Other Information (Unaudited)

About the Other Information Section

The Other Information section includes:

Consolidated Statement of Net Cost, Consolidated Statement of 

Changes in Net Position, and Combined Statement of Budgetary 

Resources (Unaudited)

The Consolidated Statement of Net Cost (Unaudited) shows, 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 Statement of Changes in Net Position (Unaudited) presents 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 Sheet.

The Combined Statement of Budgetary Resources (Unaudited) presents the budgetary 

resources available to the Department, the status of these resources, and the outlays of 

budgetary resources.

The Notes to the Consolidated Statement of Net Cost, Consolidated Statement 

of Changes in Net Position, and Combined Statement of Budgetary Resources 

(Unaudited) 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.

FY 2023 AGENCY FINANCIAL REPORT 116 U.S. DEPARTMENT OF EDUCATION
FY 2023 AGENCY FINANCIAL REPORT 117 U.S. DEPARTMENT OF EDUCATION

Other Information (Unaudited)

Note 11. Other Accounting Policies

Note 12. Property and Equipment

Note 13. Credit Program Subsidy Expense and Reconciliations of Loans Receivable, 

Allowance for Subsidy, and Liabilities for Loan Guarantees

Note 14. Roll-Forward of Debt Associated with Loans 

Note 15. Net Cost of Operations

Note 16. COVID-19 Activity

Note 17. Statement of Budgetary Resources

Note 18. Reconciliation of Net Cost to Net Outlays

Note 19. Reclassification of Statement of Net Cost and Statement of Operations 

and Changes in Net Position for Financial Report Compilation Process

Note 20. Other Matters

Required Supplementary Information (Unaudited)

This section contains the Combining Statements of Budgetary Resources for the year 

ended September 30, 2023.

Office of Inspector General’s (OIG) Management and 

Performance Challenges for Fiscal Year 2024

The Management and Performance Challenges Report provides a summary of what the 

Office of Inspector General (OIG) believes are the Department’s biggest challenges for FY 

2024. The OIG identified the following seven challenges: (1) Implementing Pandemic 

Relief Laws for Elementary and Secondary Education, (2) Implementing Pandemic 

Relief Laws for Higher Education, (3) Oversight and Monitoring of Student Financial 

Assistance Programs, (4) Oversight and Monitoring of Grantees, (5) Data Quality and 

Reporting, (6) Improper Payments, and (7) Information Technology Security. The full 

report is available at the OIG website.

Summary of Financial Statement Audit and 

Management Assurances

The Summary of Financial Statement Audit and Management Assurances provides 

information about the material weaknesses reported by the Department or through the 

audit process.
FY 2023 AGENCY FINANCIAL REPORT 118 U.S. DEPARTMENT OF EDUCATION

Other Information (Unaudited)

Payment Integrity Information Act Reporting

This section summarizes the U.S. Department of Education’s (the Department) efforts to 

maintain payment integrity and to develop effective controls designed to prevent, detect, 

and recover improper payments. It also includes information regarding the Department’s 

high-risk programs.

Civil Monetary Penalty Adjustment for Inflation

This section reports on the Department’s annual inflation adjustments to civil 

monetary penalties as required under the Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015.

Climate Related Financial Risk

This section summarizes the Department’s FY 2021 Climate Adaptation Plan and provides 

information on the FY 2024 Climate Adaptation and Environmental Justice Plans.

The Grants Oversight and New Efficiency Act of 2016

(GONE Act) and Education’s Grant Closeout Process

This section provides a high-level summary of the Department’s expired, but not closed, 

federal grants and cooperative agreements.