FY 2023 AGENCY FINANCIAL REPORT 78 U.S. DEPARTMENT OF EDUCATION

Financial Section (Unaudited)

Message From the Chief Financial Officer

The Office of Finance and Operations (OFO) is committed to supporting the 

Department of Education’s mission to “promote student achievement and preparation 

for global competitiveness by fostering educational excellence and ensuring equal access.’’ 

Our Fiscal Year (FY) 2023 Agency Financial Report is a valuable tool the public can use 

to better understand the Department’s programs and how they effectuate this critical 

mission. In FY 2023, the Department continued to implement new programs geared 

toward improving student educational outcomes and helping student loan borrowers 

transition to their new loan repayment status. 

On January 24, 2023, Secretary Cardona announced the “Raise the Bar: Lead the 

World” initiative. This plan represents an opportunity to improve the nation’s education 

system from preschool through college. It focuses on three major areas: achieving 

academic excellence, boldly improving learning conditions, and creating pathways for 

global engagement. 

The Administration is also taking additional steps aimed at providing debt relief to 

eligible borrowers. Specifically, the agency initiated a rulemaking process aimed at offering 

an alternative path to debt relief for many working and middle-class borrowers. The 

Department also instituted a 12-month “on-ramp” to repayment, running from October 

1, 2023, to September 30, 2024, so that financially vulnerable borrowers who miss 

monthly payments during this period are not considered delinquent, reported to credit 

bureaus, placed in default, or referred to debt collection agencies.

OFO supports these initiatives by providing human capital, financial, acquisition and 

grants management services across all Departmental offices. In addition to supporting 

these programs, OFO continued working with leaders across the agency to ensure effective 

financial stewardship of taxpayer dollars. Over the course of FY 2023, the Department 

made process improvements to address issues identified in the FY 2022 financial statement 

audit. The FY 2022 disclaimer of opinion was largely related to the Broad-Based Debt 

Relief program and its impact on the agency’s financial statement re-estimates. This year, 

the independent auditor issued a disclaimer of opinion on the Department’s FY 2023 

balance sheet. The Department will develop and implement additional corrective action 

strategies to address the issues highlighted in the FY 2023 report. We remain committed to 

continually evaluating new programs, current business processes, and our internal controls 

for improvement opportunities in FY 2024 and beyond.

Through the hard work and dedication of our employees and partners we will continue 

to make improvements in our programs and operations. We will continue to serve as 

accountable and committed stewards supporting the Department’s mission on behalf of 

the public while enhancing our financial management capabilities.

Denise L. Carter

Delegated the authority to perform the functions and duties 

of the position of Chief Financial Officer

November 16, 2023