United States 

Department of State

2011 F i s c a l Y e a r

Partners in Diplomacy and Development

Joint Summary of Performance

and Financial Information
U.S. Secretary of State Hillary Rodham Clinton, right, and USAID 

Administrator Dr. Rajiv Shah, left, participate in the launch of 

a Global Partnership on Maternal and Child Health led by 

USAID, the Government of Norway, The Bill and Melinda Gates 

Foundation, Grand Challenges Canada, and the World Bank, 

Wednesday, March 9, 2011, in Washington. ©AP Image

Introduction 1

Mission and Values 1

Message from the Secretary of State 2

Message from the USAID Administrator 6

Our Organizations 7 

Joint Strategic Goal Framework 8

Management Highlights 10

Management Accomplishments 10

Management Challenges 14 

Diplomacy and Development Regional Highlights 25

Performance Highlights 35

Performance Management 35

Program Evaluation 36

TABLE OF CONTENTS

Strategic Goals and Results 40

Achieving Peace and Security 40

Governing Justly and Democratically 43

Investing in People 48

Promoting Economic Growth and Prosperity 52

Providing Humanitarian Assistance 56

Promoting International Understanding 59

Strengthening Consular and Management Capabilities 61

Budget Highlights 63

Resources by Strategic Goal 64

Financial Highlights 66

Balance Sheet Summary 67

Net Cost of Operations Summary 67

Budgetary Resources Summary 68

ABOUT THIS REPORT

This report provides a summary of Department of State 

and U.S. Agency for International Development (USAID) 

performance and financial information for Fiscal Year 

(FY) 2011. The Joint Summary of Performance and 

Financial Information is one of three annual financial 

and performance reports that also include the Agency 

Financial Report and the Annual Performance Report. 

The Summary provides information on both agencies’ 

performance in promoting greater accountability and accessibility to Congress, the American public, and other key constituencies. 

The Department and USAID continue to work toward planning, budgeting, and managing diplomacy and development activities to 

achieve greater integration and focus to further foreign policy goals and improve people’s lives around the world. 

ABOUT THE COVER

Clockwise from upper left: USAID funded program for distribution of non-emergency items in poor areas of Benghazi, Libya. USAID; 

A community midwife in Badakshan, Afghanistan uses a family planning flip chart during her counseling session at a basic health 

center. USAID; A new customer signs up for mobile banking at a supermarket in Port-au-Prince, Haiti, in March 2011. USAID; An Egyptian 

woman shows her ink-stained thumb after voting at a polling station in the Manial neighborhood of Cairo in November 2011. 

©AFP Image / Mahmud Hams; Secretary of State Hillary Rodham Clinton speaks about China, Friday, January 14, 2011, at the State Department 

in Washington. ©AP Image; USAID Administrator Shah with villagers from Magdalena la Abundancia, Sacapulas, Quiche who are part of 

the Agriculture Chain Program in Guatemala in January 2011. USAID

Leadership in a

Time of Change

United StateS department of State

Fiscal Year 2011 Agency Financial Report

18

22

38

50

139

Blue Print Forward

Technology and Freedom

Financial Condition

Feed the Future

Our Challenges

148 Assisting U.S. 

Citizens Abroad Fiscal Year 2011

Agency FinAnciAl RepoRt

United States Department of State

Washington, DC 20520

www.state.gov

Volume 1:

DEPARTMENT OF STATE OPERATIONS

Fiscal Year 2013

THE SECRETARY OF STATE

CONGRESSIONAL BUDGET JUSTIFICATION

Vol. 1 DEPARTMENT OF STATE OPERATIONS CONGRESSIONAL BUDGET JUSTIFICATION

United States Department of State

Washington, DC 20520

www.state.gov

Volume 2:

FOREIGN OPERATIONS

Fiscal Year 2013

THE SECRETARY OF STATE

CONGRESSIONAL BUDGET JUSTIFICATION

Vol. 2 FOREIGN OPERATIONS CONGRESSIONAL BUDGET JUSTIFICATION
Our Missi o n S tate m ent

Shape and sustain a peaceful, prosperous, just, and democratic world 

and foster conditions for stability and progress for the benefit of the 

American people and people everywhere.

Our Values

LOYALTY

Commitment to the United States and the American people.

C H A R A C T E R 

Maintenance of high ethical standards and integrity.

S E R V I C E 

Excellence in the formulation of policy and management practices with 

room for creative dissent. Implementation of policy and management 

practices, regardless of personal views.

A C C O U N T A B I L I T Y 

Responsibility for achieving United States foreign policy goals 

while meeting the highest performance standards.

C O M M U N I T Y 

Dedication to teamwork, professionalism, and the customer perspective.

D iversity

Commitment to having a workforce that represents the diversity of America. ©AP Image

“Abroad, we are strengthening alliances, forging new partnerships, and using 

every tool of American power to advance our objectives—including enhanced 

diplomatic and development capabilities with the ability both to prevent conflict 

and to work alongside our military.” 

—President Obama, National Security Strategy, May 2010
I

am pleased to present the U.S. Department 

of State’s Joint Summary of Performance and 

Financial Information for fiscal year 2011, 

created in partnership with the United States 

Agency for International Development (USAID). 

This year has seen some dramatic changes around 

the world, but two constants remain as firm as 

ever: The remarkable men and women of the 

Department of State and USAID continue to 

work tirelessly to advance our nation’s interests 

and values, and America’s leadership remains both respected 

and required around the globe. When old adversaries need an 

honest broker or fundamental freedoms need a champion, the 

international community looks to America and its diplomats. 

When a famine threatens the lives of millions in East Africa 

or floods sweep across Pakistan, people look to America and 

its development experts. They see what we sometimes miss 

amid all the noise in Washington: America is and remains a 

beacon of freedom, a guarantor of global security, and a true 

opportunity society.

In the Middle East and North Africa, where citizens stood 

up and demanded their universal rights, our civilian team 

is reaching beyond the embassy walls through extensive use 

of social networking and new media tools to engage directly 

with the people of the region. In Tunisia, Egypt, and Libya, 

we are supporting civil society, women’s rights organizations, 

independent journalists, and students as they move from 

protest to politics. We are helping transitional authorities 

build democratic institutions and prepare for elections and 

are working to address the range of challenges emerging as 

these transitions unfold. For the Arab political awakening 

to succeed, it also must be an economic awakening. So we 

are working with leaders in the public and private sectors to 

create new economic opportunities for men, women, and 

marginalized groups; foster entrepreneurship; and increase 

regional integration and trade.

In Iraq, we have transitioned to a civilian 

partnership and shifted our focus to governance 

and economic development. We have opened 

new consulates in Basrah, Erbil, and Kirkuk 

that, along with our embassy, will support Iraqis 

as they work to strengthen their democracy, 

combat terrorism, and rejoin the international 

community. 

In Afghanistan, we are transitioning to a full 

Afghan security responsibility by the end of 2014. 

We are pursuing our “fight, talk, build” strategy that aims to 

defeat al-Qaida, increase military pressure on the Taliban and 

other insurgents, and support Afghan-led reconciliation with 

the inclusion of women and civil society that meets clearly 

defined objectives. We will also continue to promote economic 

and political stability through short-term development 

assistance and a long-term vision of regional economic 

integration and trade we call the New Silk Road.

As we have transitioned to a civilian-led mission in Iraq and 

as America draws down its forces in Afghanistan, the United 

States stands at a pivot point. In the last 10 years, we allocated 

immense resources to those two theaters. Over the next 10 

years, we need to focus increasingly on areas of opportunity. 

That means being smart and systematic about where we invest 

time and energy, so that we put ourselves in the best position 

to sustain our leadership, secure our interests, and advance our 

values. One of the most important tasks of American statecraft 

in the next decade, therefore, will be to lock in a substantially 

increased investment – diplomatic, economic, strategic, and 

otherwise – in the Asia-Pacific region, which has become a key 

driver of global politics and economics. 

In 2011, the United States continued to increase engagement 

with traditional allies in Asia, as well as with the region’s 

emerging powers and multilateral organizations, including 

the Association of Southeast Asian Nations, the Asia-Pacific 

Message from the Secretary of State

2 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011
Economic Cooperation forum, and the East Asia Summit. 

We are already seeing the results of this increased engagement – 

in FY 2011, U.S. exports to APEC members grew much faster 

than exports to the rest of the world. 

While we seek to intensify engagement with partners in the 

Asia-Pacific region, we will continue to reap the extraordinary 

benefits of our already well-established links with European 

partners. In the past year we saw clear evidence of how close 

strategic coordination with Europe led to outcomes that far 

exceeded what we could have achieved unilaterally. The most 

dramatic examples were in the Middle East and North Africa, 

where collaboration with NATO and EU partners contributed 

to the end of the Qadhafi regime in Libya, helped to ratchet 

up pressure on the Iranian regime, confronted a dictator in 

Syria, and ensured effective donor coordination with respect 

to transition assistance for Egypt and Tunisia. 

Also notable was our collaboration with the EU in response to 

the anti-democratic crackdown in Belarus. By synchronizing 

our statements of condemnation and imposition of sanctions 

against the Belarusian regime, we multiplied their impact. 

More broadly, we were able to leverage our partnership with 

Europe in ongoing diplomatic and development efforts to assist 

countries in the Western Balkans seeking further integration 

into Euro-Atlantic institutions, and to counter democratic 

back-sliding in Ukraine and other Eurasian countries. 

Our partnerships in the Western Hemisphere seek to promote 

collective prosperity and expand opportunity, secure and 

cement democratic progress, advance citizen security, achieve 

a clean and secure energy future, and add partners to our 

efforts to solve global problems. Countries in the Americas 

are sharing their approaches for empowering small businesses 

and expanding the benefits of economic growth through 

our Pathways to Prosperity initiative. Through the Energy 

and Climate Partnership of the Americas, our hemispheric 

partners are taking leading roles in the effort to achieve a secure 

and clean energy future. We also continued to work with 

partners in the region – and internationally – to enhance the 

security of citizens and reduce illicit trafficking through our 

interlocking security initiatives in Central America, Colombia, 

the Caribbean, and Mexico, where our Merida partnership has 

re-shaped our bilateral security relationship.

With continued U.S. support and partnership, we can assist 

Africa as it moves along the path to a stronger future. Our 

partnership with Africa is based on our mutual desire to 

promote democracy, good governance, and respect for human 

rights; to achieve peace and security throughout the continent; 

to advance improved health outcomes; and to promote 

economic growth and prosperity for all. While Africa’s future 

is up to Africans, the United States will continue to play a 

major role with its African partners in shaping that future. 

Our most noteworthy diplomatic successes in FY 2011 

have been the referendum in South Sudan and the return 

of democratically elected governments in Mauritania, 

Cote d’Ivoire, Guinea, and Niger. Strategic dialogues have 

strengthened our partnerships with South Africa and Nigeria 

and have put in place a framework to expand our engagement 

with Angola. We have supported the African Union force 

in Mogadishu, which has substantially expanded its area of 

control. We continued to support the Administration’s key 

economic growth and health initiatives across the continent: 

Feed the Future, the Global Health Initiative, the Global 

Climate Change Initiative, and Partnership for Growth. The 

successful African Growth and Opportunity Act forums held 

in Kansas City and Lusaka rekindled interest in the program 

and generated new opportunities for trade. 

In the Asia-Pacific, Europe, the Americas, Africa and beyond, 

we committed to elevate economic statecraft as a pillar of U.S. 

foreign policy and a key driver of recovery and renewal here at 

home. Our diplomats around the world are stepping up their 

advocacy for America’s exporters and pushing back against the 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 3
obstacles faced by U.S. businesses overseas – from corruption 

to discriminatory regulations to the theft of intellectual 

property. We are working with partners throughout the Federal 

Government to attract new foreign investment into American 

communities that create jobs and opportunities. We were 

proud to help secure significant new trade agreements with 

South Korea, Colombia, and Panama. Our goal is to promote 

and protect an open, free, transparent, and fair economic system 

where all can participate; where ideas, products, and capital 

flow unimpeded; where regulations and rules are developed out 

in the open and equitably applied; and where all businesses are 

treated fairly. Since foreign tourist travel to the United States 

creates and sustains American jobs, we have worked diligently to 

expedite visa issuance, particularly in China, India, and Brazil. 

Across all these areas of action around the world, a central 

theme is promoting rights and opportunities for women and 

girls. Increasing the participation of women in the global 

economy is one of the best ways to drive growth, which is why 

we are helping women to break down economic barriers and 

access markets through APEC and our Pathways to Prosperity 

partnerships. Integrating women and girls into the President’s 

Global Health and Feed the Future initiatives improves health 

outcomes and increases agricultural output. Meaningfully 

including women in peace and security, such as reconciliation 

in Afghanistan, contributes to conflict resolution and to lasting 

stability. Empowering women to participate in politics – 

including in the transitions now under way in the Middle East 

and North Africa – also leads to more sustainable and successful 

democracies.

The Department contributed significantly to U.S. efforts to 

bolster the global nuclear nonproliferation regimes, stem the 

proliferation of weapons of mass destruction, and further 

our arms control and disarmament priorities. The entry into 

force of the New START Treaty in 2011 renewed a process of 

mutual nuclear arms reductions and inspections with Russia 

that contributes to strategic stability and creates the conditions 

for further progress toward President Obama’s goal of a world 

without nuclear weapons. Since Iran has not been willing to 

engage meaningfully with the United States and others to dispel 

concerns about its nuclear program, we intensified unilateral 

and multilateral sanctions. Likewise, we strengthened efforts 

to limit illicit procurement activities by Iran and North Korea, 

notably by supporting numerous interdictions of shipments to 

and from these countries. 

The Department ensured a successful Review Conference 

of the Biological Weapons Convention, which set out a 

program of work for the next five years that will focus, among 

other things, on international cooperation in combating 

and responding to outbreaks of infectious disease. The 

Department secured entry-into-force of the U.S.-Russian 

Plutonium Management and Disposition Agreement that will 

lead to the elimination of enough plutonium to make 17,000 

nuclear weapons. The United States, along with the rest of 

the international community, is placing increased emphasis 

on nuclear security and safety in the wake of the Fukushima 

nuclear accident. We succeeded in extending for 10 years the 

mandate of the UN Committee that oversees implementation 

of UN Security Council Resolution 1540, which requires 

that all member states have proliferation controls. In 2012, 

the United States will seek to lay the ground work for future 

arms control, nonproliferation, and disarmament efforts. The 

U.S. presidency of the G-8 will be one important venue for 

advancing these priorities. 

This year, our diplomats and development experts also worked 

hard to uphold and advance universal human rights around 

the world, including the rights of individuals to express their 

views freely, whether in a traditional public square or in today’s 

online marketplace of ideas. As we defend free expression 

online, we are also using new tools and technologies to support 

democratic values and activists. We launched HumanRights.

gov, the official U.S. Government website for international 

human rights information. We established Twitter feeds in 

4 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011
Arabic and Farsi, adding to the ones we already have in French 

and Spanish. We have similar ones in Chinese, Russian, 

and Hindi. The Department also led the U.S. Government, 

together with 12 other democratic nations, to launch “Lifeline: 

The Embattled NGO Assistance Fund,” which supports civil 

society and NGOs under pressure.

A final hallmark of our work this year has been a commitment 

to modernizing the way we do business at the Department of 

State. We have been implementing the first-ever Quadrennial 

Diplomacy and Development Review to improve the efficiency, 

effectiveness, and overall accountability of our efforts around the 

world. The Department of State and USAID are embarking on 

a new multi-year strategic planning process that will strengthen 

and sharpen U.S. engagement around the world.

We have made changes to upgrade our information technology, 

enhance our performance and budget practices, strengthen 

program evaluation as a management tool, and reform our 

contracting and procurement policies. These and other changes 

will enable us to advance better the interests of the American 

people abroad. I am pleased to certify that the performance 

and financial data in this report are complete and reliable.

Looking ahead, we face a complex and changing world, full 

of daunting challenges, but also significant opportunities. 

American leadership will be essential in the years ahead, even 

as we sometimes lead in new ways. Securing and sustaining 

that leadership is the organizing principle behind everything 

we do at the Department of State and USAID. I am proud to 

serve alongside the thousands of dedicated men and women 

who work toward that goal every day, at home and in our more 

than 270 posts worldwide.

Hillary Rodham Clinton

Secretary of State

February 16, 2012

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 5
E

very day, across the world, the U.S. Agency 

for International Development (USAID) 

represents the very best of America: the 

generosity, goodwill, and ingenuity that unite us 

as a people. But our work also derives benefits for 

the American people: it keeps our country safe 

and strengthens our economy.

Today, with the strong backing of President 

Obama and Secretary Clinton, the Agency 

is building on its legacy as one of the world’s 

premier development agencies and making new 

progress toward its ultimate goal: creating the conditions where 

U.S. assistance is no longer needed. To realize this vision, we 

began to institute a series of ambitious reforms called USAID 

Forward to ensure our Agency becomes more efficient, effective, 

and business-like than ever before. 

Among these reforms, we aim to triple the amount of funding 

that goes to local systems by 2015, substantively increasing 

our leverage with partner countries in a way that allows us to 

scale our efforts back over time. And to ensure our assistance 

is generating real results, we aim to complete 250 high quality 

evaluations by 2013 in line with our new evaluation policy. 

Over the past year, we have pursued rigorous, thoughtful and 

results-oriented approaches to address and solve development 

challenges around the world on an effective and meaningful scale. 

Across North Africa and the Middle East, the Arab Spring has 

fundamentally changed the calculus about what is possible 

in development. In Tunisia, we are working closely with local 

organizations—particularly in marginalized regions—to 

expand opportunity and democratic space. In the interior of 

the country, we brought over 60 organizations together to 

form a regional civil society network, the very first of its kind.

In the Horn of Africa, we are responding to devastating drought 

and famine with live-saving assistance for millions of people, 

including therapeutic feeding, vaccinations and sanitation 

services. But we are also investing in long-term solutions to 

famine and malnutrition through Feed the Future, President 

Obama’s global food security initiative, to help countries 

develop their own resilient agriculture sectors.

In global health, we are making strategic 

investments toward the goal of reducing child 

mortality, eliminating child death from malaria 

and helping realize the world’s first AIDS-free 

generation. By scaling up access to life-saving 

interventions and funding new research into new 

biomedical tools, we can make an unprecedented 

impact in global health.

Over the past year, as we marked the second 

anniversary of the devastating Haiti earthquake, 

we have worked closely with the Haitian 

government to accelerate economic progress and improve lives. 

For instance, we have helped launch a mobile bank revolution, 

enabling nearly 800,000 Haitians to send safe transactions over 

their mobile phones.

We are making similar investments in Afghanistan, where we’re 

working with the government to help them pay police officers 

and teachers through mobile phones—an approach that has 

helped cut graft by as much as 30 percent.

I am pleased to certify that the performance and financial data 

in this report are complete and reliable. A more expansive 

discussion of the FY2011 performance and data sources is 

available in the FY 2011 Foreign Assistance Performance Report 

published in the FY 2013 Foreign Operations Congressional 

Budget Justification.

I am proud of the 

results USAID has 

delivered in the last 

year for both the 

developing world and the American people. Even as USAID 

marks 50 years of progress, we step forward with renewed 

dedication and a greater focus on partnerships, innovation, 

and—above all—meaningful results.

Rajiv Shah

USAID Administrator

February 16, 2012

Message from the USAID Administrator

6 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011
Our Organizations

 In 1961, the United States Congress passed 

the Foreign Assistance Act to administer long-range economic 

and humanitarian assistance to developing countries. Two 

months after passage of the act, President John F. Kennedy 

established the U.S. Agency for International Development 

(USAID). USAID unified pre-existing U.S. Government 

assistance programs and served as the U.S. Government’s 

lead international development and humanitarian assistance 

agency, a role that it continues today as it celebrates its 

50th anniversary.

USAID is an independent Federal agency that receives overall 

foreign policy guidance from the Secretary of State. The Agency 

provides economic, development and humanitarian assistance 

around the world in support of the foreign policy goals of 

the United States. USAID is headed by an Administrator and 

Deputy Administrator, both appointed by the President and 

confirmed by the Senate. In Washington, USAID’s geographic, 

functional and central bureaus are responsible for coordinating the Agency’s activities and supporting implementation of 

programs overseas. With an official presence in 87 countries 

and programs in several other, the Agency accelerates human 

progress in developing countries by reducing poverty, advancing democracy, empowering women, building market economies, promoting security, responding to crises, and improving 

the quality of life through investments in health and education.

The Agency has embarked on a comprehensive set of reforms, 

known as USAID Forward, which will transform the Agency 

into a modern development enterprise. USAID also carried 

out the Development Leadership Initiative to strengthen the 

Agency’s overseas workforce in key technical areas. In 2011, 

the Agency’s mission was supported by 2,270 Foreign Service 

Officers, 1,620 Civil Service Officers, 4,500 Foreign Service 

Nationals, and about 1,000 other non-direct-hire employees. 

Of these employees, 2,776 are based in Washington and 6,696 

are deployed overseas.

USAID plans its development and assistance programs in close 

coordination with the Department of State, and collaborates 

with a variety of other U.S. Government agencies, multilateral and bilateral organizations, private companies, academic 

institutions, and non-governmental organizations.

USAID DEPARTMENT OF STATE

The Department of State is the lead U.S. 

foreign affairs agency within the Executive Branch and the 

Secretary of State is the President’s principal foreign policy 

advisor. Established by Congress in 1789, the Department 

is the oldest and most senior executive agency of the U.S. 

Government. Headquartered in Washington, D.C., it 

implements United States foreign policy worldwide.

The Department of State promotes and protects the interests 

of American citizens by:

■ Promoting peace and stability in regions of vital interest 

■ Creating jobs at home by opening markets abroad 

■ Helping developing nations establish investment and 

export opportunities 

■ Bringing nations together and forging partnerships to 

address global problems such as terrorism, the spread 

of communicable diseases, cross-border pollution, 

humanitarian crises, nuclear smuggling, and narcotics 

trafficking

■ Securing our nation’s borders and assisting American 

citizens in their overseas travels

The Department operates more than 270 Embassies, consulates, 

and other posts worldwide staffed by Locally Employed (LE) 

Staff and more than 13,500 American Foreign Service personnel 

and 43,000 locally employed staff. In each Embassy, the 

Chief of Mission (usually an Ambassador) is responsible for 

executing U.S. foreign policy goals and for coordinating and 

managing all U.S. Government functions in the host country. 

The President appoints each Ambassador, with the advice and 

consent of the Senate. Chiefs of Mission report directly to the 

President through the Secretary. U.S. Missions are the primary 

U.S. Government points of contact for Americans overseas and 

foreign nationals of host countries. Missions serve the needs of 

Americans traveling, working, and studying abroad, and support 

Presidential and congressional delegations visiting the country. 

In addition to Foreign Service personnel, a Civil Service corps 

of over 10,500 employees provides a base of continuity and 

expertise in performing all aspects of the Department’s mission. 

The Department’s mission is accomplished through six regional 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 7

Introduction
bureaus, each of which is responsible for a specific geographic 

region of the world, 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 diverse 

matters such as law enforcement, economics, the environment, 

intelligence, arms control, human rights, counternarcotics, 

counterterrorism, public diplomacy, humanitarian assistance, 

security, nonproliferation, and consular services.

In carrying out its responsibilities, the Department of State 

consults with Congress about foreign policy initiatives and 

programs, and works in close coordination with other Federal 

agencies, including the Department of Defense, the U.S. 

Agency for International Development, the Department of the 

Treasury, and the Department of Commerce, among others.

S

trategic planning and performance 

management are guided in the Department 

and at USAID by the Quadrennial Diplomacy 

and Development Review (QDDR) and the recently 

enacted Government Performance and Results Act 

Modernization Act of 2010 (GPRAMA).

The QDDR is a comprehensive assessment of the 

capabilities needed to strengthen and elevate diplomacy and development as key pillars of the U.S. national 

security strategy, alongside defense. The QDDR sets 

institutional priorities and provides strategic guidance 

as a framework for the most efficient allocation of 

resources. It provides the blueprint for elevating 

American “civilian power” to better advance U.S. 

national interests and to better partner with the U.S. 

military. The QDDR serves as the new State-USAID 

Joint Strategic Plan (JSP) for FY 2011-2016. Seven 

new joint State-USAID strategic goals have been 

developed that address key U.S. foreign policy and 

national security priorities. A crosswalk from the 

Department of the previous goals to the new StateUSAID Joint Strategic Goals is shown to the right. 

Plan for FY 2007-2012 is shown, along with a crosswalk to the new strategic goal framework. The Strategic Goals and Results section for this year’s report is 

organized under the old strategic goal framework. 

U.S. Secretary of State Hillary Rodham Clinton, left, listens to Myanmar’s 

pro-democracy leader Aung San Suu Kyi after their meeting in Yangon, 

Myanmar, Friday, December 2, 2011. ©AP Image

SG1: Achieving Peace 

and Security

SG1: Counter threats to the United States and 

the international order, and advance 

civilian security around the world.

“Old to New” Department of State-USAID 

Joint Strategic Goal Framework

SG2: Effectively manage transitions in the 

frontline states.

SG2: Governing Justly and 

Democratically

SG3: Investing in People

SG4: Promoting Economic 

Growth and Prosperity

SG3: Expand and sustain the ranks of 

prosperous, stable and democratic states 

by promoting effective, accountable, 

democratic governance; respect for 

human rights, sustainable, broad-based 

economic growth, and well-being.

SG5: Providing Humanitarian 

Assistance

SG4: Provide humanitarian assistance and 

support disaster mitigation.

SG5: Support American prosperity through 

economic diplomacy.

SG6: Promoting 

International 

Understanding

SG6: Advance U.S. interests and universal 

values through public diplomacy and 

programs that connect the United States 

and Americans to the world.

SG7: Strengthening 

Consular and 

Management 

Capabilities

SG7: Build a 21st Century workforce; and 

achieve U.S. Government operational 

and consular efciency and effectiveness, 

transparency and accountability; and a 

secure U.S. Government presence 

internationally.

SG1: Achieving Peace 

and Security

SG1: Counter threats to the United States and 

the international order, and advance 

civilian security around the world.

“Old to New” Department of State-USAID 

Joint Strategic Goal Framework

SG2: Effectively manage transitions in the 

frontline states.

SG2: Governing Justly and 

Democratically

SG3: Investing in People

SG4: Promoting Economic 

Growth and Prosperity

SG3: Expand and sustain the ranks of 

prosperous, stable and democratic states 

by promoting effective, accountable, 

democratic governance; respect for 

human rights, sustainable, broad-based 

economic growth, and well-being.

SG5: Providing Humanitarian 

Assistance

SG4: Provide humanitarian assistance and 

support disaster mitigation.

SG5: Support American prosperity through 

economic diplomacy.

SG6: Promoting 

International 

Understanding

SG6: Advance U.S. interests and universal 

values through public diplomacy and 

programs that connect the United States 

and Americans to the world.

SG7: Strengthening 

Consular and 

Management 

Capabilities

SG7: Build a 21st Century workforce; and 

achieve U.S. Government operational 

and consular efciency and effectiveness, 

transparency and accountability; and a 

secure U.S. Government presence 

internationally.

Department of State-USAID

Joint Strategic Goal Framework

8 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Introduction
The USAID Policy Framework 2011-2015, released in 

September 2011, provides staff and partners worldwide 

with a clear sense of USAID’s core development priorities, 

translates the President’s Policy Directive on Global Development 

and the Quadrennial Diplomacy and Development Review 

(QDDR) into more detailed operational principles, explains how 

we will apply these principles across our entire portfolio, and 

lays out our agenda for institutional reform, USAID Forward. 

The USAID Policy Framework will be updated as necessary 

and revisited in 2015. 

As described in the Policy Framework, the Agency will focus on 

pursuing seven core development objectives in the four years 

ahead. The Framework lays out expectations for development 

impacts across the following key objectives:

■ Increase food security: Rekindling the power of transformational agriculture

■ Promote global health and strong health systems: 

From treating diseases to treating people

■ Reduce climate change impacts and promote low 

emissions growth: Building resilience on multiple fronts

■ Promote sustainable, broad-based economic 

growth: Enabling the private sector to drive growth

■ Expand and sustain the ranks of stable, prosperous, and democratic states: Supporting the next 

generation of democratic transitions

■ Provide humanitarian assistance and support disaster mitigation: Building resilience and preparedness

■ Prevent and respond to crises, conflict, and 

instability: Applying development approaches in fragile 

and conflict-affected states

In addition, the USAID Policy Framework lays out operational 

principles to help us focus relentlessly on achieving and 

measuring results to maximize the impact of every dollar we 

spend. While these principles are not new, under the Policy 

Framework they are applied more systematically and with 

greater discipline and analytical rigor across our entire portfolio, 

including in our budget guidance and requests, Country 

Development Cooperation Strategies, project design, and 

foundational training for our staff. These operational principles 

include: 

■ Promote gender equality and female empowerment

■ Apply science, technology, and innovation strategically

■ Apply selectivity and focus

■ Measure and evaluate impact

■ Build in sustainability from the start

■ Apply integrated approaches to development

■ Leverage “solution-holders” and partner strategically

As we pursue our seven core development objectives and apply 

these operational principles, we are also transforming our 

Agency into an organization that lives up to President Obama’s 

commitment to build USAID into the world’s premier development 

agency. This agenda for institutional renewal, known as USAID

Forward, was an early outcome of the QDDR and is already 

into the implementation process. For additional information on 

USAID Forward, see the QDDR sidebar on page 24 or visit 

http://forward.usaid.gov.

The USAID Policy Framework is available online at 

http://www.usaid.gov/policy/policyframework_sep11.html.

The USAID Policy Framework 2011-2015 

“Because development 

assistance is so crucial 

to U.S. national 

interests, we need 

to deliver it more 

effectively than ever 

before, achieving 

greater impact in 

a more sustainable 

manner, and at a lower 

cost.... In addition, 

we must rely not 

only on traditional 

assistance approaches, 

but also strive to be 

an innovative and 

influential policy voice shaping the international development 

dialogue and maximizing effective partnerships with a wide 

range of actors with common development goals.”

— USAID Policy Framework 2011-2015, p. i

USAID PolIcy 

FrAmework 2011 – 2015

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 9

Introduction
Attaining the conditions abroad that ensure American 

security and prosperity at home demands responsible 

management of U.S. diplomacy and development 

efforts. This section presents selected accomplishments and 

key management challenges of the Department of State and 

USAID for FY 2011. The achievements highlighted here reflect 

significant efforts to improve the way both agencies administer 

resources, deliver services, and manage for results. Challenges 

identified by the Inspector General of each agency and the U.S. 

Government Accountability Office (GAO) denote management 

and performance issues that the Department and USAID take 

seriously and are actively committed to resolving. In the years 

ahead, the Department and USAID will continue to strengthen 

their accountability and capacity to deliver results consistent 

with the recommendations of the Quadrennial Diplomacy 

and Development Review.

Management Accomplishments – State

Performance Management Training: The Department of 

State continues to innovate to improve employee performance 

management training throughout the Department. With 

“Foreign Service Performance Management and Evaluation” 

going live online, the Department has now completed the third 

and final distance learning course designed to assist supervisory 

personnel at missions and bureaus to make more effective use of 

human resource performance management best practices. The 

other two courses, “Civil Service Performance Management and 

Evaluation” and “Locally Employed Staff Performance Management and Evaluation,” debuted in July 2011 and October 

2011, respectively. All three courses guide supervisors through 

human resource regulations and procedures as they pertain to 

completing performance appraisals and managing performance 

throughout the rating period. Good communication among 

supervisors and employees is the foundation of improved 

performance. 

Greening Diplomacy Initiative: The Department of State, 

through the Greening Diplomacy Initiative (GDI), continues 

to take critical steps to advance more environmentally friendly 

and sustainable operations. Among these in FY 2011 were the 

completion of the Department’s domestic Green House Gas 

Inventory and the signing of an Energy Savings Agreement, 

which will enable the Department to reduce its greenhouse gas 

emissions domestically through new renewable wind and solar 

energy sources by 30-35 percent (as compared to FY 2008) 

by December 2012, surpassing the previously stated goal of 

20 percent by 2020. The Department continues to pursue 

reductions to resource demands through the latest advances 

in energy and resource efficient design. Results of this focus 

are evidenced by the numerous third-party recognitions for 

Department facilities’ performance. In FY 2011, U.S. Embassy 

Ulaanbaatar was selected as the first recipient of the GDI award 

from among 130 offices and posts submitting greening success 

stories, evidence of the widespread commitment to GDI. The 

new U.S. Embassy in Ouagadougou, Burkina Faso was awarded 

the Silver level of Leadership in Energy and Environmental 

Design (LEED®) Certification. This is the fifth LEED-certified 

U.S. diplomatic mission, joining five domestic LEED buildings 

and forty more in the pipeline for certification. A 100 kW peak 

photovoltaic array began generating clean, renewable electricity 

for the U.S. Embassy in Athens. The Department also was 

recognized with the 2011 GreenGov Presidential Award for 

Building the Future for incorporating sustainable practices and 

principles into all aspects of operations of Building 84, the 

only LEED Platinum certified building in the Department’s 

worldwide facilities portfolio, at the Department’s Charleston, 

South Carolina Regional Center. In addition, six domestic 

facilities received Green Building Initiative certification for 

sustainable operations. Among the Department’s other green 

accomplishments during FY 2011 are the identification 

of products that meet Greenguard certified standards for 

the Overseas Office Furniture Program; attainment of the 

petroleum reduction goal; continuation of green awareness 

campaigns and events; and promulgation of electronic fora 

for the exchange of best green practices among the worldwide 

10 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights

Management Highlights
diplomatic community. The Department has shifted to a 

predominantly networked-based printing environment to 

reduce energy, equipment, supply and service costs, as well as 

to allow for new, more energy efficient print devices that use 

fewer toxic chemicals. Through this policy, the Department 

can reduce both its print-related power consumption and 

paper costs. The Department completed the deployment of 

the Nightwatchman application worldwide to over 87,000 

computers, which automatically shuts down computers in the 

evening and powers them up for updates and prior to opening 

of business. The Department remains dedicated to greening 

its vehicle fleet through acquisition of alternative fuel vehicles, 

including hybrid electric vehicles. The Department conducted 

its first Greening Action Inventory survey – over 200 posts 

and 20 bureaus around the world reported their greening 

activities. The Survey is a first step to provide missions and 

bureaus feedback on their environmental and sustainability 

performance. These and other greening initiatives set the 

Department well on its way to meeting the goals of Executive 

Order 13514 and the Secretary’s GDI vision. 

Management Accomplishments – USAID

In fulfilling President Obama’s commitment, as stated in the 

President’s Policy Directive on Global Development (PPD6), to build USAID into “the world’s premier development 

agency,” USAID implemented ambitious reforms called USAID 

Forward. Through foundational changes in several key areas, 

these reforms aim to ensure that the Agency becomes a model 

for delivering efficient and effective development assistance. 

Below are specific areas of reform and some accomplishments 

to date. For more information on USAID Forward, please visit 

http://forward.usaid.gov.

Evidence Based Policy: For USAID to become the world’s 

premier development agency, it must be able to make strategic 

policy choices that are informed by cutting-edge evidence and 

analysis. In 2010, the Agency created the Bureau for Policy, 

Planning, and Learning to shape overall strategic and program 

planning to ensure the Agency’s evolution as a learning 

organization. The Agency introduced a new evaluation policy 

that has been called “a model for other Federal agencies” by 

the American Evaluation Association. Evaluation results will 

be released within three months of their completion, whether 

they tell a story of success or failure.

Strategic Budgeting: The new Office of Budget and Resources 

Management is tasked with ensuring that budgets are aligned 

with agency priorities and linked to program outcomes. The 

office is also tasked with ensuring that funds are expended 

efficiently. In an era of constrained foreign affairs budgets, 

the need is especially great to invest based on sound analysis 

and evaluation of what works.

Locally Led Development: USAID is creating new funding 

mechanisms to allow it to work directly with local partners, 

substantially increase in-country capacity, and empower the 

local private sector and civil society to create meaningful 

development solutions. In the 2011 Development Assistance 

Committee Peer Review, the Organization for Economic 

Co-Operation and Development recognized these efforts, 

calling the Agency a leader when it comes to private sector 

engagement.

Science and Technology: To transform development through 

science, technology, and innovation, USAID launched 

the Grand Challenges for Development, a series of grant 

competitions designed to focus the development community 

on key barriers to progress. We recently announced award 

nominations for our first Grand Challenge—Saving Lives 

at Birth—and plan to soon unveil Grand Challenges in 

agriculture, energy, and education. In addition, USAID 

established a partnership with the National Science 

Foundation to link their research fellows with USAID-funded 

scientists in the developing world.

Each of these reforms is designed to change the way the 

Agency does business—with new partnerships, a greater 

emphasis on innovation, and a relentless focus on real results. 

Collectively, these reforms will help ensure USAID is investing 

every development dollar in the most effective, efficient, and 

transparent way possible.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 11

Management Highlights
Under the leadership of Secretary Clinton, the Department 

of State and USAID have developed a new strategic 

approach to accomplishing their shared mission, focusing on 

robust diplomacy and development as central components to 

solving global problems. Per the Government Performance and 

Results Act Modernization Act (GPRAMA) of 2010, State and 

USAID submitted in February 2012 for OMB consideration eight 

outcome-focused Agency Priority Goals (APGs) that reflect the 

Secretary’s and USAID Administrator’s highest priorities. These 

near-term goals advance the Joint Strategic Goals, reflect USAID 

and State strategic and budget priorities, and will continue to 

be of particular focus for the two agencies through FY 2013. 

The APGs are the next iteration of the Federal High Priority 

Performance Goals (HPPGs), for which State and USAID also 

identified eight joint FY 2010-FY 2011 goals. Results revealing 

the progress made toward achieving the HPPG’s are noted in the 

Performance Highlights section and on http://goals.performance.gov/

agency/dosusaid. The APGs shown below are listed against the new 

joint State-USAID Strategic Goal Framework. Currently, there are 

no APGs reflected for Strategic Goals 1, 4, and 6. 

State-USAID FY 2012-FY 2013 Agency Priority Goals

At-A-Glance: Agency Priority Goals, FY 2012-FY 20131

Agency Priority 

Goal (APG) Goal and Indicators

Strategic Goal 2: Effectively manage transitions in the frontline states.

Afghanistan Goal: With mutual accountability, assistance from the United States and the international community will continue to 

help improve the Government of the Islamic Republic of Afghanistan’s (GIRoA) capacity to meet its goals and maintain 

stability. Bonn Conference commitments call on GIRoA to transition to a sustainable economy, namely improve revenue 

collection, increase the pace of economic reform, and instill a greater sense of accountability and transparency in 

all government operations. Strengthen Afghanistan’s ability to maintain stability and development gains through 

transition. By September 30, 2013, U.S. Government assistance delivered will help the Afghan Government increase 

domestic revenue level from sources such as customs and electrical tariffs from 10 percent to 12 percent of GDP.

Strategic Goal 3: Expand and sustain the ranks of prosperous, stable and democratic states by promoting effective, 

accountable, democratic governance; respect for human rights; sustainable, broad-based economic growth; and well-being.

Democracy, Good 

Governance, and 

Human Rights

Goal: Advance progress toward sustained and consolidated democratic transitions in Egypt, Jordan, Lebanon, Morocco, 

Tunisia, Libya, Bahrain, Yemen, Iran, Syria, and West Bank/Gaza. By September 30, 2013, support continued progress 

toward or lay the foundations for transitions to accountable electoral democracies in 11 countries in the Middle East 

and North Africa (MENA) that respect civil and political liberties and human rights.

Climate Change Goal: Advance low emissions climate resilient development. Lay the groundwork for climate-resilient development, 

increased private sector investment in a low carbon economy, and meaningful reductions in national emissions 

trajectories through 2020 and the longer term. By the end of 2013, U.S. assistance to support the development and 

implementation of Low Emission Development Strategies (LEDS) will reach 20 countries (from a baseline of 0 in 2010). 

This assistance will be strategically targeted and will result in strengthened capacity for and measureable progress on 

developing and implementing LEDS by the end of the following year.

Food Security Goal: Increase food security in Feed the Future (FTF) initiative countries in order to reduce prevalence of poverty and 

malnutrition. By the end of the FY 2013, agricultural profitability will improve, on average, by 15 percent among FTF 

beneficiary farmers, and one million children under age 2 will experience improved nutrition due to increased access 

to and utilization of nutritious foods (prevalence of receiving a minimum acceptable diet).2

(continued on next page)

12 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
At-A-Glance: Agency Priority Goals, FY 2012-FY 20131 (continued)

Agency Priority 

Goal (APG) Goal and Indicators

Global Health By September 30, 2013, the Global Health Initiative will support the creation of an AIDS-free generation, save the lives 

of mothers and children, and protect communities from infectious diseases by: a) decreasing incident HIV infections 

in the President’s Emergency Plan for AIDS Relief (PEPFAR)-supported Sub-Saharan African countries by more than 

20 percent3; b) reducing the all-cause mortality rate for children under five by 4.8 deaths/1,000 live births in USAID 

priority countries4; c) increasing the percent of births attended by a skilled doctor, nurse, or midwife by 2.1 percent in 

USAID priority countries; and d) increasing the number of people no longer at risk for lymphatic filariasis (in the target 

population) from 7.7 million to 63.7 million in USAID-assisted countries5.

Strategic Goal 5: Support American prosperity through economic diplomacy.

Economic Statecraft Goal: Through our more than 200 diplomatic missions overseas, the Department of State will promote U.S. exports 

in order to help create opportunities for U.S. businesses. By September 30, 2013, our diplomatic missions overseas 

will increase the number of market-oriented economic and commercial policy activities and accomplishments by 

15 percent.

Strategic Goal 7: Build a 21st Century workforce; and achieve U.S. Government operational and consular efficiency 

and effectiveness, transparency and accountability; and a secure U.S. Government presence internationally.

Management Goal: Strengthen diplomacy and development by leading through civilian power. By September 30, 2013, the State 

Department and USAID will reduce vacancies in high priority positions overseas to 0 percent and 10 percent respectively 

and will reduce instances of employees not meeting language standards to 24 percent and 10 percent respectively.

Procurement 

Management/

Local Development 

Partners

Goal: Strengthen local civil society and private sector capacity to improve aid effectiveness and sustainability, 

by working closely with our implementing partners on capacity building and local grant and contract allocations. 

By September 30, 2013, USAID will expand local development partners from 746 to 1,200.

1 As of February 2, 2012.

2 Feed the Future focus countries are: Bangladesh, Cambodia, Ethiopia, Ghana, Guatemala, Haiti, Honduras, Kenya, Liberia, Malawi, Mali, Mozambique, Nepal, 

Nicaragua, Rwanda, Senegal, Tajikistan, Tanzania, Uganda, and Zambia.

3 PEPFAR-supported countries in Sub-Saharan African are: Angola, Botswana, Burundi, Cameroon, Cote d’Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, 

Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Rwanda, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.

4 USAID priority countries for Maternal and Child Health (MCH) programs are: Afghanistan, Bangladesh, Benin, Cambodia, the Democratic Republic of the Congo, 

Ethiopia, Ghana, Guatemala, Haiti, India UP, Indonesia, Kenya, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Nigeria, Pakistan, Philippines, Rwanda, 

Senegal, Tanzania, Uganda, Yemen, and Zambia. Although Southern Sudan is an MCH priority country, there is no data for Southern Sudan.

5 Countries receiving USAID assistance for Neglected Tropical Diseases (NTDs) include: Burkina Faso, Ghana, Mali, Niger, Uganda, Sierra Leone, Haiti, Nepal, Cameroon, 

Togo, Tanzania, Indonesia, Guinea, Bangladesh, Philippines, Vietnam and South Sudan.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 13

Management Highlights
Management Challenges – State

In FY 2011, the Department of State’s Office of Inspector General (OIG) identified challenges in the areas of 

contracting and procurement, coordinating and overseeing foreign assistance, diplomacy with fewer resources, 

effective leadership, financial management, information security and information management, military to civilian-led presence 

transitions, protection of people and facilities, protecting American citizens and American borders, and public diplomacy. The 

Department promptly takes corrective actions in response to OIG findings and recommendations. Highlights are summarized 

below. See the FY 2011 Department of State Agency Financial Report at http://www.state.gov/documents/organization/177397.pdf 

(pg.139-146) for the OIG’s full statement. 

FY 2011 STATE MANAGEMENT CHALLENGES

CONTRACTING AND PROCUREMENT

Challenge Staffing. As the Department’s primary acquisition organization, the Bureau of Administration’s Office of Acquisitions (AQM) has 

experienced an increase in the number of procurement transactions processed and an increase in the dollar value of procurement 

actions issued without a corresponding increase in contracting personnel to handle the workload. 

Actions

Taken

AQM hired over 59 employees and 44 contract staff since 2008 in contract officer/procurement-related positions.

Actions

Remaining

AQM will continue to assess its workforce. Through internal funding mechanisms (a 1 percent fee charged on all contracting 

services) and direct-hire authority through 9/30/2012, AQM will continue to adjust staffing to meet the Department’s 

procurement needs.

Challenge Administration and Oversight. The Department’s administration and oversight of some contracts is inadequate, especially for 

accountability in Afghanistan, Iraq, and Tajikistan. Additionally, the Department must ensure contractors are properly chosen and 

work is properly conducted and monitored to help contain costs. 

Actions

Taken

The Department revised Contracting Officer Representative (COR) training to include more skills based, real world examples. 

Certification of CORs ensures that only trained personnel are assigned COR duties. Contract administration resources must now 

be planned for at the time of requisitioning on major services programs (over $25 million per year). Personnel fulfilling COR roles 

must be evaluated on COR duties by management and the contracting officer. Exceptional CORs are rewarded with an annual 

award for excellence. Procurement data quality has been significantly improved.

Actions

Remaining

The Department will continue to focus on balancing its workforce and rebuilding core capabilities. Contracting Officer 

Representative training will be augmented with annual COR workshops to bring the community together. Past performance 

information must be improved and used to manage contractor performance. Past performance reporting will be centralized in 

the Office of Acquisition Management for more effective management. 

Challenge Monitoring of Grants. The Department needs to improve monitoring of grantee performance in the area of refugee and 

humanitarian programs and democracy building activities. 

Actions

Taken

The Department implemented a Grants Management Review process to assess bureau and post grant management operations. 

Grantee site visits have been increased with Department oversight organizations partnering with bureau grants officers on 

grantee reviews. Program evaluation guidelines have been issued by the Office of U.S. Foreign Assistance Resources (F) to assess 

program effectiveness.

Actions

Remaining

The Department will continue to improve grants management training by developing online training options to assist grants 

operations overseas. 

COORDINATING AND OVERSEEING FOREIGN ASSISTANCE

Challenge Integrated Budget Planning. In preparation for collaborating on the development of the FY 2014 Foreign Assistance budget, 

agreed upon roles and responsibilities for the Department and USAID should be developed and disseminated to avoid redundant 

or conflicting requirements for agency bureaus.

Actions

Taken

The Department and USAID have engaged to determine the FY 2014 budget process and the respective roles of each agency and 

their offices, including a multi-year budgeting initiative as part of the Quadrennial Diplomacy and Development Review (QDDR) 

implementation and an initiative to streamline and integrate the FY 2014 budget planning process. An after-action review of the 

FY 2013 budget process was also conducted to inform and improve the FY 2014 process. 

Actions

Remaining

The FY 2014 budget process for Foreign Assistance programs will begin in the first quarter of FY 2012. It is expected that 

initiatives undertaken will have a substantial impact on rationalizing and streamlining the preparation of the budget, will 

result in detailed definitions of respective agency and office roles, and will inform the FY 2014 budget formulation process. 

(continued on next page)

14 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
FY 2011 STATE MANAGEMENT CHALLENGES (continued)

Diplomacy with Fewer Resources

Challenge Consolidating State-USAID Management Platforms. The goal of fully consolidating State-USAID management platforms 

remains an unaccomplished goal, despite some progress toward consolidation.

Actions

Taken

A new Joint Management Board (JMB) was established to facilitate the consolidation of management support services between 

State and USAID and to address specific issues. As successor to the previous steering group, the Joint Management Council, the 

JMB is intended to be more streamlined and provide a strong single voice to both headquarters and field. 

Actions

Remaining

The consolidation of management support services has been successful at posts where State and USAID are located in the same 

building or Embassy compound and where they are not collocated. The JMB will re-evaluate unresolved unconsolidated services 

across all posts and formally or informally contact posts to move forward with full consolidation by an agreed-upon deadline of

September 30, 2012. 

Challenge Rightsizing. The Department is working closely through the Office of Rightsizing and regional bureaus to ensure that staffing 

at overseas missions and domestic bureaus is appropriate, given the high cost of maintaining U.S. staff overseas.

Actions 

Taken

The Department takes seriously the mandate to rightsize the U.S. Government presence overseas. Even as the Department 

expands to meet global challenges, the Department and USAID reprogram positions, adding and decreasing staff to meet 

changing needs. 

Actions 

Remaining 

Chiefs of Missions, who have clear authority via National Security Decision Directive 38 (NSDD-38) to control staffing levels at

posts overseas, will continue to consult with the Department’s regional bureaus and the agencies comprising their missions in 

making decisions about staffing levels.

Challenge Regionalization of Administrative Services. The Department should expand regionalization of administrative services to 

achieve economies of scale in administrative support and reduce the average operating costs for posts.

Actions

Taken

There are regional hubs in Charleston, South Carolina; Ft. Lauderdale, Florida; Frankfurt, Germany; Bangkok, Thailand; Cairo, Egypt; 

and Manila, Philippines. Regional support centers provide training and employee development, such as a LE supervisory course 

that includes cultural components.

Actions

Remaining

Geography and transportation links have made the establishment of a single regional support platform in the East Asia Pacific 

region impractical. However, the Department continues to capitalize on opportunities to consolidate administrative support 

services to better serve medium and small-sized posts.

effective leadership

Challenge Effective Leadership. The Department needs to ensure leaders and managers have the right mix of skills to meet the needs of 

Department missions. 

Actions

Taken

The Department developed and implemented new training for first-time supervisors, and regional mentors for some of these 

supervisors have been deployed. Mandatory leadership training is more effectively tracked and enforced with a compliance 

reporting tool. The Foreign Affairs Manual has been revised to clarify the responsibility of regional assistant secretaries for the 

performance of chiefs of mission (COM). Identified qualities for success of COMs, Deputy Chiefs of Mission (DCMs) and Principal

Officers (who lead consulates) have been incorporated into the selection process during the most recent cycle. State has also 

developed and implemented new training for Deputy Assistant Secretaries.

Actions

Remaining

The Department will continue to monitor and enforce mandatory leadership training and continue to hold nominating bureaus 

and officials to the highest leadership standards and records of success for nominees for COMs, DCMs, and Principal Officers.

Financial Management

Challenge Financial Reporting. The Department needs to continue to improve internal controls over financial management and reporting.

Actions

Taken

The Department improved its control over reporting the liability for International Organizations and estimates of the accounts 

payable accruals. As a result, the auditor agrees both areas are no longer significant deficiencies. 

Actions

Remaining

The Department will work to strengthen the internal controls over financial reporting, including the reporting for 

after-employment benefits for locally employed staff overseas.

(continued on next page)

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 15

Management Highlights
FY 2011 STATE MANAGEMENT CHALLENGES (continued)

INFORMATION SECURITY AND INFORMATION MANAGEMENT

Challenge FISMA. The Department needs to put in place an action plan to improve implementation of the Federal Information Security 

Management Act (FISMA) of 2002 and OMB requirements.

Actions

Taken

On an ongoing basis, the Department strives towards an effective and cost efficient risk management-based information security 

program and appropriately re-evaluates all findings and adjusts priorities to remediate those findings. 

Actions

Remaining

The Department continues to observe and implement the guidance of the National Institute for Standards and Technology (NIST) 

and has begun the process of developing a formal strategy and framework that will be implemented to address the deficiencies 

noted by the OIG. With specific reference to Plan of Actions and Milestones (POA&Ms), the Department’s Chief Information 

Security Officer will document how State’s POA&M process accounts for weaknesses identified by all sources (scans, assessments, 

and OIG findings) and will show that corrective actions are addressed in accordance with the Department’s Cyber Security 

Architecture, applicable NIST guidance, and OMB requirements.

Challenge Application of SDLC. The Department needs to ensure consistent application of standard systems development life cycle (SDLC) 

management.

Actions

Taken

Through the Project One Voice (POV) initiative, the Department is developing an overarching governance to ensure the consistent 

application of the standard system development. In addition, the POV is updating the Department’s current SDLC framework (i.e., 

Managing State Projects) to ensure it is aligned with leading IT project management standards.

Actions

Remaining

A formal strategy and framework will be developed and implemented to ensure the methodology is continually supported across 

the Department. 

TRANSITIONS FROM A MILITARY TO CIVILIAN-LED PRESENCE

MILITARY TO CIVILIAN-LED PRESENCE: AFGHANISTAN

Challenge Assumption of DoD Security Duties. In the coming years as the U.S. military withdraws from Afghanistan, the Department 

faces the challenge of increased costs associated with State assumption of Department of Defense (DoD) security duties. 

Actions

Taken

Future State operations at Embassy Kabul will have a much smaller footprint than present DoD supported configurations. The 

Department is establishing only essential diplomatic operations and facilities in Afghanistan to minimize costs. The Department

has done extensive planning, and will collocate with other agencies and leverage existing contractual services.

Actions

Remaining

Costs associated with security of U.S. diplomats have been included in the Department’s FY 2013-2015 transition budget 

estimates. Resources will be applied pending approval of budget requests.

Challenge New Consulates & Support Services for Civilian Presence. The Department faces increased costs as well with the opening 

of two new consulates in Afghanistan, and the need for additional housing and office space for the increased civilian presence. 

Actions

Taken

State bureaus and missions are coordinating on requirements to support two new consulates in Mazar-e Sharif and Herat; 

estimated operations costs have been built into the Department’s budget requests. To address the need for housing and office 

space, the Department has acquired additional adjacent sites and several residential properties near the Kabul compound and 

leased facilities in Herat and Mazar-e Sharif to house new consulates.

Actions

Remaining

As specific requirements continue to evolve in these two areas, the Department will coordinate with appropriate offices to assess

and evaluate options to meet operational and facilities requirements.

Challenge Standardize Pay. With the transition to a civilian presence in Afghanistan, the Department and partner agencies need to 

address the proposal to standardize pay and benefits for civilian uplift personnel from all agencies involved. 

Actions

Taken

A Zone of Armed Conflict (ZOAC) proposal is being considered by Congress in the FY 2013 National Defense Authorization Act. If 

passed, it would require all agencies operating in Afghanistan to standardize pay and incentive policies. The proposal would not 

increase the costs of supporting State employees in Afghanistan but could raise costs of other U.S. agencies that receive State

funds transfers.

Actions

Remaining

Implementation of the ZOAC provisions, if passed by Congress.

(continued on next page)

16 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
FY 2011 STATE MANAGEMENT CHALLENGES (continued)

MILITARY TO CIVILIAN-LED PRESENCE: IRAQ

Challenge Security and Budget. In preparation for the end of the U.S. military presence, the Department needs to expand its security 

responsibilities. It also needs to pay close attention to the cost projections for its future civilian presence.

Actions

Taken

The Department requested $1.9 billion to provide for security and is considering with the DoD options and potential funding 

sources for a large U.S. Office of Security Cooperation. The Department also requested $4.7 billion in the FY 2010 supplemental 

and FY 2011 budget.

Actions

Remaining

The Department will absorb many of the support roles and activities currently undertaken by the military. The Department is 

coordinating closely with DoD to transfer the security and support tasks that must continue as the military prepares to leave Iraq. 

PROTECTION OF PEOPLE AND FACILITIES

Challenge Protection in Areas of Armed Conflict. Protecting people, facilities, and information continues to be one of the Department’s 

highest priorities. Of greatest concern are areas in armed conflict and areas rated critical in terrorist threat. These include 

long-standing hot spots such as Afghanistan, Iraq, and Pakistan, but also new areas of concern, including Mexico and Yemen. 

The Diplomatic Security Training Center provides priority in classes to Department personnel assigned to those locations, and 

personnel may not depart for those assignments until they have completed mandatory high-threat personal protection courses.

Actions

Taken

In FY 2011, over 2300 government officials deploying to Afghanistan, Iraq, Pakistan (AIP), Republic of South Sudan, Sudan, Yemen, 

and Mexico, among others, attended the five-day Foreign Affairs Counter Threat (FACT) course with the AIP posts representing 

about 80 percent of that number. 

Actions

Remaining

In FY 2012, the DS Training Center plans to conduct 96 FACT courses for a projected 2592 students. However, we cannot 

sufficiently meet the additional training recommendations outlined in the Secretary’s QDDR. Therefore, DS is aggressively 

pursuing on-line alternatives, e.g., distance learning of FACT lessons minus the hard skills (i.e., weapons familiarization and driver’s 

training) to increase training capabilities.

Challenge Increased staffing in Embassies Baghdad and Kabul, coupled with the transition to a post-combat, Department-led U.S. 

Government presence, has led the Bureau of Diplomatic Security (DS) to deploy various high-tech countermeasures. Recently 

adopted countermeasures include use of the counter rocket, artillery and mortar (C-RAM) system to provide advance warning 

of incoming munitions. Managing security programs in areas of armed conflict and critical threat posts, which are substantially 

different from traditional overseas security programs, is an ongoing Department challenge.

Actions

Taken

Diplomatic Security Countermeasures (DS/C) has been very successful in managing security programs in areas of armed conflict 

and at critical threat posts. DS/C is also expanding the Sense and Warn System in Iraq and Afghanistan, and using new 

technologies such as Mobile Video, Electronic Countermeasures, Tactical Radios, Personnel Tracker and Locater, and forwardlooking infrared imaging cameras.

Actions

Remaining

DS will continue to use countermeasures as long as the Department operates in Iraq and Afghanistan, to ensure that U.S. 

Government personnel receive optimal protection, until the host country nations can provide sufficient security. If new consulates 

open in Afghanistan, DS will deploy countermeasures to them. 

Challenge The increasing number of non-Department personnel assigned to sensitive positions overseas has resulted in an expansion of 

secure office space at U.S. overseas missions. Worldwide, controlled access areas (CAA) and core areas are being added and 

expanded. Department security requirements specify the construction and operation of such areas, and require that they 

be inspected by DS technicians on varying schedules to ensure that national security information is not being compromised. 

According to DS, there is a backlog of such DS inspections due to a shortage of technicians to conduct them. The challenge to the 

Department is balancing the need for new CAA space and core areas at U.S. overseas missions against its ability to protect the 

sensitive information contained in these areas.

Actions

Taken

For any new CAA space including cores areas, DS will do an accreditation of the space. DS acknowledges a backlog of Technical 

Security Countermeasures (TSCM) inspections; however, DS tries to perform an annual Technical Security Assessment inspection 

at each post to ensure there are no major vulnerabilities. DS has completed 12 TSCM inspections this fiscal year. DS’s 

methodology for conducting inspections is to prioritize such inspections according to the threat ratings at post.

Actions

Remaining

DS has additional TSCM inspections planned this fiscal year to meet the requirements in 12 FAH-6 H-600. DS is, however, 

challenged to complete all inspections in an optimal timeframe. To increase its efficiency, DS is working to share inspection 

responsibility with its regional Engineering Service Centers (ESCs) to conduct these inspections. This also reduces travel costs and 

time and should have a definite impact on reducing any inspection deficit.

(continued on next page)

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 17

Management Highlights
FY 2011 STATE MANAGEMENT CHALLENGES (continued)

PROTECTING AMERICAN CITIZENS AND AMERICAN BORDERS

Challenge Using New Technologies. The Department needs to follow industry-wide standards for developing new technologies that 

support the management of increasingly complex operations, such as the provision and adjudication of travel documents. 

Actions

Taken

In FY 2011, the Department initiated its Integrated Service Lifecycle Framework to apply best-practice methods and standard 

across the areas of Change Management, Contract Management, Project Management, and New Systems Development.

Actions

Remaining

Through FY 2012, the Department will continue its alignment to Federal mandates and implementation of related initiatives, such 

as compliance with TechStat requirements and development of Cross-Divisional Integrated Program Teams.

Public Diplomacy

Challenge Strategic Framework for Public Diplomacy. With tighter budgets, the Department needs to think more strategically about 

how best to use resources to engage, inform and influence foreign publics in support of U.S. strategic objectives. 

Actions

Taken

The Strategic Framework for Public Diplomacy, now an integral component of the QDDR, provides the foundation for strategic 

policy and resource management (both human and monetary), which continues to be a primary focus. During FY 2011, significant 

shifts of base resources have occurred to ensure that public diplomacy resources are directly tied to the most important foreign 

policy priorities. 

Actions

Remaining

The Public Diplomacy Training Division will continue to emphasize and expand strategic planning courses, including the recent 

launch of an online course which will allow a baseline level of knowledge across the public diplomacy spectrum. 

Challenge Security Issues. Security considerations have increasingly restricted public access to U.S. embassies and consulates. Finding 

the right balance between legitimate security concerns and the need to proactively engage foreign publics is a challenge in the

execution of effective public diplomacy.

Actions

Taken

The Department created a specific office under the Bureau of International Information Programs to oversee planning, standards, 

management and evaluation of American spaces. Clear standards have been developed, which will ensure that the appropriate 

public diplomacy platform is used to each environment and that sustainability, as well as evaluation metrics, are an integral 

component. In addition, a pilot program that will allow a public diplomacy section to “go on the road” with their outreach, is

being deployed to the field. 

Actions

Remaining

The Department continues to explore innovative ways to ensure public diplomacy is engaging critical audiences where they are, 

rather than relying on the audience to seek out U.S. personnel.

Challenge Use of Social Media. Posts are making very effective use of social media at posts, including Twitter and Facebook. Given the 

level of effort needed to maintain these outreach platforms, especially those intended to be interactive, posts must balance the 

demands of the official mission Web site and its social media sites and determine how best to reach the audiences important 

to them.

Actions

Taken

Following a thorough assessment on the level of use of social media and the amount of staff resources engaged in the effort, 

a plan for targeted training and implementation is being developed to assist posts, in particular high priority posts, to better 

incorporate social media engagement as a cross-cutting function across the public diplomacy section. 

Actions

Remaining

The Department’s Bureau of International Information Programs will continue to roll out an on-the-ground approach for critical 

posts in the effort to strengthen performance of public diplomacy initiatives.

18 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
Management Challenges – USAID

Every year, USAID’s Office of Inspector General (OIG) identifies management challenges that affect the ability 

of the Agency to deliver foreign assistance. The FY 2011 challenges relate to working in critical priority countries, 

managing for results, acquisition and assistance, and IT management. The Agency takes immediate remedial actions 

in response to OIG recommendations, which are summarized below. See the FY 2011 USAID Agency Financial Report at http://www.

usaid.gov/performance/afr/afr11.pdf (p. 131) for the OIG’s memorandum on this subject, and the full Agency response.

FY 2011 USAID MANAGEMENT CHALLENGES

Working in Critical Priority Countries and Disaster Areas

Challenge Program Implementation. USAID continues to face enormous challenges in implementing its programs and activities in 

Afghanistan, Pakistan, Iraq, Sudan, and Haiti. Security concerns, weaknesses in governance, and corruption are persistent 

problems. Moreover, as USAID provides more of its assistance directly to host-country institutions to help build capacity at 

the national, provincial, and local levels, questions concerning accountability for those funds may arise. 

Actions

Taken

USAID has taken a number of concrete actions to address this challenge including: a) approved a new policy on September 7, 

2011 to address violent extremism and insurgency through development efforts; b) improved its monitoring and evaluation (M&E) 

capability through two new evaluation training courses, created a planning and learning services center to provide on-call support 

to USAID staff, and developed related guidance documents on M&E; c) augmented its civilian response capability to staff priority 

counties and disaster areas; d) expanded its suite of training for operating in complex environments; and e) established Partner 

Security Liaison Offices in High Threat Environments (HTEs) to support the mission and the implementing partners’ security.

Actions

Remaining

Responsibility for specific operations and management strategies action plan were finalized on December 31, 2011. This included 

proposals for revised policies, protocols, and frameworks to address deficiencies in the implementation and monitoring of USAID 

programs in HTEs. 

Managing for Results

Challenge Assistance Planning. Of the 80 performance audits OIG conducted in FY 2011, 25 disclosed problems with assistance planning: 

(1) program performance indicators and targets were not established, updated, or were not very closely related to USAID activities; 

(2) performance targets were inconsistent in performance management plans, contracts and grants, and annual work plans or were 

not appropriate; and (3) performance indicators were not adequately defined, or data collection procedures were not uniform amount 

partners. These deficiencies make it difficult for program implementers—USAID, partner-governments, contractors, and grantees—to 

track progress toward and achieve program objectives and results. 

Actions

Taken

In June 2010, the Administrator established a Bureau for Policy Planning and Learning (PPL), which is leading USAID’s efforts to 

enhance strategic and program planning and implementation as well as monitoring and evaluation processes. In January 2011, PPL 

began to implement its new Evaluation Policy and in September 2011, it launched new guidance on developing Country Development 

Cooperation Strategies (CDCS). This guidance includes requirements for indicator selection to ensure that indicators are directly 

related to strategic objectives. Nine missions in three regions (Africa, Europe and Eurasia, and Asia) are now implementing an 

approved CDCS, including country-level performance measures.

Actions

Remaining

Following issuance of the CDCS guidance, PPL is developing new project design guidance which emphasizes the importance of 

establishing performance indicator targets that directly relate to USAID activities. New USAID Program Cycle Guidance including

policy, strategy, project design and implementation, monitoring and evaluation and performance management phases is being drafted. 

Each phase in the program cycle requires that USAID staff and program implementers consistently track progress toward achievement 

of strategy and program goals and expected results in partnership with relevant stakeholders. Additional training is planned in 

Washington and regional hubs in FY 2011 to continue staff skill building in planning, performance management and target setting. 

Nine additional countries have a CDCS under review and a total of 76 countries and regions are on schedule to have completed CDCS 

by the end of FY 2013. Training will be emphasized for new Foreign Service officers under the Development Leadership Initiative. 

Challenge Performance Management. For programs audited in FY 2011, a significant portion of program performance targets were not met, 

or performance lagged behind targets in key areas. OIG reported this finding in 17 performance audit reports. Also, 35 performance 

reports documented instances of inadequate contract or program management.

Actions

Taken

The Agency continued efforts to build its capacity in planning and performance management by delivering 10 Managing for Results 

(MfR) workshops in FY 2011. Over 462 people have been trained to date and have improved their MfR skills and indicator selection. 

Out of the 462 people trained, more than two-thirds work in Missions currently preparing a Country Development Cooperation 

Strategy. The remaining participants are members of the Development Leadership Initiative. Four lessons of the MfR workshop focus 

specifically on indicator selection, data quality, setting baselines, targets and program development with hands-on exercises that 

allow participants to apply what they learn to real life development assistance scenarios. As of FY 2011, the MfR workshop has 

become an institutionalized part of the Agency’s capacity building efforts to support ongoing improvement in the areas of planning 

and performance management. The Management Bureau’s Office of Management Policy, Budget and Performance updated the 

FY 2011 curriculum to include monitoring and evaluation in high threat environments in accordance with current USAID policy. 

(continued on next page)

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 19

Management Highlights
FY 2011 USAID MANAGEMENT CHALLENGES (continued)

Managing for Results (continued)

Actions

Remaining

An additional 275 staff are targeted for training in MfR in Washington and regional hubs in FY 2012. In addition to the MfR training, 

two critical phases of the program cycle—Strategic Planning and Evaluation—have become an institutionalized part of the Agency’s 

process for achieving development results. Improved guidance for Project Design and Implementation as well as for Performance 

Management will be fully implemented in FY 2012. To strengthen the role of Contracting Officer Technical Representatives’ (COTR) in 

overseeing performance management, a new course for mid-level COTRs is being piloted in February 2012.

Challenge Results Reporting. OIG audits have identified inaccurate or unsupported reported results. In 37 of the audit reports OIG issued in 

FY 2011, OIG noted that data reported by USAID operating units or their partners were misstated, not supported, or not validated. 

Actions

Taken

USAID and the Department of State, along with other federal agency partners undertook a review and revision of the Foreign 

Assistance Standard Performance Indicators as part of the streamlining Initiative in FY 2011. These indicators are used by all USAID 

operating units (OUs) to report on program performance. As a result of the review, major revisions were made to the indicator set, 

including elimination of some indicators, revisions to other indicators to improve the clarity and focus of the indicators, and creation 

of new indicators. A large component of this effort was the development of new indicator reference sheets which provide detailed 

definitions of the indicators, parameters for and limitations on data collection, and instructions to clarify the type of data expected 

to be submitted for each indicator. The FY 2011 Performance Plan and Report guidance also includes specific instructions to OUs on 

the standards for Data Quality Assessments. These actions are designed to emphasize the importance of accurate data collection and 

reporting at the mission level, and provide additional tools for OUs to use to improve data collection and reporting.

In addition, USAID is elevating the importance of program reporting and has strengthened the use and selection of indicators and 

targets in strategy and project development. 

Actions

Remaining

In FY 2012, Automated Directives Systems (ADS) 203 Assessing and Learning will be revised to incorporate new guidance and 

underscore the importance of selecting indicators that directly relate to the activities undertaken and the importance of accurate 

reporting. 

Challenge Sustainability. Sustainability is the capacity of a host-country organization to achieve long-term success and stability and to 

serve its clients and consumers without interruption and without reducing the quality of services after external funding ends. OIG 

audits have identified obstacles to project sustainability, with 11 audit reports disclosing sustainability weaknesses in FY 2011. 

Actions

Taken

Under the USAID Forward reform, USAID is focusing on strengthening the capacity of host country and local institutions by 

contracting with and providing grants to more varied local partners to ultimately create conditions where aid is no longer necessary. 

USAID realizes that enhancing local sustainability through foreign assistance is a long-term undertaking. 

USAID is also building capabilities by providing Local Capacity Development trainings. In FY 2011, USAID trained 190 people in 26 

different operating units.

More specifically, in addressing OIG’s audit findings that India did not have a sustainability plan, the India Mission stated that 

in collaboration with the Government of Uttar Pradesh and Family Planning Services Agency (SIFPSA), the Mission is currently 

developing a transition/sustainability plan for the state society in Uttar Pradesh to ensure that USAID maintains influence over how 

the $40.1 million in accumulated savings is spent and ensures they are spent for purposes consistent with the original program. 

The Mission is continuing a dialogue with SIFPSA begun in October 2011. They are currently taking the following actions:

1) Consultations and discussions with Government of India, Government of Uttar Pradesh (UP), the Governing Board of the State 

Innovations in SIFPSA and SIFPSA leadership on transition plans;

2) Consultations within USAID/India to develop plan of action (including Regional Legal Advisor, Controller, Program Support Office, 

Health Office, Front Office); 

3) Two firms were hired (PriceWaterhouse Coopers [PWC] and R. M. Lall and Company) to work on operationalization (PWC) and 

financial/legal (R.M. Lall) matters regarding the SIFPSA transition; 

4) USAID/India Mission Director meeting with newly appointed Government of UP Executive Director of SIFPSA to reach agreement 

on planned course of action (October 19, 2011).

Actions

Remaining

As part of the new project design guidance that will be rolled out in FY 2012, a sustainability assessment will be mandatory. 

To address the OIG’s findings in India, the Mission provided the third version of the draft PWC report to the Executive Director of 

SIFPSA, the Government of Uttar Pradesh Health Secretary. They have planned several meetings with SIFPSA to discuss the report 

and its recommendations, as well as other transition actions. These meetings have been delayed slightly due to elections in the 

state and related travel restrictions on U.S. Government staff. The Mission is currently seeking a one-year, unfunded extension to 

the IFPS bilateral, in part to ensure smooth and comprehensive transition of SIFPSA.

(continued on next page)

20 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
FY 2011 USAID MANAGEMENT CHALLENGES (continued)

Managing Acquisitions and Assistance

Challenge Strategic Procurement Reforms. Current strategies emphasize the importance of using partner country systems and 

strengthening local capacity and institutions. To assess the partner country systems, USAID established a Public Financial 

Management Risk Assessment Framework (PFMRAF). Use of the framework will discharge USAID’s fiduciary duties, advance 

USAID’s broad development goals, and achieve measurable results jointly identified and agreed on with the partner country 

government. If USAID intends to use a partner country’s supreme audit institution (SAI), USAID needs to coordinate with the 

USAID OIG to ensure that the SAI can conduct audits in accordance with U.S. Government Auditing Standards.

Actions

Taken

These broad strategic procurement reforms are intended to develop and use local country systems that are consistent with 

international standards of public financial management—not with U.S. standards, per se. In accordance with international 

agreements reached in Paris and Accra (2005 Paris Declaration and 2008 Accra Agenda for Action), USAID’s reform effort is 

designed to generally recognize (developed-world) international standards, as implemented locally. While USAID would expect 

there to be substantial overlap between U.S. Government Auditing Standards and those of the international community, these 

would not necessarily be identical in all respects.

Actions

Remaining

Subject to the above clarification, coordination with the USAID OIG on the Agency’s strategic procurement reforms is welcome, 

and the Agency looks forward to the OIG’s review and input. In accordance with Agency policy on the PFMRAF, there are many 

opportunities to consult with the OIG before conclusions are reached on the capacity of partner-country systems to manage U.S. 

Government funds. This falls solidly within the OIG’s statutory duty to coordinate and recommend policies designed to “promote 

economy, efficiency and effectiveness” in the administration of the Agency’s programs and operations (Inspector General Act of 

1978, as amended, Sec. 2) as well as within its oversight and enforcement functions.

Challenge Cost-Reimbursement Contracts. USAID commonly uses cost-reimbursement contracts, which allow for payment of allowable 

incurred costs. However, these types of contracts place a heavy burden on USAID operating units to provide the monitoring 

necessary to provide assurances that U.S. taxpayer funds are used efficiently and effectively.

Actions

Taken

In April 2011, USAID reported in its Acquisition Savings Plan to the Office of Management and Budget (OMB) a 21 percent 

reduction of total new awards in high-risk contracting mechanisms. In August 2011, a permanent chair was named for the new 

Acquisition and Assistance Review Board (AARB), formerly Contract Review Board. The Agency has begun developing guidance for 

the new AARB.

Actions

Remaining

The Agency will continue to monitor and reduce the number of cost-reimbursement type contracts whenever feasible. The 

guidance for the new AARB will be issued in October 2012, with initial applicability to acquisition actions. During the following 

six months, the Agency will assess the effectiveness of the new procedures and make decisions on including assistance actions in 

future AARB reviews.

Challenge Implementing Homeland Security Presidential Directive-12 (HSPD-12). The OIG reported that USAID lacked the resources 

to comply with this U.S. Government-wide directive. Although USAID has since met the requirements for credentials that allow 

access to the buildings at headquarters, it has not yet met the requirement for credentials that enable access to information 

systems. Future challenges in this area include tailoring an implementation plan for USAID/Washington and overseas posts.

Actions

Taken

Under OMB’s policy on continued implementation of HSPD-12 for a common identification standard for Federal employees and 

contractors, the Office of the Chief Information Officer, in coordination with the Office of Security, formed a HSPD-12 Steering 

Committee to assure continuity of physical and logical access. An analysis of vendors was completed in the fourth quarter of FY 2011.

Actions

Remaining

During the first quarter of FY 2012, USAID will begin the pilot to implement logical access to the Agency’s information technology 

(IT) infrastructure. USAID’s intent is to issue Federal Personal Identity Verification (PIV) and PIV-I cards to USAID employees ahead 

of OMB’s scheduled time line.

Challenge Consolidating IT Personnel and Infrastructure with the Department of State. In FY 2010, USAID and State consolidated 

their IT personnel and infrastructure in Afghanistan and shifted USAID personnel to State’s network, OpenNet. Subsequently, 

USAID conducted a business study for consolidating USAID and State IT infrastructure at approximately 70 locations where both 

USAID and State have operations. The approach chosen as a result of this study invokes total integration of hardware, software, 

and support personnel. USAID is planning to conduct pilots at three locations starting in October 2011. USAID’s study identified 

potential critical risks associated with the consolidation effort—including weakening of system security and not attaining 

projected savings—that will require management attention.

Actions

Taken

USAID and State are in the process of jointly (1) implementing pilots at three mission locations—Lima, Guatemala, and San 

Salvador—to validate the findings of the study and architecture, and (2) developing architecture for the Foreign Area Network as

well as developing an overall governance structure for the solution.

Actions

Remaining

Pending the results of pilots, USAID and State may decide to extend it to all USAID missions.

(continued on next page)

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 21

Management Highlights
FY 2011 USAID MANAGEMENT CHALLENGES (continued)

Managing Acquisition and Assistance (continued)

Challenge Safeguarding Classified Material. In response to a November 2010 OMB memorandum that noted the “significant damage 

to our national security” caused by WikiLeaks disclosures, USAID conducted: (1) a self-assessment of the Agency’s handling 

of classified material; (2) an external review by the Information Security Oversight Office and the Office of the National 

Counterintelligence Executive (ONCE); and (3) a review by the OIG. All three of these efforts noted areas for improvement in 

safeguarding classified material.

Actions

Taken

Policy. The recommendations of the ONCE to improve the policy, standards, operating procedures, processes and guidelines for 

classified operations were embraced by USAID. As a result USAID drafted new management policies for classified operations, 

communications security, cable room operations, conducting secure meetings and conferences, and personal electronic device 

management.

Safeguard and Protection. To assure secure system baselines, USAID re-imaged 131 classified system hard drives to the latest 

DOS ClassNet operating system baseline, between July and October 2011. Further, all system hard drive antivirus signatures were 

validated and current. The software was validated to ensure it actively monitors ClassNet systems. USAID performed an internal 

assessment of current infrastructure against future requirements. This assessment spanned user-classified processing systems, 

secure video telecommunications, secure voice, and controlled, secure print capability and protected distribution systems at 

future planned secure operations locations to harden protective capabilities of physical connections. USAID planned, researched, 

and invested in thin client infrastructure, personal identification number (PIN)-secured networked print devices, TEMPESTcertified secure video teleconference with TEMPEST-certified secure Voice Over Internet Phone (VOIP) for both Secret and Top 

Secret-Sensitive Compartmented Information environments. USAID also purchased encryption device upgrades with appropriate 

administrative training packages to reinforce proper administrative capability within the Agency. USAID plans to be fully migrated 

to a thin client-managed environment by June 2012. In addition, USAID is developing a local model that adopts and mirrors the 

Defense Information System Agency safeguard and protective measures, to include implementation of minimum required, limited, 

designated Agency “trusted agents,” who will be authorized to reproduce classified documentation, and will be accountable for 

tracking, documenting, transferring to internal and external bureaus and/or agencies, and dispositioning media on behalf of USAID.

Continuity of Operations Program. USAID has initiated actions to fully implement thin client infrastructure to support 

classified computer processing and upgrade to Internet Protocol-based secure video telecommunications and voice capability no 

later than March 2012. The protected distribution systems will be installed to protect classified computing connections during 

non-operations hours.

Accountability. USAID developed a local inventory and labeling mechanism that resulted in 100 percent accountability 

of classified hardware, printers, and hard disk drives. All stand-alone computing devices were removed from the operational 

environment in July 2011. 

Training and Awareness. The Chief Information Security Office and the Office of Security training coordinators jointly 

revamped initial and annual refresher training and tracking mechanisms. A baseline, automated training program will be 

developed, customized and implemented throughout the Agency, aimed at increasing awareness, automating annual training, 

and tracking and sending training reminders to users.

Information Security. Under Executive Order 13526, training has been developed for Original Classification Authorities (OCA). 

The training is designed to ensure OCAs are familiar with their roles and responsibilities in the classification, safeguarding, 

and declassification of classified national security information. Individuals authorized to hand-carry classified materials must 

carry with them a Form AID500-7, and a Courier Authorization Card. To ensure the safeguarding, control, and accountability of 

classified material and courier cards, effectively October 15, 2011, the Office of Security is the only office authorized to issue 

Courier Authorization Cards to USAID-designated couriers.

Portable Electronic Devices (PED). USAID developed a new policy which encompasses a risk-management approach that 

combines the use of security technology products with user awareness and procedural controls and measures to minimize the 

vulnerabilities inherent with PEDs.

Counterintelligence and Insider Threat. As outlined in Executive Order 13587, USAID developed an Insider Threat program 

called Structural Reforms to Improve the Security of Classified Networks and the Responsible Sharing and Safeguarding of 

Classified Information.

(continued on next page)

22 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
FY 2011 USAID MANAGEMENT CHALLENGES (continued)

Managing Acquisition and Assistance (continued)

Actions

Remaining

Culture. In response to assessments by the Office of the Director of National Intelligence and OIG, USAID formed a steering 

committee to oversee, recommend, and guide the Agency’s unified activities to address, direct and improve protection, safeguard, 

administration, accountability, inventory, and effective use of classified information and systems. The target completion date is 

June 2012.

Capability. USAID is soliciting expertise and input from all Agency security offices, business units, and bureaus to assure policies, 

culture, and activities support Agency business goals and objectives, encompass all 10 security domains, and result in wellrounded, vetted, and unified actions across the Agency.

Competency. USAID is reviewing strategy to align with Department of Defense 8570 Information Assurance training requirements 

to increase, train, and retain well-qualified, knowledgeable information assurance and IT staff. Classified equipment issue, safeguard, 

and protection responsibility will be assigned at the highest level in each USAID bureau. The target implementation date is June 

2012. Agency policies related to personnel, physical, and industrial security programs; counterintelligence program; and PEDs are 

under technical review. USAID expects to formally approve them by June 2012. In addition, USAID will implement an Insider Threat 

Detection and Prevention program under Executive Order 13587.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 23

Management Highlights
I

n December 2010, the Quadrennial Diplomacy and Development Review (QDDR), developed under the leadership of Secretary Clinton, was completed and disseminated to the Department 

of State, USAID, and their stakeholders as a blueprint for elevating American “civilian power” to advance U.S. national interests 

and to better partner with the U.S. military. One year later, the 

recommendations made in the QDDR are being implemented to 

improve the effectiveness of the Department and USAID in four 

broad areas: 

■ Adapting to the diplomatic landscape of the 21st century

■ Elevating and modernizing development to deliver results

■ Strengthening civilian capacity to prevent and respond to 

crises and conflict

■ Working smarter to deliver results for the American people 

In FY 2011, significant achievements by the Department of 

State were made in the following areas:

■ Preparation for the stand-up of the new Bureau of Counterterrorism, created to expand our capabilities to address 

terrorism issues and allow more effective coordination with 

other agencies, as well as establishment of the new Bureau 

of Conflict and Stabilization Operations, aimed at preventing 

conflict, saving lives, and building sustainable peace

■ Improving oversight and accountability on interconnected 

issues through establishing the Under Secretary for Economic 

Growth, Energy and the Environment, as well as repositioning the existing Under Secretary for Democracy and Global 

Affairs into an Under Secretary for Civilian Security, Democracy, and Human Rights

■ A heightened focus on addressing the challenges of meeting 

our future energy demands through the establishment of a 

new Energy Resources Bureau to develop a new oil diplomacy strategy as well as alternative energy technologies that 

reduce our carbon footprint over the longer term

■ Increased management effectiveness through cost efficiencies, 

improved service quality, and consolidation of administrative 

services; empowering ambassadors as CEOs in their respective Missions; and focusing on results through strengthened 

strategic planning, budgeting, and performance management 

processes

The Quadrennial Diplomacy

and Development Review

■ Expanded use of connection technologies to solve diplomatic 

and development challenges and for engaging with foreign 

publics

■ Fostering whole-of-government approaches to strengthen 

efforts by our partner countries to develop effective, 

sustainable, and accountable security and justice systems

■ Improved use of economic pressure through the targeted use of 

economic sanctions and threat finance policy and practices

Under the leadership of Administrator Shah, the ambitious USAID 

Forward initiative is supporting QDDR implementation through: 

■ The strengthening of USAID’s development policy and 

strategic planning capabilities which place evidence-based 

policy-making at the core of decision making

■ Implementation and procurement reform that is deepening 

local civil society and private sector capacity and making 

more extensive use of partner government systems

■ An evaluation policy considered a “model” by the 

American Evaluation Association that requires evaluations 

to be unbiased, transparent, and consistent with sound 

methodological standards

■ An Office of Budget and Resource Management that allows 

the Agency to align resources against country strategies, 

make difficult trade-offs, and re-deploy resources toward 

programs that are demonstrating meaningful results

■ Recruitment and retention of high-quality development 

professionals and having them work on the Administration’s 

top development priorities

■ Bringing game-changing innovations to scale by deepening USAID capacity and engaging thought leaders from 

throughout the world while building new capabilities 

such as Development Innovation Ventures. Find more at 

http://idea.usaid.gov/organization/div

■ Establishment of a new Office of Science and Technology 

(S&T) and first full-time Science and Technology Advisor 

to leverage S&T to address development needs more cost 

effectively and rapidly 

24 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Management Highlights
I

n Washington and around the world, Department of State and USAID experts work closely with dedicated colleagues from 

many U.S. Government agencies to vigorously and comprehensively pursue U.S. diplomatic, development, and defense 

goals. International organizations such as the United Nations (UN) and the Millennium Challenge Corporation are crucial 

partners in any efforts to address these challenges, and the United States works closely with these organizations to advance U.S. 

national interests. This section summarizes by region the key issues facing the United States as it engages in bilateral, regional, 

and multilateral partnerships to advance U.S. foreign policy and international development goals. An overview of U.S. foreign 

policy achievements by region can be found in the Message from the Secretary on page 2 of this report.

Africa Region

professionalism the Ghanaian military demonstrated during the 

2008 elections and the respect the institution receives from the 

Ghanaian public.

Sudan: Sudan represents both a success story and a continued 

challenge for U.S. Government conflict prevention efforts 

in the region. The attention of the world turned to South 

Sudan for a week in January 2011, as thousands lined up 

to cast their votes for independence. The results of the 

peaceful, internationally-observed, free and fair Referendum 

were overwhelmingly (98 percent) in favor of independence. 

Popular expectations of a “peace dividend” burgeoned in this 

state-to-be with a stunted economy, minimal infrastructure, 

and human development indicators among the worst in the 

world. Since then, traditional conflicts have resurfaced and 

militias have challenged the internal stability of South Sudan. 

The hard work of nation-building has begun in earnest. Long 

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GUINEA

SIERRA LEONE

LIBERIA

COTE D’IVIORE

BURKINA FASO

GHANA

TOGO

BENIN

EQUATORIAL GUINEA

SAO TOME AND PRINCIPE

REP. OF THE CONGO

RWANDA

BURUNDI

SENEGAL

THE GAMBIA

GUINEA-BISSAU

GUINEA

SIERRA LEONE

LIBERIA

COTE D’IVIORE

BURKINA FASO

GHANA

TOGO

BENIN

EQUATORIAL GUINEA

SAO TOME AND PRINCIPE

REP. OF THE CONGO

RWANDA

BURUNDI

B

C D

E

F G

H

I

J L

M N O

P

Q

R

S

T

U

V

W

X

K

CAPE MAURITANIA VERDE

NIGERIA SOUTH ETHIOPIA SUDAN CENTRAL AFRICAN REP.

KENYA

ERITREA

The United States and Africa are linked through history and 

culture, but they also share a promising future. The United 

States has significant political, economic and humanitarian 

interests in Africa. During the past decade Africa has made 

notable progress in democratization, economic policy reform, 

and the reduction of violent conflict, though challenges persist. 

The Department and USAID efforts in FY 2011 focused 

on strengthening democratic institutions and rule of law, 

preventing conflict, promoting sustainable economic growth 

and greater food security, enhancing access to education and 

combating disease, mitigating climate change by strengthening 

environmental protection, and combating transnational 

threats. The countries highlighted below illustrate recent 

progress on these U.S. Government priorities. 

Ghana: U.S. Government assistance has helped to make 

permanent Ghana’s status as a model and catalyst for good 

governance and development in Africa, thereby enhancing the 

security of the U.S. On January 3, 2011, Ghanaians elected 

John Atta Mills as their new president, marking the fourth 

successful presidential election in that country over the past 

fifteen years and the second time the ruling party has been 

replaced by the opposition. Due to Ghana’s demonstrated 

commitment to shared goals, it was one of four African 

countries selected for the Partnership for Growth, a signature 

effort of President Obama’s Global Development Directive that 

seeks to boost economic engagement. Ghana is also negotiating 

a second compact with the Millennium Challenge Corporation 

(MCC) to reward good performance with increased investment. 

The U.S. continues to have robust military-to-military 

relations with Ghana in support of its peace building role 

on the continent. The close relationship between the U.S. 

and Ghanaian militaries has contributed to the apolitical 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 25

Diplomacy and development regional highlights

Diplomacy and Development

Regional Highlights
before January’s Referendum, the U.S. Government was 

mobilizing interagency resources to address the humanitarian 

crisis that plagued the country while at the same time 

attempting to address instability through improvements in 

internal and external security, longer-term socio-economic 

woes through infrastructure and capacity building, and 

establishing the basic building blocks of democracy. At this 

juncture in South Sudan’s history, our responsibility is to 

ensure the requisite attention and sense of urgency is sustained 

to accompany it in its transition from a new, fragile state to a 

stable partner. 

South Africa: As a G-20 country with the largest economy 

in sub-Saharan Africa, a member of the United Nations 

Security Council, the newest member of the BRICS Group 

(Brazil, Russia, India, China, South Africa), and a leading 

voice in the African Union, South Africa is an example of a 

country that plays an important role in advancing security 

and economic growth not only in the region but also globally. 

At the same time, a majority of South Africans still suffer 

from a lack of equal opportunity, without access to the health 

care, quality education, and good jobs needed to make this 

country a success. Since 2010, the Department and USAID 

have engaged South Africa in a strategic dialogue, chaired 

by the Secretary and the South African Foreign Minister. 

Under the strategic dialogue, we have established a number 

of bilateral working groups designed to advance cooperation 

in health, education, law enforcement, defense, and political 

and economic matters. The Department and USAID support 

the government’s domestic policy priorities through smart, 

targeted infusions of aid that magnify the government’s own 

efforts as well as those of civil society and the private sector. 

For example, the South African Government is committed 

to education reform. By supporting that commitment 

through a combination of smartly applied direct funding 

and public-private partnerships, we can effect a systemwide transformation that expands opportunity for young 

South Africans. 

East Asia and Pacific Region

Marking an important pivot in U.S. policy toward the East Asia 

and Pacific Region, the Administration in 2011 articulated a 

new strategy to lock in substantially increased investment in 

“America’s Pacific Century.” This new strategy for Asia will guide 

such U.S. Government activities from reinvigorating already 

strong relations with treaty allies, building new partnerships 

with emerging powers in the region, engaging with multilateral 

institutions, expanding trade and investment, forging a broad 

based military presence, and advancing democracy, human rights 

and the rule of law. 

The region accounts for nearly one-third of the earth’s population 

and 25 percent of global gross domestic product. It contains 

five of the United States’ top 15 trading partners and is home 

to long-standing allies as well as security relationships. As 

such, the Asia-Pacific region plays a central role in shaping the 

course of the world’s economy, maintaining international peace 

and stability, and addressing key transnational issues such as 

energy, environment and climate change, infectious diseases, 

and nonproliferation. 

Burma: The United States is unwavering in its support of 

a peaceful, prosperous, and democratic Burma. During her 

historic trip to Burma in December 2011, Secretary Clinton, 

the first Secretary of State to visit Burma in over 50 years, 

assessed incremental signs of nascent political opening in 

Burma that followed our policy of principled engagement and 

maintaining appropriate pressure to bring about democratic 

reform and national reconciliation. While newly-confirmed 

U.S. Special Representative and Policy Coordinator for Burma, 

Ambassador Derek Mitchell, led diplomatic efforts in FY 2011 

to strengthen key partnerships with non-governmental groups 

CHIN A

AUSTRALIA

INDONE S I A

MONGOLIA

NEW

ZEALAND

JAPAN

A

B

C

D

E

F G

H

I

J

PHILIPPINES

MALAYSIA

PAPUA

NEW

GUINEA

K FED. STATES OF

MICRONESIA

MARSHALL ISLANDS

K IRIB A T I

L

M N

O P

Q

R

A

B

C

D

E

F

G

H

I

NORTH KOREA

SOUTH KOREA

BURMA

THAILAND

LAOS

CAMBODIA

VIETNAM

BRUNEI

SINGAPORE

J

K

L

M

N

O

P

Q

R

TIMOR-LESTE

PALAU

SOLOMON ISLS.

VANUATU

FIJI

TUVALU

SAMOA

TONGA

NAURU

P A C IFIC OCEA N

I NDIAN

OCEAN

Boundary representation is not necessarily authoritative

26 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Diplomacy and development regional highlights
and engage with key players in the Burmese Government, 

USAID led development efforts supporting vulnerable 

populations and key civil society actors. For example, 

USAID’s Office of U.S. Foreign Disaster Assistance (OFDA) 

worked with organizations operating in Burma to deliver 

life-saving assistance in response to Cyclone Giri, including 

relief supplies that benefitted nearly 15,000 individuals. 

Additionally, USAID has initiated a five-year humanitarian 

assistance program in Burma to provide microfinance, 

maternal and child health and water and sanitation to 

disadvantaged communities in the Dry Zone. The United 

States remains committed to providing further support as 

reforms proceed and progress is made toward realizing the 

democratic aspirations of the Burmese people. We continue to 

call for the release of all political prisoners, a halt to hostilities 

in ethnic areas and an inclusive dialogue with ethnic minorities 

toward national reconciliation, space for all political parties to 

freely compete in by-elections scheduled for April 1, 2012, and 

full implementation of legislation to protect universal freedoms 

of expression, assembly, and association. 

Japan: Japan and the U.S. share a strong and vibrant 

partnership. Our alliance helps safeguard regional security and 

is the cornerstone of U.S. strategic engagement throughout 

the Asia Pacific. Immediately following the disaster of 

unprecedented scale resulting from the earthquake, tsunami, 

and nuclear accident in March 2011, USAID/OFDA activated 

a Response Management Team in Washington, D.C., and 

deployed a Disaster Assistance Response Team (DART) to 

Japan. In cooperation with the Government of Japan (GoJ), 

civil society, and the private sector, the Department and USAID 

have supported Japan’s recovery and worked to renew business 

interest in the region. During the nascent recovery process in 

April, Secretary Clinton and then-Foreign Minister Matsumoto, 

with the support of the U.S. Chamber of Commerce and the 

Keidanren business federation, announced a public-private 

Partnership for Reconstruction which has been bolstered by 

visits to Japan by Vice President Biden and other senior officials. 

Public and private contributions, both large and small, from 

communities around the United States have directly aided 

relief and recovery efforts in the spirit of the Partnership for 

Reconstruction. Within the Partnership, and echoing our early 

rescue and relief efforts in Operation Tomodachi conducted 

alongside Japanese authorities, Embassy Tokyo and the U.S. 

Japan Council are spearheading the Tomodachi Initiative, whose 

education, business, sports, and arts programs seek to harness 

the energy of Japan’s young leaders and entrepreneurs.

Philippines: The Philippines is a key U.S. treaty ally. 

The U.S. Government’s primary goal in the Philippines is 

to help the country become a stable, prosperous, and wellgoverned nation. Towards this end, during her November 

2011 visit to Manila, Secretary Clinton signed a Joint 

Statement of Principles with her Philippines counterpart, 

officially launching the U.S.-Philippines Partnership for 

Growth (PFG). The five-year program is the signature 

inter-agency effort of President Barack Obama’s Presidential 

Policy Directive on Global Development which elevates 

economic growth in countries committed to good governance 

as a core priority for U.S. development efforts. Through 

the Partnership for Growth (PFG), the U.S. Government 

coordinated with the Government of the Philippines 

(GPH) to devise a comprehensive strategy to accelerate the 

country’s path to sustainable, inclusive economic growth 

and development. We worked together to identify key 

priorities for PFG programming in the Philippines that 

would: (i) improve regulatory quality; (ii) strengthen the 

rule of law and anti-corruption enforcement; and (iii) expand 

fiscal space. The Philippines PFG not only represents 

strong diplomatic engagement with the GPH, but it also 

demonstrates unprecedented interagency collaboration to 

maximize development outcomes in the Philippines. Several 

U.S. Government agencies, in addition to State and USAID, 

continue to demonstrate successful cooperation and are 

actively engaged as key implementing PFG partners. 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 27

Diplomacy and development regional highlights
European and Eurasian Region

in detection, interdiction, and investigation of violations of the 

border security. 

Moldova: As with Georgia, Moldova is one of six priority 

countries in Eastern Europe for U.S. assistance to consolidate 

democratic and economic reforms. Moldova’s democracy 

currently serves as the reformist model for the region, making 

it a leading candidate for accelerated integration with the 

EU. U.S. assistance focuses on strengthening democratic 

governance, improving the economy and business climate, 

fostering enterprise development, combating corruption, 

reforming the justice sector, and leveraging new Millennium 

Challenge Corporation activities in Moldova, including 

competitive high value agriculture. In FY 2011, U.S. support 

for justice reform strengthened the role of prosecutors 

in overseeing Trafficking in Persons (TIP) investigations, 

prompting the Department of State to raise Moldova’s status 

in its annual TIP Report from the Tier 2 Watch List to 

Tier 2. Grants to civil society groups fostered increased civic 

participation, government accountability, and democratic 

political processes, and monitored reforms in key sectors, 

such as health care. The U.S. also helped improve electoral 

administration and ensure democratic elections judged free and 

fair by national and international observers. On the economic 

front, the U.S. Government collaborated with the Government 

of Moldova on reforms that reduced the regulatory and tax 

burden on businesses and citizens and made significant strides 

in utilizing information technology to improve governance, 

strengthen civil society, and support private sector growth. 

FRANCE

SPAIN

GERMANY POLAND

FINLAND

TURKEY

RUSSIA

UKRAINE

ICELAND

IRELAND

ROMANIA

BULGARIA

GREECE

CYPRUS

GEORGIA

ITALY

A

B

C

D

E F

G

H

I J

M N

T

V

W X

O P

SWEDEN

BELARUS

AUSTRIA HUNGARY

DENMARK

PORTUGAL

NORWAY

UNITED

KINGDOM

K Q

R

S

U

L

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

ESTONIA

LATVIA

LITHUANIA

NETHERLANDS

BELGIUM

LUXEMBOURG

SWITZERLAND

LIECHTENSTEIN

CZECH REP.

SLOVAKIA

VATICAN CITY

SAN MARINO

SLOVENIA

CROATIA

BOSNIA AND

HERZEGOVINA

P

Q

R

S

T

U

V

W

X

SERBIA

MONTENEGRO

KOSOVO

ALBANIA

MACEDONIA

MALTA

MOLDOVA

ARMENIA

AZERBAIJAN

The Department and USAID are working together with our 

European partners to ensure that Europe is engaged, stable and 

prosperous. Europe is the essential platform for global engagement as showcased in the United States’ strong relationships 

with the North Atlantic Treaty Organization, the European 

Union (EU), and the Organization for Security and Cooperation in Europe. The United States works with Europe on priorities such as Afghanistan and Pakistan, Iraq, Iran, the changes 

sweeping the Arab world, and the Middle East peace process 

and the U.S. also collaborates on addressing challenges within 

Europe, such as Belarus, Ukraine, the Caucasus, and the Western Balkans. The Department and USAID engage Europeans 

through public diplomacy programs that advance a narrative of 

the U.S. and Europe working in partnership to achieve shared 

goals. On the economic front, we cooperate on a wide range of 

regulatory matters to unlock commerce around the world and 

ensure our companies and scientists lead in emerging sectors 

and technologies. 

Georgia: Georgia is one of six high priority countries in Eastern 

Europe for U.S. support aimed at consolidating democratic and 

economic reforms to help sustain regional peace and stability. 

To support democratic reform in Georgia in FY 2011, the U.S. 

helped strengthen civil society by providing grants that enabled 

regional media to better monitor government decision-making 

and transparency. U.S. Government assistance also supported 

implementation of Georgia’s new Criminal Procedures Code 

and the successful introduction of jury trials. Generating rapid, 

sustained, and broad-based economic growth is a key priority. 

In FY 2011, the Department of State efforts resulted in, among 

other successes, over $23.4 million in new domestic and foreign 

investments in greenhouse and cold storage facilities completion 

of the 30km Poti-Senaki gas pipeline and vocational education 

trainings and job fairs that helped more than 700 young people 

find employment. To further support economic reform, 

FY 2011 U.S. assistance addressed financial crime by helping 

establish Georgia’s first cybercrime unit in the Ministry of 

Internal Affairs. The U.S. also supported Georgia’s sovereignty 

and territorial integrity within its internationally recognized 

borders. Restoration of maritime assets and strengthening the 

Georgian Coast Guard (GCG) were a key focus of U.S. border 

security assistance in FY 2011. With U.S. funding, the GCG 

launched two 82-foot Coast Guard vessels, opened a new 

language center, and completed an upgrade of radar facilities. 

Over 200 officers of the Ministry of Internal Affairs were trained 

28 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Diplomacy and development regional highlights
These improvements contributed to Moldova ranking as the 

second fastest reformer in the World Bank’s Doing Business 

2012 report. 

Kosovo: The U.S. Government’s continuing goal is to help 

Kosovo become a stable, multiethnic, democratic, and 

prosperous country that is fully integrated into European and 

Euro-Atlantic institutions and contributing to the peaceful 

development of the western Balkans. In FY 2011, U.S. judicial 

assistance helped strengthen the capacity of the Kosovo Judicial 

Council by restructuring the court system to streamline their 

functions, promoting transparency, and having courts serve 

as platforms for piloting new operations designed to improve 

court efficiency. To address economic challenges, the U.S. 

provided training for commercial banks and provided technical 

assistance to the Ministry of Finance to create an electronic 

platform that will enable issuance and trade of government 

securities. To increase the capacity of civil society, the U.S. 

Government provided several small grants to non-governmental 

organizations (NGO) in Kosovo to support their watchdog 

activities, with notable success in reaching minority media 

outlets that foster ethnic and political reconciliation. One 

U.S. assisted NGO in particular positively mediated a dispute 

between a Kosovo Serb TV station and the Government of 

Kosovo (GOK), resulting in improved interethnic dialogue 

and integration of Serb media into mainstream television 

channels. Institutional capacity building has also been critical 

in the electoral and local governance sectors, where the U.S. is 

assisting the GOK with the planning and implementation of a 

revised Election Law and enabling municipal administrations 

and assemblies to provide better services to their citizens. 

To ensure order and security at Kosovo’s borders, the U.S. 

Government provided technical assistance to the Kosovo Police 

and the GOK for the development of operational plans, risk 

assessment tools, and protocols, which were especially critical 

following the violence in northern Kosovo last summer. 

IRAQ IRAN

SAUDI

ARABIA

EGYPT LIBYA ALGERIA

YEMEN

MAURITANIA

TUNISIA

ISRAEL BAHRAIN

West KUWAIT Bank

QATAR OMAN

U.A.E.

OMAN

SYRIA

JORDAN

EGYPT

SAUDI

ARABIA

IRAN

A

A

B

B

Boundary representation is not necessarily authoritative

Gaza Strip

MOROCCO

Western Sahara

Near East Region

The Near East presents the United States with some of its most 

pressing security and political challenges. At a time of historic 

transformations, the U.S. is on the side of local forces for 

change, seeking to strengthen civil society, advance democratic 

transitions where they are underway, and sustain political, 

social, and economic reform all across the region. The U.S. 

Government has renewed its commitment to help the region 

to increase prosperity, promote freedom, and counter extremist ideology. At the same time, the U.S. will continue to help 

build a sovereign, stable, and self-reliant Iraq, and continue to 

promote a comprehensive and lasting peace in the Middle East. 

Arab Awakening and U.S. support for political and economic 

reforms throughout the region: In 2011, the U.S. supported 

political and economic reform across the region, capitalizing on 

openings created in the wake of the ongoing Arab Awakening. 

The U.S. Government increased its work with civil society 

activists and organizations working to strengthen citizens’ 

voices in how they are governed. Sustaining the vision set out 

by the President in his May 19, 2011 speech, the U.S. remains 

committed to supporting the people of the region in their 

calls for democratic institutions, transparency, accountability, 

and economic opportunity. In states already undergoing 

political transition like Tunisia, Egypt, and Libya, the U.S. has 

worked closely with citizens to ensure founding elections are 

free and fair, setting these countries on a path to democratic 

consolidation. The obstacles facing countries in transition are 

daunting and the U.S. has pledged to continue its support. 

Securing a peaceful, stable, and democratic Iraq: The 

bilateral relationship between the U.S. and Iraq is evolving 

with the departure of U.S. military forces from Iraq in 

December 2011. The Department of State has assumed 

the lead for the U.S. Government under the auspices of the 

bilateral Strategic Framework Agreement, signed with Iraq 

in 2008. Our mission in Iraq over the next three to five 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 29

Diplomacy and development regional highlights
years will focus on strengthening our bilateral relationships 

in line with more traditional political, economic, security, 

and other priorities, as well as helping the Iraqi Government 

professionalize its police force. The U.S. closed all of the 

Provincial Reconstruction Teams (PRTs) in Iraq in 2011, 

opened Consulates General in Basrah and Erbil, and opened 

a temporary consulate in Kirkuk. Another critical program 

under Department leadership is a robust Police Development 

Program, executed through approximately 20 sites across Iraq. 

In coordination with the Department of Defense, an Office 

of Security Cooperation-Iraq was established under Chief of 

Mission authority to manage security cooperation activities, to 

include foreign military sales to Iraq. Finally, USAID and the 

Department’s Bureau of Democracy, Human Rights and Labor 

will continue nationwide programs in support of national 

and local level governance, civil service and private sector 

reform, agricultural development, small business development, 

financial sector reform, community development, legal 

assistance, health, education, and assistance to minorities 

and disadvantaged groups. 

Middle East Peace: A comprehensive peace in the Middle 

East which includes peace agreements between Israel and the 

Palestinians, as well as a broader peace between Israel and its 

Arab neighbors, remains a key foreign policy goal of the U.S. 

We continue to engage in significant diplomatic efforts to 

advance a two-state solution through the resumption of direct 

negotiations between Israel and the Palestinians based on the 

foundation outlined by President Obama in his May 2011 

remarks. The U.S. Government strategy in pursuit of IsraeliPalestinian peace remains focused on a dual track approach: 

vigorous, integrated efforts on both the negotiating and 

institution building tracks. We also continue to work closely 

with our partners in the international community to achieve 

this objective. 

INDI A

KAZAKHSTA N

AFGHANISTAN

SRI

LANKA

NEPAL

TAJIKISTAN

UZBEKISTAN

BANGLADESH

TURKMENISTAN

KYRGYZSTAN

PAKISTAN BHUTAN

MALDIVES

Indian

Claim

Line of

Actual

Control

1972 Line

of Control

Boundary representation is not necessarily authoritative

South and Central Asia Region

Energetic U.S. engagement in South and Central Asia remains 

vital to U.S. national security and regional stability as the 

U.S. Government aims to foster an integrated, cooperative 

region that supports peace and prosperity. Our highest 

priority across the region will be to support the New Silk 

Road vision outlined by Secretary Clinton in 2011. The 

New Silk Road envisions a network, with Afghanistan at 

its heart, of economic and transit connections throughout 

Central and South Asia. As the U.S. continues to support 

Afghanistan’s transition and integration into the wider 

region, we will continue to strengthen the U.S. partnership 

with India, support reconciliation in Nepal and Sri Lanka, 

solidify democratic gains in the Kyrgyz Republic, and support 

democratic institutions throughout the region. U.S. programs 

and policy will continue to increase food security in Tajikistan, 

reinforce transitions towards peace and economic growth in Sri 

Lanka, Bangladesh, Nepal, and Maldives, and improve access 

to healthcare, strengthen education, and increase access to 

objective news and information for citizens of Central Asia. To 

fortify its efforts to generate region-wide linkages, the United 

States will enhance cooperation with multilateral partners, 

regional organizations and country coalitions to address crossborder challenges, including narcotics flows, barriers to trade, 

human trafficking, terrorism threats to trans-boundary water 

management, energy resources and disaster preparedness. 

30 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Diplomacy and development regional highlights
working together to smooth the transition of former Maoist 

combatants into civilian life and to support the integration 

of others into the Nepal Army. Recognizing Nepal’s extreme 

vulnerability to natural disasters – particularly a catastrophic 

earthquake – the Embassy created a Disaster Risk Reduction 

Office to focus on disaster issues and coordinate U.S. efforts in 

that area. This innovative office, headed by a USAID Foreign 

Service Officer, works closely with the Department of Defense, 

the United Nations (UN), donors, the Nepali diaspora, the 

private sector, and the Government of Nepal to reverse the 

disaster risk equation, save lives, and protect U.S. interests and 

investments in Nepal. USAID is also leading an interagency 

effort to implement the Global Health Initiative Country 

Strategy for Nepal, which is strengthening the national health 

system, building public-private partnerships, and extending 

health service delivery to women, children, and historically 

marginalized groups. Nepal is one of the few countries on track 

to meet its Millennium Development Goals goals for child 

mortality and maternal health. U.S. Government assistance 

has contributed to impressive progress in these areas since 

1991, including a decrease in under-five mortality rates from 

158 to 54 deaths per 1,000 live births. The State Department, 

USAID, and Justice Department are working together to 

combat the scourge of human trafficking by building police 

capacity, strengthening civil society, and supporting trafficking 

survivors. Finally, the Embassy’s Economic/Commercial office 

is partnering with USAID’s Economic Growth program to 

promote economic reform and U.S. trade and investment 

in Nepal.

Bangladesh: In Bangladesh, U.S. agencies directly engage and 

collaborate effectively with the Government of Bangladesh 

(GOB), demonstrating the “Three D’s” of American foreign 

policy – diplomacy, development, and defense. Over the 

past forty years, the U.S. Government’s partnership with the 

GOB has produced significant development results. From 

2001-2010, maternal mortality rates declined by 40 percent, 

access to electricity increased to 42 percent in 2011 from 

3 percent in 1971, and rice yields have dramatically increased 

in the past 30 years. Our ongoing development cooperation in 

Bangladesh builds on past successes and supports the President’s 

Global Health, Food Security, and Climate Change Initiatives. 

U.S. assistance enables Bangladesh to address critical health 

challenges such as an unmet need for family planning, 

continued high rates of maternal and under-five mortality, 

one of the highest burdens of tuberculosis in the world, and 

severe stunting and malnutrition among children. Under our 

Kyrgyzstan: Other countries in Central Asia are watching as 

the Kyrgyz Republic embarks on a historic path to full democracy. U.S. assistance to the Kyrgyz Republic will continue to 

strengthen democratic institutions as well as promote regional 

security, the rule of law, and broad-based economic opportunity. 

In the past 18 months, despite the outbreak of deadly ethnic 

violence in the south of the country in June 2010, the Kyrgyz 

Republic held successful parliamentary and presidential elections and a constitutional referendum, all of which were considered transparent, largely fair, and reflected the will of the people. 

The presidential inauguration on December 1, 2011, marked 

the first peaceful, democratic transfer of power in Central Asia’s 

history. The U.S. provided support for election administration, 

training for political parties, assistance with televised candidate 

debates, and support for robust domestic election monitoring 

efforts. Rapid deployment of U.S. humanitarian assistance 

also helped stabilize conflict affected areas, contributing to the 

peaceful conduct and acceptance of the results of the elections. 

The Kyrgyz Republic’s economy contracted during and after the 

downfall of the previous government and subsequent upheaval. 

U.S. assistance helped the Kyrgyz Government enact economic 

reforms, improve its trade policies, and restore food and animal 

feed production levels. The joint U.S.-Kyrgyz Economic Development Fund was formally launched in FY 2011, beginning 

with a $4.1 million voucher program which supplied quality 

seed to 34,000 farmers. The seed distributions enabled farmers 

to produce at least $20 million more in crops than in the previous year. In FY 2011, the U.S. supported a number of activities 

to strengthen the rule of law. To address the needs of the Kyrgyz 

Government for professionally trained and equipped crowd 

management units, U.S. security assistance supported training 

to 500 public order police stationed in Osh City and Jalalabad 

district. Additional assistance provided in-depth training and 

equipment to the Ministry of Internal Affairs, the Ministry of 

Justice, and other law enforcement and justice system actors.

Nepal: In Nepal, U.S. policy seeks to support a stable, 

democratic and prosperous country in which the rights of 

all citizens are respected and protected. The Department 

and USAID are pursuing this goal against the backdrop of a 

country still emerging from a brutal, ten-year civil conflict and 

undergoing dramatic political, social and economic change. 

Responding to these complex challenges requires the U.S. 

Embassy in Kathmandu to take a “whole-of-government” 

approach to programs. To support the conclusion of the 

long-delayed peace process and prevent future conflict, 

USAID, the Departments of State, Justice, and Defense are 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 31

Diplomacy and development regional highlights
The President’s March 2011 trip to the region highlighted 

the significance of the Western Hemisphere to our economic 

competitiveness and a host of global strategic interests; indeed 

the prosperity and security of the United States are tied to 

the democratic success and economic development of the 

countries of the Americas. The United States pursues dynamic 

partnerships with its Latin American neighbors to achieve five 

policy priorities that, in turn, advance critical U.S. national 

security interests: 1) increased citizen security and effective 

democratic institutions and governance; 2) social equity 

and adequate social services for the peoples of the Americas; 

3) expanded economic opportunity; 4) global climate change 

adaptation and mitigation and a secure and clean energy 

future; and 5) public opinion that supports U.S. policies in 

the Hemisphere. While the United States engages throughout 

the region, the three countries below serve to highlight the 

complementary work and success that the U.S. Department 

of State and the U.S. Agency for International Development 

(USAID) have achieved in advancing U.S. foreign policy 

priorities in the Western Hemisphere.

Mexico: U.S. policy priorities in Mexico are broad and 

multifaceted, and include a robust security partnership, 

economic competitiveness, trade, energy, environment, 

climate change, human rights, and cultural and educational 

ties. A key component of our global competitiveness is 

creating a border that will facilitate secure and efficient flows 

of goods and people, and reduce the costs of doing business 

between our two countries. This includes consulting with 

states and local governments on both sides of the border; and 

exploring means to review and modernize border management 

and infrastructure with our Mexican partners. A deepening 

partnership with a strong Mexico improves the welfare and 

security of U.S. communities, our nation’s economic wellbeing, and our ability to manage transnational organized crime.

BRAZIL

PERU

ARGENTINA

BOLIVIA

MEXICO

COLOMBIA

VENEZUELA

TRINIDAD AND TOBAGO

BARBADOS

ST. LUCIA DOMINICA

ANTIGUA AND BARBUDA ST. KITTS AND NEVIS

GRENADA

ST. VINCENT AND THE GRENADINES

GUATEMALA

BELIZE

SURINAME ECUADOR

CUBA

JAMAICA HAITI

PARAGUAY

URUGUAY

EL

SALVADOR

DOMINICAN

REPUBLIC

THE

BAHAMAS

HONDURAS

NICARAGUA

COSTA RICA

PANAMA

GUYANA

Boundary representation is not necessarily authoritative

Not shown: CANADA

Feed the Future program we are increasing rural agricultural 

productivity, enhancing crop diversification, addressing high 

levels of under-nutrition, and working towards improving the 

livelihoods of up to 900,000 people in southwest Bangladesh. 

U.S. resources are also working to consolidate Bangladesh’s 

democratic transition by strengthening political practices and 

processes. The Department of State and USAID funding will 

continue to invest in our political, economic, development, 

and security relationship with Bangladesh to help the country 

lift millions of its people out of poverty, play a leadership role 

in promoting regional connectivity, and become a model for a 

moderate, secular, democratic society that is at peace with itself 

and its neighbors. 

Western Hemisphere Region

Over the past year, we achieved major successes in the United 

States-Mexico security partnership, highlighted by the Merida 

Initiative and its increases in seizures of narcotics and arrests of 

high profile traffickers. This United States-Mexico partnership 

is a whole-of-government, multi-dimensional approach, 

which focuses on crime prevention, justice sector reforms, 

anticorruption efforts, law enforcement effectiveness, and 

programs targeting at-risk youth. For example, our assistance 

enhanced the computer architecture linking over 120 law 

enforcement and public safety databases into a powerful 

crime fighting tool. 

Mexico is the United States’ second largest trading partner 

in the hemisphere and we took steps in areas like regulatory 

cooperation to enhance integration even further. We supported 

32 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Diplomacy and development regional highlights
Mexico’s own efforts to make needed policy reforms that 

contributed to its improved performance in international 

competitiveness rankings and helped to combat poverty. 

Mexico also took over a lead role within the Energy and 

Climate Partnership of the Americas (ECPA), announced 

by President Obama at the 2009 Summit of the Americas to 

advance energy efficiency and conservation through policy, 

regulation and technology deployment.

Colombia: Consolidated progress on the security and political 

fronts in Colombia are opening major new opportunities 

in our bilateral relationship. Congress last year passed the 

United States-Colombia Trade Promotion Agreement, which 

will open the door to a more dynamic commercial relationship. 

Colombia is exporting its security expertise, becoming a 

leading provider of counternarcotics and security training 

programs in Mexico, Central America, and the Caribbean. 

It has also taken a leadership role within ECPA, and will host 

the next Pathways to Prosperity Ministerial. 

The guiding structure of the U.S. Government’s coordinated 

interagency effort, the Colombia Strategic Development 

Initiative, builds on the lessons-learned from Plan Colombia 

and supports the Government of Colombia’s “National 

Consolidation Plan.” In a sequenced and coordinated manner, 

the Department of State, USAID, and the Department of 

Defense continue to support Colombia’s efforts to expand 

the state’s presence to improve security and services in areas 

where poverty, violence, illicit crop cultivation and narcotics 

trafficking have historically converged. 

In FY 2011, U.S. Government assistance also supported 

the Colombian Government’s transformational efforts to 

compensate hundreds of thousands of victims, most of 

them women, provide for historic land restitution, reform 

the civil service system, and reorganize the government to 

create new ministries and agencies in the areas of labor, 

justice, environment, consolidation, and victims’ assistance. 

Our assistance programs assisted the development of more 

democratic and representative political parties, helped create 

the space for expanded political participation of women and 

Afro-Colombians, and helped guaranteed more transparent 

elections. 

El Salvador: One of only four countries worldwide selected 

to participate in President Obama’s Partnership for Growth 

initiative, El Salvador in 2011 signed a five-year Joint Country 

Action Plan (JCAP) to work together with the United States 

and mobilize the resources of both governments to address the 

most serious constraints to economic growth and development 

in El Salvador: citizen insecurity and low productivity in the 

tradable goods sector. The JCAP outlines the prioritized joint 

activities to unlock these binding constraints.

El Salvador is a strong partner in Pathways to Prosperity, 

the United States’ strategic regional partnership to promote 

inclusive economic growth in the hemisphere. Through 

Pathways, the Salvadoran Government has an ambitious 

program to expand to 15 small business development centers 

by the end of 2012, which will develop the capacities of SMEs 

operating in El Salvador. A Pathways-sponsored regional 

Treasury Advisor is working with the Salvadoran Central 

Bank to promote greater financial inclusion. To facilitate 

trade, El Salvador plans to host a Pathways workshop on 

customs modernization in early 2012. By providing greater 

opportunities in the growing Salvadoran economy, the United 

States is helping to develop a safe, stable, and prosperous 

El Salvador that will benefit the people of El Salvador and 

create new markets for American businesses.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 33

Diplomacy and development regional highlights
United States foreign assistance is helping to meet national 

security objectives in the frontline states of Afghanistan, 

Iraq and Pakistan. Assistance efforts are enhancing stability and 

sovereignty in Afghanistan and Pakistan through targeted economic 

development, education, and government capacity building. 

Programs in Afghanistan and Pakistan are closely aligned with 

the overarching U.S. Government goal to disrupt, dismantle, and 

defeat al Qaeda and eliminate its capacity to threaten America 

and our allies in the future. In Iraq, USAID supports the objectives 

of the Strategic Framework Agreement (SFA) with the Government 

of Iraq by improving Iraq’s ability to use its own resources for its 

own development, security, and sovereignty. And with the transition 

from military to civilian lead in Iraq, the Department will be fully 

responsible for its own critical support functions once performed by 

the U.S. military, including security, transportation, and the provision 

of basic services. These functions are essential to maintaining 

the diplomatic presence necessary to continue strengthening 

democratic institutions in Iraq and encouraging its reintegration into 

the international community. With U.S. military forces withdrawn 

from Iraq and decreasing their ranks in Afghanistan, State and 

USAID programs will build upon hard- won achievements to date 

by continuing the development of democratic institutions, capable 

security forces, and sustainable economic growth. 

A key goal of stabilization programs in Afghanistan and Pakistan 

is supporting the local population - including building capacity 

of Afghan government officials to respond to citizens’ needs 

and increasing interaction between government and citizens. In 

Afghanistan, each spring insurgents try to recruit villagers to take 

supporting roles, from providing transport and fuel to using small 

arms and delivering explosives. In Spring 2011, the insurgent 

recruitment campaign in one Wardak district faltered when 

hundreds of likely recruits were already gainfully employed through 

the USAID Community Development Project reconstructing critical 

irrigation systems. The project, initiated in 2010, benefited 4,320 

farmers and their family members in six villages across three 

valleys, employing 450 villagers on any given day and a total of 

2,700 workers over the life of the project. Because of the project, 

residents pushed back when insurgents tried to lure villagers away 

from the project and into the conflict. Work on the irrigation systems 

has continued and proceeded ever since without interference. In 

support of the U.S. Government’s efforts to lay the groundwork for 

long-term stability and transition, a 1,100-person strong civilian 

surge of Foreign Service Officers from the Department of State, 

USAID, and other agencies joined our military forces in facilitating 

transition and building the capacity of key Afghan ministries. 

In Pakistan, U.S. civilian assistance supports the development of 

a stable, secure, tolerant Pakistan with a vibrant economy that 

can offer alternatives to extremism. Stabilization programs are 

addressing instability and insecurity resulting from decades of 

poor governance, underdevelopment, and conflict in the Federally 

Administered Tribal Areas and Khyber Pakhtunkhwa province, 

both bordering Afghanistan. USAID is supporting the Government 

of Pakistan in making these areas inhospitable to extremists by 

strengthening the capacity and legitimacy of public institutions 

to provide security, good governance, and socio-economic 

development. Over 1,700 small community-based projects are 

helping to increase citizens’ confidence in the government by 

addressing immediate needs for basic services (water, power, 

health, and education) and providing work opportunities through 

the construction of infrastructure and roads. A recent evaluation 

of this program in Mohmand Agency geographic area affirmed 

that citizens are now more inclined to ask for help from their 

government rather than militant groups. U.S. security assistance 

complements these efforts by building Pakistan’s counterterrorism 

and counterinsurgency capabilities.

In Iraq, the Iraqi and American people share a common goal for 

Iraq’s future: an Iraq that is sovereign, stable, and self-reliant. 

State and USAID work with Iraqi counterparts to consolidate gains 

made by previous stabilization programs in peace and security. 

In tandem with our military’s drawdown, the U.S. Government 

is engaged in the largest State Department logistical effort since 

the Marshall Plan to stand up a new civilian structure in Iraq to 

achieve our national strategic interests. USAID programs are 

aligned with the SFA and based on shared priorities with Iraqi 

partners. They focus on strengthening democratic governance, 

encouraging economic growth, and improving key social services. 

USAID works to strengthen the accountability of key Iraqi institutions 

such as the Independent High Electoral Commission which has 

successfully administered five major electoral events since 2004. 

The Marla Ruzicka Fund continues to assist innocent civilian victims 

of military operations through the USAID’s Community Action 

Program. Marla Fund recipients are assisted through direct medical 

help, replacement of damaged property, and the establishment of 

sustainable livelihoods after the death or injury of a breadwinner. 

Recipients are provided training and grants to start businesses such 

as grocery stores, bakeries, electronics shops or farms. To date, 

the Marla Fund has supported more than 3,320 individual and 

community projects that directly benefit innocent civilian victims. 

In the aftermath of the U.S. military drawdown USAID is working 

to build the capacity of local Iraqi NGOs and government to 

continue to provide such assistance.

Frontline States

34 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Diplomacy and development regional highlights
Performance Management

use of performance indicators that track the Department’s 

progress in reaching its annual targets. Many Department 

bureaus, such as the Department’s Bureau of Overseas 

Building Operations, conduct quarterly performance reviews 

to track their success in meeting the targets established 

for each indicator and address any shortfalls that might 

necessitate a change in direction. 

The Department’s annual planning cycle is anchored 

by mission and bureau level strategic plans that engage 

diplomatic missions and Washington-based bureaus in 

outcome-oriented planning that drives policies and establishes 

programmatic direction by country, region, strategic goal, 

and strategic priority. A data quality assurance process has 

been instituted throughout the Department of State to 

ensure the integrity and reliability of the data reported for 

all performance indicators. Every two years, bureaus are 

required to complete a questionnaire that assesses the quality 

of each of their indicators. These Data Quality Assessments 

are also required for all new indicators. Through use of an 

internal Data Quality Assessment tool, the bureaus determine 

the overall quality of the indicators and submit a formal 

Data Quality Statement affirming the overall accuracy 

and reliability of the performance information provided.

Total Number of Indicators – 148

Above target 

(41%)

On target 

(15%)

Improved, but

target not met 

(2%) Below target 

(22%)

Summary of Performance Ratings for Fiscal Year 20111

Rating not

available 

(9%)

Source: FY 2011 Annual Performance Reports and FY 2013 Annual 

Performance Plans for both agencies. Performance ratings calculated from 

performance data provided at the time of publication.

Ratings are not available for indicators that are new or for which result data 

are not yet available.

1. Percentages rounded to the nearest whole number.

New indicator, 

no rating T

(11%)

he Department of State and USAID work together, 

along with other U.S. Government partners, to plan and 

execute programs that meet global challenges of the 21st 

century. Performance management practices at the Department 

and USAID enable programs to achieve U.S. foreign policy 

outcomes and promote greater accountability to the American 

people. A multiphase process includes setting strategic goals 

and priorities, creating programs to achieve goals, monitoring 

program activities, measuring progress, using performance data 

to inform resource allocations, and communicating program 

results to stakeholders.

To communicate the progress achieved towards U.S. foreign 

policy goals in FY 2011, 148 representative performance 

indicators were published in the Department of State’s and 

USAID’s Annual Performance Reports. FY 2011 results for 

each indicator were reviewed against previously determined 

performance targets to determine performance ratings, which 

are summarized in the chart at right. The following section 

highlights 15 of these illustrative indicators organized by 

Strategic Goal, accompanied by an explanation of each goal 

and analyses of the results achieved in FY 2011. For complete 

information on indicators, see FY 2011 Annual Performance 

Reports for State and USAID at http://www.state.gov/s/d/

rm/c6113.htm and http://www.usaid.gov/performance/agencyperformance/.

Department of State

The Department of State uses performance management 

to measure organizational effectiveness, strengthen and 

inform decision-making, and improve programs and 

policies so that they are linked to specific performance 

targets and broader strategic goals. Managers at all levels 

use performance management best practices to assess and 

mitigate risks, benchmark program results, comply with 

legislative requirements, and adjust strategies in response 

to performance successes and shortcomings. A critical 

element of the performance management approach is the 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 35

Performance Highlights

Performance Highlights
USAID

 At USAID, the tools for assessing, learning, and sharing are 

interrelated through the concept of performance management. 

USAID missions and offices are responsible for establishing 

Performance Management Plans and targets to track progress 

toward intended objectives. They are also responsible for 

reporting key indicator data in their annual performance 

reports. These performance reports inform decisions on 

funding, program development, and implementation. 

USAID is undertaking a number of reforms to implement 

PPD-6 and the QDDR. The Agency is incorporating these 

reforms into its operations through the core components of 

USAID’s Program Cycle – Agency-wide policy and strategies, 

strategic planning (through Country Development and Cooperation Strategies), project design and implementation, as well 

as evaluation and monitoring. These components, representing the “discipline of development,” are informed by continuous learning and adapting, influence the annual budget and 

resource management processes, and focus on achieving results.

The Program Cycle specifically delivers on the Agency’s 

QDDR commitment to “develop processes to define specific 

strategic priorities, evaluating results in light of those priorities, 

and incorporating our conclusions into budget, program 

management, and project design decisions.”

A strengthened and integrated Program Cycle will enable more 

effective interventions and maximize development impacts. It 

will also allow the Agency to provide analysis and data on what 

is working, determine strategic opportunities and tradeoffs, 

evaluate projects, and feed knowledge back into programming 

and future policy development. The Program Cycle provides a 

more strategic and evidence-based approach to justify resources 

and serves as the basis for a more integrated budget cycle, 

ensuring that resource decisions are built around strategic 

plans and priorities and performance and evaluation data.

A good performance target is ambitious, measurable, and 

achievable. USAID follows a multi-step process to determine 

targets by examining the following: baseline value before 

U.S. Government intervention, historical trends and level of 

progress, expert judgment from technical authorities, research 

findings and empirical evidence, accomplishments of programs 

with similar characteristics elsewhere, customer expectations, 

and planned progress from the baseline for what will be 

accomplished over a five-year period with anticipated funds.

Data are only useful for decision making if they are of high quality and provide the groundwork for informed decisions. USAID 

missions and offices are required to conduct data quality assessments for all performance data reported to Washington. These 

assessments verify the quality of the data against the five standards 

of validity, integrity, precision, reliability, and timeliness.

Program Evaluation

P

rogram evaluation is an essential component to 

implementing diplomatic and development programs and 

initiatives. Evaluations allow project managers to better 

understand their programs and give policy makers a tool to 

assess the capacity of a particular program or sector. 

The Department of State and USAID have partnered to 

develop and implement new evaluation policies, guidelines 

and procedures to support both agencies’ evaluation and 

performance management strategies. Under the aegis of the 

Quadrennial Diplomacy and Development Review (QDDR), 

the two agencies are collaborating on activities to promote and 

sustain evaluation as a management tool. The Department of 

State’s evaluation policy is located at http://www.state.gov/s/d/

rm/rls/fs/2011/163299.htm; USAID’s Evaluation Policy can be 

found at http://www.usaid.gov/evaluation/.

Department of State

The Department is committed to using performance management 

best practices, including, program evaluation, to achieve the 

Learning

Adapting

Budget

Resources

Results

Agency Policy

& Strategies

Project Design &

Implementation

Evaluation &

Monitoring CDCS

36 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Performance Highlights
Gender equality and female empowerment are essential 

to effective and sustainable development outcomes. 

A growing body of research demonstrates that societies with 

greater gender equality experience faster economic growth and 

benefit from greater agricultural productivity and improved food 

security. Empowering women to participate in and lead public 

and private institutions makes them more representative and 

effective. Increasing girls’ and women’s education and access to 

resources improves health and education for the next generation. 

Promoting women’s participation in conflict prevention, 

management, and resolution activities, as well as in post conflict 

relief and recovery efforts, helps to advance peace, national 

security, economic and social development, and international 

cooperation. 

Over the last year, USAID and the Department of State have 

worked closely together, as well as with interagency partners, 

to further advance women’s economic, political, and social 

empowerment globally. These efforts are yielding concrete 

results. For example, the Department of State and USAID 

collaborated with the White House and Department of Defense 

to produce the first ever U.S. National Action Plan on 

Women, Peace, and Security, in recognition of women’s 

important role as peace builders and guarantors of security. 

The Feed the Future initiative developed an enhanced 

monitoring and evaluation system that will comprehensively 

track the impact of our work on women and girls using a newly 

designed women’s empowerment index that USAID created in 

collaboration with the International Food Policy and Research 

Institute and the Oxford Poverty and Human Development 

Initiative. A key component of the U.S. Global Health Initiative 

is the Women, Girls, and Gender Equality (WGGE) Principle, 

which seeks to understand gender roles and their impact on 

health, to address gender imbalances related to health, to 

promote the empowerment of women and girls, and to improve 

health outcomes for individuals, families and communities. In 

April 2011, the Department of State and USAID released the 

WGGE Principle Supplemental Guidance to help countries 

incorporate the principle into their strategies.

USAID expanded funding to support women’s leadership 

in a range of sectors. U.S. Government funds are supporting 

women’s direct participation in peace negotiations, humanitarian 

and post-conflict donor conferences, and government and 

political transitions. These funds also are being used to expand 

women’s leadership in the mobile phone industry, increase 

women’s leadership of small and medium-sized enterprises, and 

increase the extent to which higher education programs cultivate 

women leaders in business, academe, research and other fields. 

Funds will also be used to help strengthen the skills and capacity 

of women members of legislatures, support the creation of a 

South Asian female parliamentarians network, and support 

the Inter-Parliamentary Union’s work tracking and studying the 

impact of women in government around the world. Women’s 

leadership components are also being added to programs 

that combat gender-based violence in the Democratic Republic 

of Congo. 

For further information about new and innovative efforts to 

address women’s and girl’s issues, visit the Department of State’s 

Office of Global Women’s Issues website at http://www.state.

gov/s/gwi and USAID’s Office of Gender Equality and Women’s 

Empowerment website at http://www.usaid.gov/our_work/

cross-cutting_programs/wid/.

Gender Equality And Women’s Empowerment

“If we decide – as societies, 

governments and businesses – to 

invest in women and girls, we will 

strengthen our efforts to fight 

poverty, drive development and 

spread stability. When women 

thrive, families, communities 

and countries thrive – and the 

world becomes more peaceful and 

prosperous.

— Secretary of State Hillary Clinton on Empowering 

”

Women Helps World Growth, March 8, 2011

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 37

Performance Highlights
most effective U.S. foreign policy outcomes and greater 

accountability to our primary stakeholders, the American 

people. The Department of State’s policy on program evaluation 

embodies the aims of the current National Security Strategy, 

the Presidential Policy Directive on Global Development, and 

the Quadrennial Diplomacy and Development Review. The 

policy applies to evaluations of the Department’s diplomatic 

and development programs, projects and activities. This policy 

is an important milestone in strengthening agency evaluation 

capacity at State and more effectively incorporating evaluation 

into planning and budget decision-making. The policy supports 

OMB efforts to work with agencies on the development of 

evaluation plans and to incorporate program evaluation as a 

core element of program management. As part of efforts to 

implement key QDDR recommendations, the Department 

is currently revising its evaluation policy to strengthen the 

connection between evaluation and USAID’s strategic planning, 

performance management and budget formulation processes. 

The revised evaluation policy incorporates best practices and 

international standards in evaluation and criteria to facilitate 

the evaluation of programs, projects, activities and other efforts 

implemented with State Operations and Foreign Assistance 

funding. 

To support implementation of the policy and to lay the 

foundation for a coordinated and robust evaluation function, 

the Department is putting in place training, tools, and products 

to assist in the design and execution of high-quality evaluations. 

USAID

USAID manages public resources to promote sustainable 

development. To fulfill this responsibility, the Agency bases 

policy and investment decisions on the best available empirical 

evidence, and uses the opportunities afforded by project 

implementation to generate new knowledge for the wider 

community. Moreover, USAID commits to measuring and 

documenting project achievements and shortcomings through 

performance monitoring and evaluation so that the Agency’s 

multiple stakeholders gain an understanding of the return on 

investment in development activities. 

In January 2011, USAID released a new Evaluation Policy that 

sets ambitious standards for the quality and transparency of 

evaluation to demonstrate results, generate evidence to inform 

decisions, promote learning, and ensure accountability. Many 

of the policy requirements build on and update past USAID 

evaluation practices to bring the agency up to date with, and 

in some cases surpass international standards.

Since release of the policy, the Bureau of Policy, Planning and 

Learning has led the effort to institutionalize the policy across 

the agency by:

■ Establishing and extending good practice by communicating Evaluation Policy standards and increasing the 

understanding and awareness of USAID staff and partners 

of what makes for good practice in development program 

evaluation. This includes, among other actions, integrating 

evaluation into the program cycle and working on new 

communications products to help staff understand and in 

turn present on evaluation requirements.

■ Building USAID capacity through training in evaluation 

methods and best practices for field and Washington based 

staff. In FY 2011, 365 staff members were trained, and 

another 1,100 will be reached by the end of FY 2013. 

In addition, evaluation training is now mandatory for 

all incoming Foreign Service Officers hired under the 

Development Leadership Initiative. 

■ Providing Technical Assistance to staff in bilateral and 

regional missions and Washington pillar bureaus in drafting 

evaluation scopes of work for impact and performance 

evaluations, developing mission evaluation orders, and 

drafting the monitoring and evaluation sections of mission 

Country Development and Cooperation Strategies.

■ Leveraging Evidence and Learning by hosting a 

community of practice, the Evaluation Interest Group 

(EIG), which provides a broad forum for USAID 

staff to share evaluation experiences, best practices, 

and opportunities related to evaluation and learning. 

Membership is voluntary and open to any staff person, 

including from the Department of State. Before the 

Evaluation Policy, the group numbered around 100 

members. As of September 2011 there are over 700 people 

on the EIG email list. The group also manages an internal 

Share Point site that archives Evaluation Resources, 

available to USAID staff.

38 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Performance Highlights
The Global Climate Change Initiative (GCCI) is one of 

three high-priority Presidential Initiatives. U.S. leadership 

on climate change strengthens our international posture while 

helping to build a clean-energy world less exposed and more 

resilient to climate dangers. In Cancun, Mexico, during the 

United Nations Climate Change Conference in December 2010, 

the world took an important step toward meeting the climate 

and clean energy challenge, as all major economies will take 

actions to reduce their greenhouse gas (GHG) emissions in a 

transparent way. GCCI funds support the U.S. commitment to 

contribute its share of $30 billion over the 2010-2012 period for 

“fast-start” funding to help developing countries address climate 

change while maintaining development gains. This commitment 

was made in the United Nations Framework Convention on 

Climate Change (UNFCCC) Copenhagen climate negotiations in 

2009 and reaffirmed in Cancun. U.S. Government-wide finance 

in support of this pledge totaled over $3 billion in FY 2011 

appropriated funds. 

The GCCI, organized into three “pillars” (Adaptation, Clean 

Energy, and Sustainable Landscapes), is:

■ Accelerating the transition to low emissions development 

by supporting country Low Emission Development Strategies (LEDS), as well as additional direct investments in clean 

energy and sustainable landscapes

■ Increasing the resilience of people, places, and livelihoods 

through investments in adaptation 

■ Strengthening development outcomes by integrating climate 

change resilience into approaches for food security, health, 

governance, disaster risk reduction, and other development 

and diplomatic goals 

FY 2011 Highlights

The whole-of-government Enhancing Capacity for Low 

Emission Development Strategies (EC-LEDS) program 

supports developing countries’ efforts to pursue sustainable, 

climate-resilient economic growth while slowing the release of 

GHG emissions. In FY 2011, the EC-LEDS team led seven scoping 

assessments, exchanged knowledge and built field capacity in an 

inter-agency workshop, and established agreed work programs with 

two partner country governments—Bangladesh and Costa Rica.

Through the GCCI, the U.S. Government released the United 

States’ strategy to reduce emissions from deforestation and forest 

degradation and increase carbon sequestration by forests in 

developing countries, commonly referred to as REDD+. This 

U.S. Government-wide strategy outlines how the U.S. will invest 

the $1 billion dedicated for REDD+ announced by the Obama 

Administration at the UNFCCC meeting in Copenhagen in 

December 2009. The strategy was developed through an 

interagency process facilitated by the White House National 

Security Council and the Council on Environmental Quality.

Dedicated adaptation programs are critical to 

demonstrating a longer term, climate-resilient development 

perspective. In FY 2011, USAID disseminated tools for use by 

Missions, Bureaus, and host country governments. A number of 

innovative demonstration activities related to pilot insurance, risk 

management, and climate services were initiated. 

The Department of State supported multilateral programs 

and processes that build international consensus on, and the 

ability to address, climate change challenges. These programs 

and processes include the international bodies that lead the 

climate change negotiations and global scientific analysis of 

climate change, efforts to increase global uptake of new clean 

energy technologies through the Clean Energy Ministerial, the 

Global Methane Initiative, the Energy and Climate Partnership 

of the Americas, and the Montreal Protocol, and support for 

multilateral funds that assist the most vulnerable developing 

countries. 

For more information, visit http://www.usaid.gov/climate and 

http://www.state.gov/e/oes/climate.

Global Climate Change Initiative (GCCI)

A mother carries her child in one hand and a packet of collected food in 

the other down a flooded road on the outskirts of Dhaka, Bangladesh, in 

August 2002. Floods are expected to become more frequent and severe 

in the face of climate change. ©AFP Image / Jewel Samad

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 39

Performance Highlights
I

n FY 2011, the Department of State and USAID continued to increase analytical rigor in strategic planning and performance 

management by focusing on outcome oriented performance measures that support their strategic goals and priorities. This 

section summarizes performance information presented in both agencies’ Agency Financial Reports as well as in the Annual 

Performance Reports included in the Congressional Budget Justification. Illustrative indicators for the joint Department of State 

and USAID strategic goals are included in the following goal chapters.

Strategic Goal 1:

Achieving Peace

and Security

Preserve international peace by preventing regional conflicts 

and transnational crime, combating terrorism and weapons 

of mass destruction, and supporting homeland security and 

security cooperation.

Public Benefit

U.S. policy states that the security of U.S. citizens at home 

and abroad is best guaranteed when countries and societies are 

secure, free, prosperous, and at peace. The Department, USAID, 

and their partners seek to strengthen their diplomatic and development capabilities, as well as those of international partners 

and allies, to prevent or mitigate conflict, stabilize countries in 

crisis, promote regional stability, and protect civilians. In 2011, 

a profound and dramatic wave of change swept across the 

Middle East as people courageously stood up to their governments to express their legitimate aspirations for greater political 

participation and economic opportunity. Our close relationship 

with our international partners has enabled the United States 

to strengthen our national security and provide leadership in 

conflict areas, such as the Middle East, to promote democratic 

and political reforms and ensure a voice for all peoples, including 

women, in building stable and peaceful societies. 

Summary of Performance and Resources

The Department and USAID allocated $13.065 billion 

toward this Strategic Goal in FY 2011, which is 28 percent 

of the total State-USAID budget supporting all strategic 

goals. The Department and USAID met or exceeded targets 

for 63 percent of their performance indicators for Strategic 

Goal 1. Twenty-six percent of indicators were below target, 

and ratings were not available for 11 percent that are new 

indicators or data are not yet available. 

U.S. Secretary of State Hillary Rodham Clinton shakes hands with 

Korean Foreign Minister Kim Sung-Hwan, after they signed an agreement to cooperate on international development, Friday, June 24, 2011, 

during a bilateral meeting at the State Department in Washington. 

©AP Image

FY 2011 Resource Invested: $13.065 Billion

State Operations: $4.296 Billion

Foreign Operations: $8.769 Billion

State Operations

Foreign Operations

40 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results

Strategic Goals and Results
Closing the Gap 

Through a number of integrated programs, the U.S. Government seeks to strengthen the capacity of local law enforcement 

and security authorities to combat illicit activity and weapons of 

mass destruction, terrorism and transnational crime and prevent 

and mitigate conflict. As noted below, except in the areas of 

counternarcotics and transnational crime, the top 20 beneficiaries of U.S. Government assistance (blue) score considerably 

lower in the other four areas as compared to a select group of 

countries that have graduated from U.S. Government assistance 

(red)1. As indicated by the achievements below, U.S. assistance 

efforts are making progress in improving the capacity of target 

countries to preserve peace and security. 

Counterterrorism (2.0)

Combating Weapons

of Mass Destruction

(1.7)

Stabilization Operations

and Defense Reform

(0.9)

Counternarcotics

(0.1)

Confict Mitigation

(1.2)

1

2

3

4

5

Combating 

Transnational

Crime

(0.4)

Average Gap 1.1

Top 20 Country Beneficiaries of U.S. Government

Foreign Assistance in Peace and Security

Top 20 beneficiaries of 

P&S funds per capita

Graduate Countries 

(current progress) (GAP)

Key Selected Achievements 

■ The U.S. has improved the work of the 82-country Global 

Initiative to Combat Nuclear Terrorism so that it has 

become a durable international institution. Institutional 

changes include the establishment of an Implementation 

and Assessment Group, with three working groups on 

nuclear forensics, nuclear detection, and nuclear response 

and mitigation. 

■ The bilateral relationship between the United States and Iraq 

continues to evolve, with the Department assuming the lead 

for the U.S. Government under the auspices of the Strategic 

Framework Agreement. The United States closed all of 

its Provincial Reconstruction Teams in Iraq in 2011 and 

opened Consulates General in both Erbil and Basrah. Plans 

are underway to open a temporary consulate in Kirkuk, Iraq.

Selected Strategic Priorities and Analyses

CONFLICT PREVENTION, MITIGATION, AND RESPONSE: Support 

the prevention, containment or mitigation, and resolution of 

existing or emergent regional conflicts, as well as post-conflict 

peace, reconciliation, and justice processes. 

Analysis: This section details a key performance indicator to 

illustrate the Department’s performance in an area that links 

to key budget and policy priorities under Strategic Goal 1. 

The indicator Average rating denoting degree to which United 

Nations peacekeeping missions in Africa and Near East Asia 

funded through the Contributions for International Peacekeeping 

Activities (CIPA) account achieve U.S. Government objectives

represents the Department’s ongoing priority to work with 

multilateral bodies to advance peace and security through active 

engagement with global institutions, and to share the burden 

of peacekeeping, peacebuilding, and conflict resolution with a 

growing community of nations. UN Peacekeeping Missions in 

Near East Asia received an average rating of 2.55 out of 4 for 

1 For more information on the Closing the Gap chart above, see link in reference section on inside back cover of report.

0

1

2

3

4

Performance Indicator: Peacekeeping Operations 

Ratings in Africa and Near East Asia1

2.5

FY 2008 FY 2010 FY 2011 FY 2012 FY 2013

Africa Result Near East Result Target

2.4 2.5

2.37

3.0

Rating

Source: Internal State Department Mission Reports, UN Secretary General 

Reports, UN Security Council Report. Indicator title: Average rating 

denoting degree to which United Nations peacekeeping missions in Africa 

and Near East Asia funded through the Contributions for International 

Peacekeeping Activities (CIPA) account achieve pre-established 

U.S. Government objectives. 

1

Scale: 1 = Below Target; 2 = Improved over prior year, but not met; 

3 = On Target; 4 = Above Target. The average of these ratings is then 

compared to the annual target.

2.3

3.0

2.5

2.3

3.0

2.5

2.5

2.55

2.5

FY 2009

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 41

Strategic Goals and Results
FY 2011, surpassing its FY 2011 target of 2.5. The difference 

in the FY 2010 data was due to unexpectedly strong progress 

reports for the United Nations Interim Force in Lebanon 

and the United Nations Disengagement Observer Force on 

short-term goals. In addition, the FY 2011 target was not 

adjusted upward. The average rating of 2.5 in FY 2011 for UN 

Peacekeeping Missions in Africa met the FY 2011 target of 2.5. 

Results for this indicator reflect the difficult security, political, 

and economic environment in which peace operations are 

carried out.

COUNTERTERRORISM: Developing policies that advance 

international cooperation against terrorist financing and funding 

partner capacity building programs. 

Analysis: The indicator Number of NEA countries with 

Financial Intelligence Units1(FIUs) that meet the standards of the 

Egmont Group2 represents the State Department’s commitment 

to working with partner nations in the Egmont Group to 

combat terrorism and decrease terrorist organizations’ ability to 

access unregulated or poorly monitored cash flows that support 

operations against the citizens and interests of the U.S. and 

partner governments throughout the world. 

A total of nine countries with FIUs met the standards of the 

Egmont Group in FY 2011. The target of thirteen countries 

was not met, but the FY 2011 result represents an increase from 

the FY 2010 result. To improve results for FY 2012, NEA 

missions will meet with host government officials to stress the 

importance of developing FIUs that meet the Egmont Group’s 

criteria.

0

5

10

15

Performance Indicator: Number of NEA Countries with FIU's 

That Meet the Standards of the Egmont Group

13

FY 2008 FY 2010 FY 2011 FY 2012 FY 2013

Result Target

7

14

Rating

8

12

8

11

9

13 13

FY 2009

Source: U.S. Department of State, Bureau of Near Eastern Affairs, 

the Egmont Group.

1 A Financial Intelligence Unit is a central, national agency responsible for receiving (and, as permitted, requesting), analyzing and disseminating to the 

competent authorities, disclosures of financial information: (i) concerning suspected proceeds of crime and potential financing of terrorism, or (ii) required by 

national legislation or regulation, in order to counter money laundering and terrorism financing.

2 The Egmont Group is a group of FIUs that are committed to improve cooperation in the fight against money laundering and financing of terrorism and to 

foster the implementation of domestic programs in this field.

42 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
Strategic Goal 2:

Governing Justly and Democratically

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

respect for human rights, political competition, and religious freedom.

Public Benefit

T

he U.S. Government supports just and democratic 

governance for three related reasons: (1) as a matter of 

principle, (2) as a contribution to U.S. national security, 

and (3) as a cornerstone of the broader development agenda. 

The National Security Strategy makes clear that supporting 

the expansion of democracy and human rights abroad is in 

our national interest. U.S. leadership in promoting capable, 

transparent, accessible, and accountable public institutions and 

economic growth is key to achieving successful and sustained 

transitions to democracies and universal freedoms around 

the globe. The Department and USAID work to build the 

essential institutions of democratic accountability, including the advancement of rule of law and human rights, good 

governance, political competition and civil society.

Summary of Performance and Resources

The Department and USAID allocated $3.296 billion toward 

this Strategic Goal in FY 2011, which is 7 percent of the 

total State-USAID budget supporting all strategic goals. The 

Department and USAID met or exceeded targets for 42 percent 

of their performance indicators for Strategic Goal 2. Forty-six 

percent of indicators were below target, and ratings were not 

available for 12 percent that are new indicators or data are not 

yet available. 

FY 2011 Resource Invested: $3.296 Billion

State Operations: $0.779 Billion

Foreign Operations: $2.517 Billion

State Operations

Foreign Operations

Closing the Gap

The Department and USAID work with governments and civil 

society to build and strengthen effective and responsive democratic governments that value and support good governance, 

political rights, civil liberties, media and religious freedom and 

rule of law. As noted below, the top 20 beneficiaries of U.S. 

Government assistance (blue) have considerable progress to 

make in order to attain the level of just and democratic goverA transparent, empowered school board process in Egypt raises election 

turnout and expectations. Elected parents and community members attend 

a Board of Trustees meeting in Egypt, to determine, prioritize and meet the 

school’s needs. USAID

Political Rights (1.7)

Civil Liberties

(1.7)

Rule of Law (1.6) Media Freedom (1.3)

Anticorruption

(1.3) 1

2

3

4

5

Average Gap 1.5

Top 20 Country Beneficiaries of U.S. Government

Foreign Assistance in Governing Justly and Democratically 

Top 20 beneciaries of 

GJD funds per capita

Graduate Countries 

(current progress) (GAP)

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 43

Strategic Goals and Results
Selected Strategic Priorities and Analyses

RULE OF LAW AND HUMAN RIGHTS: Advance and protect human 

and individual rights and promote societies where the state and 

its citizens are accountable to laws that are publicly promulgated, 

equally enforced, and independently adjudicated, consistent with 

international norms and standards. 

Analysis: The United States supports programs that help countries 

build the necessary rule of law infrastructure, particularly in the 

justice sector, to uphold and protect their citizens’ basic human 

rights. The rule of law is a principle of governance under which 

all persons, institutions, and entities, public and private, including 

the state itself, are accountable to laws that are publicly promulgated, equally enforced, independently adjudicated, and consistent with international laws, norms, and standards. Improved case 

management leads to a more effective justice system by decreasing 

case backlog and case disposition time, reducing administrative 

burdens on judges, increasing transparency of judicial procedures, 

and improving compliance with procedural law. 

A total of 742 courts improved their case management systems 

as a result of U.S. assistance in FY 2011, exceeding the target 

of 624. A strong commitment to justice sector reform by the 

newly elected President of Haiti increased the number of courts 

the U.S. Government was able to assist there. In Colombia, the 

training of judges and court staff was so well received that demand 

for the training enabled U.S. programs to assist more courts than 

initially planned.

0

250

500

750

1,000

Number

Performance Indicator: Number of U.S. Government

Assisted Courts with Improved Case Management

573

FY 2011 FY 2012 FY 2013

Result Target

Source: FY 2010 USAID and Department of State Performance Plans and 

Reports as collected in the Foreign Assistance Coordination and Tracking 

System (FACTS). 

206

FY 2010

770

FY 2008 FY 2009

196

813

567 375

337

742

694

nance achieved by a select group of countries that have graduated from U.S. Government assistance (red)1. The positive results 

of U.S. Government assistance for democracy and governance 

programs as reported below are helping to close that gap.

Key Selected Achievements 

■ Provided voter and civic education to over 19 million 

people, trained more than 50,000 election observers, 

and deployed almost 2,000 election observers to South 

Sudan—where credible elections enabled the peaceful 

transition of South Sudan into its own nation—and to 

Tunisia—where U.S. Government technical assistance 

contributed to peaceful constitutional assembly elections.

■ Assisted over 4,300 civil society organizations in 60 

countries engaged in advocacy interventions through the 

legislative process to improve government transparency 

and accountability.

■ Called upon leaders of governments and civil society in the 

Fourth High Level Forum on Aid Effectiveness in 2011 in 

Busan, South Korea to emphasize democracy, rights, and 

good governance in the final Declaration of the Partnership 

for Effective Development Cooperation, stating that the 

Millennium Declaration identifies promoting human rights, 

democracy and good governance an integral part of our 

development efforts.

■ The United States is a party to the Voluntary Principles 

on Security and Human Rights, which bring together 

governments, companies, and NGOs to ensure companies 

take tangible steps to minimize human rights abuses in the 

surrounding communities as they extract resources in some 

of the most challenging places in the world. This year, the 

Department helped negotiate a consensus among 19 oil, gas 

and mining companies, seven governments, and 10 NGOs 

on a new core document that outlines the expectations of 

participants, and lays out a plan to pursue the creation of a 

legal entity to help companies maintain high standards.

1 For more information on the Closing the Gap chart on previous page, see link in reference section on inside back cover of report.

44 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
CIVIL SOCIETY: Strengthen democratic political culture and 

citizen engagement by supporting the means through which 

citizens can freely organize, advocate, and communicate with 

members of their own and other governments, international 

bodies, and other elements of civil society. 

Analysis: The Department exceeded the target for the 

illustrative indicator relative to Strategic Goal 2 Increased civic 

activism in priority countries with repressive regimes, as measured 

by the percent of civil society activists and organizations able 

to sustain activities after six months of receiving U.S. support. 

This performance indicator is a key measure of the joint 

Department of State-USAID High Priority Performance Goal 

for Democracy, Good Governance, and Human Rights, and 

illustrates the Department’s performance in an area that links 

key policy priorities to the Department’s budget under Strategic 

Goal 2. The focus on this policy priority will continue with the 

new APG’s.

Protecting the fundamental freedoms of association, assembly, 

expression, and religion represents an important aspect of 

U.S. foreign policy. The Department is leveraging key foreign 

assistance and diplomatic tools to support local activists in 

On July 9, after decades of civil war and the loss of more than 2 million lives, South Sudan seceded from Sudan and 

became the world’s newest nation—a peaceful and democratic 

division of what used to be Africa’s largest country. The event 

brought joy to the streets and dusty roads of South Sudan, 

where nearly 99 percent of citizens who voted in a USAIDassisted referendum chose secession last January.

Sudan has for years been the U.S. Government’s highest priority 

in Africa, so the country’s division brought changes for the U.S. 

Government as well. On July 9, USAID’s office in Juba became 

an official South Sudan mission, and the U.S. Consulate became 

a U.S. Embassy.

As South Sudan embarks on nationhood, USAID seeks to help 

make the new nation increasingly stable while helping the 

government deliver basic services to citizens, provide effective, 

inclusive, and accountable governance, diversify the economy, 

and combat poverty. Increasing stability in South Sudan will 

depend on a combination of strengthening core governance 

institutions and processes and making them more inclusive, 

responding to the expectations of the population for essential 

services and improved livelihoods, as well as containing conflicts 

and addressing the grievances behind them.

South Sudan

A woman in Kapoeta, Eastern Equatoria, casts her referendum ballot on 

January 10, 2011. USAID

creating conditions necessary to reverse a trend in recent years 

of a shrinking enabling environment for civil society around the 

world. The recent events in the Middle East and North Africa 

remind us of the challenges human rights activists and civil 

society face in their work to protect citizens’ rights. In February 

2011, Secretary Clinton launched the State Department’s 

first Strategic Dialogue to underscore our commitment to 

supporting and defending civil society around the world. 

The Dialogue enhances efforts to amplify the voices of activists 

and to provide protection for civil society where we can. In 

support of this important commitment, the Lifeline: The 

Embattled NGOs Assistance Fund was created this year with 

support from twelve other democratic nations. In FY 2011, 

in a selection of 14 targeted countries, 20 percent of activists 

and organizations were able to continue activities six months 

after receiving U.S. support. The percentage of actual number 

of human rights activists and defenders, supported by U.S. 

Government funds, who are advocating for a more open civil 

society within repressive regimes, exceeded the established 

target. This is evidence that these activists are becoming more 

aware of mechanisms to sustain their ongoing civil society 

advocacy efforts despite rising restrictions.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 45

Strategic Goals and Results
0%

5%

10%

15%

20%

25%

Percentage

Performance Indicator: Increased Civic Activism 

in Priority Countries1

20.0%

FY 2011 FY 2012 FY 2013

Result Target

17.5%

Source: Global Human Rights Defender Fund.

1

 Indicator new in FY 2010, targets established in early FY 2011. Indicator 

title: Increased civic activism in priority countries with repressive regimes, 

as measured by the percent of civil society activists and organizations able 

to sustain activities after six months of receiving U.S. support.

18.0%

FY 2010

18.5%

FY 2008 FY 2009

19.0%

Analysis: A fully participatory, democratic state must include 

an active and vibrant civil society in which individuals can 

peacefully exercise their fundamental rights. Free media 

(including print, broadcast, and the Internet) as the voice of 

civil society, are essential to building and sustaining democracy. 

Journalists often serve as a necessary check to the government. 

U.S. assistance in this area focus on: 1) increasing the ability 

of media actors to provide representative and responsible 

coverage; 2) developing innovative information sharing 

to strengthen independent media outlets; and 3) training 

journalists in ethics and rights. In FY 2011, the U.S. 

Government provided assistance to 1,507 non-state news 

outlets, slightly below the target of 1,624. The lower result 

reflects a post-presidential elections crackdown on civil 

society in Belarus and a shift in media strategy in Russia 

from traditional media outlets towards newer Internet-based 

technologies, which are becoming more widely used as a 

source of information. 

0

500

1,000

1,500

2,000

2,500

3,000

Number

Performance Indicator: Number of Non-State News Outlets 

Assisted by U.S. Government

1,769

FY 2011 FY 2012 FY 2013

Result Target

Source: FY 2011 Performance Reports as collected in the Foreign Assistance and 

Coordination System (FACTS).

1,497

FY 2010

1,624

FY 2009

1,488 1,545

1,737 1,761

1,385 1,507

1,865

FY 2008

46 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
During this phase of the President’s Global Health Initiative 

(GHI), the U.S. Government – including USAID, the 

Department of Health and Human Services, Centers for Disease 

Control and Prevention, the Department of Defense, and the 

Peace Corps – has moved quickly to develop joint strategies that 

align U.S. investments with host country government priorities 

in partnership NGOs and the private sector. In Fiscal Year (FY) 

2011, U.S. Government Teams developed 21 GHI Country 

Strategies, and twenty more strategies are targeted for approval 

in early FY 2012. 

Saving the Lives of Mothers and Children 

GHI programs renew the U.S. emphasis on saving the lives 

of mothers, children, and families from preventable, treatable 

diseases. U.S. investments provide immunizations and are 

working to: control and treat malaria, eliminate pediatric 

AIDS, and avert unintended pregnancy, which is saving 

millions of lives. 

Protecting Communities from Infectious Diseases 

A critical GHI focus includes tuberculosis (TB) and neglected 

tropical diseases (NTDs). These diseases have the greatest impact 

on the lives of women, children and families. Drug resistant TB 

is a global threat and is the leading killer of people with HIV. 

It requires continued resources and focus. Seven treatable NTDs 

afflict more than one billion people causing lifelong disability, 

poor intellectual development, and increasing poverty. 

Creating an AIDS-Free Generation 

HIV/AIDS has devastated countries worldwide, particularly in 

Africa. Millions of men, women and children with HIV/AIDS 

are now on life saving treatment and are provided with care 

and support. In partnership with countries and communities, 

implementation of new research and solutions is creating the 

prospect of an AIDS-free generation for the first time in decades. 

Maximizing Results

GHI ensures that U.S. Government agencies combine their 

efforts to maximize results, making the most of every dollar to 

improve the health of the poorest families around the world. 

GHI implementation has four standard components:

■ Collaborating for impact: Promote country ownership 

and align U.S. investments with national plans, including 

improved coordination across U.S. agencies and with other 

donors.

■ Doing more of what works, ending what does not: 

Identify, take to scale, and evaluate proven approaches in 

all fields of health and stop efforts that have not produced 

positive impacts on health outcomes.

■ Build and expand existing country-owned platforms to foster stronger systems and sustainable 

results: Strengthen health systems’ functions to ensure the 

quality and reach of short- and long-term health services and 

public health programs, and work with governments to ensure 

sustainability. 

■ Innovating for results: Identify, implement, and rigorously evaluate new approaches that reward efficiency, effectiveness, and sustainability.

Global Health Initiative

Saving lives and assisting countries and communities to develop sustainable 

solutions to save and improve the lives of women, children and families.

©AFP Image / Gwenn Dubourthoumieu (center)

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 47

Strategic Goals and Results
Strategic Goal 3:

Investing in People

Ensure good health, improve access to education, and protect vulnerable populations to help nations create 

sustainable improvements in the well-being and productivity of their citizens. 

Public Benefit

B

ringing better health systems, education and training to 

people around the globe contributes to a more secure, 

stable, and prosperous world. People are central to 

the sustainability and positive development of a country. 

The Department of State and USAID help recipient nations 

achieve and maintain improvements in the well-being and 

productivity of their citizens and build sustainable capacity 

to provide services in three priority program areas: health, 

education, and social services and protection for especially 

vulnerable populations. U.S. Government investments focus 

on improving the health of men, women, newborns, and 

children, in particular through such initiatives as the President’s 

Emergency Plan for AIDS Relief (PEPFAR) and the Global 

Health Initiative (GHI). Both of these presidential initiatives 

aim to maximize the impact the U.S. achieves for every dollar 

invested in global health. By investing in education, science 

and technology, and innovative practices, the Department and 

USAID are improving the lives of vulnerable populations.

Summary of Performance and Resources

The Department and USAID allocated $10.340 billion 

toward this Strategic Goal in FY 2011, which is 22 percent 

of the total State-USAID budget supporting all strategic 

goals. The Department and USAID met or exceeded targets 

for 50 percent of their performance indicators for Strategic 

Goal 3. Twenty-five percent of indicators were below target, 

The yogurt plus prevention education is carried out in partnership with the 

President’s Emergency Plan for AIDS Relief. In February, USAID launched a 

public-private partnership in cooperation with Standard Bank, the largest 

bank on the African continent; Namibia Dairies, that country’s leading 

dairy company; and the Namibia Business Coalition on AIDS. USAID 

and ratings were not available for 25 percent that are new 

indicators or data are not yet available. 

Closing the Gap 

Through investments in health and education, the U.S. 

Government works to unlock human potential and help the 

most vulnerable populations become more productive citizens. 

As indicated on the following page, the top 20 beneficiaries 

of U.S. Government assistance (blue) fall well below a select 

group of countries that have graduated from U.S. Government

assistance (red)1 in every measure of human development on a 

scale of one to five, with five representing the performance of 

the best country in the world. Nonetheless, U.S. Government 

programs are yielding steady improvements in these areas as 

the data demonstrates on the following page. 

1 For more information on the Closing the Gap chart on following page, see link in reference section on inside back cover of report.

FY 2011 Resource Invested: $10.340 Billion

State Operations: $0.372 Billion

Foreign Operations: $9.968 Billion

State Operations

Foreign Operations

48 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
Under 5 Mortality (1.7)

Life Expectancy

(1.8)

Public Health

Expenditures

(0.6)

Environmental Health

(2.0)

Education Enrollment Rate

(1.2)

Literacy Rate

(1.6)

Public Education 

Expenditures

(0.5)

Per Capita GDP

(2.7)

Gender Equality

(1.8)

1

2

3

4

5

Top 20 Country Beneficiaries of U.S. Government

Foreign Assistance in Investing in People 

Top 20 beneciaries of 

IIP funds per capita

Graduate Countries 

(current progress) (GAP)

Average Gap 1.6

Key Selected Achievements 

■ USAID released their new Education Strategy, which 

focuses on three major goals: (1) improved reading skills 

for 100 million children in primary grades, (2) improved 

ability of tertiary and workforce development programs, 

and (3) increased equitable access to education in crisis 

and conflict environments. 

■ Saved an average of 485 children per day from malaria. 

Among the nine focus countries in the President’s Malaria 

Initiative, all-cause mortality among children under five 

has dropped by between 16 and 50 percent.

■ Stepped up efforts to integrate family planning across 

other health sectors as a strategic and cost-effective use of 

resources by employing the BEST (Best Practices at Scale 

in the Home, Community and Facilities) action plan in 

28 countries. 

■ PEPFAR Country teams, under the leadership of the 

Ambassador and Deputy Chief of Mission, advanced 

the Country Ownership agenda for sustainability of the 

HIV/AIDS response. This agenda seeks to foster greater 

cooperation between aid donors and recipient governments 

by providing those governments with the tools and training 

necessary for assuming more responsibility in financing 

and implementing.

Selected Strategic Priorities and Analyses

HEALTH: Improve global health, including child, maternal, and 

reproductive health; prevent and treat infectious diseases; and 

increase access to better drinking water and sanitation services.

HIV/AIDS Analysis: The U.S. President’s Emergency Plan for 

AIDS Relief (PEPFAR) is the U.S. Government’s initiative to 

help save the lives of those suffering from HIV/AIDS around 

the world. This historic plan is the largest commitment by any 

nation to combat a single disease internationally. PEPFAR is 

driven by a shared responsibility among donor and partner 

nations to make smart investments to save lives. PEPFAR 

is advancing this agenda in the context of stronger country 

ownership, with the long-term goal of transitioning host 

countries to plan, manage, deliver and finance health programs 

responsive to the needs of their people without development 

assistance.

Antiretroviral (ARV) treatments provide direct benefits by 

increasing the length and quality of the lives of infected 

individuals, enabling them to resume daily activities and 

provide care for their families. ARVs also reduce the viral load 

in patients on therapy, which decreases the rate of transmission. 

Because of the rapid scale-up of the programs in FY 2011, the 

United States directly supported treatment to some 3.9 million 

people living with HIV, exceeding the target by 100,000. 

0M

2M

4M

6M

8M

Number of people 

(in millions)

Performance Indicator: Number of Eligible Adults and Children 

with Advanced HIV Infection Receiving Antiretroviral Therapy (ART)1

FY 2011 FY 2012 FY 2013

Result Target

Source: Semi-Annual and Annual Progress Reports as captured in U.S. 

Government Country Operational Plan and Reporting System (COPRS). 

1

 Indicator new in FY 2011.

FY 2010

3.9M

FY 2008 FY 2009

6.0M

3.8M

5.0M

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 49

Strategic Goals and Results
Basic EDUCATION: Provide equitable access to quality basic 

education that includes literacy, numeracy, and other basic skills 

for youth and adults.

Analysis: The United States assesses its performance based 

on the primary net enrollment rate (NER) for a sample of 

countries receiving basic education funds. NER is a measure 

of access to schooling among the official primary school-age 

group. U.S. foreign assistance supports an increase in NER 

through a variety of activities designed to improve the quality 

of teaching and learning which helps reduce barriers to 

student attendance and promote effective classroom practices. 

High NERs lead to increases in school completion rates 

and thus higher educational attainment within the overall 

population. Countries with an educated population are more 

likely to experience improvements in health and economic 

growth. Since FY 2002, NERs have improved steadily in 

countries receiving U.S. assistance. In FY 2011, the United 

States exceeded its target of 81 percent for the NER, with 

substantial increases in Pakistan. 

70%

80%

90%

Percentage

Performance Indicator: Primary Net Enrollement

80.0%

FY 2011 FY 2012 FY 2013

Result Target

Source: Demographic Health Surveys and Census Bureau.

85.2%

FY 2010

81.0%

FY 2008 FY 2009

83.0%

77.0%

78.6%

79.0%

78.9% 81.8%

83.5%

Maternal and Child Health Analysis: U.S. assistance in this 

area aims to increase the survival of mothers, newborns, and 

children by supporting innovation and research, providing 

technical support to countries, and exerting global leadership. 

Having a skilled attendant at birth is a critical component of 

efforts to reduce maternal mortality. Most non-abortion-related 

maternal deaths happen during labor and delivery or within the 

first few days following delivery. In many countries, most births 

occur at home. Increasing the frequency of deliveries assisted 

by skilled birth attendants in homes and health care facilities is 

important for prompt recognition of complications, initiation 

of treatment, and lives saved. 

As FY 2011 is the first year this indicator has been calculated 

using the restricted definition of a skilled birth attendant 

provided by the World Health Organization (WHO), 

comparisons with earlier data are not exact. When comparing 

the FY 2011 result with the FY 2010 data calculated using 

the current definition, then the actual change in the use of 

skilled birth attendants is an increase from 44.4 percent to 

45.4 percent, which represents a performance improvement 

and is consistent with past positive trends. Future targets 

have been adjusted accordingly. 

40%

50%

60%

Percentage

Performance Indicator: Percent of Births Attended

by a Skilled Doctor, Nurse or Midwife

49.0%

FY 2011 FY 2012 FY 2013

Result Target

Source: Demographic Health Surveys and Census Bureau.

42.9%

FY 2010

50.9%

FY 2008 FY 2009

46.0%

47.8%

40.8%

47.9%

41.8%

43.9%

44.9%

50 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
The year 2011 marked Haiti’s first peaceful democratic 

transition from the administration of one government to one led 

by an opposition candidate. Partnering with the new government, 

the United States is supporting Haiti to improve the economic 

security of its citizens. With an estimated 40 percent of the 

population out of work, unemployment remains one of Haiti’s most 

pressing problems. From a peak employment of 100,000 in the 

early 1980s, employment in the garment sector has declined due 

to embargoes, insecurity, and lack of investment. Recent U.S. trade 

preferences, enacted through the HOPE (2010) and HELP II (2008) 

legislation have made Haiti a more attractive place to invest. 

In its National Action Plan, the Government of Haiti expressed 

its desire to create centers of economic development outside 

of Port-au- Prince for Haiti’s growth and to bring jobs to Haiti’s 

underserved regions. The Caracol Industrial Park is a first step 

toward achieving this goal, bringing together the Haitian and 

U.S. Governments, the Inter-American Development Bank, and 

Sae-A Trading Co. Ltd.― Korea’s leading garment manufacturer. 

The park is projected to create 20,000 permanent jobs through 

Sae-A’s investment alone, and marks the first major publicprivate partnership to bring permanent jobs to Haiti since the 

January 2010 earthquake. At a ceremony in November 2011, 

the first stone was laid in the park and activity is projected 

to begin in the first quarter of 2012. The U.S. Government, 

through the U.S. Department of State, helped to broker the 

public-private partnership. Through USAID, the United States is 

supporting several key interventions to prepare for and support 

the Park including the construction of a power plant, exploring 

approaches to improve regional ports, transition initiatives to 

help the region cope with rapid urbanization, and support 

for housing. 

The United States’ Feed the Future initiative is supporting the 

Haitian Government’s priorities in agriculture, working to ensure 

sustainable growth in the agricultural sector in Government of 

Haiti-prioritized fertile plains. The U.S. Government is working 

with farmers, farmer associations, and scientists to introduce new 

techniques and technologies, strengthen agricultural infrastructure 

along the whole value chain, and attract investments from 

private businesses―with an overall aim to improve livelihoods 

for more than 100,000 farmer households, corresponding to 

8-10 percent of the rural population. This investment will not 

only lead to nutritional improvements in the population, but also 

improve the lives of farmers benefitting from increased crop 

yields and incomes. 

While working with the Government of Haiti on long term 

economic development, the United States continues to stand with 

the Haitian people during emergencies. On October 21, 2010, 

the Haitian Ministry of Health and Population (MSPP) confirmed 

cases of cholera for the first time in at least a century. At the 

request of the Government of Haiti, the U.S. Centers for Disease 

Control and Prevention and USAID—already helping Haiti build 

sustainable health systems to detect and combat the spread 

of communicable diseases in the aftermath of the devastating 

January 2010 earthquake—immediately began working with 

MSPP and the Pan American Health Organization to lessen the 

severity of the outbreak. Through December 2011, the U.S. 

Government provided expertise and more than $73 million to 

prevent additional cholera cases and support the response. 

Though deaths from cholera were high in the first few months of 

the epidemic, Haitian-led international efforts have helped ensure 

the fatality rate remains consistently below the international 

standard of 1 percent. 

Partnering For Haiti’s Future

A worker surveys USAID-funded housing site near the Caracol Industrial 

Park in northern Haiti on November 10, 2011. USAID

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 51

Strategic Goals and Results
Strategic Goal 4:

Promoting Economic Growth and Prosperity Strengthen world economic growth and protect the environment, while expanding opportunities for 

U.S. businesses and ensuring economic and energy security.

Public Benefit

E

conomic growth provides citizens and governments 

with the resources needed to meet needs and aspirations, including improved education, health, peace and 

security, via an international economic system that is open, 

free, transparent and fair. The Department and USAID share 

the goal to strengthen world economic growth and protect 

the environment, while expanding opportunities for U.S. 

businesses and working to help countries spark and sustain 

transformative economic growth. The Department plays a 

lead role in implementing President Obama’s National Export 

Initiative (NEI) by advocating on behalf of American companies with other governments for fair treatment, transparency, 

and maximum opportunity in competitive global markets. 

And under Presidential Policy Directive 6, USAID is working 

to empower private entrepreneurs, workers, and enterprises 

to take advantage of expanding opportunities in a global 

economy. By embracing business transparency efforts, such 

as patent protection and intellectual property rights, foreign 

countries become an attractive market for the products and 

services of U.S. workers and companies. 

Summary of Performance and Resources

The Department and USAID allocated $5.587 billion toward 

this Strategic Goal in FY 2011, which is 12 percent of the total 

State-USAID budget for all strategic goals. The Department and 

USAID met or exceeded targets for 53 percent of performance 

indicators for Strategic Goal 4. Six percent of indicators were 

below target, and 3 percent of indicators improved, but did not 

meet targets. Ratings were not available for 38 percent that are 

new indicators or data are not yet available. 

Closing the Gap 

Experience demonstrates that liberalized trade regimes, 

transparent, effective and accountable governments, fair rules for 

business, and friendly market policies all contribute to greater 

economic growth. The Department and USAID programs are 

targeted at assisting countries to make the economic reforms 

necessary for sustainable growth to occur. As shown on the 

following page, except in the areas of trade liberalization and 

budget balance, the scores of the top 20 beneficiaries of U.S. 

assistance (blue) in the areas facilitating economic development 

rank considerably lower than a select group of countries that 

have graduated from U.S. Government assistance (red)1. 

Cashew processing training in Guinea. Funded by USAID, the project 

aims to assist in the development of a cashew processing industry 

by introducing improved methods and technologies and creating 

sustainable commercial links among small processors, commercial 

distributors and local equipment suppliers. Enterprise Works Worldwide

FY 2011 Resource Invested: $5.587 Billion

State Operations: $0.751 Billion

Foreign Operations: $4.836 Billion

State Operations

Foreign Operations

1 For more information on the Closing the Gap chart on following page, see link in reference section on inside back cover of report.

52 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
The countries are ranked on a scale of one to five, where five 

represents the performance of the best country in the world 

in each area. Efforts to close those gaps are yielding results, 

as noted below. 

Business Environment (1.3)

Regulatory

Quality

(1.3)

Government Effectiveness

(1.6)

Budget Balance

(-0.2)

Trade

Liberalization

(0.5) 1

2

3

4

5

Average Gap 0.9

Top 20 Country Beneficiaries of U.S. Government

Foreign Assistance in Economic Growth

Top 20 beneciaries of 

EG funds per capita

Graduate Countries 

(current progress) (GAP)

Key Selected Achievements 

■ Led the interagency Enhancing Capacity for Low Emissions 

Development Strategies (EC-LEDS) program. Twelve 

countries have committed to analyzing, designing and 

implementing low emission development strategies; six 

agreed work plans are in place; and the U.S. signed formal 

EC-LEDS cooperation agreements with the Governments of 

Costa Rica and Bangladesh, meeting a key Agency Priority 

Goal benchmark for FY 2011.

■ USAID’s natural resource management (NRM) and 

conservation portfolio improved the management of 

more than six million hectares in biologically significant 

areas in FY2011. This included one large area spanning 

Bolivia and Peru, where conservation planning, integrated 

monitoring, and community-based NRM, resulted in a rate 

of deforestation 400 percent lower than surrounding areas.

■ In partnership with the Department of Commerce and U.S. 

missions abroad, the Department implemented key portions 

of the President’s NEI by supporting and advocating for 

U.S. companies doing business abroad and exporting to 

foreign markets. Through July 2011, U.S. exports were up 

15 percent; a pace sufficient to sustain the NEI’s goal of 

doubling exports by 2014 and an increase that will support 

two million additional jobs in the United States.

■ The Department reached an important milestone by 

concluding several new “Open Skies” agreements during 

the fiscal year, expanding these partnerships to over 100 

countries around the world. These agreements encourage 

vigorous price competition by airlines, and preserve our 

commitments to aviation safety and security.

Selected Strategic Priorities and Analyses

ENERGY SECURITY: Enhance United States global energy 

security by promoting open, transparent, integrated, and 

diversified energy markets; encouraging appropriate energy 

sector investments; and developing and sharing clean energy. 

Analysis: A primary focus of the Department’s diplomatic 

efforts in the area of energy security is promoting the development and implementation of policies in foreign governments 

designed to diversify energy sources and foster growth in the 

clean energy sector. One indicator for this Strategic Goal is the 

percent of world energy supplies from non-oil sources. This 

trend has increased incrementally in recent years in part due to 

supply diversification provided by lower carbon sources such 

as unconventional gas, biofuels and other renewable energy, 

and in part due to demand reduction as a result of the global 

economic downturn and, importantly, measures to increase 

efficiency and conservation. 

63%

64%

65%

66%

67%

Performance Indicator: Percentage of World Energy 

Supplies from Non-Oil Sources1

65.4%

65.4%

FY 2011 FY 2012 FY 2013

Result Target

64.7%

Source: U.S. Department of Energy.

1. Indicator new in FY 2010, targets established beginning in FY 2011. Percentage

65.4% 65.4%

FY 2009 FY 2010

65.8% 65.9%

FY 2008

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 53

Strategic Goals and Results
AGRICULTURE: In many developing countries, increased productivity and growth in the agricultural sector is critical to overall 

economic prosperity and poverty reduction. In this sector, the 

United States promotes broad-based agricultural sector growth, 

expanded agricultural trade and market systems, and broadened 

application of scientific and technological advances, including 

biotechnology and sustainable natural resource management. 

Increased agricultural productivity is an important goal for nearly 

all the countries in which the United States provides assistance. 

Activities in this Program Area are a core element of the 

President’s Feed the Future (FTF) initiative. 

Analysis: Increasing agricultural productivity is an important 

goal for almost all of the countries to which the United States 

provides assistance. Working with rural households, the 

United States promotes technological change and its adoption 

by different actors in the agricultural supply chain, which is 

critical to increasing smallholders’ agricultural production as 

well as agricultural productivity at regional and national levels. 

In FY 2011, more than 5 million farmers and others applied 

new technologies or management practices as a result of U.S. 

Government assistance, exceeding the target of 3.6 million by 

45 percent. This is a result of increased emphasis on extension 

and outreach, and expansion of activities to new areas and new 

crops. Activities such as Nepal’s Economic Agriculture and 

Trade program and Senegal’s Wula Nafaa project work with 

farmers and other individuals to increase usage of appropriate 

agricultural technologies and management practices. 

0

2,000,000

4,000,000

6,000,000

8,000,000

Performance Indicator: Number of Farmers or Others

Who Have Applied New Technologies or Management

Practices as a Result of U.S. Government Assistance1

1,506,187

FY 2011 FY 2012 FY 2013

Result Target

Source: FY 2011 USAID and Department of State Performance Plans and Reports 

as collected in the Foreign Assistance Coordination and Tracking System (FACTS).

1. Indicator new in FY 2008, targets established beginning in FY 2009. 

897,881

FY 2010

3,627,836

FY 2008 FY 2009

7,766,912

96,069

659,384

220,146

5,271,629 6,139,997

While economic diplomacy has always been part of our foreign and development policy, the 

Administration continues to emphasize its importance to 

promote domestic and international economic prosperity 

– most notably through the State Department’s “Economic 

Statecraft” agenda, unveiled by Secretary Clinton in 2011. 

This is a time when U.S. diplomacy and global leadership 

must be harnessed for domestic economic renewal. U.S. 

economic growth will increasingly rely upon our ability to 

excel overseas, making economic diplomacy all the more 

vital to our foreign policy efforts. 

The Department of State and USAID are realizing these 

goals through new partnerships, bilateral investment 

treaties, intellectual property protection, anti-corruption 

efforts, engagement with multilateral organizations, 

international best practices, enhancing development 

effectiveness, and infrastructure investment, among others. 

Removing trade barriers is an important tool for global 

growth. By pursuing new trade agreements, implementing 

existing ones and enforcing international trade laws, we 

help level the playing field for U.S. companies and ensure 

market access for U.S. workers, businesses, farmers and 

ranchers. Three major trade agreements were passed in 

2011, with the Republic of Korea, Panama and Columbia.

The U.S.-Korea Free Trade Agreement (KORUS) will help 

American workers, farmers and ranchers by increasing 

exports of our manufacturing and agricultural exports 

to Korea, which already support 200,000 American 

jobs and many small businesses. The trade agreement 

with Panama also will support American jobs, since 

Panama is one of the fastest-growing economies in Latin 

America. This comprehensive agreement will eliminate 

tariffs and other barriers to U.S. exports, and will provide 

access to Panama’s $20.6 billion services market. 

Colombia’s economy is the third largest in Central and 

South America. The U.S.-Colombia Trade Promotion 

Agreement will expand exports of U.S. goods alone 

by more than $1.1 billion through tariff reductions, 

supporting thousands of American jobs, and potentially 

increasing U.S. GDP by $2.5 billion. The conclusion of 

these three major trade agreements was the result of a 

multi-year effort. They will significantly benefit the U.S. 

economy and the economies of our trading partners, 

thus enhancing global growth. 

Economic Diplomacy

54 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
strengthen farming systems and increase crop yields. In Bangladesh, use of fertilizer to increase yields expanded from close to 

zero to more than 244,000 hectares. In Guatemala, over seven 

thousand women were trained in agricultural production, marketing and improved feeding practices. Overall, Feed the Future will 

directly benefit millions of people in increasing their incomes and 

improve the nutritional status of millions of undernourished children. 

For more information on Feed the Future, visit 

http://www.feedthefuture.gov/

Environment: Promote partnerships for economic development 

that reduce greenhouse gas emissions, improve air quality, and 

create other co-benefits by using and developing markets to 

improve energy efficiency, enhance conservation and biodiversity, 

and expand low-carbon energy sources.

Analysis: Greenhouse gas emissions reduced or sequestered as 

measured in carbon dioxide equivalent (CO2-eq) is an internationally recognized measure of climate change mitigation. 

It enables comparison of impacts from policies and activities that 

reduce, avoid, or store greenhouse gases in the energy, industry, 

transport, and land-use sectors. Results can be aggregated to 

demonstrate program-wide impact on reducing emissions that 

lead to climate change. FY 2011 results exceed the target by 100 

million metric tons, due in part to the successes of the Central 

Africa Regional Program for the Environment, though most 

reporting missions met their FY 2011 targets. As the Agency 

moves forward with the new Climate Change and Development 

Strategy, there will be a shift in emphasis to more cost-effective 

activities that seek transformational change through policy 

reform, enhancing national systems, and capacity building. These 

activities do not lead to easily quantifiable near-term reductions, 

and long-term impact may be indirect or subject to a time lag. 

0M

100M

200M

300M

Metric tons (in millions)

Performance Indicator: Quantity of Greenhouse Gas 

Emissions, Measured in Metric Tons of CO2, Reduced or

Sequestered as a Result of U.S. Government Assistance

133M

FY 2011 FY 2012 FY 2013

Result Target

Source: Demographic Health Surveys and Census Bureau.

120M

FY 2010

200M

FY 2008 FY 2009

100M

149M

142M

138M

120M

100M 100M

President Obama’s Feed the Future is the U.S. Government’s global hunger and food security initiative. A whole-of-government effort led by USAID, Feed the Future promotes country-led 

approaches to advancing food security. With a focus on smallholder farmers, particularly women, Feed the Future supports 

countries in developing their agriculture sectors as a catalyst to 

generate broad-based economic growth that increases incomes 

and reduces hunger. As the overall framework to address global 

hunger, Feed the Future recognizes the importance of providing 

food aid and other humanitarian assistance during crises to save 

lives and protect livelihoods. Feed the Future also integrates 

nutrition interventions to ensure that our investments lead to 

improved agriculture and better health, while supporting conflict 

mitigation and good governance efforts required to achieve the 

goals of reducing poverty and undernutrition.

Over the past year, Feed the Future investments have increased 

the productivity and access of vulnerable populations to nutritious 

foods. Through Feed the Future support to improve the quality of milk production in Kenya, more than 90,000 smallholder 

farmers increased their income by $14 million. Feed the Future 

also launched new programs in Africa that will support efforts to 

Feed the Future

Kongera Bosoro and Abdallah Francis Bosoro are a sister and brother 

who farm small plots of land in Tanzania. With U.S. Government 

assistance, Kongera has improved her yield from farming and Abdallah 

is using his augmented income to support his family’s needs and to 

construct a new house. USAID

To improve long-term results, the President’s Global Climate 

Change Initiative will work with partner countries to develop low 

emission development strategies, improve the enabling environment for clean energy, link field level activities to national policy 

frameworks, and support robust monitoring and evaluation 

efforts. Targets for FY 2012 and FY 2013 are conservative to 

reflect this new focus on longer-term, sustainable results. 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 55

Strategic Goals and Results
Strategic Goal 5:

Providing Humanitarian Assistance Save lives, alleviate suffering, and minimize the economic costs of conflict, disasters, and displacement. 

Public Benefit

T

he Department of State and USAID are the 

lead U.S. Government agencies that respond to 

complex humanitarian emergencies and natural 

disasters overseas. The commitment of the United States 

to humanitarian assistance stems from its sense of shared 

humanity and demonstrates the Nation’s compassion for 

victims of natural disasters, armed conflict, forced migration, 

persecution, human rights violations, widespread health and 

food insecurity, and other threats. The U.S. Government’s 

emergency response to population displacement and distress 

caused by natural and human‐made disasters is tightly linked 

to all other foreign assistance goals, including the protection 

of civilian populations, programs to strengthen support for 

human rights, provision of health and basic education, and 

support for livelihoods of beneficiaries. 

Summary of Performance and Resources

The Department and USAID allocated $3.932 billion toward 

this Strategic Goal in FY 2011, which is 9 percent of the total 

State-USAID budget for all strategic goals. The Department 

and USAID met or exceeded targets for 73 percent of their 

performance indicators for Strategic Goal 5. Twenty-seven 

percent of indicators were below target. 

Key Selected Achievements 

■ In Afghanistan, efforts to reintegrate returning refugees and 

internally displaced people passed a milestone in December 

2010 with the completion of the 200,000th home for 

returnee families. The U.S. Government support to shelter 

programs in Afghanistan began in 2002 and has been 

an important element in the return of some 4.5 million 

refugees over the past eight years.. The prospect of a 

secure home is regularly cited by Afghan refugees in Iran 

and Pakistan as one of their primary requirements before 

deciding to return.

USAID’s Office of U.S. Foreign Disaster Assistance has provided $5.8 

million to the U.N. Children’s Fund for 640 metric tons of ready-to-use 

therapeutic Plumpy Nut, which will treat an estimated 64,000 severely 

acutely malnourished children. If a child has no appetite for the thick 

peanut paste, she/he is moved to a stabilization center for more intense 

treatment. USAID

FY 2011 Resource Invested: $3.932 Billion

State Operations: $0.128 Billion

Foreign Operations: $3.804 Billion

State Operations

Foreign Operations

■ In FY 2011, U.S. Government assistance supported over 

400,000 migrants and over 50,000 Libyans who fled 

conflict in Libya to seek safety in neighboring countries, 

helping ensure that the vast majority of migrants were 

able to voluntarily return home to their countries of 

origin, while also providing protection to vulnerable 

migrants (such as unaccompanied children) and refugees 

56 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
that remained in Tunisia and Egypt. U.S. assistance also 

supported emergency evacuations of urgent medical 

cases for vulnerable migrants from Libya during the 

siege of Misrata. 

■ Haiti – Due to Office of Foreign Disaster Assistance 

(OFDA)-funded habitability assessments, home repairs, 

and the construction of transitional shelters, the number 

of displaced people in Haiti had decreased by an estimated 

60 percent, by September 2011.

■ South Sudan – When conflict erupted in Abyei, OFDA 

partners were ready to respond using prepositioned supplies 

located in key hubs. In less than a month, OFDA grantees 

and other humanitarian partners had distributed plastic 

sheeting, blankets, water containers, and other supplies to 

68,000 people in need.

Selected Strategic Priorities and Analyses

PROTECTION, ASSISTANCE, AND SOLUTIONS: Protect vulnerable 

populations (e.g. refugees, internally displaced persons, and 

others affected by natural disasters and human-made crises) from 

physical harm, persecution, exploitation, abuse, malnutrition, 

disease, and other threats by providing disaster relief, food aid, 

and humanitarian assistance.

Analysis: The Department of State’s Bureau for Population, 

Refugees, and Migration (PRM) emphasizes a multilateral 

approach, providing the majority of funding to international 

organizations through the Migration and Refugee Assistance 

and Emergency Refugee and Migration Assistance accounts. 

USAID’s Office of U.S. Foreign Disaster Assistance (OFDA) 

provides most of its assistance bilaterally to non-governmental 

organizations and international organizations through the 

International Disaster Assistance account, and leads U.S. 

responses to humanitarian crises resulting from natural or 

industrial disasters. A large percentage of OFDA funding 

supports response to complex humanitarian crises. USAID’s 

Office of Food for Peace (FFP) is the primary source of 

U.S. food aid, targeting the most food insecure beneficiaries 

including refugees, Internally Displaced Persons (IDPs), and 

those coping with conflict and natural disasters. Given the 

fluidity and unpredictability of population movements in any 

given crisis, the Department of State and USAID coordinate 

closely in the provision of humanitarian assistance. Activities 

include distributing food and other relief supplies to affected 

populations; providing health and nutrition services, including 

feeding centers; responding to water, sanitation, and hygiene 

needs; providing shelter materials; implementing programs in 

response to child protection and gender-based violence; and 

providing economic recovery and agricultural inputs where 

appropriate. 

50%

60%

70%

80%

90%

100%

110%

120%

Performance Indicator: Percentage of Refugees Admitted to 

the United States as a Percentage of the Allocated Regional 

Ceilings Established by Presidential Determination

98.0%

100.0% 100.0%

FY 2012

Result Target

100.0% 100.0%

Source: Department of State, Bureau of Population, Refugees and Migration 

(PRM). Percentage

86.0%

FY 2010 FY 2011

99.5%

FY 2008 FY 2009

100.0% 100.0%

73.0%

FY 2013

Analysis: The U.S. emergency food assistance program has long 

played a critical role in responding to global food insecurity. 

It saves lives and livelihoods, supports host government efforts 

to respond to critical needs of their own people during shocks, 

and demonstrates the concern and generosity of the American 

people in times of need. Urgent responses to rapid onset 

emergencies and efforts to resolve protracted crises provide a 

basis for transitioning to the medium- and long-term political, 

economic, and social investments that can eliminate the root 

causes of poverty and instability. In FY 2011, Food for Peace 

provided more than $1.77 billion in emergency food assistance 

and program support in 50 countries around the world. Of this 

funding, $1.54 billion was made available through Title II 

emergency resources and $232 million in International Disaster 

Account funds in grants through the Emergency Food Security 

Program (EFSP). EFSP provided funds to a variety of private 

voluntary organizations and the U.N. World Food Program 

(WFP) to support local and regional procurement and cash and 

food voucher programs in 22 countries, including Afghanistan, 

Ethiopia, Haiti, Kenya, Kyrgyzstan, Libya, Niger, Pakistan, 

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 57

Strategic Goals and Results
Somalia, Sri Lanka, West Bank/Gaza, and Yemen. The U.S. 

Government is also the single largest donor to the WFP. 

In FY 2011, FFP contributed $1.28 billion to WFP in response 

to global appeals in 36 different countries in Africa, Asia, 

Latin America, the Caribbean, and Near East. 

0%

50%

100%

Percentage

Performance Indicator: Percent of Planned Emergency 

Food Aid Beneficiaries Reached with U.S. Government Assistance

93%

FY 2011 FY 2012 FY 2013

Result Target

Source: USAID’s Office of Food for Peace (FFP) Summary Request and 

Beneficiary Tracking Table.

93%

FY 2010

93%

FY 2008 FY 2009

93% 93%

92%

93%

93%

93% 93%

Analysis: U.S. assistance builds resiliency and reinforces the 

capacity of disaster-affected countries, American responders, 

and the international community to reduce risks and prepare 

for rapid, coordinated response. Programs also focus on 

increasing resiliency among households and communities 

and improving their ability to cope with and recover from the 

effects of a disaster. Although principles of disaster readiness 

and risk reduction are often incorporated into disaster response 

programs, assistance in the Disaster Readiness program area 

focuses primarily on risk reduction, readiness, resiliency, and 

capacity building. In FY 2011, USAID trained 12, 396 

persons in disaster preparedness, 33 percent above the target 

goal. Achievements included national contingency planning 

and capacity building in desert locust prevention and other 

transnational plant pest control, conservation agriculture 

to reduce food insecurity due to erratic rainfall, flood early 

warning, and volcano and seismic monitoring.

0

4,000

8,000

12,000

16,000

20,000

Number

200,000

...

Performance Indicator: Number of People Trained in 

Disaster Preparedness as a Result of U.S. Government Assistance

18,030

FY 2011 FY 2012 FY 2013

Result Target

Source: USAID internal awards tracking system and FY 2011 Implementing 

Partner Quarterly Reports.

11,076

FY 2010

12,396

FY 2008 FY 2009

9,948

224,519

10,333

10,004

5,028

11,952 11,952

58 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
Strategic Goal 6:

Promoting International Understanding 

Achieve foreign policy goals and objectives and enhance national security by fostering broad, mutually-respectful 

engagement and mutual understanding between American citizens and institutions and their counterparts abroad.

Public Benefit

T

he Department recognizes the central role of public diplomacy as a tool and an essential element of 21st century 

statecraft, and has committed to renewing America’s 

engagement with the people of the world by enhancing mutual 

respect and understanding, and creating partnerships aimed at 

solving common problems. To address the challenges of today, 

the Department has developed the first detailed global strategy 

for public diplomacy in more than a decade, ensuring its alignment with foreign policy objectives. Public diplomacy programs 

explain American society and culture and policy making to a 

broader international public. By improving their understanding 

of American society and values, the United States can establish a 

positive narrative and framework for policy discussions.

Summary of Performance and Resources

The Department and USAID allocated $1.433 billion toward 

this Strategic Goal in FY 2011, which is 3 percent of the 

total State-USAID budget for all strategic goals. The Department and USAID met or exceeded targets for 50 percent of 

performance indicators for Strategic Goal 6. Ratings were 

not available for 50 percent that are new indicators or data 

are not yet available. 

Key Selected Achievements 

■ The Department’s Fund for Innovation in Public 

Diplomacy enables embassies to quickly capitalize on 

public diplomacy opportunities that advance Department 

policy priorities. “Free African Media,” Embassy Pretoria’s 

innovative, public interest project, supports responsible 

and independent journalism and counters repression of 

the press across sub-Saharan Africa. The Embassy and 

its partners – the Department’s Africa Regional Media 

Hub and the independent media organization The Daily 

Maverick – created an independent, online platform where 

journalists can share experiences and file stories they cannot 

safely publish in their home countries. Each dollar in 

U.S. Government funding was matched by $1.51 by the 

non-U.S. Government partner. 

■ The Department expanded its social media outreach 

in foreign languages, including Twitter feeds in Arabic, 

Farsi, Hindi, and Urdu. The Department’s regional Media 

Hubs continued to proactively engage local and regional 

media, amplifying the President’s and Secretary’s policy 

messages in Arabic, Farsi, Spanish, and other languages, 

ensuring that foreign publics received accurate statements 

of U.S. policy.

On January 14, U.S. Ambassador Scot Marciel, State Department 

Coordinator for International Information Programs Dawn McCall, 2011 

CNN Hero Robin Lim, and Indonesian and American friends kicked off a 

month-long celebration for @america’s one-year anniversary. Department of State

FY 2011 Resource Invested: $1.433 Billion

State Operations: $1.433 Billion

Foreign Operations: $0.0 Billion

State Operations

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 59

Strategic Goals and Results
■ “@america Jakarta,” the high-tech, multimedia American 

Center in a Jakarta shopping mall that opened in 

December 2010, is on track to reach well over a hundred 

thousand visitors in its first year. The space is part of a 

larger strategy to take our outreach efforts to where the 

audiences are. Extensive measurement and evaluation 

of public reaction to the space show an overwhelmingly 

positive response.

Selected Strategic Priorities and Analyses

NURTURE COMMON INTERESTS: Expand international 

understanding of common interests and values through messages 

and programs built on areas in which U.S. Government 

expertise corresponds to the interests and needs of its partners 

and counterparts. 

Analysis: The Department assesses educational and cultural 

exchange program performance by collecting data directly from 

program participants. The indicator to the right measures the 

percentage of exchange participants who reported an increase 

or positive change in their understanding of the United States 

(political and economic institutions, norms, and values) 

immediately at the conclusion of their programs. In FY 2011, 

the Department again exceeded its target, with more than 

94 percent of foreign publics reporting an increased or positive 

change in understanding. Statistics are compiled from surveys 

of actual participants (“alumni”) of exchange programs. While 

there are many factors that could account for variations from 

year to year – what is most important is the trend: each year, 

overwhelmingly, the participants’ perceptions of the United 

States are positively impacted by their experiences. Other 

indicators measured changes in exchange participant favorability towards the U.S. Government (75 percent reported a more 

favorable view in FY 2011), and towards the American people 

(86 percent reported a more favorable view in FY 2011), as 

a result of their participation in an exchange program. These 

results show the effectiveness of educational and cultural 

exchange programs in positively and substantively reshaping 

understanding of, and attitudes towards, the United States.

80%

85%

90%

95%

100%

Performance Indicator: Percentage of Exchange Program

Participants with Increased Understanding of the United States

93% 93%

98.8%

FY 2011 FY 2012 FY 2013

Result Target

Source: U.S. Department of State, Bureau of Educational and Cultural Affairs. Percentage

93%

FY 2008 FY 2009 FY 2010

93%

95%

93%

93% 93%

97.03%

60 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
Strategic Goal 7:

Strengthening Consular and Management Capabilities

Assist American citizens to travel, conduct business, and live abroad securely, and ensure a high quality workforce 

supported by modern, secure infrastructure and operational capabilities.

Public Benefit

Approximately five million Americans reside abroad, 

and Americans make about 65 million trips overseas 

every year. The Department provides citizen support 

throughout the cycle of life, from certifying the birth of 

American citizens born abroad, to assisting families when an 

American dies overseas. The Department also assists Americans 

whose children have been wrongly taken to or kept in foreign 

countries. In collaboration with the Department of Homeland 

Security and other agencies, the Department protects America’s 

homeland with improved technology and efficiency at ports 

of entry and in visa processing and more secure U.S. travel 

documents. In support of this strategic goal, the Department 

is pursuing a multi-year hiring program to build the talented, 

diverse workforce needed to handle the Nation’s foreign 

policy priorities and strengthen diplomacy. In addition, 

the Department continues its commitment to using “green” 

technologies in embassies and consulates, and to maximize 

funding under the American Recovery and Reinvestment Act of 

2009 to expand consular services offered to American taxpayers.

Summary of Performance and Resources

The Department allocated $8.621 billion toward this Strategic 

Goal in FY 2011, which is 18 percent of the total StateUSAID budget for all strategic goals. The Department and 

USAID met or exceeded targets for 63 percent of performance 

indicators for Strategic Goal 7. Thirteen percent of indicators 

were below target, and 13 percent of indicators improved, but 

did not meet targets. Ratings were not available for 12 percent 

that are new indicators or data are not yet available.1 

Key Selected Achievements 

■ Three Department buildings in Virginia, Washington, 

D.C., and Washington State received Leadership in Energy 

and Environmental Design (LEED) Gold certification. 

The Department’s Regional Center Building in Charleston, 

South Carolina received LEED Platinum certification and 

is scheduled to achieve net zero energy with onsite solar 

and wind renewable energy generation.

■ Worldwide visa applications increased by more than 

14 percent in FY 2011. The Department provided more 

resources, domestic support and personnel to ensure that 

posts experiencing exceptional growth could maintain 

appropriate levels of service, in particular in Brazil and 

China. The Department utilized post-9/11 technical and 

interagency collaboration to reduce Security Advisory 

Opinion (SAO) backlogs to form the foundation for 

the foundation for the development of a more secure, 

The line forms for evacuation processing of private U.S. citizens at Cairo 

International Airport. State Magazine May 2011

FY 2011 Resource Invested: $8.621 Billion

State Operations: $6.919 Billion

Foreign Operations: $1.702 Billion

State Operations

Foreign Operations

1 Percentages rounded to the nearest whole number.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 61

Strategic Goals and Results
automated, and efficient SAO process. Since the beginning of the Department’s Diplomacy, Development, and 

Defense (D3.0) initiative, the Department has increased 

the number of Foreign Service positions by 17 percent and 

the number of Civil Service positions by 5 percent and has 

been aggressively hiring Foreign and Civil Service personnel to increase staffing capacity. The Department’s efforts to 

staff Afghanistan, Iraq, and Pakistan have been successful 

with over 95 percent of positions filled. Human Resources 

Shared Services is working with its partners to deliver 

services more efficiently and effectively by automating 

processes and providing self-service applications and, at the 

time of preparing this document, the Department had 78 

human resource service applications available electronically.

Selected Strategic Priorities and Analyses

OVERSEAS BUILDINGS OPERATIONS: Provide and maintain 

secure, safe, and functional facilities for U.S. Government 

personnel staffed at overseas posts. 

Analysis: During FY 2011, the Department exceeded 

expectations for the illustrative indicator relative to Strategic 

Goal 7: The number of U.S. Government personnel moved 

into more safe, secure and functional facilities. Our embassies 

overseas provide the diplomatic platform for all civilian 

agencies of the U.S. Government and the Department is 

responsible for providing and maintaining secure, safe and 

functional facilities for U.S. Government personnel staffed 

at overseas posts. At the end of FY 2011, data for the total 

cumulative number of U.S. Government personnel moved 

into more secure, safe and functional facilities shows that the 

23,918 personnel moved into the improved facilities. This is 

above the target of 23,012. 

PASSPORT SERVICES: Implementing technologies to insure the 

integrity of the U.S. passport while simultaneously facilitating 

the efficient issuance of U.S. passports. 

Analysis: Another illustrative indicator for this Strategic 

Goal is the Percentage of passport applications processed within 

the targeted timeframe. While the quality of the adjudication 

process is the Bureau of Consular Affairs’ top priority in the 

area of passports, American travelers and Congress still expect 

quick and efficient processing of passport applications. This 

indicator measures how efficiently Passport Services (PPT) is 

serving the American public.

0

10,000

20,000

30,000

Performance Indicator: Total Cumulative Number of 

U.S. Government Personnel Moved into More Safe,

Secure, and Functional Facilities Since 20011

21,512

FY 2010 FY 2011

Result Target

Source: U.S. Department of State, Bureau of Overseas Buildings Operations.

1 Indicator new in FY 2009, targets established beginning in FY 2010. Number of U.S. Government Personnel

20,012

FY 2008 FY 2009

21,548

18,539 23,012

23,918

FY 2012 FY 2013

24,512 26,012

98%

99%

100%

Performance Indicator: Percentage of Passport 

Applications Processed Within the Targeted Timeframe

99%

FY 2008 FY 2010 FY 2011 FY 2012 FY 2013

Result Target

100%

100%

Rating

100%

100%

98.9%

100%

99%

100%

99%

FY 2009

Source: U.S. Department of State, Bureau of Consular Affairs.

62 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Strategic Goals and Results
T

he Department of State and USAID are the lead U.S. 

agencies responsible for carrying out the President’s 

foreign policy agenda, which includes developing and 

executing U.S. foreign policy and interacting with foreign 

governments and international organizations. The Department 

of State and USAID budget requests also represent critical 

components of the U.S. national security budget, along with the 

Departments of Defense and Homeland Security, and are vital 

to securing U.S. national security interests.

The diplomatic and development capacity forged with U.S. 

foreign assistance allows the United States to build its leadership capacity in the global community and address the many 

challenges of today’s world. Foreign policy and development 

professionals – working on behalf of the American people – 

pursue priorities such as responding to humanitarian crises, 

combating terrorism, advancing democratic values, negotiating 

nonproliferation and environmental treaties, facilitating free 

enterprise, promoting U.S. exports, and assisting American 

citizens abroad.

The annual budget request to Congress for funding is presented 

in two volumes: the Congressional Budget Justification for 

Department of State Operations, and the Congressional Budget 

Justification for Foreign Assistance. Both components of the 

budget and key performance measures link directly to the joint 

strategic goals of the Department of State and USAID. State 

and USAID are committed to demonstrating the relationship 

between their budget requests to Congress and the performance 

of the programs that these budgets support. The chart on the 

following page reflects the combined FY 2013 State Operations 

and Foreign Assistance Budget by strategic goal and includes 

a table listing the actual FY 2011, FY 2012 and the requested 

FY 2013 resources.

State Department FY 2013 Budget: The budget request 

for Department of State Operations totals $17.9 billion (not 

including fees) and includes resources to carry out a robust 

foreign policy that is leading the world in solving the most 

complex challenges of our time, from thwarting international 

terrorism to stopping the spread of catastrophic weapons, 

strengthening the global economy, advancing human rights 

and universal values, and assisting American citizens overseas. 

In keeping with these economic times, the budget reflects 

hard choices based on a clear view of where a dollar of funding 

could have the greatest impact. The request represents the 

Department’s ongoing investments to advance America’s 

security and economic interests. 

Highlights of the State Operations budget include supporting 

diplomatic operations in the frontline states of Afghanistan, 

Pakistan, and Iraq along with the transition of Department of 

Defense activities to civilian agencies in Iraq. In addition to 

the Department’s work in the frontline states, it is focused on 

preventing and responding to conflict and crises worldwide. 

So, even as the Department works to prevent and respond to 

urgent conflicts, it is also responding to longer-term challenges 

to human and economic security, such as health, hunger, and 

climate change. Moreover, State must build civilian power, and 

provide employees safe, secure, and functional facilities and the 

resources they need to do their job.

Foreign Assistance FY 2013 Budget: The FY 2013 foreign 

assistance appropriations request totals $33.749 billion. 

The budget will advance U.S. security interests with critical 

investments in the promotion of stability and security in the 

frontline states of Afghanistan, Pakistan, and Iraq. Other aid 

investments will be made to create sustained capacity building, 

peace, and economic growth within nations receiving assistance. 

Key initiatives in the budget include food security, climate 

change, health, and gender issues. FY 2013 will also target 

support for USAID Forward, an ambitious reform effort to 

strengthen and transform USAID, reviving USAID’s science and 

technology capacity, deepening USAID’s commitment to resultsbased planning and thorough monitoring and evaluation, and 

improving USAID’s knowledge management approach. Funding 

will also foster innovation through the Development Innovation 

Ventures program and place additional focus on public-private 

partnerships.

For additional information and details, please consult the 

FY 2013 Budget of the U.S. Government at http://www.whitehouse.gov/omb/budget, the Congressional Budget Justifications, 

and the Executive Budget Summary, Function 150 and Other 

International Programs for Fiscal Year 2013 at http://www.state. 

gov/s/d/rm/c6113.htm and http://www.usaid.gov/performance.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 63

Budget Highlights

Budget Highlights
State Operations and Foreign Operations Budget Resources by Strategic Goal

Fiscal Years 2011 & 2012

Old Strategic Goals1,2,3

($ in millions)

FY 2011 Actual FY 2012 Enacted

State 

Operations

Foreign 

Operations

OCO

Foreign 

Operations

State 

Operations

Foreign 

Operations

OCO

State 

Operations

OCO

Foreign 

Operations

Achieving Peace and Security $ 4,296 $ 8,769 $ 297 $ 3,578 $ 10,595 $ 1,291 $ 3,179

Governing Justly and Democratically 779 2,517 0 657 2,596 75 960

Investing in People 372 9,968 0 304 10,560 55 555

Promoting Economic Growth and Prosperity 751 4,836 0 556 4,405 0 1,235

Providing Humanitarian Assistance 128 3,804 0 64 4,092 0 235

Promoting International Understanding 1,433 N/A 0 1,313 N/A 48 0

Strengthening Consular and Management 

Capabilities

6,919 1,702 0 5,746 1,670 3,145 260

Appropriated Resources Allocated by 

Strategic Goal

$ 14,678 $ 31,596 $ 297 $ 12,218 $ 33,918 $ 4,615 $ 6,424

Office of the Inspector General4 105 N/A N/A 62 N/A N/A N/A

International Commissions 133 N/A N/A 124 N/A N/A N/A

Buying Power Maintenance 0 N/A N/A 0 N/A N/A N/A

Foreign Service National Separation Liability Trust 

Fund Payment

63 N/A N/A 11 N/A N/A N/A

Foreign Service Retirement and Disability Fund5 159 N/A N/A 159 N/A N/A N/A

Appropriated Resources Not Allocated by 

Strategic Goal6

$ 301 N/A N/A $ 197 N/A N/A N/A

Total Appropriated Resources $ 14,979 $ 31,596 $ 297 $ 12,415 $ 33,918 $ 4,615 $ 6,424

1 FY 2011 and FY 2012 funding were requested under the old Strategic Goal framework for both State and Foreign Operations.

2 FY 2011 Actual column for State Operations includes Overseas Contingency Operations (OCO) for State Operations. Summed values may contain discrepancies 

due to rounding.

3 OCO funding for FY 2012 includes Office of Inspector General – Middle East Regional Office (OIG-MERO), Conflict Stabilization Operations (CSO), Educational 

and Cultural Exchange Programs (ECE), and Embassy Security, Construction, and Maintenance (ESCM).

4 State Department Office of Inspector General only. USAID Inspector General budget included in Strategic Goals allocation. 

5 Mandatory funding for the Foreign Service Retirement and Disability Fund is not added to summed totals.

6 Resources for these accounts and offices represent programs that support the Department of State as an institution rather than diplomatic, consular and 

management programs linked to Strategic Goals and Priorities, and therefore are not allocated by Strategic Goal.

64 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Budget Highlights
State Operations and Foreign Operations Budget Resources by Strategic Goal 

Fiscal Year 2013

New Strategic Goals1

($ in millions)

FY 2013 Request

State 

Operations

Foreign 

Operations

OCO

State 

Operations

OCO

Foreign 

Operations

Counter threats to the United States and the international order, and advance 

civilian security around the world.

$ 4,095 $ 7,112 $ 2,351 $ 11

Effectively manage transitions in the frontline states. 297 2,990 1,410 3,788

Expand and sustain the ranks of prosperous, stable and democratic states by promoting 

effective, accountable, democratic governance; respect for human rights; sustainable, 

broad-based economic growth; and well-being.

1,504 13,815 58 0

Provide humanitarian assistance and support disaster mitigation. 504 3,785 78 0

Support American prosperity through economic diplomacy. 279 N/A 122 0

Advance U.S. interests and values through public diplomacy and programs that connect the 

United States 

and Americans to the world.

1,621 N/A 49 0

Build a 21st Century workforce; and achieve U.S. Government operational and consular 

efficiency and effectiveness, transparency and accountability; and a secure U.S. 

Government presence internationally. 

4,961 2,164 294 84

Appropriated Resources Allocated by Strategic Goal $ 13,261 $ 29,866 $ 4,362 $ 3,883

Office of the Inspector General2 66 N/A N/A N/A

International Commissions 122 N/A N/A N/A

Buying Power Maintenance 0 N/A N/A N/A

Foreign Service National Separation Liability Trust Fund Payment 62 N/A N/A N/A

Foreign Service Retirement and Disability Fund3 159 N/A N/A N/A

Appropriated Resources Not Allocated by Strategic Goal4 $ 250 N/A N/A N/A

Total Appropriated Resources $ 13,511 $ 29,866 $ 4,362 $ 3,883

1 FY 2013 funding was requested under the new Strategic Goal framework.

2 State Department Office of Inspector General only. USAID Inspector General budget included in Strategic Goals allocation. 

3 Mandatory funding for the Foreign Service Retirement and Disability Fund is not added to summed totals.

4 Resources for these accounts and offices represent programs that support the Department of State as an institution rather than diplomatic, consular and 

management programs linked to Strategic Goals and Priorities, and therefore are not allocated by Strategic Goal.

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 65

Budget Highlights
T

he Department of State and USAID Agency Financial 

Reports (AFR) disclose the agencies’ financial status and 

provide transparency and accountability to the American 

people, Congress, and the President—including both successes 

and challenges. The reports provide a snapshot in time of the 

immense financial work undertaken by each agency’s financial 

personnel to exercise good stewardship and management of 

public funds. The AFRs present each agency’s audited financial 

statements and footnotes, Management’s Discussion and 

Analysis, and performance and other required information.

Below are summary highlights of the AFRs for both the 

Department of State and USAID for FY 2011. Following the 

highlights are tables containing key financial information on 

each agency’s assets, liabilities, and net position in a Balance 

Sheet Summary; information on each agency’s net cost of 

operations in a Net Cost of Operations Summary; and available 

resources in a Budgetary Resources Summary. Both agencies’ 

AFRs are posted online. For a complete Department of State 

AFR, see: http://www.state.gov/s/d/rm/rls/perfrpt/2011/index.htm. 

For the USAID AFR see: http://www.usaid.gov/performance/afr/

afr11.pdf.

Department of State: The scale and complexity of the 

Department’s activities and corresponding financial 

management requirements continued to grow in the face of a 

wide range of global and regional issues. Financial staff operates 

in more than 270 locations, 180 countries, and in over 135 

currencies and foreign languages, often in the most challenging 

environments. For FY 2011, the Department again worked 

with unity of purpose to build on past successes and make 

improvements to our financial management processes and 

activities worldwide. Staff focused on meeting the challenges 

of addressing audit and compliance requirements, managing 

and prioritizing improvements in the financial processes and 

systems, supporting the President’s Accountable Governance 

Initiative and meeting day-to-day financial management 

support obligations. 

The external audit has become a year-around process and 

focus as the Department strives to deliver meaningful financial 

statements by November 15 and demonstrate the Department’s 

strong financial management practices. The Department’s 

Independent Auditor (IA) issued an unqualified opinion on 

time for the Department’s FY 2011 Combined Statement 

of Budgetary Resources and Consolidated Statement of Net 

Cost, and a qualified opinion for the Consolidated Balance 

Sheet and Consolidated Statement of Changes in Net Position. 

The qualified opinion was due to a material weakness in the 

reporting of after-employment benefits for locally employed 

overseas staff. Specifically, accounting for the financial aspects 

of these complex compensation plans throughout the world 

presents unique challenges, and there was insufficient time for 

the IA to perform auditing procedures and satisfy themselves 

as to the accuracy of these amounts in time to meet the 

November 15, 2011 deadline.

The Department maintains a robust system of internal controls 

overseen by senior leadership. A material weakness was 

identified by the Department regarding the effective oversight 

of the Summer Work Travel Program for students traveling 

to the United States for temporary and seasonal employment 

during their academic breaks. Except for this material weakness, 

and the aforementioned material weakness in financial 

reporting of after-employment benefits for locally employed 

overseas staff, the Secretary was able to provide assurance for 

the Department’s internal controls in accordance with the 

Federal Managers’ Financial Integrity Act.

USAID: The agency received an unqualified opinion for 

the ninth consecutive year from the OIG, affirming that 

USAID’s financial statements for year-end September 30, 2011 

were presented fairly in all material aspects and prepared in 

conformance with Generally Accepted Accounting Principles. 

The Independent Auditor’s Report is included in the FY 2011 

Agency Financial Report (AFR). The auditor identified one 

material weakness related to unreconciled differences between 

the Agency’s Fund Balance and its cash balance reported by the 

U.S. Treasury, and six significant deficiencies. Notable progress 

was made in resolving these findings during FY 2011, and 

corrective action plans are in place to resolve these issues and 

related audit recommendations by September 30, 2012.

66 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Financial Highlights

Financial Highlights
The following summarized financial statement information 

is based on the same underlying data as that which USAID 

presented in the FY 2011 AFR. This condensed information 

provides a high level analysis of each agency’s financial 

performance and should not be viewed as a substitute for 

the financial statements and notes contained in the AFR.

Balance Sheet Summary

The following Condensed Balance Sheets present the assets, 

liabilities and net position of each agency. 

Department of State: Total Assets increased $5.4 billion or 

8 percent over FY 2010 levels. Fund Balance with Treasury 

was up $2.6 billion due to an increase in unpaid obligations 

and recoveries over the prior year. Property and Equipment 

increased $1.7 billion due to continued emphasis on the 

construction of new embassies and necessary security upgrades 

at existing embassies. Investment balances in U.S. Government 

securities for the Foreign Service Retirement and Disability 

Fund increased by $532 million during the year. Total 

Liabilities increased $1.3 billion, or 5 percent, between 2010 

and 2011. The After-Employment Benefit Liability (78 percent 

of total liabilities) increased by $811 million; this liability 

includes amounts owed in the Foreign Service Disability 

and Retirement Fund and amounts due to Foreign Service 

Nationals for after-employment benefits. Accounts Payable 

and the International Organizations Liability increased by 

$388 million and $163 million, respectively. 

USAID: Assets increased by 1 percent in FY 2011 over 

FY 2010. Fund Balance with Treasury (unspent appropriations) represents 86 percent of these total assets. The Agency’s 

liabilities decreased 1 percent. Decreases in the Loan Guarantee 

Liability and non-Federal Accounts Payable were offset by an 

increase in Other Liabilities. Credit reform related payables to 

the U.S. Treasury account for 40 percent of overall liabilities.

Net Cost of Operations Summary

The charts show each agency’s net cost-gross costs less earned 

revenue, invested in each joint Strategic Goal. These goals, 

or objectives, are consistent with the State-USAID Strategic 

Planning Framework. Executive Direction and Operating 

Unit Management are costs that cannot be directly traced or 

reasonably allocated to strategic goals; however, these costs are 

captured and included in the total net cost of operations. 

Department of State: Total net cost of $23.3 billion is an 

increase of 8 percent or $1.7 billion over 2010. The goals 

of Achieving Peace and Security, Investing in People, and 

Strengthening Consular and Management Capabilities account 

for most of this change. As seen in the Net Cost by Strategic 

Goal chart, the goal of Achieving Peace and Security is the 

largest. This goal included an International Narcotics and Law 

Enforcement (INL) cost increase by $525 million. The increase 

includes contractual expenses, educational grants and personnel 

costs. Our second largest goal, Investing in People, accounted 

for a $1.8 billion net cost increase. This was primarily the result 

of initiatives with the fund established in 2008 for Global 

Health and Child Survival. Additionally, passport and visa 

issuance included in the goal of Strengthening Consular and 

Management Capabilities contributed to $457 million of the 

increase in earned revenue.

USAID: The Statement of Net Cost shows the amounts spent 

on meeting the Agency’s six objectives. These objectives are 

consistent with the State-USAID Strategic Planning Framework. The Investing in People and Economic Growth objectives 

CONDENSED BALANCE SHEETS

As of September 30, 2011

($ in millions) State USAID

Assets:

Fund Balance with Treasury $ 40,415 $ 27,759

Investments, Net 16,433 —

Property, Plant, and Equipment, Net 14,606 74

Accounts, Loans, and Interest Receivables, Net 652 3,487

Advances, Prepayments, Other Assets 1,705 996

Total Assets $ 73,811 $ 32,316

Liabilities:

After-Employment Benefit Liability $ 19,425 $ —

Liability for Capital Transfers to the General 

Fund of the Treasury

— 3,199

Accounts Payable 2,150 1,750

Loan Guaranty Liability — 1,694

International Organizations Liabilities 1,658 —

All Other Liabilities 1,642 2,442

Total Liabilities 24,875 9,085

Net Position:

Unexpended Appropriations 31,915 21,202

Cumulative Results of Operations 17,021 2,029

Total Net Position 48,936 23,231

Total Liabilities and Net Position $ 73,811 $ 32,316

Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011 | 67

Financial Highlights
expenditures related to the Economic Growth objective. 

Complete details are provided in the AFR at http://www.usaid.

gov/performance/afr/afr11.pdf, page 27. The table below presents 

the net cost of operations by strategic goal.

NET COST OF OPERATIONS

For the Year Ended September 30, 2011 ($ in millions)

Strategic Goal

STATE USAID

Net Cost Percent of Total

Net Cost Net Cost Percent of Total Net Cost

Achieving Peace and Security $ 6,490 28% $ 937 8%

Governing Justly and Democratically 887 4% 1,835 16%

Investing in People 6,340 27% 3,063 27%

Promoting Economic Growth and Prosperity 1,450 6% 3,249 29%

Providing Humanitarian Assistance 1,967 8% 1,632 15%

Promoting International Understanding 2,562 11% N/A N/A

Strengthening Consular and Management Capabilities 865 4% N/A N/A 

Other Cost Category

Operating Unit Management N/A N/A 528 5%

Executive Direction and Other Costs Not Assigned 2,255 10% N/A N/A

Actuarial Loss on Pension Assumption Changes 444 2% N/A N/A

Total Net Cost of Operations $ 23,260 100% $ 11,244 100%

Achieving Peace and Security

Governing Justly and Democratically

Investing in People

Promoting Economic Growth and Prosperity

USAID

FY 2011 NET COST OF OPERATIONS

(Dollars in Millions)

Providing Humanitarian Assistance

Promoting International Understanding

Strengthening Consular and Management Capabilities

Operating Unit Management 

Actuarial Loss on Pension Assumption Changes

Executive Direction and Other Costs Not Assigned

STATE

TIONS

(Dollars in 

$2,255

FY 2011 NET COST OF OPERA

Millions)

$865

$6,490 

$6,340

$887

$2,562

$1,967

$1,450

$444

$937 

$3,249

$1,835

$3,063

$1,632

$528

Achieving Peace and Security

Governing Justly and Democratically

Investing in People

Promoting Economic Growth and Prosperity

USAID

FY 2011 NET COST OF OPERATIONS

(Dollars in Millions)

Providing Humanitarian Assistance

Promoting International Understanding

Strengthening Consular and Management Capabilities

Operating Unit Management 

Actuarial Loss on Pension Assumption Changes

Executive Direction and Other Costs Not Assigned

STATE

TIONS

(Dollars in 

$2,255

FY 2011 NET COST OF OPERA

Millions)

$865

$6,490 

$6,340

$887

$2,562

$1,967

$1,450

$444

$937 

$3,249

$1,835

$3,063

$1,632

$528

 Achieving Peace and Security

 Governing Justly and Democratically

 Investing in People

 Promoting Economic Growth and Prosperity 

 Providing Humanitarian Assistance

 Promoting International Understanding

 Strengthening Consular and Management Capabilities

 Operating Unit Management

 Executive Direction and Other Costs Not Assigned

 Actuarial Loss on Pension Assumption Changes

represent the largest investments at 27 percent and 29 percent 

of total net costs, respectively. USAID’s net costs increased 

8 percent over last year due to the expenditure of funds 

appropriated in prior years primarily as a result of additional 

Budgetary Resources Summary

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

($ in millions)

Total

$53,292

Total

$23,792

Obligations Incurred Unobligated Balance

STATE USAID

State and USAID

FY 2011 Status of Budgetary Resources1

$39,832

$13,460

$13,495

$10,297

Source: FY 2011 Agency Financial Reports, Statement of Budgetary Resources.

1. Prepared in accordance with OMB Circular A-136.

The Department reported budgetary resources of $53.3 billion 

as of September 30, 2011, an increase of 1 percent from 

the prior fiscal year, and USAID reported $23.8 billion in 

budgetary resources, a 5 percent decrease from the previous 

fiscal year mainly because of decreased appropriations in the 

Economic Support Fund and in the International Disaster 

Assistance account. The Department’s increases in authority 

from offsetting collections, unobligated balances brought 

forward and recoveries offset by a decrease in budget authority 

from appropriations granted by Congress account for the 

increase. The chart to the right presents the Department’s and 

USAID’s status of budgetary resources on September 30, 2011.

68 | Department of State-USAID Joint Summary of Performance and Financial Information • Fiscal Year 2011

Financial Highlights
AcknowledgmentS

The Joint Summary of Performance and Financial Information 

for FY 2011 was prepared by State Department’s Bureau of Resource 

Management, Office of State Programs, Operations and Budget; USAID’s 

Bureau for Policy, Planning, and Learning, Office of Learning, Evaluation 

and Research; and the Office of U.S. Foreign Assistance Resources. 

The Joint Summary of Performance and Financial Information 

for FY 2011 Core Team is composed of Nadine Bradley, Stephanie Cabell, 

Kristine Cronin, Nakiea W. Dade, Nancy Durham, Carol Gower, Holly 

Herrera, Gary Russell, Maria Skirk, Erica Victoria, and Wendy Williams. 

Special Acknowledgement to the Department of State’s Bureau of 

Public Affairs and Bureau of Administration and to USAID’s Bureau for 

Legislative and Public Affairs for their assistance in posting the document 

to the internet. Additionally, the Bureau of Public Affairs, Office of 

Electronic Information (PA/EI) assisted the Bureau of Resource 

Management with the production of this report, including 

images from AP/Wide World.

We Offer Our Special Thanks to The DesignPond team of 

Sheri Beauregard and Michael James for its outstanding 

contributions to the design of the report. 

Image CRedits

Agence France Presse (AFP): Cover, pages 39, 47

Associated Press (AP): Cover, Table of Contents, pages 1, 8, 40

Department of State: Pages 2, 59

Enterprise Works Worldwide: Page 52

State Magazine: Page 61

USAID: Cover, pages 6, 43, 45, 48, 51, 55, 56

CONTACT INFORMATION

We welcome your comments on this report. Please contact us by phone or e-mail as follows.

Department of State General Information: 202-647-4000 or performanceandplanning@state.gov

USAID General Information: 202-712-0000 or pmanagement@usaid.gov

Electronic versions are available at: 

http://www.state.gov/s/d/rm/rls/perfrpt/2011performancesummary/index.htm

http://www.usaid.gov/performance/summary/

References

Quadrennial Diplomacy and Development Review

www.state.gov/qddr

FY 2011 Agency Financial Reports 

http://www.state.gov/s/d/rm/rls/perfrpt/2011/index.htm

http://www.usaid.gov/performance/afr/ 

FY 2013 Department of State Congressional Budget Justification: Volumes 1 and 2

(FY 2011 Annual Performance Reports and FY 2012 Annual Performance Plans for 

State Operations and Foreign Assistance are included in the Congressional Budget Justification)

http://www.state.gov/s/d/rm/rls/statecbj/2013/

http://www.usaid.gov/performance/cbj/ 

USAID FORWARD

http://forward.usaid.gov/ 

For More Information...

Closing the Gap Methodology: http://www.usaid.gov/locations/europe_eurasia/wp/MCP%20Global%20Appendix%202012.docx

February 2012 
www.state.gov www.usaid.gov

United States 

Department of State