Management’s Discussion and Analysis (Unaudited)

About the Management’s Discussion 

and Analysis

The U.S. Department of Education (Department) continued to 

enhance the content quality, report layout, and public accessibility 

of the fiscal year (FY) 2023 Agency Financial Report (AFR)

by refining graphics and providing more useful, balanced, and 

easily understood information about the Broad-Based Debt 

Relief, COVID-19 funding relief bills and the Department’s loan 

programs, including additional cost and risk information. 

The Department also chose relevant web content to provide users with more information 

about the Department’s operations and performance. To take advantage of the hyperlinks 

embedded in the report, the Department recommends reading it on the Internet. To 

continue to improve the quality and utility of information provided in the AFR, the 

Department encourages the public and other stakeholders to provide feedback and 

suggestions at AFRComments@ed.gov.

This section highlights information on the Department’s performance, financial 

statements, systems and controls, compliance with laws and regulations, and actions taken 

or planned to address specific challenges.

FY 2023 AGENCY FINANCIAL REPORT 14 U.S. DEPARTMENT OF EDUCATION
FY 2023 AGENCY FINANCIAL REPORT 15 U.S. DEPARTMENT OF EDUCATION

Mission and Organizational Structure

This section provides information about the Department’s mission, an overview of its 

history, and its structure. The active links include the organization chart and principal 

offices and a link to the full list of Department offices with a description of selected offices 

by function.

The Department’s Approach to Performance

This section provides a summary of the Department’s performance goals and results 

for FY 2023. Since the Department has chosen to produce separate financial and 

performance reports, a detailed discussion of performance information for FY 2023 

will be provided in the Department’s FY 2023 Annual Performance Report and FY 2025 

Annual Performance Plan to be released online at the same time as the President’s FY 2025

Budget of the United States Government (President’s Budget) in February 2024. For 

more information, prior year performance reports can be found on the Department’s 

website. The Department also urges readers to seek programmatic data as it is reported 

in the Congressional Budget Justification, as well as on the web pages of individual 

programs. Any questions or comments about the Department’s performance reporting 

should be emailed to PIO@ed.gov. For more details on performance, please refer to the 

Department’s budget and performance web page at www.Performance.gov.

Financial Highlights

This section provides summarized information and analyses about the Department’s 

assets, liabilities, net position, sources and uses of funds, program costs, and related trend 

data. It provides a high-level perspective of the detailed information contained in the 

financial statements and related notes and an analysis of key financial statement changes.

Analysis Of Systems, Controls, and Legal Compliance

The Department’s internal control framework and its assessment of controls, in 

accordance with Office of Management and Budget (OMB) Circular A-123, 

Management’s Responsibility for Enterprise Risk Management and Internal Control, 

provide assurance to Department leadership and external stakeholders that financial data 

produced by the Department’s business and financial processes and systems is complete, 

accurate, and reliable.

Forward-Looking Information

The Forward-Looking Information section describes the challenges that the Department 

aims to address to achieve progress on Direct Loans, Next Generation Federal Student Aid 

(Next Gen FSA), Leveraging Data as a Strategic Asset, and the new G6 modernization.

Management’s Discussion and Analysis (Unaudited)
FY 2023 AGENCY FINANCIAL REPORT 16 U.S. DEPARTMENT OF EDUCATION

Management’s Discussion and Analysis (Unaudited)

About the Department

Our Mission

The U.S. Department of Education’s mission is to promote 

student achievement and preparation for global competitiveness by 

fostering educational excellence and ensuring equal access.

Who We Are. In 1867, the federal government recognized that furthering education was 

a national priority and created a federal education agency to collect and report statistical 

data. The Department was established as a cabinet-level agency in 1980. Today, the 

Department supports programs in every area and level of education from preschool 

through postdoctoral.

The Department makes funds and information available to individuals pursuing an 

education, colleges and universities, state educational agencies, and school districts by 

engaging in four major categories of activities:

• Establishing policies related to federal education funding, including distributing funds,

collecting on student loans, and using data to monitor the use of funds.

• Supporting data collection and research on America’s schools.

• Identifying major issues in education and focusing national attention on them.

• Enforcing federal laws promoting equal access and prohibiting discrimination in

programs that receive federal funds.

Our Public Benefit. The Department executes the laws passed by Congress to promote 

student academic achievement and preparation for global competitiveness. The 

Department works with students, parents, educational institutions, school districts, and 

states to foster educational excellence and ensure equal access to a high-quality education 

for all students. While recognizing the primary role of states and school districts in 

providing high-quality education, the Department is committed to helping ensure 

students throughout the nation develop skills to succeed in school, pursue postsecondary 

options, and transition to the workforce. The Department’s vision is to improve 

educational outcomes for all students.

Many of the Department’s programs involve awarding grants to state and local 

educational agencies and providing grants and loans to postsecondary students. The 

Department’s largest outlays are for its portfolio of student loans (see the Financial 

Highlights and Notes sections). Grant programs constitute the second-largest driver 

of outlays. The grant programs include student aid to help pay for college through 

Pell Grants, Work-Study, and other campus-based programs; grants awarded based on 

statutory formulas mostly for elementary and secondary education; and competitive 

grant programs to promote innovation. The Department also supports research, collects 

education statistics, and enforces civil rights laws. The Department manages and spends 

financial resources on programs designed to support parents, teachers, principals, school 

leadership, institutions, and states in the pursuit of instilling knowledge and transferring 

skills to students.
FY 2023 AGENCY FINANCIAL REPORT 17 U.S. DEPARTMENT OF EDUCATION

The Department in Fiscal Year 2023

This chart reflects the coordinating structure of the U.S. Department of Education. A text 

version of the FY 2023 coordinating structure of the Department is available.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* The White House Initiatives are: Office of Faith-Based and Neighborhood Partnerships; White House Initiative on Advancing Educational Equity, Excellence, and Economic 

Opportunity for Native Americans and Strengthening Tribal Colleges and Universities; White House Initiative on Advancing Educational Equity, Excellence, and Economic 

Opportunity for Hispanics; White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity for Black Americans; and White House Initiative on 

Advancing Educational Equity, Excellence, and Economic Opportunity through Historically Black Colleges and Universities.

Management’s Discussion and Analysis (Unaudited)