policy.

PERFORMANCE SECTION STRATEGIC GOAL TWELVE: MANAGEMENT AND ORGANIZATIONAL EXCELLENCE
2005 Performance and Accountability Highlights 70

PERFORMANCE GOAL FOUR: SECURE, SAFE, AND FUNCTIONAL 

FACILITIES SERVING DOMESTIC AND OVERSEAS STAFF

Number of New Sites Acquired for Capital Security Construction Projects

(PART Program)

Above Target

Target 9.

Results Ten NEC sites have been acquired (closed) as of September 30, 2005. 

Impact Suffi cient NEC sites were acquired to maintain momentum of NEC construction 

PERFORMANCE GOAL FIVE: INTEGRATED BUDGETING, PLANNING, AND 

PERFORMANCE MANAGEMENT; EFFECTIVE FINANCIAL MANAGEMENT; AND 

DEMONSTRATED FINANCIAL ACCOUNTABILITY

Implementation of Central Financial Planning System (CFPS) Modules Below Target

Target

Complete development and deployment of the following modules:

 Financial Performance and Reporting System (Dashboard), Version 1 and 2

 Bureau Resource Management System (BRMS), Version 2

Results

 Versions 1 and 2 of the Financial Performance and Reporting System (Dashboard) were developed and initial deployment 

begun. 

 Version 1 and Version 2 of BRMS were combined. This single version was near completion with some trial deployments 

completed. 

Impact

CFPS primary objectives are to enable performance and budget integration, improve resource management, and facilitate 

interagency coordination of programs and resources. The Dashboard and BRMS modules are key components of this system. 

(Note: The CFPS is now called the Joint Performance and Planning System to refl ect the increasing efforts of both State and 

USAID to develop the system.)

Reason for 

Shortfall

 The Dashboard module was behind its deployment schedule due to a procurement delay.

 BRMS was behind schedule due to the loss of key contractor personnel, reprioritization of resources, and changes in 

scope to better align the project with other State systems. 

Steps to 

Improve

 Moving forward from the initial delay, Dashboard was able to meet its costs, schedule, and performance requirements. 

Deployment of the application remains on schedule. 

 The combining of modules and a longer development time have enabled refi ned requirements for BRMS. With the 

refi ned requirements, BRMS will better address the needs of it users. (Changes to the BRMS initial project baseline have 

been refl ected in the business case for the project). 

PERFORMANCE GOAL SIX: CUSTOMER-ORIENTED, INNOVATIVE DELIVERY OF 

ADMINISTRATIVE AND INFORMATION SERVICES, ACQUISITIONS, AND ASSISTANCE

Competitive Sourcing On Target

Target Complete agreed-upon competitions; complete 85% of full A-76 cost comparisons within 18 months of offi cial announcement; 

all commercial activities exempt from competition have OMB-approved justifi cations. 

Results

100% (four) of agreed upon streamlined competitions have been completed within OMB approved timeframe of 90 days. 

Three standard competitions were announced. 100% of commercial activities exempt from competition have OMB approved 

justifi cations.

Impact Competitive Sourcing provides the accountability needed to ensure that operational cost effi ciencies and performance 

improvements are achieved.

PERFORMANCE SECTION STRATEGIC GOAL TWELVE: MANAGEMENT AND ORGANIZATIONAL EXCELLENCE
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 71

Financial Section

This section contains an overview of the Department’s fi nancial operations, a summary of the FY 2005 

Independent Auditor’s Report, and other information pertaining to the Department’s fi nancial management. 

For more information on this section, please see the FY 2005 Performance and Accountability Report or 

contact the Offi ce of Financial Policy, Reporting, and Analysis at (202) 261-8620. 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 72

FISCAL YEAR 2005 ($ IN THOUSANDS)

STRATEGIC GOAL STATE APPROPRIATIONS FOREIGN OPERATIONS

Regional Stability $ 1,896,939 $ 5,195,211 

Counterterrorism $ 232,715 $ 1,535,087 

Homeland Security $ 259,473 $ 2,231 

Weapons of Mass Destruction $ 202,091 $ 219,561 

International Crime and Drugs $ 109,183 $ 1,809,093 

American Citizens $ 66,326 $ — 

Democracy & Human Rights $ 352,238 $ 1,147,267 

Economic Prosperity and Security $ 457,576 $ 2,196,707 

Social & Environmental Issues $ 333,435 $ 1,972,596 

Humanitarian Response $ 47,738 $ 1,131,557 

Public Diplomacy and Public Affairs $ 569,898 $ 26,878 

Management and Organizational 

Excellence

 $ 5,380,235 $ 37,812 

Strategic Goal Sub Total $ 9,907,849 $ 15,274,000 

FY 2005 State Appropriations: $9.9 billion

Appropriations for the Department of State fund the key components of the Department’s operations and infrastructure, as well as U.S. 

engagement abroad through public diplomacy and international organizations.

FY 2005 Foreign Operations: $15.3 billion

Foreign Operations programs promote U.S. foreign policy interests that advance the global fi ght against terrorism; provide economic, 

military, and democracy assistance to key foreign partners and allies; promote international peace and prosperity; curb the spread of 

weapons of mass destruction; interdict drugs; and provide health and humanitarian assistance. Some Foreign Operations resources are 

administered by the Department and others by other agencies. In addition, the Department provides foreign policy guidance to certain 

other agencies whose resources are part of international affairs resources (Function 150).

FY 2005 Funding Total Allocated to Strategic Goals: $25.2 Billion

State

Appropriations

$9.9 Billion

Foreign

Operations

$15.3 Billion

RESOURCE HIGHLIGHTS
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 73

Management controls, Financial Management systems

 and compliance with laws and regulations

FEDERAL MANAGERS’ FINANCIAL INTEGRITY ACT 

he Federal Managers’ Financial Integrity Act (FMFIA) requires agencies to establish management control and fi nancial systems 

that provide reasonable assurance that the integrity of federal programs and operations are protected. It also requires that 

the head of the agency, based on an evaluation, provide an annual Statement of Assurance on whether the agency has met 

this requirement. 

The Department evaluated its management control systems and fi nancial management systems for the fi scal year ended September 30, 

2005. This evaluation provided reasonable assurance that the objectives of the FMFIA were achieved in FY 2005, and formed the basis 

for the Secretary’s Statement of Assurance. The Secretary of State’s unqualifi ed Statement of Assurance for FY 2005 is included in the 

Message from the Secretary located at the beginning of this Report. 

Management Control Program

The Management Control Steering Committee (MCSC) oversees the Department’s management control program. The MCSC is chaired 

by the Chief Financial Offi cer, and is composed of nine other Assistant Secretaries [including the Chief Information Offi cer and the 

Inspector General (non-voting)], the Deputy Chief Financial Offi cer, and the Deputy Legal Advisor. Individual assurance statements 

from Ambassadors assigned overseas and Assistant Secretaries in Washington, D.C. serve as the primary basis for the Department’s 

assurance that management controls are adequate. The assurance statements are based on information gathered from various sources 

including the managers’ personal knowledge of day-to-day operations and existing controls, management program reviews, and other 

management-initiated evaluations. In addition, the Offi ce of Inspector General and the Government Accountability Offi ce conduct 

reviews, audits, inspections, and investigations.

To be considered a material weakness in management control for FMFIA reporting purposes, the problem should be signifi cant enough 

that it meets one or more of the FMFIA material weakness criteria. The accompanying chart describes the criteria that the Department 

uses for the FMFIA review.

Status of Management Controls and Financial Manaagement Systems

During the last fi ve years, the Department made signifi cant progress by correcting all outstanding material weaknesses. In addition, 

there are no items specifi c to the Department on the Government Accountability Offi ce’s High Risk List, and there have not been

any since 1995. The following table show the Department’s progress during the past fi ve years with correcting and closing material 

weaknesses.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 74

NUMBER OF MATERIAL WEAKNESSES BY FISCAL YEAR

Fiscal

Year

Number at Beginning 

of Fiscal Year

Number 

Corrected

Number

Added

Number Remaining 

at End of Fiscal Year

2001 3003

2002 3300

2003 0000

2004 0000

2005 0000

For fi nancial systems, the MCSC voted to close in FY 2003 the Department’s one remaining material nonconformance - Financial and

Accounting Systems. This was the fi rst time since the inception of the FMFIA that the Department had no open material nonconformances 

– a signifi cant accomplishment. No new material nonconformances were identifi ed by the MCSC during FY 2004 and FY 2005. As a 

result, the Secretary has provided an unqualifi ed Statement of Assurance regarding the Department’s fi nancial management systems. 

Future Plans 

In FY 2005, OMB revised Circular A-123, Management’s Responsibility for Internal Control, which implements FMFIA, to include a 

new requirement for agency management to provide an annual assessment of internal control over fi nancial reporting beginning for 

FY 2006. The Department began implementing the revised Circular during FY 2005 and is well-positioned for full implementation in 

FY 2006.

FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT ACT

The Federal Financial Management Improvement Act of 1996 (FFMIA) requires that agencies’ fi nancial management systems provide 

reliable fi nancial data in accordance with generally accepted accounting principles and standards. Under FFMIA, fi nancial management 

systems must substantially comply with three requirements — Federal fi nancial management system requirements, applicable Federal 

accounting standards, and the U.S. Government Standard General Ledger (SGL). 

To assess conformance with FFMIA, the Department uses OMB Circular A-127 survey results, FFMIA implementation guidance issued by 

OMB (January 2001 Memorandum to Executive Department Heads, Chief Financial Offi cers, and Inspectors General), results of OIG and 

GAO audit reports, annual fi nancial statement audits, the Department’s annual Federal Information Security Management Act (FISMA) 

Report, and other relevant information. The Department’s assessment also relies a great deal upon evaluations and assurances under 

the FMFIA, with particular importance attached to any reported material weaknesses and material nonconformances. 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 75

The Department has made it a priority to meet the objectives of the FFMIA. In December 2003, the Department initially determined 

that its fi nancial systems comply substantially with the requirements of the FFMIA. This determination was made after considering 

(1) the audited fi nancial statement results as of September 30, 2003, whereby the material weakness on Information Systems Security 

was reduced to a reportable condition, (2) the approval of the Management Control Steering Committee to close the longstanding 

FMFIA material noncomformance for our Financial and Accounting Systems, and (3) systems efforts completed in FY 2003 along with

additional improvements to our fi nancial systems during early FY 2004.

In November 2004, the Department conducted a comprehensive OMB Circular A-127 assessment. The assessment included (among 

other things) a collection of the various background materials, reference documents, and supporting details that document how the 

Department meets the applicable A-127 requirements and OMB FFMIA implementation guidance. Based on the results of this assessment, 

along with information contained in the Department’s FY 2005 FISMA Report and evaluations and assurances provided under FMFIA, 

the Department reaffi rmed its determination of substantial compliance with FFMIA in its FY 2005 Management Representation Letter 

provided to the Independent Auditor. The Department will reassess this determination based upon receipt of the FY 2005 Independent 

Auditor’s Report.

FEDERAL INFORMATION SECURITY MANAGEMENT ACT

The Department’s Federal Information Security Management Act (FISMA) and Privacy Management Report for FY2005 shows 

considerable improvement over previous reports. The Department remains acutely aware of the value and sensitivity of its information 

and information systems and is dedicated to the vigilance required to ensure their adequate protection. A wide range of measures is 

used to assess the Department’s performance in information security. The 2005 FISMA report presents major accomplishments, as well 

as the specifi c metrics upon which performance is assessed. There is commitment at all levels to continually maintain and enhance the 

Department of State information security posture.

Over the past year, the Department made considerable strides in the following areas, while maintaining steady improvement across the 

Information Security Program in automating its IT asset inventory, systems authorization, professionalizing the cyber security workforce, 

integrating information security costs with IT investments, implementing information security into acquisitions, automating confi guration 

management, enhancing incident reporting, information security policy development, and awareness, training, and education.

The Information Security Program focus areas for FY 2006 include improved contractor oversight, continued enhancements and 

refi nements to the Department’s IT asset baseline, implementing Personnel Identity Verifi cation, and increased support for Information 

Systems Security Line of Business. The Program goal for FY 2006 will continue the development and implementation of improved 

metrics for managing and reporting on the performance of the Program. Information security costs will be fully integrated into the 

IT investment process. The Information Security Program will accelerate the use of the internal bureau scorecard, which highlights 

each quarter all bureau achievements and needed improvements in the areas of Systems Authorization, Role Based Training, Patch 

Management, and Plans of Actions and Milestones (POA&Ms).
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 76

GOVERNMENT MANAGEMENT REFORM ACT - AUDITED FINANCIAL STATEMENTS

The Government Management Reform Act (GMRA) of 1994 amended the requirements of the Chief Financial Offi cers (CFO) Act of 

1990 by requiring an annual preparation and audit of agency-wide fi nancial statements from the 24 major executive departments and 

agencies. The statements are to be audited by the Inspector General (IG), or an independent auditor at the direction of the IG. An audit 

report on the principal fi nancial statements, internal controls, and compliance with laws and regulations is prepared after the audit is 

completed.

The Department has a proud tradition of unqualifi ed opinions on our annual fi nancial statements from our independent auditors for the 

better part of the last decade. However, late in FY 2005, the Department became aware of potentially material amounts of Departmentowned personal property held by host countries and contractors, including aircraft and spare parts inventories, which had not been 

refl ected in our fi nancial statements. Due to the need for a complete and thorough analysis, the complexity of the matters involved, 

and the accelerated fi nancial reporting requirements, the Department was unable to satisfy our independent auditors with regard to the 

presentation of personal property by November 15, 2005. 

As a result, and as more fully explained in the Independent Auditor’s Report, included in the Department’s FY 2005 Performance and 

Accountability Report (PAR), the independent auditors issued a qualifi ed opinion on our FY 2005 and FY 2004 fi nancial statements 

released on November 15, 2005. Since then, the independent auditors satisfi ed themselves about the amounts presented as personal 

property in the Department’s FY 2005 and FY 2004 fi nancial statements, and issued an unqualifi ed opinion thereon, dated December 

14, 2005, which has cleared the way for updating the FY 2005 PAR.

In relation to internal control, the report cites material weaknesses in (1) the recording and related depreciation of personal property 

and (2) the Department’s security of information systems networks. In addition, the report cites three reportable conditions: (1) 

the inadequacy of the Department’s fi nancial management systems, (2) the management of unliquidated obligations, and (3) the 

implementation of Managerial Cost Accounting Standards. The Department’s fi nancial management systems are also reported as 

noncompliant with laws and regulations, including the Federal Financial Management Improvement Act of 1996 (FFMIA).

The defi nition of material weaknesses previously discussed in the FMFIA section differs from the defi nition that the independent 

auditors use to assess and report on internal controls in their audits. Under standards issued by the American Institute of Certifi ed 

Public Accountants, material weaknesses in internal control are defi ned as reportable conditions in which the design or operation of 

the internal control does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in 

relation to the fi nancial statements being audited may occur and not be detected within a timely period by employees in the normal 

course of performing their assigned functions.

Reportable conditions are signifi cant defi ciencies, though not material, in the design or operation of internal control that could adversely 

affect the Department’s ability to record, process, summarize and report fi nancial data consistent with the assertions of management 

in the fi nancial statements. 

The table below summarizes the weaknesses in internal control and compliance with laws and regulations cited in the FY 2005 

Independent Auditor’s Report, as well as the actions taken or planned to resolve the problems.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 77

SUMMARY OF INDEPENDENT AUDITOR’S REPORT FINDINGS

Material Weakness Corrective Actions

Target 

Correction 

Date

Strategic

Goal

Information Systems Security

Information system networks for 

domestic operations are vulnerable to 

unauthorized access. Consequently, 

systems, including the Department’s 

financial management system, that 

process data using these networks may 

also be vulnerable. These deficiencies 

were cited as material weaknesses in 

the Department’s 1997 Principal Financial Statements and subsequent audits 

through 2002. In response, the Department initiated a program to assess 

its information systems security on a 

comprehensive and continuing basis. 

As a result, the Independent Auditor 

downgraded these deficiencies to a 

reportable condition in connection 

with the audit of the Department’s 

2003 Principal Financial Statements. 

Their review of information system 

security in connection with the audit 

of the Department’s 2005 Principal 

Financial Statements disclosed that 

the Department is no longer assessing information system security to the 

same extent as it was during 2003 and 

2004. Consequently, the Independent 

Auditor reclassified this deficiency to a 

material weakness.

The Department remains acutely aware of the value and 

sensitivity of its information and information systems 

and is dedicated to the vigilance required to ensure 

their adequate protection. The 2005 FISMA Report 

presents major accomplishments, as well as specific 

metrics upon which performance is assessed.

For FY 2006, the Information Security Program (ISP) 

will focus on addressing any identified shortfalls in 

assessing information system security, along with 

improved contractor oversight, implementing Personnel Identity Verification, and integrating information 

security costs into the IT investment process. In 

addition, the Department will accelerate the use of 

an internal bureau scorecard, which highlights each 

bureau’s needed improvements in the areas of systems 

authorization, role based training, patch management, 

and Plans of Actions and Milestones (POA&Ms). 

2006 Management 

and 

Organizational 

Excellence

Recording of Personal Property

The Department does not have a system 

of controls to identify and record property in the hands of contractors. Further, 

the Department’s controls over aircraft, 

vehicles and other personal property are 

ineffective. Audit work disclosed significant discrepancies between inventories of property reported by posts and 

bureaus and those maintained centrally 

and used as a source for reporting for 

financial statement purposes, posts not 

submitting inventories of property with 

no investigation by responsible Department officials, property not reported 

by posts and/or bureaus, significant 

unreported vehicle armoring costs, and 

errors in depreciation resulting from 

incorrect in-service dates. 

In recognition of the deficiencies with respect to personal property, the Department’s Management Control 

Steering Committee (MCSC) created in October 2005 

a subcommittee to address these weaknesses. The 

subcommittee is charged with developing recommendations for the MCSC’s approval in December 2005 

regarding the scope and severity of identified deficiencies along with corrective actions needed to address 

these issues Departmentwide. Each of the matters 

identified in the Independent Auditor’s Report will be 

addressed as well as additional deficiencies noted during the audit process.

2006 Management 

and 

Organizational 

Excellence

(continued)
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 78

SUMMARY OF INDEPENDENT AUDITOR’S REPORT FINDINGS

Reportable Condition Corrective Actions

Target 

Correction 

Date

Strategic

Goal

Management of Unliquidated 

Obligations

The Department’s internal control 

process related to managing undelivered orders is inadequate. It lacks a 

structured process for reconciling and 

deobligating funds in a timely manner, 

which may result in the loss of those 

funds.

Strengthening the management of unliquidated obligations (UDOs) is an important financial management initiative, and the Independent Auditor’s Report 

notes that there have been improvements in this 

area. In 2004, new capabilities were installed in the 

Department’s Central Financial Management System 

that allow for the automatic deobligation of UDOs 

based on a wide range of criteria (e.g., age, object 

class, dollar amount). In 2005, the UDO database was 

analyzed by a variety of criteria to identify potentially 

invalid items. In some instances, meetings were held 

with bureaus to assist with identifying questionable 

obligations, understand unique bureau issues for their 

aged obligations, raise their awareness of their older 

obligations, and stress the requirement for the bureau 

to review and deobligate invalid UDOs. Based on these 

reviews, the new capabilities were used to deobligate 

37,000 UDOs for over $220 million. 

As part of the President’s Management Agenda Initiative for Improved Financial Performance, the Department prepares quarterly reports for OMB and senior 

management. The March 2005 report, and all subsequent reports, includes a chart that identifies by bureau 

the percentage of UDOs with no activity for the past 

12 months. This analysis is used to focus improvement 

efforts on those bureaus with the higher percentages 

of no activity.

Overall, the Independent Auditor’s FY 2005 tests identified over $340 million that should have been deobligated. However, this amount is $184 million (35%) 

lower than the $524 million reported for FY 2004, and 

takes on added significance when considering the 

$1 billion increase in UDO balances in FY 2005. The 

Department will continue to develop reports and processes to improve the management of UDOs.

2006 Management 

and 

Organizational 

Excellence

Compliance with Managerial Cost 

Accounting Standards 

While the Department complies with 

certain aspects of the Statement of Federal Financial Accounting Standards #4, 

it does not have an effective process 

to routinely collect managerial cost 

accounting information, establish outputs for each responsibility segment, or 

allocate all support costs. 

To address MCAS requirements, the Department developed an automated Statement of Net Cost that enables 

reporting of cost information by strategic objects and 

goals, along with responsibility center. It also allows 

for the allocation of support costs. In FY 2005, the 

Department established a project team, which includes 

consultants with experience implementing Cost 

Accounting Systems. A project plan (Plan) has been 

developed that includes developing survey instruments 

to identify outputs and assess each bureaus’ need for 

managerial cost information, preparing a detailed Concept Paper and implementing managerial cost data for 

pilot bureau(s) by the end of FY 2006. Implementation 

will be expanded during FY 2007. The Plan includes 

reviewing the current Statement of Net Cost to improve 

the gathering and reporting of cost data by strategic 

goal and responsibility center, including the allocation 

of indirect or support costs.

2007 Management 

and 

Organizational 

Excellence

(continued)
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 79

SUMMARY OF INDEPENDENT AUDITOR’S REPORT FINDINGS

Nonconformance with Laws and 

Regulations Corrective Actions

Target 

Correction 

Date

Strategic

Goal

Financial and Accounting Systems 

The Department has identified and 

acknowledged serious weaknesses 

in its financial management systems. 

When first reported, the Department 

was charged with overseeing six 

financial management systems that 

support its domestic bureaus, overseas 

posts and other overseas agencies. 

The financial management systems 

nonconformance includes the following 

five weaknesses: deficiencies in data 

quality; noncompliance with JFMIP core 

requirements; ineffective interfaces; 

inadequate documentation and audit 

trails; and inadequate support of mission 

performance.

Significant progress has been made over the past 

few years to improve financial management systems 

worldwide. The Department has reduced the number of 

financial systems from six to two; decreased the number 

of post-level financial systems from nine to two; and 

re-centralized disbursing offices from 22 to two. In FY 

2003, the Department’s Management Control Steering 

Committee voted to close the material nonconformance 

for financial and accounting systems. In 2004, the two 

existing overseas accounting databases were merged 

into one database residing at the Charleston Financial 

Service Center — all overseas accounting transactions 

for both the Department of State and our serviced 

agencies are now recorded in a single database, and 

many operational/system activities (e.g., software 

upgrades, annual close outs) are performed only in one 

place. 

In 2005, the overseas Regional Financial Management 

System was upgraded to the most current version of 

commercial off-the-shelf (COTS) software used by this 

system. The Department also expanded the number 

of on-line overseas users, added and/or enhanced a 

number of interfaces, and deployed improved reporting 

capabilities.

2007 Management 

and 

Organizational 

Excellence

IMPROPER PAYMENTS INFORMATION ACT

Narrative Summary of Implementation Efforts for FY 2005 and Agency Plans for FY 2006 – FY 2008

The Improper Payments Information Act of 2002 (IPIA), Public Law No. 107-300, requires agencies to annually review their programs 

and activities to identify those susceptible to signifi cant improper payments. Signifi cant improper payments are defi ned as annual 

improper payments in a program that exceed both 2.5 percent of program annual payments and $10 million. Once those highly 

susceptible programs and activities are identifi ed, agencies are required to estimate and report the annual amount of improper 

payments. Generally, an improper payment is any payment that should not have been made or that was made in an incorrect amount 

under statutory, contractual, and administrative or other legally applicable requirements.

Summarized below are the Department’s IPIA accomplishments and future plans for identifying improper payments as prescribed by 

OMB Circular A-136, Financial Reporting Requirements. Additional IPIA reporting details are provided in the Financial Section of this 

Report.

Summary IPIA accomplishments

In FY 2004, the Department focused on reviewing programs with a high risk of being susceptible to signifi cant improper payments. 

Federal Financial Assistance and Vendor Pay were the two categories of payments considered to be susceptible to signifi cant 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 80

improper payments. The results of the three program reviews completed in FY 2004 are refl ected in the table on the following pages. 

Only the U.S. Speaker and Specialist program actual error rate was high at 81.18%, although the estimated amount of improper 

payments was low. This high actual error rate refl ects misuse of invitational travel rather than grants for participant transportation. 

With implementation of a revised “Grants Policy Directive” on October 1, 2005, the error rate is expected to be lower in FY 2006.

In FY 2005, the Department reviewed the high-risk programs that were not reviewed in FY 2004 and performed a reassessment of risk 

for all payment categories (i.e., Federal Financial Assistance, Vendor Pay and Employee Pay). The results, refl ected in the table on the 

following page, show that the programs reviewed were of moderate risk of being susceptible to signifi cant improper payments. No new 

high-risk programs were identifi ed in FY 2005. 

Future plans

Future plans provide for expanding the IPIA program to include programs assessed as having a low susceptibility to signifi cant improper 

payments. We do not expect to fi nd signifi cant improper payments in these programs; however, we will seek to identify opportunities 

to strengthen internal control. 

SUMMARY STATUS OF IMPROPER PAYMENTS REVIEWS

Program 

(Dollars in

 Millions)

Outlays for 

First Nine 

Months of 

FY 2004

Outlays for 

Last Quarter 

FY 2004 and 

First Three 

Quarters of 

FY 2005

Initial 

Risk Task Status and Results Error Rate

Revised 

Risk

Year Rev iewed : 2005

Federal Financial Assistance

Population, Refugee 

and Migration (PRM) 

- Refugee Assistance

$ — $ 682 Moderate Performed reassessment 

of risk, selected statistical 

sample, and reviewed 

program for improper 

payments

No improper payments were 

identifi ed and no further 

reviews are planned for this 

program.

0% Low

Educational and 

Cultural Affairs (ECA) 

- Fulbright Program

$ — $ 169 Moderate Performed reassessment 

of risk, selected statistical 

sample, and reviewed 

program for improper 

payments

No improper payments were 

identifi ed and no further 

reviews are planned for this 

program.

0% Low

International 

Narcotics and Law 

Enforcement (INL) 

- Law Enforcement, 

Eradication, Aviation 

Support and Support 

to the Military 

Program

$ — $ — Moderate Performed reassessment 

of risk, selected statistical 

sample, and reviewed 

program for improper 

payments

The review for this program 

was started in FY 2005 and will 

be completed in FY 2006 and 

reported in the FY 2006 PAR.

N/A N/A

International 

Organizations 

(IO) -Voluntary 

Contributions and 

Peacekeeping

$ — $ 1,891 Moderate Performed reassessment 

of risk, selected statistical 

sample, and reviewed 

program for improper 

payments

No improper payments were 

identifi ed and no further 

reviews are planned for this 

program.

0% Low

(continued)
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 81

SUMMARY STATUS OF IMPROPER PAYMENTS REVIEWS (continued)

Program

(Dollars in

 Millions)

Outlays for 

First Nine 

Months of 

FY 2004

Outlays for 

Last Quarter 

FY 2004 and 

First Three 

Quarters of 

FY 2005

Initial 

Risk Task Status and Results Error Rate

Revised 

Risk

Year Rev iewed : 2005 (continued)

Vendor Pay

Structures and 

Equipment

$ 671 $ — High Review was started in 

FY 2004 for fi rst nine 

months of FY 2004 

and was completed 

in FY 2005

The error rate was a result of 

isolated incidents caused by 

human error. This program will 

not be reviewed for improper 

payments in the future unless 

new information becomes 

available that might increase 

the risk. The projected error 

rate for the last quarter of 

FY 2004 and the fi rst three 

quarters of FY 2005 < 1%.

3.97% Low

Year Rev iewed : 2004

Federal Financial Assistance

INL - Narcotics 

Program

$ 313 $ — High Followed-up on corrective 

action taken in FY 2005 

to reduce improper 

payment error rate 

reported in FY 2004

Due to the low error rate, no 

further reviews are planned.

0.87% Low

International 

Information Program 

(IIP) -- U.S. Speaker 

and Specialist 

Program

$ 30 $ 41 High Followed-up on 

corrective action taken 

in FY 2005 to reduce 

improper payment 

error rate reported in 

FY 2004, resulting from 

the mis-designation 

of participants as 

invitational travelers 

rather than grantees

The high error rate was due 

to travel vouchers not being 

submitted at the completion 

of travel due to the incorrect 

use of invitational travel 

forms rather than grant forms. 

However, with the issuance of 

revised “Grants Policy Directive 

1O” on October 1, 2005, 

participants will be properly 

designated as grantees and 

use the appropriate form. This 

will reduce errors beginning 

in FY 2006. No review was 

conducted in FY 2005. The next 

planned review is in FY 2006.

High

Vendor Pay

Other Contractual 

Services

$ 1,534 $ 3,299 High Followed-up on corrective 

action taken in FY 2005 

to reduce improper 

payment error rate 

reported in FY 2004

Due to the low error rate, no 

further reviews are planned.

2% Low
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 82

Financial Highlights

he Department’s fi nancial statements, which appear in the Financial Section of the FY 2005 Performance and Accountability 

Report (PAR), are audited by an independent accounting fi rm. Preparing these statements is part of the Department’s goal to 

improve fi nancial management and to provide accurate and reliable information that is useful for assessing performance and 

allocating resources. Department management is responsible for the integrity and objectivity of the fi nancial information presented in 

the fi nancial statements.

 The fi nancial statements and fi nancial data presented in the FY 2005 PAR have been prepared from the accounting records of the 

Department of State in conformity with accounting principles generally accepted in the United States of America (GAAP). GAAP for 

Federal entities are the standards prescribed by the Federal Accounting Standards Advisory Board (FASAB). 

AUDIT RESULTS

The Department has a proud tradition of unqualifi ed opinions on our annual fi nancial statements from our independent auditors for the 

better part of the last decade. However, late in FY 2005, the Department became aware of potentially material amounts of Departmentowned personal property held by host countries and contractors, including aircraft and spare parts inventories, which had not been 

refl ected in our fi nancial statements. Due to the need for a complete and thorough analysis, the complexity of the matters involved, 

and the accelerated fi nancial reporting requirements, the Department was unable to satisfy our independent auditors with regard to the 

presentation of personal property by November 15, 2005.

As a result, and as more fully explained in the Independent Auditor’s Report included in the FY 2005 PAR, the independent auditors issued 

a qualifi ed opinion on our FY 2005 and FY 2004 fi nancial statements released on November 15, 2005. Since then, the independent auditors 

satisfi ed themselves about the amounts presented as personal property in the Department’s FY 2005 and FY 2004 fi nancial statements, 

and issued an unqualifi ed opinion thereon, dated December 14, 2005, which has cleared the way for updating the FY 2005 PAR.

The Department is committed to resolving these personal property issues as quickly as possible and strengthening our controls in this 

area. In October 2005, the Department’s Management Control Steering Committee (MCSC) – the body charged with overseeing the 

Department’s management control program under the Federal Managers’ Financial Integrity Act (FMFIA) – created a Department-wide

subcommittee to address the identifi ed weaknesses in personal property. This subcommittee will report to the MCSC in December 2005 

and propose a corrective action plan to resolve these issues.

OVERVIEW OF FINANCIAL POSITION

Assets. The Consolidated Balance Sheet shows the Department had total assets of $35.7 billion at the end of 2005. This represents 

an increase of $3.8 billion (11.9%) over the previous year’s total assets of $31.9 billion. The increase is primarily the result of increases 

of $2.1 billion in Fund Balances with Treasury, $921 million in property and equipment, and $543 million in investments in the Foreign 

Service Retirement and Disability Fund (FSRDF). The increase in Fund Balances with Treasury primarily resulted from a $2.2 billion 

increase in unexpended appropriations.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 83

The Department’s assets refl ected in the Consolidated Balance Sheet are summarized in the following table 

(dollars in thousands):

2005 2004 2003

 Investment, Net $ 13,389,090 $ 12,846,060 $ 12,301,173

 Fund Balances with Treasury 14,023,542 11,900,569 9,953,197

 Property and Equipment, Net 7,244,965 6,323,916 5,996,493

 Accounts, Loans & Interest Receivable, Net 854,315 730,951 584,230

 Other Assets 225,434 122,051 59,553

 Total Assets $ 35,737,346 $ 31,923,547 $ 28,894,646

 Investments, Fund Balances with 

Treasury and Property and Equipment 

comprise approximately 97% of total 

assets for 2005, 2004, and 2003. 

Investments consist almost entirely 

of U.S. Government Securities held in 

the FSRDF. 

Information on Heritage Assets, 

which consists of art furnishings held 

for public exhibition, education and 

offi cial entertainment, is provided in 

the RSSI section of this report.

Assets by Type

0.6% 39.2%

37.5%

20.3%

2.4%

Investments

Fund Balances with Treasury

Property and Equipment

Receivables

Other Assets

Liabilities. The Department had total liabilities of $17.1 billion at the end of 2005, which is reported on the Consolidated Balance 

Sheet and summarized in the following table (dollars in thousands):

2005 2004 2003

 Foreign Service Retirement Actuarial Liability $ 13,429,300 $ 13,317,900 $ 13,093,800

 Liability to International Organizations 1,178,130 897,381 919,428

 Accounts Payable 1,269,794 1,250,142 1,058,514

 Other Liabilities 1,202,774 866,772 709,394

 Total Liabilities $ 17,079,998 $ 16,332,195 $ 15,781,136
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 84

 The Foreign Service Retirement Actuarial 

(FSRA) Liability of $13.4 billion and the Liability 

to International Organizations of $1.2 billion 

comprise 85% of the Department’s total 

liabilities at the end of 2005. 

Of the total liabilities, $1.85 billion were 

unfunded, i.e., budgetary resources were 

not available to cover these liabilities. The 

$1.85 billion is primarily comprised of 

the $1.2 billion Liability to International 

Organizations, and the unfunded portion of the 

Environmental Liabilities of $392.3 million.

 The $1.2 billion Liability to International Organizations consists of $1.1 billion in calendar year 2005 annual assessments, and 

$60.0 million in accumulated arrears assessed by the UN, its affi liated agencies and other international organizations. These fi nancial 

commitments mature into obligations only when funds are authorized and appropriated by Congress. 

As of September 30, 2005, a total of $926 million had been appropriated by Congress for payment of U.S. arrearages. These amounts, 

however, were made available subject to certifi cations by the Secretary of State that certain legislative requirements were met. 

A payment of $100 million in arrearages was made in FY 2000; a payment of $475 million and a credit of $107 million were made in 

FY 2002; and payments totaling $242 million were made in FY 2003. 

Ending Net Position. The Department’s Net Position at the end of 2005 on the Consolidated Balance Sheet and the Consolidated 

Statement of Changes in Net Position is $18.7 billion, a $3.1 billion (20%) increase from the previous fi scal year. Net Position is the sum 

of the Unexpended Appropriations and Cumulative Results of Operations.

The growth in Unexpended Appropriations is due principally to the continued increase in budget authority received to provide funding 

for Iraq, embassy security, international narcotics control, and the Global HIV/AIDS initiative. The increase in Cumulative Results of 

Operations resulted mainly from the $921 million increase in property and equipment. 

RESULTS OF OPERATIONS

The results of operations are reported in the Consolidated Statement of Net Cost and the Consolidated Statement of Changes in 

Net Position. 

The Consolidated Statement of Net Cost presents the Department’s gross and net cost for its strategic objectives and strategic goals. 

The net cost of operations is the gross (i.e., total) cost incurred by the Department, less any exchange (i.e., earned) revenue. The 

Consolidating Schedule of Net Cost categorizes costs and revenues by strategic goal and responsibility segment. A responsibility segment 

is the component that carries out a mission or major line of activity, and whose managers report directly to top management. For the 

Department, a Bureau (e.g., Bureau of African Affairs) is considered a responsibility segment. For presentation purposes, Bureaus have 

Liabilities by Type

7.1%

78.6% 7.4%

6.9%

FSRA Liability

Liability to International

Organizations

Accounts Payable

Other Liabilities
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 85

been summarized and reported at the Under 

Secretary level (e.g., Under Secretary for 

Political Affairs). Information on the Bureaus 

(or equivalent) that report to each Under 

Secretary can be found on the Organization 

Chart for the Department provided earlier 

in this Report. The presentation of program 

results by strategic objectives and strategic 

goals is based on the Department’s current 

Strategic Plan established pursuant to the 

Government Performance and Results Act 

of 1993.

 The Department’s total net cost of operations for 2005, after intra-departmental eliminations, was $12 billion. The strategic objective to 

“Achieve Peace and Security” represents the largest investment for the Department at 44.7% of the Department’s net cost of operations. 

The net cost of operations for the remaining strategic objectives varies from 13.9% to 25%. 

The Consolidated Statement of Changes in Net Position presents the accounting items that caused the net position section of the

balance sheet to change since the beginning of the fi scal year. Appropriations Used totaled $13.6 billion, comprising 90.1% of the 

Department’s total revenues and fi nancing sources after considering intra-departmental eliminations of $2.0 billion. The charts on this 

page refl ect the funds that the Department received during 2005 and how these funds were used.

The Combined Statement of Budgetary 

Resources provides information on how 

budgetary resources were made available 

to the Department for the year and their 

status at fi scal year-end. For the fi scal 

year, the Department had total budgetary 

resources of $25 billion, an increase of 

17% from 2004 levels. Budget Authority 

of $16.8 billion – which consists of $15.6 

billion for appropriations (direct, related, 

and supplemental) and transfers, and $1.2 

billion fi nanced from trust funds – comprise 

67% of the total budgetary resources. The 

Department incurred obligations of $20.7 billion for the year, a 16% increase over the $17.9 billion of obligations incurred during 2004. 

Outlays refl ect the actual cash disbursed against the Department’s obligations. 

The Combined Statement of Financing reconciles the resources available to the Department to fi nance operations with the net costs of 

operating the Department’s programs. Some operating costs, such as depreciation, do not require direct fi nancing sources.

Where Funds Go - Net Program Costs (Dollars in Thousands)

$ 1,969,981

$ 2,993,713

$ 5,354,671

Achieve Peace and Security

Advance Sustainable

Development and Global Interests

Promote International

Understanding

Executive Direction and other

Costs not Assigned

$ 1,664,412

$ 11,982,777

Total Net Cost

Where Funds Come From (Dollars in Thousands)

$ 3,863,485

$ 1,220,753

$ 4,340,245

$ 15,533,171

Appropriations and

Transfers

Reimbursements Earned

Trust Funds

Other

$ 24,957,654

Total Budget Resources
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 86

BUDGETARY POSITION 

The FY 2005 budget for the Department of State totaled $10.134 billion. It included appropriations for the Administration of 

Foreign Affairs ($7.691 billion), contributions to international organizations and peacekeeping activities ($2.280 billion), international 

commissions ($63 million), and related programs ($99 million). 

In addition to regular funding provided by the Consolidated Appropriations Act, 2005, the Department’s FY 2005 budget refl ected 

supplemental funding provided through the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and 

Tsunami Relief Act, 2005. This supplemental funding was required to address the extraordinary security and operating costs of the U.S. 

Missions in Iraq and Afghanistan, as well as U.S. assessments for international peacekeeping.

The Department continued to rely on Machine Readable Visa (MRV), Expedited Passport, and other user fee collections for the Border 

Security Program to strengthen protection of America’s borders. This revenue helped support increased consular workloads and meet 

the national security mandate to collect biometric data for U.S. passports and visas.

Appropriations under Administration of Foreign Affairs provide the Department’s core funding. They support the people and programs 

required to carry out U.S. foreign policy and advance American interests at more than 260 posts worldwide. They also build, maintain, 

and secure the infrastructure of the diplomatic platform from which most U.S. Government agencies operate overseas.

In FY 2005, the Department’s principal operating appropriation – Diplomatic and Consular Programs (D&CP) – was funded at $4.906

billion. Together with MRV fees, this funding sustained critical diplomatic and consular operations and enabled the Department to 

meet new requirements in the post-September 11 environment. The funding included $650 million for Worldwide Security Upgrades to 

increase security for diplomatic personnel and facilities under threat from terrorism and $316 million for vigorous public diplomacy to 

inform foreign opinion and gain support for U.S. policies abroad. The funding also included resources to further the government-wide 

reforms of the President’s Management Agenda. 

The Department’s appropriations for information technology initiatives totaled $128 million – $51 million in the Capital Investment 

Fund (CIF) and $77 million in the Centralized Information Technology Modernization Program. FY 2005 investments helped modernize 

the Department’s global IT infrastructure and provide ready access to foreign affairs applications and information. The Department’s 

infrastructure and mission-oriented application systems supported approximately 50,000 users at over 390 locations worldwide for both 

classifi ed and unclassifi ed processing.

The Embassy Security, Construction, and Maintenance (ESCM) appropriation was funded at $2.096 billion (regular appropriations plus 

supplemental funding). This funding helped provide U.S. missions overseas with secure, safe, and functional facilities. The funding also 

supported management of the Department’s real estate portfolio, which exceeds $12 billion and includes over 15,000 properties. From 

the appropriation total, $900 million supported capital security construction and compound security projects and $592 million was for 

construction of the new embassy in Iraq. Under the Capital Security Cost Sharing program, all agencies with overseas staff under Chief 

of Mission authority contributed to the construction costs of new embassy compounds. 

The Educational and Cultural Exchange Programs appropriation was funded at $356 million. These strategic activities engaged foreign 

audiences to develop mutual understanding and build foundations for international cooperation. Aligned with public diplomacy 
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 87

efforts, they reached out to wider and 

younger audiences, especially in the Muslim 

world. This funding provided $204 million for 

academic exchanges with foreign participants 

and U.S. citizens, notably through the Fulbright 

program. Funding also provided $121 million 

for professional and cultural exchanges, 

including the International Visitor Leadership 

Program and Citizen Exchanges. 

For FY 2006, the Department’s budget request 

(at this date still pending before Congress) 

totals $9.283 billion. It includes resources 

to address ongoing foreign policy priorities, 

particularly to support the global war on 

terror and maintain the operational readiness 

of American diplomacy. The request for D&CP 

is $4.473 billion, including $690 million for 

upgrades of physical security equipment and 

technical support, information and systems 

security, perimeter security, and security 

training. The request provides $133 million 

in CIF for information technology investments 

worldwide. Finally, the request for ESCM totals $1.526 billion, including $910 million for design and/or construction of secure facilities, 

additional site acquisitions, and compound security projects. 

LIMITATION OF FINANCIAL STATEMENTS

Management prepares the accompanying fi nancial statements to report the fi nancial position and results of operations for the 

Department of State pursuant to the requirements of Chapter 31 of the United States Code section 3515(b). While these statements 

have been prepared from the books and records of the Department in accordance with OMB Circular A-136, Financial Reporting 

Requirements, these statements are in addition to the fi nancial reports used to monitor and control the budgetary resources that are 

prepared from the same books and records. These statements should be read with the understanding that they are for a component

of the U.S. Government, a sovereign entity. One implication of this is that unfunded liabilities reported in the statements cannot 

be liquidated without the enactment of an appropriation and ongoing operations are subject to the enactment of appropriations. 

The Department also issues fi nancial statements for its International Cooperative Administrative Support Services (ICASS) and 

the International Boundary and Water Commission (IBWC). The complete, separately-issued ICASS and IBWC Annual Financial Reports 

are available from the Department’s Bureau of Resource Management, Offi ce of Financial Policy, Reporting and Analysis, 2401 E Street, 

Room H1500, Washington, DC, 20037; (202) 261-8620.

The Federal Government Dollar

7.4%

19.9% 13.9%

21.1%

1.3%

36.4%

America’s Best Guesses

Public Estimates on Foreign Policy Issues

Topic U.S. Perception Reality

Percentage of U.S. Budget 20 percent Less than

going to foreign aid 1 percent

Reproduced with permission from FOREIGN POLICY # 126 (September/October 2001).

Copyright 2001 by the Carnegie Endowment for International Peace.

Social Security

National Defense

Medicaid, Health,

Other Entitlements

Net Interest

International Affairs

All Other Functions

Source: Mid-Session Review, Budget of the United States Government, Fiscal Year 2006.
UNITED STATES DEPARTMENT OF STATE

2005 Performance and Accountability Highlights 88

FINANCIAL AND PERSONNEL HIGHLIGHTS

(Dollars in Thousands)

% Change

2005 over 2004 2005 2004 2003

At End of Year:

Condensed Balance Sheet Data:

Investments, Net +4% $ 13,389,090 $ 12,846,060 $ 12,301,173

Fund Balances With Treasury +18% 14,023,542 11,926,434 9,953,197

Property and Equipment, Net +15% 7,244,965 6,323,916 5,996,493

Other +30% 1,079,749 833,465 643,783

Total Assets +12% $ 35,737,346 $ 31,929,875 $ 28,894,646

Foreign Service Retirement Actuarial1 +1% $ 13,429,300 $ 13,317,900 $ 13,093,800

Liability to International Organizations +31% 1,178,130 897,381 919,428

Other +15% 2,472,568 2,142,779 1,767,908

Total Liabilities +4% 17,079,998 16,358,060 15,781,136

Unexpended Appropriations +23% 11,430,639 9,279,214 7,608,996

Cumulative Results of Operations +13% 7,226,709 6,292,601 5,504,514

Total Net Position +25% 18,657,348 15,571,815 13,113,510

Total Liabilities and Net Position +12% $ 35,737,346 $ 31,929,875 $ 28,894,646

Full-time Personnel:

Civil Service +3% 8,092 7,831 7,731

Foreign Service +2% 11,238 10,988 10,579

Foreign Service National +6% 8,964 8,419 9,897

Total Full-time Personnel +4% 28,294 27,238 28,207

Foreign Service Annuitants1 +2% 14,842 14,668 14,581

For the Year:

Total Cost +17% $ 16,114,593 $ 13,761,645 $ 12,222,640

Total Earned Revenue +32% (4,131,816) (3,121,078) (3,163,023)

Total Net Cost of Operations +13% $ 11,982,777 $ 10,640,567 $ 9,059,617

On-Time Payments (%) +2% +96% +94% +92%

Electronic Funds Transfer Payments (%) +5% +85% +80% +79%

1

 The Department administers the operations of the Foreign Service Retirement and Disability Fund. This Fund provides 

annuities to retired members of the Foreign Service (or their survivors).
AcknowledgmentS

This Performance and Accountability Report was produced with the

energies and talents of Department staff in Washington, D.C., and our offices

and posts around the world. To these dedicated individuals we offer our

sincerest thanks and acknowledgment.

In particular, we recognize the following individuals for their contributions:

The PAR Core Team: Sheila Conley, Kevin Covert, Nicholas Feeley, Michael

George, Alethea Gordon, Suzanne Helmer, Shelby Hunt, Doug Kent, John

Spears, Frank Sullivan, Damon Sutton.

Staff from the Office of the Deputy Chief Financial Officer: Tom Allwein, Eileen

Angle, Nancy Babe, Latonia Baptiste, Anthony Belliotti, Susan Crowder, Spring

George, Carol Gower, Bill French, Shelly Harvey, Stephanie Holmes, Don

Hunter, Sherril Hyson, Ayana Jackson, Matthew Johnson, Rick Keller, Jeffrey

Long, Brian Lyons, Irwin Mazin, Marshelle Richardson, Troy Scaptura, Sanjay

Shah, Jerry Sharp, Rosemarie Sullivan, Erein Tang, Richard Thompson, Peter

Vieira.

Bureau Planning Coordinators: Kim Archea, John Bargeron, Barry

Bartholomew, Marlene Baxter, DeAnne Bryant, Jody Buckneberg, Deryck

Chase, Leon Coates, Cassady Craft, Fruzsina Csaszar, William K. Davis, Lauren

A. Deacon, Kurt Donnelly, John Dudley, Joel Fischman, Stephen R. Fox,

Michael A. Foughty, Lauren Frese, Ron Gain, Paula Goode, Lisa Goodale,

Nicole Green, Laura Hall, Jean Hartung, Tom M. Hill, Emily Hillenbrand, Greg

Holliday, Hattie Jones, Paul Kiehl, Ted Kniker, Sara Maddux, Seema W. Matin,

Janet Mayland, Victor Munoz, Cynthia Nelson, Wayne Oshima, John Osterhaus,

Adrienne Parrish, Elissa Pitterle, Susan Poulin, Mary K. (Kathy) Quirk, Robinson

Ramirez, Andy Reynolds, Rick Ruth, Cindy Saboe, Peter Sawchyn, Brian

Schaaf, Melissa Schumi, Daniel Shea, Larry Sperling, Shannon Swanson,

Basil Temchatin, Lisbeth Thompson, Barnaby Walsh, Janey Wright, Rick

Yoneoka.

We are extremely grateful to Global Financial Services personnel in Charleston,

Bangkok, Paris and Washington, who contributed significantly to this year's

financial operations and accountability reporting.

Special acknowledgment goes to Public Affairs specialist Daniel Schaub and

his team; Paul Claussen, Susan Holly and Jennifer Walele from the Office of

the Historian; Phyllis Smith and Samiha Muhammad from the Office of MultiMedia Services; David Johnston, the Art Director at State Magazine; and David

G. Smith, Leo Dillon, and Brian VanPay in the Office of the Geographer for their

compelling cartography.

We gratefully acknowledge permission to publish the following maps:

 NATO Countries, The North Atlantic Treaty Organization.

 Container Security Initiative Ports, U.S. Customs and Border Protection,

Department of Homeland Security.

 Chemical weapons status map reproduced from Deadly Arsenals:

Nuclear, Biological, and Chemical Threats, Revised Edition by Joseph

Cirincione, Jon B. Wolfsthal, and Miriam Rajkumar and licensed by The

Carnegie Endowment for International Peace, Washington, DC, U.S.A.

 Map of Freedom 2005, Freedom House.

 Growth in GDP and GNI Per Capita, World Bank.

 Adults and Children Estimated to be Living with AIDS,

The Joint United Nations Programme on HIV/AIDS.

 Documented Avian Influenza Infections in Humans,

European Union Centre for Disease Prevention and Control.

 USG Humanitarian Assistance: Indian Ocean Earthquake

and Tsunamis, U.S. Agency for International Development.

We offer our special thanks to The DesignPond, in particular

Michael James, Sheri Beauregard, and Don James for their

outstanding contributions to the design of this report.

Note: The Bureau of Public Affairs, Office of Electronic Information (PA/EI)

assisted the Bureau of Resource Management with the production of the

FY 2005 PAR, including photos from AP/Wide World.

An electronic version is available on the World Wide Web at

http://www.state.gov/s/d/rm/rls/perfrpt/

For additional copies, please send requests to PAR@state.gov or call (202) 261-8620 or (202) 647-0300
United States Department of State

2201 C Street, N.W.

Washington, D.C. 20520

(202) 647-4000

www.state.gov