FY 2022 AGENCY FINANCIAL REPORT 50 U.S. DEPARTMENT OF EDUCATION

FINANCIAL SECTION (FISCAL YEAR 2022 UNAUDITED)

About the Financial Section

n FY 2022, the Department prepared its financial 

statements as a critical aspect of ensuring 

accountability and stewardship for the public 

resources entrusted to it. Preparation of these statements 

is an important part of the Department’s financial 

management goal of providing accurate and reliable 

information for decision-making.

FI N A N C I A L STAT E M E N T S 

AND NOTES

The Consolidated Balance Sheets summarize the assets, 

liabilities, and net position by major category as of the 

reporting date. Intragovernmental assets and liabilities 

resulting from transactions between federal agencies 

are presented separately from assets and liabilities from 

transactions with the public.

The Consolidated Statements of Net Cost show, by 

program, the net cost of operations for the reporting 

period. Net cost of operations consists of full program costs 

incurred by the Department less exchange revenues earned 

by those programs.

The Consolidated Statements of Changes in Net Position

present the Department’s beginning and ending net 

position by two components—Unexpended Appropriations 

and Cumulative Results of Operations. It summarizes the 

change in net position by major transaction category. The 

ending balances of both components of the net position are 

also reported on the Consolidated Balance Sheets.

The Combined Statements of Budgetary Resources

present the budgetary resources available to the 

Department, the status of these resources, and the outlays 

of budgetary resources.

The Notes to the Financial Statements provide 

information to explain the basis of the accounting and 

presentation used to prepare the statements and to 

explain specific items in the statements. They also provide 

information to support how particular accounts have been 

valued and computed.

Note 1. Summary of Significant Accounting 

Policies

Note 2. Non-Entity Assets

Note 3. Fund Balance with Treasury

Note 4. Other Assets

Note 5. Loan Receivables, Net and Loan 

Guarantee Liabilities

Note 6. Liabilities Not Covered by Budgetary 

Resources

Note 7. Debt Associated with Loans

Note 8. Subsidy Due to Treasury

Note 9. Other Liabilities

Note 10. Net Cost of Operations 

Note 11. COVID-19 Activity

Note 12. Statements of Budgetary Resources

Note 13. Reconciliation of Net Cost to Net 

Outlays

Note 14. Commitments and Contingencies

Note 15. Reclassification of Statement of Net 

Cost and Statement of Operations and 

Changes in Net Position for Financial 

Report Compilation Process

Note 16. Subsequent Events
FY 2022 AGENCY FINANCIAL REPORT 51 U.S. DEPARTMENT OF EDUCATION

FINANCIAL SECTION (FISCAL YEAR 2022 UNAUDITED)

R EO R T O F T H E 

INDEPENDENT AUDITORS

The results of the audit of the Department’s financial 

statements for FY 2022 and FY 2021 to comply with 

the Chief Financial Officers Act of 1990, as amended, are 

presented to be read in conjunction with the Financial 

Section in its entirety. The Department’s Office of Inspector 

General contracted with the independent certified public 

accounting firm of KPMG LLP to audit the financial 

statements of the Department as of September 30, 2022, 

and 2021, and for the years then ended.

R EQ U I R E D S U P P L E M E N TA RY 

INFORMATION (UNAUDITED)

This section contains the Combining Statements of 

Budgetary Resources for the periods ended 

September 30, 2022, and September 30, 2021.