FY 2022 AGENCY FINANCIAL REPORT 48 U.S. DEPARTMENT OF EDUCATION

FINANCIAL SECTION (FISCAL YEAR 2022 UNAUDITED)

Message From the Chief Financial Officer

The Office of Finance and Operations 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,’’ while also ensuring effective 

financial stewardship of taxpayer dollars. This FY 2022 

Agency Financial Report (AFR) is another valuable tool 

the public can use to better understand the Department of 

Education and its programs. 

This year was again challenging and rewarding as the 

agency completed its transition to new normal operations 

following two years of pandemic impacts, published a 

new strategic plan, completed another major upgrade 

of its financial management systems and supported the 

administration’s debt relief program initiative. 

This year, the Department received a disclaimer of opinion 

on our FY 2022 financial statements from our independent 

auditor. The Department will develop and implement a 

corrective action plan to begin addressing improvements 

identified in the audit report and remains committed to 

continually evaluating business processes for improvement 

opportunities in FY 2023 and beyond. More information 

regarding this disclaimer of opinion and our ongoing efforts 

may be found in Management’s Response in the Independent 

Auditors’ Report of this AFR.

On April 1, 2022, the agency successfully transitioned to 

its new hybrid work model after spending two years in a 

100% telework posture due to COVID-19. Managers and 

employees have continually shown that they can perform at 

the highest levels no matter where they are working. 

On July 8, 2022, the agency published its new FY 2022-

2026 Strategic Plan which now serves as our roadmap for 

implementing key program and operational goals which 

support students, educational staff, and parents while also 

optimizing agency operations. The Strategic Plan Goals are: 

 Strategic Goal 1: Promote equity in student access to 

educational resources, opportunities, and inclusive 

environments. 

 Strategic Goal 2: Support a diverse and talented 

educator workforce and professional growth to 

strengthen student learning. 

 Strategic Goal 3: Meet students’ social, emotional, 

and academic needs. 

 Strategic Goal 4: Increase postsecondary value by 

focusing on equity-conscious strategies to address 

access to high-quality institutions, affordability, 

completion, post-enrollment success, and support for 

inclusive institutions. 

 Strategic Goal 5: Enhance the Department’s internal 

capacity to optimize the delivery of its mission.

On August 24, 2022, the administration announced a onetime loan cancellation for more than 40 million Americans 

with federal student loans. This program provides eligible 

borrowers who make less than $125,000 a year with a 

one-time loan cancellation of up to $20,000. It is estimated 

that this program will result in total loan forgiveness for 

approximately 20 million Americans, and for many of those 

borrowers who still have a balance remaining, their monthly 

loan payments will be reduced.

In addition, the Department recently released details on its 

proposal regarding a new income-driven repayment plan to 

further assist borrowers in managing their student debt. 

And finally, this year the Department again received 

external validation of our sustained efforts to produce 

user-friendly, transparent financial reporting by earning 

the Department’s 18th award of the AGA’s Certificate of 

Excellence in Accountability Reporting. Federal financial 

reports must pass a rigorous independent review against 

a comprehensive set of standards to earn this prestigious 

recognition, which is the highest award bestowed for federal 

financial reporting.

The Department’s achievements illustrate the remarkable 

effort and dedication of our employees and partners. 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

January 23, 2023