U.S. International 

Development Finance 

Corporation 

Annual Management Report 

Fiscal Year 2022 

dfc.gov
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

TABLE OF CONTENTS
 

Agency Head Letter 3
 

Management's Discussion & Analysis (unaudited) 

Background, Mission, and Organization 4
 

Performance Goals, Objectives, and Results 5
 

Analysis of Financial Statements, Financial Condition, Position, and Results 10
 

Analysis of Systems, Controls, and Legal Compliance 20
 

Forward-Looking Information 21
 

Inspector General’s Transmittal Letter 22
 

Independent Auditor's Report 24
 

Financial Statements
 

Consolidated Balance Sheets 30
 

Consolidated Statements of Net Cost 31
 

Consolidated Statements of Changes in Net Position 32
 

Combined Statements of Budgetary Resources 33
 

Notes to the Financial Statements 

Summary of Significant Accounting Policies 35
 

Note Disclosures Related to the Consolidated Balance Sheets 43
 

Note Disclosures Related to the Combined Statements of Budgetary Resources 59
 

Note Disclosure Related to the Reclassified Statement of Net Cost and Reclassified Statement of
 

Changes in Net Position 64
 

Required Supplementary Information 

Combining Statements of Budgetary Resources by Major Budget Account 67
 

Other Information (unaudited) 

Summary of Financial Statement Audit and Management Assurances 69
 

Report on the Payment Integrity Information Act 69
 

Climate-Related Financial Risk 69
 

Appendix (unaudited) 

Acronym Listing 72
 

2 
 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

AGENCY HEAD LETTER
 

November 15, 2022 

On behalf of the United States (U.S.) International Development Finance 

Corporation (DFC), it is my pleasure to provide you with the Corporation's 

Annual Management Report and Financial Statements, which provide 

Ί΢ζΪιχ̯Σχ ΊΣ͕Ϊι΢̯χΊΪΣ ̯̼ΪϢχ DF͛ν Θ̯͋ι-end financial results. The report 

ι͕͋Μ͋̽χν DF͛ν νϢ̽̽͋νν͕ϢΜ ͕ΊΣ̯Σ̽Ί̯Μ ΢̯Σ̯ͽ͋΢͋Σχ ̯Σ͇ νχ͋Ϯ̯ι͇ν·Ίζ Ϊ͕ χ̯ϳζ̯Θ͋ι 

funds, as well as a steadfast commitment to accountability and transparency 

in all our programs and operations. Our financial strength and positioning on 

the global stage allow DFC to be a leader and innovator in addressing 

international development challenges, while furthering the foreign policy 

priorities of the United States. 

͛͜΢ ΣΪϮ ΊΣ χ·͋ ΢Ί͇͇Μ͋ Ϊ͕ my first year, and we have recently launched a 

strategic planning exercise to update our agency-wide priorities and strategic objectives to continue 

DF͛ν χι̯Σν͕Ϊι΢̯χΊΪΣ ΊΣ ΜΊΣ͋ ϮΊχ· Congressional intent. We expect preliminary results of that work in 

early 2023. In the meantime, please note that the strategic goals included in this report reflect strategic 

objectives that were drafted prior to my tenure. 

DFC has again successfully received an unmodified audit opinion which underscores our prudent 

management of exposure through sound underwriting and effective governance. Additionally, as 

required by OMB Circular A-136, I am pleased to confirm with reasonable assurance the completeness 

and reliability of the data presented in the FY 2022 Annual Management Report. In FY 2022, DFC had 

combined total projected exposure of $35.7 billion, and DFC maintained corporate reserves of $6.2 

billion in Treasury securities. DFC achieved these excellent financial results by adding new commitments 

of $7.4 billion in development financing, equity commitments, technical assistance, and political risk 

insurance to its diverse portfolio. These achievements are a testament to the value DFC brings to U.S. 

χ̯ϳζ̯Θ͋ιν ̼Θ ͋Σͽ̯ͽΊΣͽ χ·͋ ζιΊϭ̯χ͋ ν͋̽χΪι χΪ ·͋Μζ νΪΜϭ͋ χ·͋ ϮΪιΜ͇͛ν ΢Ϊνχ ζι͋ννΊΣͽ ͇͋ϭ͋ΜΪζ΢͋Σχ 

challenges. 

Sincerely, 

Scott A. Nathan 

Chief Executive Officer 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

BACKGROUND, MISSION, AND ORGANIZATION 

The U.S. International Development Finance Corporation (DFC or ΪιζΪι̯χΊΪΣ) Ίν !΢͋ιΊ̯̽͛ν ͇͋ϭ͋ΜΪζ΢͋Σχ ͕ΊΣ̯Σ̽͋ 

institution. DFC is the newest U.S. government agency, launched in December 2019 with a mandate to partner with 

the private sector to finance solutions to the most critical challenges facing the developing world while advancing 

!΢͋ιΊ̯̽͛ν ͕Ϊι͋ΊͽΣ ζΪΜΊ̽Θ ͽΪ̯Μν ̯̼ιΪ̯͇ ̈́ DF͛ν χι̯Σν̯̽χΊΪΣν ΊΣ ͇͋ϭ͋ΜΪζΊΣͽ ΢̯ιΙ͋χν ͇Ίι͋̽χΜΘ ͕Ϣιχ·͋ι !΢͋ιΊ̯̽͛ν ΊΣχ͋ι͋νχ 

in working towards a prosperous, more equal world. Partnering with the private sector in these efforts is critical to 

marshalling the resources needed to expand access to finance, reliable energy, digital connectivity, lifesaving 

healthcare, and other critical infrastructure and services. To learn more about our mission, organization, and 

background visit https://www.dfc.gov/who-we-are/overview. 

DFC is led by its Chief Executive Officer, with governance from its Board of Directors, and oversight from its Office of 

Accountability and Office of Inspector General. 

DFC ORGANIZATIONAL STRUCTURE 

The organizational chart below is as of September 30, 2022. 

Board of Directors 

Office of Independent Accountability 

Office of the Inspector General 

Office of Financial & Portfolio Management | CFO 

Office of the Chief 

Executive 

Office of Chief Development Officer 

Office of Chief Risk Officer 

Office of Development Credit 

Office of Development Policy 

Office of General Counsel 

Office of Administration 

Office of Structured Finance & Insurance 

Office of Equity & Investment Funds 

Office of External Affairs 

Office of Information Technology | CIO 

Office of Human Resources Management 

Office of U.S. Operations 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS 

OVERVIEW 

The Better Utilization of Investments Leading to Development (BUILD) Act (Public Law 115-254, Division F) provides 

DFC the authority to issue insurance or reinsurance, make loans and guaranties, and invest equity in investment 

funds and individual enterprises. In addition to these core programs, the BUILD Act provides the authority to offer a 

variety of technical assistance to potential projects. 

DF͛ν ζιΪͽι̯΢ ͕ϢΣ͇ΊΣͽ Ίν ͇͋ζΜΪΘ͇͋ ΊΣ ̽ΪΪι͇ΊΣ̯χion with the Executive Branch agencies charged with implementing 

the private sector-focused foreign assistance programs of the United States and is targeted to support 

developmental projects in less developed countries. During fiscal year (FY) 2022, DFC published its first Strategic Plan 

for the FYs 2022-2026. 

DFC is developing the infrastructure and key performance indicators to track progress against goals and objectives. 

DFC is also undergoing a strategic planning process to re-evaluate these goals to optimize our impact across all 

sectors. 

STRATEGIC GOALS 

͜Σ Ϊι͇͋ι χΪ ͕͕͋͋̽χΊϭ͋ΜΘ ΊΣ̽ι̯͋ν͋ DF͛ν ι̯͋̽· ̯Σ͇ Ί΢ζ̯̽χ΂ χ·͋ ΪιζΪι̯χΊΪΣ Ίν aligning its priorities and processes to 

ensure it can successfully provide the organization with a solid foundation on which to grow. There are four key 

goals that will drive the Σ͋ϳχ ̽·̯ζχ͋ι Ϊ͕ DF͛ν ͽιΪϮχ· ̈́ 

GOAL 1: ENGAGE AND MOBILIZE THE PRIVATE SECTOR 

Through DFC, the U.S. Government accelerates the flow of private capital to less developed countries by supporting 

private sector investments that cannot obtain viable financing ͕ιΪ΢ Ϊχ·͋ι νΪϢι̽͋ν ̈́ DF͛ν χ̯ιͽ͋χ͇͋ ΪϢχ̽Ϊ΢͋ ͕Ϊι χ·Ίν 

strategic goal is to mobilize private capital in support of sustainable, broad-based economic growth, and poverty 

reduction that advances development and U.S. foreign policy interests. 

GOAL 2: DRIVE DEVELOPMENT IMPACT ACROSS SECTORS AND REGIONS 

DFC invests across a range of sectors, geographies, and themes to achieve its mission. The targeted outcomes of this 

strategic goal include: 

•	 Increasing development outcomes in each of the development sectors. 

•	 Crafting a well-balanced portfolio across regions that aligns with the U.S. Government development and 

national security priorities. 

•	 Increasing exposure to investments that help combat the effects of climate change, increase financial 

inclusion in developing markets and increase equity and inclusion. 

GOAL 3: IMPROVE IMPACT MANAGEMENT MONITORING, MEASUREMENT AND LEARNING 

DFC is strengthening its ability to monitor, analyze, and manage the development impact of its portfolio on an 

ongoing basis, compare objectives and targets to actual results, suggest adjustments where needed, and identify 

learnings that help improve new and existing projects. 

GOAL 4: SCALE THE CORPORATION SUSTAINABLY 

The launch of DFC in 2019 brought together the tools of the Overseas Private Investment Corporation (OPIC) and 

United States Agency for International Development͛ν (USAID) financing arm, the Development Credit Authority 

(DCA), and provided expanded and modernized tools to build on a long U.S. tradition of mobilizing investment in 

developing countries. Additionally, DFC was launched with strong bipartisan support through the BUILD Act, which 

΢Ϊι͋ χ·̯Σ ͇ΪϢ̼Μ͇͋ ͸ ́͛͜ν ΊΣϭ͋νχ΢͋Σχ ̯̽ζ̯̽ΊχΘ χΪ $60 ̼ΊΜΜΊΪΣ΂ ̯Σ͇ ̯Ϣχ·ΪιΊΣ͇͋ Σ͋Ϯ χΪΪΜν ΜΊΙ͋ ͋θϢΊχΘ ̯Ϣχ·ΪιΊχΘ χΪ 

enable the Corporation to expand impact in developing countries. The increase in tools, capacity, and complexity 

requires supporting people and processes to grow its ability to fulfill BUILD Act mandates, prudently manage its 

portfolio, and efficiently execute on new project activity. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

1.1 DFC TOOLS 

 

 

 

1.2 EXPAND AND DIVERSIFY THE CLIENT BASE 

1.3 COLLABORATE WITH PARTNERS 

 

 

 

 

 

 

 

 

 

STRATEGIC GOAL 1:
 

ENGAGE AND MOBILIZE THE PRIVATE SECTOR
 

DF͛ν νχι̯χ͋ͽΊ̽ ͽΪ̯Μν ̯ι͋ χ·͋ ͽϢΊ͇ΊΣͽ ζιΊΣ̽ΊζΜ͋ν χ·̯χ ͇ιΊϭ͋ ͇͋̽ΊνΊΪΣ-making when choosing projects to invest in, 

finance, or insure. The tools available to DFC to support their goals are detailed below and correspond with the 

̼ι̯͋ΙΪϢχ Ϊ͕ ͽιΪνν ̽Ϊνχ ̯Σ͇ ι͋ϭ͋ΣϢ͋ ΪΣ DF͛ν ΋χ̯χ͋΢͋Σχs of Net Cost. Each available tool aligns to DF͛ν ͽΪ̯Μs. 

•	 Insurance – DFC offers political risk insurance coverage against losses due to currency inconvertibility, 

expropriation, and political violence including war and terrorism. DFC also offers reinsurance to increase 

underwriting capacity. 

•	 Financing – DFC meets the long-term capital investment financing needs of any size business in a wide 

variety of industries such as critical infrastructure, power generation, telecommunications, housing, 

agribusiness, financial services, and in projects that can achieve a positive impact in the host country. 

•	 Equity – DFC provides direct equity into projects in the developing world which will have developmental 

impact or advance U.S. foreign policy. Equity investments can be highly developmental because of their 

ability to support early and growth-stage companies that would otherwise not be able to take on debt, 

especially companies in low and lower-middle income countries. As a financial tool, direct equity provides 

DFC with greater flexibility to invest in early and growth-stage companies, partner with other financial 

institutions, and enable investees to scale operations more efficiently to create greater development 

impact. 

•	 Technical Assistance and Feasibility Studies – DF͛ν feasibility studies and technical assistance program 

funds accelerate project identification and preparation to better attract and support private investment in 

development. In most cases, grants will be designed to increase the developmental impact or improve the 

commercial sustainability of a project that has received, or may receive, DFC financing or insurance support. 

DFC determines the technical assistance, feasibility study, or training work to be provided, and the grant 

recipient selects an entity with relevant expertise and experience that will perform that work. In addition, 

the program provides technical assistance for certain development credit activities requested by other 

agencies by utilizing a competitively selected pool of contractors. 

DFC intends to strategically expand its client base by executing new approaches to 

identify transactions and attract a wider net of local and regional clients. 

Additionally, DFC will seek out relationships with local companies in less developed 

countries, highly developmental partners with innovative product offerings and 

̼ϢνΊΣ͋νν ΢Ϊ͇͋Μν΂ ̯Σ͇ ͕Ϊι͋ΊͽΣ ̽Ϊ΢ζ̯ΣΊ͋ν χ·̯χ ̯ΜΊͽΣ ϮΊχ· DF͛ν ͇͋ϭ͋ΜΪζ΢͋Σχ 

priorities. DFC is also targeting non-traditional partners from diverse backgrounds 

to ensure our ultimate beneficiaries include members of marginalized communities 

who need DFC support the most. 

Expanding and 

Diversifying DFC’s Client 

Base 

71 new clients added in FY 

2022 

DFC is creating valuable partnerships with other U.S. Federal agencies, development finance institutions, nongovernment organizations, think tanks, and the private sector to maximize development impact. DFC recognizes that 

nongovernment stakeholders play a critical advisory and partnership role. DFC and many foundations share a 

common mission but bring different resources and tools to the table. 

We also collaborate closely with the USAID, the Department of State, and other U.S. government agencies to amplify 

our impact. DF͛ν ͱΊννΊΪΣ Αι̯Σν̯̽χΊΪΣ ΕΣΊχ ϮΪιΙν ϮΊχ· Ε΋!͜D χΪ identify access to finance challenges in developing 

countries and partner with local, regional and international financial institutions and businesses to mobilize private 

ΊΣϭ͋νχ΢͋Σχ χΪ ̯͇ϭ̯Σ̽͋ DF͛ν ̯Σ͇ Ε΋!͜D͛ν ͇͋ϭ͋ΜΪζ΢͋Σχ Ϊ̼Ζ͋̽χΊϭ͋ν ̈́ DFC also hosts a Foreign Service Development 

Finance Fellows program, in coordination with USAID and the Department of State. The one to three-year fellowship 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

2.1 GEOGRAPHIES 

 

 

 

 

 

2.2 PARTNERSHIP FOR GLOBAL INFRASTRUCTURE AND INVESTMENT (PGII) 

 

 

 

 

 

 

 

 

enables USAID and State Foreign Service Officers develop deal origination skills. Once complete, fellows will be 

effective liaisons between DFC, State, and USAID in posts around the world. 

The BUILD Act charges DFC with increased coordination and collaboration among U.S. development agencies, 

including USAID and the Millennium Challenge Corporation (MCC). MCC and DFC have collaborated in the past, but 

opportunities were constrained by significant limitations on investment timing and alignment of business models. In 

an effort to overcome these limitations, MCC and DFC developed a new MCC-funded blended finance mechanism 

to provide strategic grants that DFC will use in support of catalytic investments called the American Catalyst Facility 

͕Ϊι D͋ϭ͋ΜΪζ΢͋Σχ (!FD)΂ Ϯ·Ί̽· ϮΪιΙν ϮΊχ·ΊΣ ̼Ϊχ· ̯ͽ͋Σ̽Ί͋ν͛ ͋ϳΊνχΊΣͽ ̯Ϣχ·ΪιΊχΊ͋ν ̯Σ͇ ̽ΪϢΣχιΘ ζΪιχ͕ΪΜΊΪν ̈́ !FD Ίν 

designed to leverage the strengths of both agencies to enable coordinated investments aimed at crowding-in the 

private sector and maximizing the overall impact of the U.S. government development efforts and furthering 

American strategic interests abroad. 

Over the ̽ΪϢιν͋ Ϊ͕ DF͛ν ͕Ίινχ χϮΪ Θ̯͋ιν ΊΣ Ϊζ͋ι̯χΊΪΣ΂ χ·͋ ΪιζΪι̯χΊΪΣ ͋νχ̯̼ΜΊν·͇͋ ͕Ϊι΢̯Μ ι͋Μ̯χΊΪΣν·Ίζν΂ ιΪϢχΊΣ͋ ·Ίͽ·-

Μ͋ϭ͋Μ ΊΣχ͋ι̯ͽ͋Σ̽Θ ̼ιΊ͕͋ΊΣͽν΂ ̼Μ͋Σ͇͇͋ ͕ΊΣ̯Σ̽͋ ΢͋̽·̯ΣΊν΢ν΂ ̯Σ͇ χι̯ΊΣΊΣͽ ΢Ϊ͇ϢΜ͋ν ΪΣ DF͛ν ζιΪ͇Ϣ̽χν ͕Ϊι χ·͋ 

interagency to strengthen institutional linkages and to ensure greater cross-fertilization on development. 

Furthermore, in June 2020, DFC launched the Development Finance Coordination Group to bring working-level 

officials from the interagency together on a regular basis to identify ways to strengthen and operationalize better 

interagency collaboration. This collaboration has resulted in a new initiative with the U.S. African Development 

Foundation, the African Small Business Catalyst which will provide a combination of loans and grants to early-stage 

companies. The initiative will help companies develop business models, build up management skills, expand market 

reach, and support African entrepreneurs in low-income and lower-middle income countries whose projects 

advance or deploy innovative technology. DFC is also a critical partner of Prosper Africa, Power Africa, and Asia 

Enhancing Development and Growth through Clean Energy (EDGE) ΊΣΊχΊ̯χΊϭ͋ν΂ ̯΢ΪΣͽ Ϊχ·͋ι ζιΪͽι̯΢ν΂ ϮΊχ· DF͛ν 

Chief Executive Officer serving as the Executive Chairman of Prosper Africa. USAID is funding Power Africa, Prosper 

!͕ιΊ̯̽ ̯Σ͇ FΪΪ͇ ΋͋̽ϢιΊχΘ ͇̯͋Μν χ̯͋΢ν ̯χ DF χ·̯χ ̯ι͋ ̯͇ϭ̯Σ̽ΊΣͽ χ·͋ ̯ͽ͋Σ̽Ί͋ν͛ ΢ϢχϢ̯Μ χι̯͇͋ ̯Σ͇ ͇͋ϭ͋ΜΪζ΢͋Σχ ͽΪ̯Μν ̈́ 

FΪι ͋ϳ̯΢ζΜ͋΂ DF͛ν  ́ιΪνζ͋ι !͕ιΊ̯̽ D̯͋Μ ϢΣΊχ Ίν ϢΣ͇͋ιϮιΊχΊΣͽ ̯Σ͇ ͋ϳ͋̽ϢχΊΣͽ χι̯Σν̯̽χΊΪΣν χ·̯χ ϮΊΜΜ advance Prosper 

Africa, an all-of-government initiative to increase investment between the U.S. and Africa. The deal teams 

̽Ϊ΢ζΜ͋΢͋Σχ DF͛ν χ̯͋΢ Ϊ͕ ι͋ͽΊΪΣ̯Μ ΊΣϭ͋νχ΢͋Σχ ̯͇ϭΊνΪιν ΊΣ !͕ιΊ̯̽ ̯Σ͇ ͱ̯Σ̯ͽΊΣͽ DΊι͋̽χΪιν ΊΣ ΋ΊΣͽ̯ζΪι͋΂ ͜Σ͇ΪΣ͋νΊ̯΂ 

India, and Thailand, which are all supported by funding from the Department of State and USAID. 

STRATEGIC GOAL 2:
 

DRIVE DEVELOPMENT IMPACT ACROSS SECTORS AND REGIONS
 

DF͛ν ΊΣϭ͋νχ΢͋Σχ ζΪιχ͕ΪΜΊΪ ͇͋΢ΪΣνχι̯χ͋ν χ·͋ ̯ͽ͋Σ̽Θ͛ν ̽Ϊ΢΢Ίχ΢͋Σχ χΪ χ·͋ ϢΣ͇͋ιν͋ιϭ͇͋ ι͋ͽΊΪΣν Ϯ·͋ι͋ DF ̯̽Σ 

maximize development impact and advance U.S. foreign policy objectives. In FY 2022, DFC committed support to 

183 new projects in 56 countries and six regions, across the globe. Of those new investments, 131 expect to invest 

in low- or lower-middle income countries. ! ΜΊΣΙ χΪ ̯Σ ΊΣχ͋ι̯̽χΊϭ͋ ΢̯ζ Ϊ͕ DF͛ν ΊΣϭ͋νχ΢͋Σχν ̼Θ ̽ΪϢΣχιΘ ̯Σ͇ χΘζ͋ Ϊ͕ 

investment can be found here. DF͛ν Ϊ̼ΜΊͽ̯χΊΪΣν ̼Θ Θ̯͋ι΂ ̽ΪϢΣχιΘ΂ ̯Σ͇ ̯̽χ͋ͽΪιΘ ̯̽Σ ̯ΜνΪ ̼͋ ͕ΪϢΣ͇ here. 

The Partnership for Global Infrastructure and Investment (PGII) is a collaborative effort by the Group of Seven (seven 

nations consisting of the United States, Canada, France, Germany, Italy, the United Kingdom, and Japan) to invest in 

infrastructure projects in developing nations. The PGII is values-driven, high-impact, and transparent effort to meet 

the enormous infrastructure needs of low- and middle-income countries. Its investments are focused on four priority 

pillars, including hard infrastructure, that support their impacts. These priorities include: (1) climate and energy 

security, (2) digital connectivity, (3) gender equality and equity, and (4) health and health security. Following the 

Presidential Memorandum issued on June 26, 2022, “Memorandum on the Partnership for Global Infrastructure and 

Investment͟΂ DFC has prioritized these sectors where our innovative financing tools can drive development impact 

across geographies. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

 

 

 

3.1 EMPHASIS ON DEVELOPMENT IMPACT 

 

•	 Climate and Energy Security. DFC financing supports energy and infrastructure investments, with a strong 

preference for projects that are climate focused. Building an impactful portfolio of climate-smart 

ΊΣϭ͋νχ΢͋Σχν Ίν Ι͋Θ χΪ ͕Ϣιχ·͋ιΊΣͽ DF͛ν ̽Ϊ΢΢Ίχ΢͋Σχ χΪ development, and to providing a values-driven, 

sustainable investment alongside like-minded partners and allies. Over the past year, DFC has announced 

hundreds of millions in climate investments, focused on supporting economic mobility, jobs, and tools to 

build prosperous clean energy economies in developing countries. 

•	 Digital Connectivity. Affordable, reliable, and trusted technology is a powerful engine of prosperity and 

stability, yet many developing countries face a substantial digital divide due to the high costs of services 

and devices. DFC is committed to supporting private sector investment in internet and mobile service 

operators, telecommunications towers, and data centers as well as projects that are leveraging technology 

to support other functions such as fin-tech, online education, among others. 

•	 Gender Equality and Equity. DFC is committed to supporting economic growth in underserved 

communities, investing in small business, with a focus on support for women. DF͛ν 2Φ ΡΪ΢͋Σ͛ν ͜ΣΊχΊ̯χΊϭ͋ 

is committed to addressing the unique challenges women face globally and unlocking the multi-trilliondollar opportunity they represent. DFC applies a gender lens to every project, helping make sure that 

women will benefit. In doing so, DFC prioritizes those areas that are proven to have an outsized positive 

impact on women: climate change, water, infrastructure, technology, healthcare, food security, and small 

and medium-sized women-owned businesses. 

•	 Health and Health Security. People in developing countries face many barriers to accessing hospitals, 

doctors, and basic medical services. This is due to limited healthcare infrastructure and other obstacles, 

preventing them from reaching their full potential. DFC is committed to creating a healthier world by 

investing in projects that improve pandemic preparedness and health system resilience, including 

investments in health services and infrastructure, health commodity manufacturing and supply chain, and 

digital health. 

Commitment 

Committed 

(Dollars in Thousands) 

Percent of 

Total 

Number of projects 

Committed 

PGII Commitments for all sectors, excluding 

Transportation* 

$ 5,126,989 69% 86 

Non-PGII Commitments 2,292,274 31% 97 

Total Commitments $ 7,419,263 100% 183 

PGII Commitments by Sector* 

Climate and Energy Security $ 2,360,495 32% 50 

Digital Connectivity 442,950 6% 10 

Gender Equality and Equity 1,613,594 22% 29 

Health and Health Security 1,351,780 18% 17 

* DFC commitments may fall into more than one PGII sector; commitments spanning multiple PGII sectors are 

counted once in the total PGII commitments. 

STRATEGIC GOAL 3:
 

IMPACT MANAGEMENT MONITORING, MEASUREMENT, AND LEARNING
 

΋χι͋Σͽχ·͋ΣΊΣͽ DF͛ν ̯̼ΊΜΊχΊ͋ν χΪ ΢ΪΣΊχΪι΂ ̯Σ̯ΜΘΣ͋ ̯Σ͇ ΢̯Σ̯ͽ͋ ͇͋ϭ͋ΜΪζ΢͋Σχ Ί΢ζ̯̽χ ϮΊΜΜ ͽΊϭ͋ DF ͋Σ·̯Σ͇̽͋ 

capabilities to assess and improve its contribution to achieving positive development impacts and deliver on this 

strategic goal. Targeted outcomes include: 

1.	 Ensuring that each transaction DFC approves and executes has measurable development outcomes and 

monitor the development results of DFC investments to inform future transactions; 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

 

 

 

 

 

 

4.1 GROWTH AT DFC 

 

 

 

 

 

 

 

4.2 EFFICIENCIES GAINED 

 

 

 

 

 

2.	 ΪΣ͇Ϣ̽χΊΣͽ ̯νν͋νν΢͋Σχν Ϊ͕ Ϯ·͋χ·͋ι ̯Σ͇ ·ΪϮ χ·͋ ΪιζΪι̯χΊΪΣ͛ν νϢζζΪιχ ̽ΪΣtributes to its strategic impact 

targets and identify where adjustments in investment strategy are needed to enhance impact; and 

3.	 Becoming a leader in generating impact through its rigorous approach to impact management that is 

aligned to globally accepted principles, disseminating impact management practices more broadly, and 

openly sharing its impact management methodologies. 

DFC gathers data from clients to monitor and assess their development impact from self-monitoring tools and 

document review, such as the Impact Quotient and Development Outcome Surveys (008s). DFC also conducts site 

monitoring and third-party assessments and evaluations to assess performance and compliance with DFC conditions 

and to monitor their development impact. 

͸͕ DF͛ν ̽Ϊ΢΢Ίχχed projects in FY 2022, 105 were categorized as Highly Developmental and 15 were categorized as 

Developmental. For More information ΪΣ DF͛ν ͜΢ζ̯̽χ ΆϢΪχΊ͋Σχ ̯Σ͇ D͋ϭ͋ΜΪζ΢͋Σχ ͸Ϣχ̽Ϊ΢͋ ΋Ϣιϭ͋Θν΂ ϭΊνΊχ DF͛ν 

Impact Quotient (IQ) informational page. 

DF͛ν ζ͋ι͕Ϊι΢̯Σ̽͋ ̯νν͋νν΢͋Σχ ̯Σ͇ ͋ϭ̯ΜϢ̯χΊΪΣ ̯̽χΊϭΊχΊ͋ν ΊΣϭΪΜϭ͋ ͇͋͋ζ͋ι ̯Σ͇ ·ΪΜΊνχΊ̽ ̯Σ̯ΜΘν͋ν Ϊ͕ ζιΪΖ͋̽χ Ί΢ζ̯̽χν χ·̯χ 

help inform DFC decision-making, programming, and strategy, as well as build evidence tΪ νϢζζΪιχ DF͛ν ιΪΜ͋ ΊΣ 

΢Ϊ̼ΊΜΊΣΊΣͽ ζιΊϭ̯χ͋ ̯̽ζΊχ̯Μ χΪ νΪΜϭ͋ νΪ΢͋ Ϊ͕ χΪ͇̯Θ͛ν ΢Ϊνχ ζι͋ννΊΣͽ ͽΜΪ̼̯Μ ͇͋ϭ͋ΜΪζ΢͋Σχ ̽·̯ΜΜ͋Σͽ͋ν ̈́ Α·͋ν͋ ̯̽χΊϭΊχΊ͋ν 

provide a critical feedback loop that is a key component of a best-in-class impact management framework. 

STRATEGIC GOAL 4:
 

SCALE THE CORPORATION SUSTAINABLY
 

Α·͋ Μ̯ϢΣ̽· Ϊ͕ DF ΊΣ 2019 ̼ιΪϢͽ·χ χΪͽ͋χ·͋ι χ·͋ χΪΪΜν Ϊ͕ ͸ ́͜ ̯Σ͇ Ε΋!͜D͛ν ͕ΊΣ̯Σ̽ΊΣͽ ̯ι΢΂ χ·͋ D!΂ ̯Σ͇ ζιΪϭΊ͇͇͋ 

expanded and modernized tools to build on a long U.S. tradition of mobilizing investment in developing countries. 

Additionally, DFC was launched with strong bipartisan support through the BUILD Act, which more than doubled 

͸ ́͛͜ν ΊΣϭ͋νχ΢͋Σχ ̯̽ζ̯̽ΊχΘ χΪ $60 ̼ΊΜΜΊΪΣ΂ ̯Σ͇ ̯Ϣχ·ΪιΊΣ͇͋ Σ͋Ϯ χΪΪΜν ΜΊΙ͋ ͋θϢΊχΘ ̯Ϣχ·ΪιΊχΘ χΪ ͋Σ̯̼Μ͋ χ·͋ Σ͋Ϯ 

Corporation to expand impact in developing countries. The increase in tools, capacity, and complexity requires 

supporting people and processes to grow its ability to fulfill BUILD Act mandates, prudently manage its portfolio, 

and efficiently execute on new project activity. 

DF ΢Ϣνχ ̽ΪΣχΊΣϢ͋ χΪ ̼ϢΊΜ͇ Ί΢ζΪιχ̯Σχ ̯̽ζ̯̼ΊΜΊχΊ͋ν΂ Ϯ·Ί̽· ̯ι͋ Σ͇͇͋͋͋ χΪ ̯͇ϭ̯Σ̽͋ χ·͋ ΪιζΪι̯χΊΪΣ͛ν ζιϢ͇͋Σχ 

management of the project workload and the related functions that must be performed, once the debt, equity and 

insurance projects have been committed, documented, and disbursed. DFC must also grow its development impact 

monitoring and evaluation function and expand its foreign policy team to maximize impact for development and 

foreign policy priorities. 

DFC has increased its administrative budget expenses and project-specific transaction costs to support increased 

staffing and other support costs needed to advance the goals of the Administration across regions and sectors. DFC 

plans to use the administrative budget to implement innovative and effective programs and partnerships, to foster 

an effective and efficient organization, and to maintain a fiscally responsible agency both now and for the future. 

DFC is committed to all efforts to foster an effective, efficient, and inclusive organization. DFC seeks to empower 

staff to create a productive and positive work environment, and the organization is committed to attracting and 

retaining the skilled and diverse personnel needed to achieve DF͛ν development and foreign policy objectives. 

DFC leadership and staff have used existing resources to expand impact, both by growing the portfolio and making 

use of new tools such as foreign currency and equity, mindful of the need to manage the flow of transactions and 

the resulting portfolio prudently and effectively. For example, when DFC identified long lead times on Know Your 

Client (KYC) analysis as an internal bottleneck, DFC acquired access to a new system that consolidates data from 

multiple sources and eliminates hours of manual work. In the case of climate expertise, DFC has brought on experts 

who can work alongside the deal teams to identify and help prioritize those with greater potential and then quickly 

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identify ways to validate the technical merits. DFC is also updating its data management tools to improve access to 

real-time pipeline and portfolio data and working to develop standard operating procedures for the organization. 

Ͳ͋ϭ͋ιχ·͋Μ͋νν΂ DF νχΊΜΜ ͕̯̽͋ν ΣϢ΢͋ιΪϢν ̽ΪΣνχι̯ΊΣχν χΪ ΢̯ϳΊ΢ΊΣ͋ Ίχν Ί΢ζ̯̽χ ̯Σ͇ ΢͋͋χ χ·͋  ́ι͋νΊ͇͋Σχ͛ν PGII and climate 

goals. 

ANALYSIS OF FINANCIAL STATEMENTS, FINANCIAL CONDITION, POSITION, AND 

RESULTS 

FINANCIAL POSITION 

CONSOLIDATED BALANCE SHEETS 

The Consolidated Balance Sheets represent DF͛ν financial condition at the end of the fiscal year. The Consolidated 

Balance Sheets show: 

+ Assets: resources available to meet DF͛ν statutory requirements; 

- Liabilities: monetary amounts DFC owes that will require payment from the available resources; and, 

= Net Position: the difference between DF͛ν ̯ssets and liabilities.

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FY 2022 CONSOLIDATED 

BALANCE SHEET 

( D O L L A R S I N T H O U S A N D S )

BALANCE SHEET OVER TIME 

(DOLLARS IN THOUSANDS) 

 20,000,000 

 15,000,000

 10,000,000

 5,000,000

-

16,750,285 

7,173,423 

9,576,862 

Total Assets Total Liabilities Total Net Position

 4,000,000

 2,000,000

-

2020 2021 2022 

Assets Liabilities Net Position 

 6,000,000

 8,000,000

 10,000,000

 12,000,000

 14,000,000

 16,000,000

 18,000,000 

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ASSETS OVER TIME 

(DOLLARS IN THOUSANDS) 

ASSETS 

DF͛ν ̯νν͋χν ̯ι͋ ζιΊ΢̯ιΊΜΘ ̽Ϊ΢ζΪν͇͋ Ϊ͕ ͜Σϭ͋νχ΢͋Σχν΂ ͫΪ̯Σν ·͋̽͋Ίϭ̯̼Μ͋΂ ̯Σ͇ FϢΣ͇ ̯Μ̯Σ̽͋ ϮΊχ· Αι̯͋νϢιΘ (FBWT). 

The largest category of assets in FY 2022 is Loans 

Receivable, which represents money owed to DFC 

for loans it made to support its development 

priorities. DF͛ν ΜΪ̯Σ ζΪιχ͕ΪΜΊΪ ͽ͋Σ͋ι̯χ͋ν ΜΪ̯Σ 

interest and fees for DFC. The value of the 

receivable is based on the net present value of the 

expected future cash flows for loans made after 

FY 1991. For loans made prior to FY 1992, loans 

are valued based on the expected future cash 

flow. DFC estimates future cash flows for direct 

loans and loan guaranties using economic and 

financial credit subsidy models (for more 

information, refer to Significant Factors 

Influencing Financial Results). ͜Σ FΧ 2022΂ DF͛ν 

loans receivable increased by $793 million, due to 

χ·͋ ͋ϳζ̯ΣνΊΪΣ Ϊ͕ DF͛ν ΊΣϭ͋νχ΢͋Σχ ̯̽ζ̯̽ΊχΊ͋ν 

provided under the BUILD Act. 

Investments are comprised of Treasury Marketbased Securities and equity investments. DFC has the authority to invest funds derived from revenue related to its 

insurance programs, in order to support possible future insurance payments. DFC invests these funds in Treasury 

Securities, which are stable investments that earn a return of between 0.375% and 6%. DF͛ν ΊΣϭ͋νχ΢͋Σχν ΊΣ Αι̯͋νϢιΘ 

securities have increased by approximately $50 million due to the investment of fees from the insurance program. 

DF͛ν ΊΣϭ͋νχ΢͋Σχν ̯ι͋ ͋ΣΪϢͽ· χΪ ̽Ϊϭ͋ι ΊΣνϢι̯Σ̽͋ ͋ϳζΪνϢι͋ ̈́ ΑΪ ϢΣ͇͋ινχ̯Σ͇ ΢Ϊι͋ ̯̼ΪϢχ DF͛ν ΊΣνϢι̯Σ̽͋΂ ν͋͋ Note 

16.
 

In FY 2021, DFC began making equity
 

investments in funds and projects 

through partnerships with other 

entities. The equity investments are 

another tool that DFC uses to invest in 

programs and projects to support its 

mission and goals. In FY 2022, DFC 

made an additional $73 million in new 

equity investments, and recorded 

approximately $7 million in net 

unrealized gains on investments. 

Equity investments can be highly 

developmental because of their ability 

to support early- and growth-stage 

companies that would otherwise not 

be able to take on debt, especially 

companies in low and lower-middle 

 $8,000,000 

 $7,000,000

 $6,000,000

 $5,000,000

 $4,000,000

 $3,000,000

 $2,000,000

 $1,000,000

$-

2020 2021 2022 

Investments, Net Loans Receivable, Net 

Fund Balance with Treasury Other

income countries. As a financial tool, 

direct equity provides DFC with greater flexibility to invest in early- and growth-stage companies, partner with other 

financial institutions, and enable investees to scale operations more efficiently to create greater development 

impact. As investments are made in the future, they will increasingly drive financial performance due to market and 

other factors affecting investment values. DFC leverages decades of institutional experience investing in Investment 

Funds and comparable deals to ensure DFC is making sound investments while balancing its development objectives. 

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LIABILITIES OVER TIME 

(DOLLARS IN THOUSANDS) 

FBWT, the Federal government equivalent of cash, is made up of Congressional appropriations, loan disbursements 

and collections, and interest and fee collections. The increase of approximately $422 million in FBWT is due to 

ΊΣ̽ι̯͋ν͋ν ΊΣ ̯ζζιΪζιΊ̯χ͇͋ ι͋νΪϢι̽͋ν ζιΪϭΊ͇͇͋ χΪ ͕ϢΣ͇ DF͛ν ͕ΊΣ̯Σ̽ΊΣͽ ̯Σ͇ ͋θϢΊχΘ ζιΪͽι̯΢ν ̯Σ͇ ̽ΪΜΜ͋̽χΊΪΣν ΪΣ ͋ϳΊνχΊΣͽ 

loans. 

LIABILITIES 

DF͛ν ΜΊ̯̼ΊΜΊχΊ͋ν ̯ι͋ ζιΊ΢̯ιΊΜΘ ̽Ϊ΢ζΪν͇͋ Ϊ͕ D̼͋χ ΊΣ χ·͋ ͕Ϊι΢ of Borrowings from Treasury, and the Liability to the 

General Fund of the U.S Government. 

D̼͋χ Ίν DF͛ν Μ̯ιͽ͋νχ ΜΊ̯̼ΊΜΊχΘ ̼̯Μ̯Σ̽͋΂ 

and represents amounts borrowed 

from the U.S. Department of Treasury 

(Treasury) to fund loans, as discussed 

above for the Loans Receivable. DFC 

pays interest to Treasury on the 

borrowings until DFC pays the funds 

̼̯̽Ι χΪ Αι̯͋νϢιΘ ̈́ DF͛ν ͇̼͋χ ̼̯Μ̯Σ̽͋ 

has increased by approximately $1.2 

billion from FY 2021, which is reflected 

in offsetting increase in Loans 

Receivable and FBWT, as discussed 

above. 

DF͛ν ͫiability to the General Fund of 

the U.S. Government are amounts 

owed to Treasury for downward 

reestimates payable to Treasury in the 

next fiscal year. The liability is reduced when the Office of Management and Budget (OMB) provides authority for 

DFC to transfer the funds. For more information, refer to the discussion of Reestimated Subsidy Costs. The balance 

in FY 2021 also includes excess revenues over expenses in the Loan and Loan Guaranty programs for loans that were 

made prior to 1992. In FY 2022, DFC changed the method of accounting for the pre-1992 loan and loan guaranties, 

reducing this liability and recording the amount in Cumulative Results of Operations. See Note 12 for additional 

details.

 $10,000,000 

 $4,000,000

 $3,000,000

 $2,000,000

2020 2021 2022 

Debt Liabilities to the General Fund of the US Government Other 

 $5,000,000

 $6,000,000

 $7,000,000

 $8,000,000

 $9,000,000

 $-

 $1,000,000

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CONSOLIDATED STATEMENTS
 

OF NET COST
 

(DOLLARS IN THOUSANDS) 

 

INSURANCE PROGRAM 

(DOLLARS IN THOUSANDS) 

CONSOLIDATED STATEMENTS OF NET COST 

The Consolidated Statements of Net Cost measure the program costs to the taxpayer. In FY 2022, DFC had net costs 

of $16 million. In FY 2021, DFC had net income, or negative net costs, meaning DFC generated more revenue than 

its gross costs of $162 million. 

DFC categorizes cost and revenue into four major programs: 1) Insurance, 2) Financing, 3) Equity, and 4) Technical 

Assistance. 

 500,000 

 400,000

 300,000

 200,000

 100,000

-

297,786 

384,832 

448,924 

65,397 

223,166 

465,399 

FY 2020 FY 2021 FY 2022 

Total Earned Revenue Total Gross Costs 

INSURANCE 

DF͛ν ι͋ϭ͋ΣϢ͋ Ϊϭ͋ι ̽Ϊνχν ͕Ϊι Ίχν ΊΣνϢι̯Σ̽͋ ζιΪͽι̯΢ Ϯ̯ν $105 million in FY 2022 and $148 million in FY 2021. The 

decrease in net revenue was driven primarily by increases insurance claims which recorded as part of Gross Costs, 

as well as increased in administrative expenses. In FY 2022, DFC recorded a large insurance claim related to political 

violence in Ukraine. DFC provides Political Risk Insurance for overseas investments against several risk types. For 

detailed information about the insurance program, refer to Note 16 in the Financial Section. Administrative expenses 

include allocations of indirect operating costs that support the insurance program. 

 180,000 

 160,000

 140,000

 120,000

 100,000

 80,000

54,989 60,000

 40,000

 20,000

-

141,557 

157,335 160,236 

15,131 8,862 

FY 2020 FY 2021 FY 2022 

Earned Revenue Gross Costs 

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FINANCING PROGRAM 

(DOLLARS IN THOUSANDS) 

 

EQUITY PROGRAM 

(DOLLARS IN THOUSANDS) 

FINANCING 

The financing program had a net cost for FY 2022 of $110 million, compared to a net income of $29 million in FY 

2021. Although DFC had a $46 million increase in fees and interest revenue on its loan and loan guaranties, the 

revenue increases were offset by increases in administrative execution costs, and an increase in the estimated 

subsidy needed to fund the loans and guaranties in the future, and a lower amount of negative subsidy on new loans 

and loan guaranties. 

For additional explanations of subsidy and how loans are valued, see Significant Factors Influencing Financial Results. 

 600,000 

 500,000

 400,000

 300,000

 200,000

 100,000

-

369,167 

460,566 431,813 

254,269 

431,185 

541,444 

FY 2020 FY 2021 FY 2022 

Total Earned Revenue and Subsidy Gross Costs & Reestimates 

EQUITY 

DFC is authorized to take equity stakes in its project companies to fulfill its development mandate and began making 

investments in FY 2021. In FY 2022 DFC continued to make investments. In FY 2022, DFC recognized approximately 

$7 million in net unrealized gains on investments as reflected on the Consolidated Statements of Net Cost. The Equity 

program also generated $10 million of revenues frΪ΢ ͇ΊϭΊ͇͋Σ͇ν ΪΣ DF͛ν ͋θϢΊχΘ ΊΣϭ͋νχ΢͋Σχν ΊΣ FΧ 2022 ̽Ϊ΢ζ̯ι͇͋ 

to $1.6 million in dividend revenues FY 2021. In FY 2022 there were $19 million in administrative costs related to 

identifying and evaluating potential investments, compared to $15 million in administrative costs in FY 2021. The 

ΊΣ̽ι̯͋ν͋ ΊΣ ͋ϳζ͋Σν͋ν Ϯ̯ν ͇ιΊϭ͋Σ ̼Θ ̯Σ ͋ϳζ̯Σ͇ΊΣͽ ͋θϢΊχΘ Ϊ͕͕Ί̽͋ χ·̯χ Ίν ̼ϢΊΜ͇ΊΣͽ Ϣζ χ·͋ ΊΣ͕ι̯νχιϢ̽χϢι͋ ͕Ϊι DF͛ν ͕ϢχϢι͋ 

equity investments. 

- 1,642 

16,835 

8,935 

15,236 

18,790 

-

 2,000

 4,000

 6,000

 8,000

 10,000

 12,000

 14,000

 16,000

 18,000

 20,000 

FY 2020 FY 2021 FY 2022 

Total Revenue and Unrealized Gains Gross Costs 

15 
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= STATUS OF BUDGETARY RESOURCES 

 

 

 

 

 

 

 

 

COMBINED STATEMENTS OF BUDGETARY RESOURCES 

In accordance with Federal statutes and regulations, DFC may incur obligations and make payments to the extent it 

has budgetary resources to cover such items. The Combined Statements of Budgetary Resources (SBR) are divided 

in four sections, 1) Budgetary Resources; 2) Status of Budgetary Resources; 3) Net Outlays; and 4) Disbursements. 

BUDGETARY RESOURCES 

DΊνζΜ̯Θν χ·͋ νΪϢι̽͋ν Ϊ͕ DF͛ν ͕ϢΣ͇ΊΣͽ΂ νϢ̽· ̯ν 

appropriations from Congress, collections from the 

public and other agencies, and authority to borrow 

from Treasury. 

Displays the status of the funding, such as whether 

the sources have been obligated for use, or if they 

were not obligated. Unobligated sources are 

displayed as funds that are apportioned for use, 

unapportioned for use, or expired. 

SOURCES OF FUNDING
 

In FY 2022 and FY 2021΂ DF͛ν Μ̯ιͽ͋νχ νΪϢι̽͋ Ϊ͕ 

funding was the Unobligated Balance from 

Prior Year Budget Authority which includes 

ϢΣϢν͇͋ ̼Ϣ͇ͽ͋χ ̯Ϣχ·ΪιΊχΘ ͕ιΪ΢ νΊΣ̽͋ DF͛ν 

ΊΣ̽͋ζχΊΪΣ΂ ΊΣ̽ΜϢ͇ΊΣͽ ̽ΪΜΜ͋̽χΊΪΣν ͕ιΪ΢ DF͛ν 

insurance program, revenues from 

investments, prior year recoveries of 

obligations, as well as Budget Authority 

transferred in from OPIC and USAID under the 

BUILD Act to continue administering the 

programs, loans, and loan guaranties from the 

respective agencies. 

Borrowing Authority allows DFC to borrow 

funds from Treasury to make its loans. The 

borrowings are reflected on the balance sheet as Debt, and the loans are reflected on the balance sheet as Loans 

Receivable, Net. 

DFC receives the following appropriations: 

•	 Annual appropriations from the General Fund to fund subsidy on loans and loan guaranties, equity, 

technical assistance, and for operations. Except for the appropriation for the Office of the Inspector 

General, DFC reduces its annual appropriation from the General Fund, in an amount equal to offsetting 

collections received during the fiscal year. In FY 2022, DFC reduced its annual appropriations of $706 million 

by $359 million of offsetting collections, resulting in a net appropriation of $347 million. In FY 2021, DFC 

received $579 million in appropriations and returned $445 million to the Treasury, resulting in a net 

appropriation from the General Fund of $134 million. 

•	 Appropriations to pay for upward reestimates of subsidy on loans and loan guaranties. In FY 2022, DFC 

received $582 million in appropriations to pay for upward reestimates compared to $460 million in FY 2021. 

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OUTLAYS, NET AND DISTRIBUTED
 

OFFSETTING RECEIPTS
 

(DOLLARS IN THOUSANDS)

STATUS OF FUNDING
 

New obligations represent direct loan 

commitments, related positive and negative 

subsidy commitments, contractual commitments, 

and other reservations of funds to operate the 

agency to meet its mission and goals. 

Unobligated unapportioned funds are mostly 

͕ιΪ΢ ͕ϢΣ͇ν χι̯Σν͕͋ιι͇͋ ΊΣ ͕ιΪ΢ ͸ ́͛͜ν ͜ΣνϢι̯Σ̽͋ 

program. $6.2 billion of these funds are 

represented on the Balance Sheet as investments 

in Treasury securities. 

NET OUTLAYS 

Net outlays displays budgetary outlays for DFC, reduced by collections of interest, fees, and other revenue. In FY 

2022, DFC had outlays of $410 million, compared to $24 million in FY 2021. Net Outlays were further reduced by 

Distributed Offsetting Receipts of $426 million and $323 million in fiscal years 2022 and 2021 respectively. 

Distributed offsetting receipts are comprised of negative subsidy and downward reestimates on direct loan and loan 

guaranty programs that DFC pays to the U.S. Treasury. DFC restated the FY 2021 amount for distributed offsetting 

receipts. In FY 2021, DFC included the distributed offsetting receipts number the capital transfers of $461 million 

that were made to Treasury for liquidating funds that accounted for loans and loan guaranties made prior to 1992. 

The capital transfers are not considered distributed offsetting receipts and DFC has restated the FY 2021 Statement 

of Budgetary Resources in this Annual Management Report. 

 500,000 426,222 322,808 

 400,000

357,761 $410,126 300,000

 200,000

 100,000

24,442 -

 (100,000)

(91,921) 

 (200,000)

FY 2020 FY 2021 FY 2022 

 Outlays, Net Distributed Offsetting Receipts 

DISBURSEMENTS 

Non-budgetary disbursements are related to direct loans and loan guaranty programs covered under the Federal 

Credit Reform Act of 1990 (FCRA). DFC had net disbursements of $1.2 billion in FY 2022 and $2.6 billion in FY 2021 

for direct loan and loan guaranty programs. The disbursements for loans and claim payments are offset by 

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collections, including, but not limited to, collections of loan principal and loan interest, collections of fees and 

subsidy. These are displayed separately from Net Outlays because the disbursements are excluded from U.S. budget 

surplus or deficit totals. The increase in disbursements is directly traceable to the increase in loans receivable and 

increase in debt owed to Treasury reflected on the balance sheet. 

SIGNIFICANT FACTORS INFLUENCING FINANCIAL RESULTS 

The long-term cost to the government for direct loans and loan guaranties, other than for general administration of 

the programs΂ Ίν ι͕͋͋ιι͇͋ χΪ ̯ν ͞νϢ̼νΊ͇Θ ̽Ϊνχ ̈́͟ ΕΣ͇͋ι FCRA, direct loan and loan guaranty subsidy costs are 

determined as the estimated net present value of the future projected cash flows in the year the loan is obligated. 

Subsidy costs are reestimated on an annual basis. DF͛ν financial results are dominated by these estimates of subsidy 

costs and year-to-year adjustments to the valuation of its finance portfolio. 

SUBSIDY COSTS OF NEW DISBURSEMENTS 

To calculate subsidy costs for new loans or guaranties, estimates are developed of the expected future cash outflows 

and inflows of the direct loan or loan guaranty agreement. Historical information and various assumptions are used, 

including the probabilities of default, borrower prepayments, DFC recoveries of funds from past defaults, as well as 

the projected timing of these events, to make informed predictions about expected future cash flows. These 

expected cash flows are then discounted to determine the net present value of the cash flows. If the present value 

of estimated cash outflows exceeds cash inflows, there is a positive subsidy cost, which is a cost to the Federal 

government. If the present value of estimated cash inflows exceeds cash outflows, that is recorded as a negative 

subsidy, which is a benefit to the federal government. When loans are disbursed, DFC recognizes this subsidy cost 

(or negative subsidy) in the Statements of Net Cost. 

REESTIMATED SUBSIDY COSTS 

The data used for subsidy cost estimates are updated—or reestimated—annually at the end of each fiscal year to 

reflect actual loan performance and to incorporate any changes in expectations about future loan performance. The 

following are the primary drivers of DFC͛ν ̯ΣΣϢ̯Μ ι͋͋νχΊ΢̯χ͇͋ νϢ̼νΊ͇Θ ̽Ϊνχν ̈́ 

Reevaluation of Risk Ratings 

Repayment risk is the risk that a borrower will not pay according to the original agreement and DFC may eventually 

have to write-off some, or all, of the obligation. Repayment risk is primarily composed of credit and political/country 

risk, which may be defined as follows: 

•	 Credit Risk: The risk that a borrower may not have sufficient funds to make loan and fee payments or may 

not be willing to make payments, even if sufficient funds are available. 

•	 Political Risk/Country Risk: The risk that payment may not be made to DFC, its guarantied lender, or its 

insured due to factors such as war, if a country nationalizes, or takes over the borrower͛s property, or if a 

̽ΪϢΣχιΘ ͇Ίν̯ΜΜΪϮν χ·͋ ̼ΪιιΪϮ͋ι͛ν ζ̯Θ΢͋Σχν to be converted into U.S. dollars. 

Updates to Loan Level Discount Rates 

Discount rates are used to calculate the net present value of the cash flows to determine the subsidy cost. In 

accordance with OMB Circular A-11, DFC uses the ͸ͱ͛ν Credit Subsidy Calculator (CSC) to calculate the discount 

rates. When loan and loan guaranty agreements are initiated and obligated, an initial discount rate is used to 

calculate estimated cash flows. At the end of each fiscal year, revised rates are calculated for loans that became at 

least 90 percent disbursed in the current fiscal year. The new discount rates are calculated by the CSC using actual 

loan activity, updated forecasts, and all available actual interest rates. The updated discount rates are used to 

calculate the reestimated cash flows. 

Updates to Interest Rates 

For loans with variable interest rates charged to the borrower, the original cash flow projections are adjusted to 

incorporate the actual interest rate(s) prevailing during the year(s) of disbursement and are subsequently adjusted 

after the end of each year for loans that are outstanding. 

Updates to Projected Cash Flows with Actual Data 

Projected cash flows need to be updated due to differences between the original projections, and the amount and 

timing of cash flows that are expected based on actual experience. DFC uses loan-level accounting transactions that 

18 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

are captured in the general ledger for the current year of the cash flows. This actual data replaces the projections 

developed from the prior year reestimates to develop a more accurate assumptions of future cash flows from 

disbursements, collections of principal, interest, fees, and recoveries. 

INSURANCE PROGRAM CLAIMS 

DF͛ν ΊΣνϢι̯Σ̽͋ ζιΪͽι̯΢ ·̯͇ ̯ Σ͋ͽ̯χΊϭ͋ Ί΢ζ̯̽χ ΪΣ χ·͋ ΊΣνϢι̯Σ̽͋ ̽Μ̯Ί΢ ζ̯Θ΢͋Σχν ͇ϢιΊΣͽ χ·͋ Θ̯͋ι ̯Σ͇ χ·͋ ΊΣνϢι̯Σ̽͋ 

liabilities presented on the balance sheet. Unpaid insurance claims for which DFC does not expect to recover 

amounts increase the liability on the balance sheet, and similarly increase the insurance expenses on the Statements 

of Net Cost. 

EQUITY VALUATIONS 

DF͛ν equity investments are valued in accordance with accounting standards that require recording unrealized gains 

and losses during the year. Unrealized gains and losses result from recording adjustments to the valuation of the 

investments and are not the result of selling or disposing of the investments. The unrealized gains and losses are 

recorded on the Consolidated Statements of Net Cost and can change year to year depending on the performance 

of the individual investments. In FY 2022, several of the investments have been adjusted to net asset value as 

determined by the fund manager and provided to DFC. Net asset value is the amount of net assets attributable to 

each share of capital stock outstanding at the close of a period. In FY 2022, DFC recorded approximately $7 million 

in net unrealized gains on investments. DFC expects these investments to continue to grow in value and ultimately 

produce realized gains when DFC eventually sells investments. 

LIMITATIONS OF THE FINANCIAL STATEMENTS 

The financial statements have been prepared to report the financial position, financial condition, and results of 

operations of DFC, consistent with the requirements of 31 U.S.C. § 3515(b). The statements are prepared from 

records of Federal entities in accordance with Federal generally accepted accounting principles (GAAP) and the 

formats prescribed by OMB. Reports used to monitor and control budgetary resources are prepared from the same 

records. Users of the statements are advised that the statements are for a component of the U.S. Government. 

19 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

 

 

 

 

 

 

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE 

FISCAL YEAR 2022 CHIEF EXECUTIVE OFFICER STATEMENT OF ASSURANCE 

October 20, 2022 

The management of the U.S. International Development Finance Corporation (DFC) is responsible for 

͋νχ̯̼ΜΊν·ΊΣͽ΂ ΢̯ΊΣχ̯ΊΣΊΣͽ΂ ͋ϭ̯ΜϢ̯χΊΣͽ΂ ̯Σ͇ ι͋ζΪιχΊΣͽ ΪΣ χ·͋ ̯ͽ͋Σ̽Θ͛ν ΊΣχ͋ιΣ̯Μ ̽ΪΣχιΪΜν ̽ΪΣνΊνχ͋Σχ ϮΊχ· χ·͋ 

Ϊ̼Ζ͋̽χΊϭ͋ν Ϊ͕ χ·͋ F͇͋͋ι̯Μ ͱ̯Σ̯ͽ͋ιν͛ FΊΣ̯Σ̽Ί̯Μ ͜Σχ͋ͽιΊχΘ !̽χ Ϊ͕ 1982 (FͱF͜!) ̈́ 

In accordance with FMFIA and the guidance contained within Office of Management and Budget (OMB) 

Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, 

DFC management monitored and evaluated risks and the effectiveness of its internal control over the 

efficiency and effectiveness of operations, reliability of reporting, and compliance with applicable laws 

and regulations, including considerations of fraud risk. 

DFC provides reasonable assurance that its internal controls over operations, reporting, and compliance 

met the objectives of agency management, complied with applicable requirements, and were operating 

effectively as of September 30, 2022. DFC did not identify any material weaknesses in the design or 

operating effectiveness of the controls. 

Scott A. Nathan 

Chief Executive Officer 

U.S. International Development Finance Corporation 

20 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

M!N!GEMENT’S DISCUSSION !ND !N!LYSIS (UNAUDITED)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARY OF INTERNAL CONTROL ASSESSMENT 

In FY 2022, DFC continued to mature and grow as an organization after the integration of operations of OPIC and 

Ε΋!͜D D! ΊΣ FΧ 2020 ̯Σ͇ χ·͋ ̯ͽ͋Σ̽Θ͛ν ΊΣχ͋ιΣ̯Μ ̽ΪΣχιΪΜ ζιΪͽι̯΢ ̽ΪΣχΊΣϢ͋ν χΪ ι͋νζΪΣ͇ χΪ χ·͋ ΊΣ̽ι̯͋νΊΣͽ ̽Ϊ΢ζΜ͋ϳΊχΘ 

and breadth of operations within the agency. DFC performed its internal control assessments using a risk-based 

χ͋νχΊΣͽ ̯ζζιΪ̯̽· χ·̯χ Ϯ̯ν ̯͇Ϊζχ͇͋ ̼Θ χ·͋ ̯ͽ͋Σ̽Θ͛ν ΋͋ΣΊΪι ͱ̯Σ̯ͽ͋΢͋Σχ ΪϢΣ̽ΊΜ ̈́ Under this approach, internal 

controls in key business processes identified by management were assessed pursuant to the guidance in OMB 

Circular No. A-123, Appendix A. Risk was assessed based on both quantitative as well as qualitative factors, including 

financial materiality, mission orientation, the complexity and frequency of transactions, and exposure to fraud. In FY 

2022, DFC assessed its entity-level control environment, the design and operating effectiveness of its internal 

controls in the Financial Reporting process and over the Mission Transaction Unit (MTU), and continues to assess 

the design of internal controls in the Budgetary Resources Management process. No material weaknesses in internal 

̽ΪΣχιΪΜ Ϯ͋ι͋ Ί͇͋ΣχΊ͕Ί͇͋΂ ̯Σ͇ χ·͋ ι͋νϢΜχν Ϊ͕ χ·Ίν Θ̯͋ι͛ν ̯̽χΊϭΊχΊ͋ν΂ ̽Ϊ΢̼ΊΣ͇͋ ϮΊχ· ΢̯Σ̯ͽ͋΢͋Σχ͛ν ιΪΜ͋ ΊΣ χ·͋ ͇̯ΊΜΘ 

execution and monitoring of internal controls, allows the agency to assert there is reasonable assurance that internal 

controls were properly designed and operating effectively during the year to support efficient and effective 

operations, reliability of reporting, and compliance with laws and regulations. In FY 2023, DFC will continue to mature 

its Enterprise Risk Management program and further strengthen its internal controls over reporting through 

continued assessments and monitoring activities. 

FORWARD-LOOKING INFORMATION 

CLIMATE-RELATED RISKS 

Climate action is one of the key objectives of the DFC, as stated in the DFC Strategic Plan for 2022-2026. Pursuant to 

Executive Order (E.O.) 14008, Tackling the Climate Crisis at Home and Abroad, DFC established a Climate Action Plan 

in 2021. Building an impactful portfolio of climate-ν΢̯ιχ ΊΣϭ͋νχ΢͋Σχν Ίν Ι͋Θ χΪ ͕Ϣιχ·͋ιΊΣͽ DF͛ν ̽Ϊ΢΢Ίχ΢͋Σχ χΪ 

development, and to providing a values-driven, sustainable investment alongside like-minded partners and allies. 

Over the past year, DFC has announced hundreds of millions in climate investments focused on supporting economic 

mobility, jobs, and tools to build prosperous clean energy economies in developing countries. At a project level, DFC 

has been incorporating climate change resiliency assessments since 2015 in response to Executive Order 13677. 

DIVIDEND 

Under the BUILD Act the DFC Board of Directors could under certain circumstances declare a dividend. Such a 

͇ΊϭΊ͇͋Σ͇ ϮΪϢΜ͇ ̼͋ ζ̯Ί͇ ͕ιΪ΢ Ϣ΢ϢΜ̯χΊϭ͋ ·͋νϢΜχν Ϊ͕ ͸ζ͋ι̯χΊΪΣν΂ χ·͋ι̼͋Θ ι͇͋Ϣ̽ΊΣͽ DF͛ν Ϊϭ͋ι̯ΜΜ ͕ΊΣ̯Σ̽Ί̯Μ ζΪνΊtion. 

Any material dividends would affect the future financial position of the agency. 

EVOLUTION OF PROGRAMS 

To meet its development and foreign mandates, DFC is developing new and innovative products using its expanded 

program flexibilities. This has led to a shifting of products being used for development, with more reliance on direct 

loans and equity investments. These flexibilities also allow DFC to lend in local currencies and DFC is working to offer 

more loans in the currencies of the countries where the loans and investments are located. DFC͛ν involvement in the 

 ́ι͋νΊ͇͋Σχ͛ν Partnership for Global Infrastructure and Investment Ίν ̯ΜνΪ ͇ιΊϭΊΣͽ DF͛ν ΊΣϭ͋νχ΢͋Σχν ΊΣχΪ infrastructure 

areas of climate and energy security, digital connectivity, health and health security, and gender equity. As part of 

the PGII, DFC is particularly focused on sourcing strategic projects that help close the estimated $40 trillion 

infrastructure financing gap in developing countries and thereby provide an alternative to financial support from 

authoritarian governments. Additionally, DFC is responding through its investments to uncertainties throughout the 

world, such Russian aggression exacerbating food insecurity, the COVID-19 pandemic disrupting supply chains and 

challenging fragile health systems, and climate change adversely impacting critical ecosystems necessary for food, 

shelter, and income. 

21 
 

 

 

OFFICE OF INSPECTOR GENERAL
 

U.S. International Development Finance Corporation 

Date: November 15, 2022 

MEMORANDUM FOR:	 MR. SCOTT NATHAN 

CHIEF EXECUTIVE OFFICER (CEO) 

MS. MILDRED CALLEAR
 

CHIEF FINANCIAL OFFICER (CFO)
 

SUBJECT:	 DFC’s Consolidated Financial Statements for Fiscal Year 

2022 (Report Number DFC-23-002-C) 

Enclosed is the Fiscal Year 2022 Consolidated Financial Statement opinion audit report. 

We contracted with the independent public accounting firm RMA Associates, LLC 

(RMA) to audit the consolidated financial statements of the United States International 

Development Finance Corporation (DFC) for the fiscal year ended September 30, 2022, 

report on internal control over financial reporting, and report on compliance with laws 

and other matters. The contract required the audit to be performed in accordance with 

U.S. generally accepted auditing standards, Office of Management and Budget audit 

guidance, and the Government Accountability Office’s and Council of the Inspectors 

General on Integrity and Efficiency’s Financial Audit Manual. 

In its audit of DFC, RMA reported 

•	 the consolidated financial statements were fairly presented, in all material 

respects, in accordance with U.S. generally accepted accounting principles; 

•	 one material weakness1 and no significant deficiencies2 in internal control over 

financial reporting; and 

•	 no reportable noncompliance with provisions of laws tested and other matters. 

1 A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a 

reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or 

detected and corrected on a timely basis. 2 A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than 

a material weakness, yet important enough to merit attention by those charged with governance. 

22
RMA reported a material weakness in DFC’s internal control over financial reporting 

regarding the fiscal year (FY) 2021 Statement of Budgetary Resources (SBR). Since the 

Department of Treasury Fiscal Service did not include DFC in its listing of agencies with 

Distributed Offsetting Receipts, DFC overstated the financial statement line for 

Distributed Offsetting Receipts in its Combined Statement of Budgetary Resources 

(SBR) by $460 million. DFC corrected the error by restating this line item without the 

inclusion of the $460 million. DFC also implemented effective policies and procedures 

necessary to properly record and report these types of deposits going forward, therefore 

no further recommendation is necessary. 

RMA is responsible for the attached auditor’s report dated November 15, 2022 and the 

conclusions expressed therein. We do not express opinions on DFC’s consolidated 

financial statements, or report on internal control over financial reporting, or report on 

compliance with selected provisions of laws tested and other matters. 

Anthony “Tony” Zakel 

Inspector General 

U.S. International Development Finance Corporation 

23
 

 

 

 

 

1005 N. Glebe Road, Suite 610 

Arlington, VA 22201 

Phone : (571) 429-6600 

www.rmafed.com 

Independent Auditor’s Report
 

To the Chief Executive Officer and Inspector General of United States International Development 

Finance Corporation: 

Report on the Audit of the Financial Statements 

Opinion 

We have audited the accompanying financial statements of the United States International 

Development Finance Corporation (DFC) which comprise the consolidated balance sheet as of 

September 30, 2022, and the related consolidated statements of net cost and changes in net 

position, and the combined statement of budgetary resources (hereinafter referred to as ‘financial 

statements’), for the year then ended, and the related notes to the financial statements. 

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of the DFC as of September 30, 2022, and its net cost, changes in net position, 

and combined budgetary resources for the year then ended, in accordance with accounting 

principles generally accepted in the United States. 

Basis for Opinion 

We conducted our audit in accordance with auditing standards generally accepted in the United 

States of America (GAAS) and the standards applicable to financial audits contained in 

Government Auditing Standards issued by the Comptroller General of the United States, and the 

Office of Management and Budget (OMB) Bulletin No. 22-01, Audit Requirements for the Federal 

Financial Statements. Our responsibilities under those standards are further described in the 

Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are 

required to be independent of the DFC and to meet our other ethical responsibilities, in accordance 

with the relevant ethical requirements relating to our audit. We believe that the audit evidence we 

have obtained is sufficient and appropriate to provide a basis for our audit opinion. 

Other Matter 

The financial statements of the prior period were audited by a predecessor auditor. The opinion 

expressed by the predecessor auditor was an unmodified opinion as of and for the years ended 

September 30, 2021, and 2020. The predecessor auditor report was dated November 12, 2021. 

Responsibilities of Management for the Financial Statements 

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America, and for 

the design, implementation, and maintenance of internal control relevant to the preparation and 

fair presentation of financial statements that are free from material misstatement, whether due to 

fraud or error. 

24
 

1005 N. Glebe Road, Suite 610 

Arlington, VA 22201 

Phone : (571) 429-6600 

www.rmafed.com 

Auditor’s Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance whether the financial statements as a whole are 

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 

includes our opinion. Reasonable assurance is a high level of assurance but is not absolute 

assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and 

Government Auditing Standards will always detect a material misstatement when it exists. The 

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting 

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or 

the override of internal control. Misstatements are considered material if there is a substantial 

likelihood that, individually or in the aggregate, they would influence the judgment made by a 

reasonable user based on the financial statements. 

In performing an audit in accordance with GAAS and Government Auditing Standards, we: 

•	 Exercise professional judgment and maintain professional skepticism throughout the audit. 

•	 Identify and assess the risks of material misstatement of the financial statements, whether due 

to fraud or error, and design and perform audit procedures responsive to those risks. Such 

procedures include examining, on a test basis, evidence regarding the amounts and disclosures 

in the financial statements. 

•	 Obtain an understanding of internal control relevant to the audit in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of the DFC’s internal control. 

•	 Evaluate the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluate the overall presentation of the 

financial statements. 

We are required to communicate with those charged with governance regarding, among other 

matters, the planned scope and timing of the audit, significant audit findings, and certain internal 

control-related matters that we identified during the audit. 

Required Supplementary Information 

Accounting principles generally accepted in the United States of America require Management’s 

Discussion and Analysis and Combining Statement of Budgetary Resources by Major Budget 

Account be presented to supplement the financial statements. Such information is the 

responsibility of management and, although not a part of the financial statements, is required by 

the Federal Accounting Standards Advisory Board, who considers it to be an essential part of 

financial reporting for placing the financial statements in an appropriate operational, economic, or 

historical context. 

We have applied certain limited procedures to the required supplementary information in 

accordance with GAAS, which consisted of inquiries of management about the methods of 

preparing the information and comparing the information for consistency with management’s 

responses to our inquiries, the financial statements, and other knowledge we obtained during our 

25
 

 

1005 N. Glebe Road, Suite 610 

Arlington, VA 22201 

Phone : (571) 429-6600 

www.rmafed.com 

audit of the financial statements. We do not express an opinion or provide any assurance on the 

information because the limited procedures do not provide us with sufficient evidence to express 

an opinion or provide any assurance. 

Other Information 

Management is responsible for the other information included in the Annual Management Report. 

The other information comprises the DFC’s Agency Head Letter, Report on Payment Integrity 

Information Act, and Climate-Related Financial Risk but does not include the financial statements 

and our auditor’s report thereon. Our opinion on the financial statements do not cover the other 

information, and we do not express an opinion or any form of assurance thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other 

information and consider whether a material inconsistency exists between the other information 

and the financial statement, or the other information otherwise appears to be materially misstated. 

If, based on the work performed, we conclude that an uncorrected material misstatement of the 

other information exists, we are required to describe it in our report. 

Other Reporting Required by Government Auditing Standards 

Report on Internal Control Over Financial Reporting 

In planning and performing our audit of the financial statements, we considered the DFC’s internal 

control over financial reporting (internal control) as a basis for designing audit procedures that are 

appropriate in the circumstances for the purpose of expressing our opinion on the financial 

statements, but not for the purpose of expressing an opinion on the effectiveness of the DFC’s 

internal control. Accordingly, we do not express an opinion on the effectiveness of the DFC’s 

internal control. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, 

or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a 

combination of deficiencies, in internal control, such that there is a reasonable possibility that a 

material misstatement of the entity’s financial statements will not be prevented, or detected and 

corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of 

deficiencies, in internal control that is less severe than a material weakness, yet important enough 

to merit attention by those charged with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph 

of this section and was not designed to identify all deficiencies in internal control that might be 

material weaknesses or significant deficiencies and therefore, material weakness or significant 

deficiencies may exist that were not identified. We identified one deficiency in internal control, 

described in the accompanying Exhibit I that we consider to be a material weakness. 

26
 

1005 N. Glebe Road, Suite 610 

Arlington, VA 22201 

Phone : (571) 429-6600 

www.rmafed.com 

Report on Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the DFC’s financial statements are free 

from material misstatement, we performed tests of its compliance with certain provisions of laws, 

regulations, contracts, and grant agreements, noncompliance with which could have a direct and 

material effect on the financial statements. However, providing an opinion on compliance with 

those provisions was not an objective of our audit, and accordingly, we do not express such an 

opinion. The results of our tests disclosed no instances of non-compliance or other matters that are 

required to be reported under Government Auditing Standards or OMB Bulletin No. 22-01. 

Management’s Response to Audit Findings and Recommendations 

DFC’s comments can be found in Exhibit II. DFC’s response was not subject to the auditing 

procedures applied in the audit of the financial statement and, accordingly, we express no opinion 

on it. 

Purpose of the Other Reporting Required by Government Auditing Standards 

The purpose of the communication described in the Other Reporting Required by Government 

Auditing Standards section of this report is solely to describe the scope of our testing of internal 

control and compliance and the results of that testing, and not to provide an opinion on the 

effectiveness of the DFC’s internal control or compliance. This section is an integral part of an 

audit performed in accordance with Government Auditing Standards in considering the DFC’s 

internal control and compliance. Accordingly, this communication is not suitable for any other 

purpose. 

RMA Associates 

Arlington, VA 

November 15, 2022 

27
 

1005 N. Glebe Road, Suite 610 

Arlington, VA 22201 

Phone : (571) 429-6600 

www.rmafed.com 

Exhibit I – Material Weakness in Internal Control 

Distributing Offsetting Receipts Restatement 

Since the Department of Treasury Fiscal Service did not include DFC in its listing of agencies with 

Distributed Offsetting Receipts, DFC overstated the financial statement line for Distributed 

Offsetting Receipts in its Combined Statement of Budgetary Resources (SBR) by $460 million. 

The $460 million represented unobligated amounts from liquidating funds transferred to DFC from 

the legacy United States Agency for International Development lending programs that were 

deposited into the Department of Treasury’s General Fund Receipt Account (GFRA). Deposits 

into the GFRA Account are considered by the Department of Treasury’s Bureau of Fiscal Service 

(Fiscal Service) to be Capital Transfers to the Department of Treasury’s General Fund rather than 

Distributed Offsetting Receipts. 

Therefore, the inclusion of the $460 million in the Distributed Offsetting Receipts financial 

statement line item was reported in error and was materially misstated in DFC’s Combined SBR 

for the year ended September 30, 2021. DFC corrected the error by restating the financial statement 

line item without the inclusion of the $460 million. DFC also implemented the effective policies 

and procedures necessary to properly record and report these types of deposits going forward. 

Recommendation: 

No further recommendation is needed as we have verified that DFC has implemented effective 

policies and procedures necessary to properly record and report these types of deposits going 

forward. 

28
 

1005 N. Glebe Road, Suite 610 

Arlington, VA 22201 

Phone : (571) 429-6600 

www.rmafed.com 

Exhibit II – Management’s Response to the Material Weakness in Internal Control 

MEMORANDUM November 14, 2022 

TO: Anthony Zakel 

Inspector General 

DFC – Office of the Inspector General 

FROM: Mildred Callear 

Vice President and Chief Financial Officer 

SUBJECT: DFC’s Management Comments to “DFC’s Consolidated Financial 

Statements for Fiscal Year 2022 (Report Number DFC-23-002-C)” 

DFC wishes to thank the Office of the Inspector General (OIG) for the deep level of collaboration 

and cooperation that was realized throughout this audit. As stewards of federal funds, DFC takes 

very seriously its responsibility to uphold high standards of internal control over financial 

reporting. We greatly appreciate the recognition from RMA Associates that DFC’s financial 

statements fairly present the financial position of DFC for FY 2022. DFC also appreciates the 

acknowledgement that DFC has remedied the control issues surrounding the restatement of DFC’s 

FY 2021 Statement of Budgetary Resources and that no further corrective actions are necessary. 

1100 New York Avenue Northwest 

Washington, DC 20527 

Office +1 202.336.8400 

dfc.gov 

29
 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

FINANCIAL STATEMENTS
 

CONSOLIDATED BALANCE SHEETS 

(dollars in thousands) (Reclassified) 

As of September 30, 2022 2021 

Assets 

Intragovernmental: 

Fund Balance with Treasury (Note 2) $ 2,631,003 $ 2,208,571 

Investments, Net (Note 3) 6,206,042 6,156,487 

Accounts Receivable, Net (Note 4) 609 -

Total Intragovernmental 8,837,654 8,365,058 

With the Public: 

Accounts Receivable, Net (Note 4) 121,155 107,932 

Loans Receivable, Net (Note 5) 7,523,771 6,730,788 

General Property, Plant and Equipment, Net (Note 6) 155 311 

Investments, Net (Note 3) 174,937 95,318 

Advances and Prepayments (Note 7) 1,247 3,794 

Other Assets: 

Negative Loan Guaranty Liabilities (Note 5) 91,366 -

Total With the Public 7,912,631 6,938,143 

Total Assets $ 16,750,285 $ 15,303,201 

Liabilities (Note 8) 

Intragovernmental: 

Debt (Note 9) $ 8,964,971 $ 7,723,761 

Advances from Others and Deferred Revenue (Note 10) 3,561 5,053 

Other Liabilities: 

Liability to the General Fund of the US Government for Other 

Non-Entity Assets (Note 11) 392,542 415,130 

Liability for Capital Transfers to the General Fund of the 

Treasury (Note 12) - 656,763 

Other Liabilities (Note 13) 431 1,025 

Total Intragovernmental 9,361,505 8,801,732 

With the Public: 

Accounts Payable (Note 14) 7,045 1 

Federal Employee Benefits Payable (Note 15) 6,247 7,487 

Loan Guaranty Liabilities (Note 5) - 246,081 

Insurance and Guaranty Program Liabilities (Note 16) 56,192 13,727 

Advances from Others and Deferred Revenue (Note 10) 141,514 140,541 

Other Liabilities (Note 13) 4,359 6,063 

Total With the Public 215,357 413,900 

Total Liabilities 9,576,862 9,215,632 

Commitments and Contingencies (Note 1) 

Net Position 

Unexpended Appropriations – Funds Other than Dedicated 

Collections 400,785 171,177 

Cumulative Results of Operations - Funds Other than Dedicated 

Collections 6,772,638 5,916,392 

Total Net Position 7,173,423 6,087,569 

Total Liabilities and Net Position $ 16,750,285 $ 15,303,201 

The accompanying notes are an integral part of these principal financial statements. 

30 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

FINANCIAL STATEMENTS
 

 

 

 

 

CONSOLIDATED STATEMENTS OF NET COST 

(dollars in thousands) 

For the Years Ended September 30, 

Insurance Program 

Gross Costs 

Operating Costs 

Total Gross Costs 

Less: Earned Revenue 

Net Insurance Program Costs 

2022 

$ 54,989 

54,989 

(160,236) 

(105,247) 

$ 

2021 

8,862 

8,862 

(157,335) 

(148,473) 

Financing Program 

Gross Costs 

Operating Costs 

Subsidy Costs/(Reduction) (Note 5) 

Net Reestimates (Note 5) 

Total Gross Costs 

Less: Earned Revenue 

Net Financing Program Costs 

320,233 

(159,960) 

221,211 

381,484 

(271,853) 

109,631 

264,347 

(234,711) 

166,838 

196,474 

(225,855) 

(29,381) 

Equity Program 

Gross Costs 

Operating Costs 

Total Gross Costs 

Less: Unrealized Gains 

Less: Earned Revenue 

Net Equity Program Costs 

18,790 

18,790 

(6,723) 

(10,112) 

1,955 

15,236 

15,236 

-

(1,642) 

13,594 

Technical Assistance Program 

Gross Costs 

Operating Costs 

Total Gross Costs 

Net Technical Assistance Program Costs 

10,136 

10,136 

10,136 

2,594 

2,594 

2,594 

Net Cost of Operations $ 16,475 $ (161,666) 

The accompanying notes are an integral part of these principal financial statements. 

31 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

FINANCIAL STATEMENTS
 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET POSITION 

(dollars in thousands) 

For the Years Ended September 30, 

Unexpended Appropriations 

Beginning Balance 

Appropriations Received 

Appropriations Transferred-In 

Appropriations Used 

Net Change in Unexpended Appropriations 

2022 

$ 171,177 

928,884 

9,322 

(708,598) 

229,608 

$ 

2021 

105,992 

594,494 

30,000 

(559,309) 

65,185 

Total Unexpended Appropriations $ 400,785 $ 171,177 

Cumulative Results of Operations 

Beginning Balance 

Adjustments: 

Changes in Accounting Principles (Note 12) 

Beginning Balance as Adjusted 

5,916,392 

656,763 

6,573,155 

6,066,286 

-

6,066,286 

Other Adjustments 

Appropriations Used 

Transfers In/Out Without Reimbursement 

Imputed Financing 

Offset to Non-entity Collections 

Net Cost of Operations 

Net Change in Cumulative Results of Operations 

-

708,598 

-

3,520 

(496,160) 

(16,475) 

199,483 

(116) 

559,309 

14 

3,069 

(873,836) 

161,666 

(149,894) 

Total Cumulative Results of Operations $ 6,772,638 $ 5,916,392 

Net Position $ 7,173,423 $ 6,087,569 

The accompanying notes are an integral part of these principal financial statements. 

32 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

COMBINED STATEMENT OF BUDGETARY RESOURCES 

Non-Budgetary 

Credit Reform 

(dollars in thousands) Financing 

For the Year Ended September 30, 2022 Budgetary Accounts 

Budgetary Resources 

Unobligated Balance from Prior Year Budget Authority, Net 

Appropriations 

Borrowing Authority 

Spending Authority from Offsetting Collections 

Total Budgetary Resources 

$ 6,547,244 

928,884 

-

465,749 

$ 7,941,877 

$ 

$ 

816,078 

-

5,521,406 

935,253 

7,272,737 

Status of Budgetary Resources 

New obligations and upward adjustments 

Unobligated Balance, end of year 

Apportioned, unexpired accounts 

Unapportioned, unexpired accounts 

Unexpired unobligated balance, end of year 

Expired unobligated balance, end of year 

Unobligated Balance, end of year (total) 

Total Budgetary Resources 

$ 1,472,116 

230,510 

6,207,094 

6,437,604 

32,157 

6,469,761 

$ 7,941,877 

$ 

$ 

5,975,518 

6,608 

1,290,611 

1,297,219 

-

1,297,219 

7,272,737 

Outlays, Net and Disbursements, Net 

Outlays, net 

Distributed Offsetting Receipts 

Agency Outlays, Net 

$ 410,126 

(426,222) 

$ (16,096) 

Disbursements, Net $ 1,195,213 

The accompanying notes are an integral part of these principal financial statements. 

33 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

COMBINED STATEMENT OF BUDGETARY RESOURCES
 

(dollars in thousands) 

For the Year Ended September 30, 2021 

Budgetary Resources 

Unobligated Balance from Prior Year Budget Authority, Net 

Appropriations 

Borrowing Authority 

Spending Authority from Offsetting Collections 

Total Budgetary Resources 

(Restated) 

Budgetary 

$ 6,336,812 

594,494 

-

555,705 

$ 7,487,011 

Non-Budgetary 

Credit Reform 

Financing 

Accounts 

$ 443,540 

-

4,409,313 

726,817 

$ 5,579,670 

Status of Budgetary Resources 

New obligations and upward adjustments (total) 

Unobligated Balance, end of year 

Apportioned, unexpired accounts 

Unapportioned, unexpired accounts 

Unexpired unobligated balance, end of year 

Expired unobligated balance, end of year 

Unobligated Balance, end of year (total) 

Total Budgetary Resources 

$ 965,363 

273,204 

6,214,921 

6,488,125 

33,523 

6,521,648 

$ 7,487,011 

$ 4,262,794 

157,512 

1,159,364 

1,316,876 

-

1,316,876 

$ 5,579,670 

Outlays (Net) and Disbursements (Net) 

Outlays, net 

Distributed Offsetting Receipts 

Agency Outlays, Net 

$ 24,442 

(322,808) 

$ (298,366) 

Disbursements, Net $ 2,633,100 

The accompanying notes are an integral part of these principal financial statements. 

34 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

A. REPORTING ENTITY 

 

 

 

 

B. BASIS OF PRESENTATION AND ACCOUNTING 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The U.S. International Development Finance Corporation (DFC) is a United States (U.S.) Government corporation 

created under the Better Utilization of Investments Leading to Development (BUILD) Act (Public Law 115-254, 

Division F) which combined the assets, liabilities, and functions of the Overseas Private investment Corporation 

(OPIC) and certain functions of the United States Agency for International Development (USAID). DFC facilitates U.S. 

private investment in developing countries and emerging market economies, primarily by providing direct loans, 

loan guaranties, equity investments, technical assistance, and political risk insurance. 

BASIS OF PRESENTATION: 

The accompanying principal financial statements account for all resources for which DFC is responsible and present 

the financial position, results of operations, changes in net position, and the combined budgetary resources of DFC, 

as required by the Government Corporation Control Act title 31 United States Code §9106. The principal financial 

statements are prepared from the books and records of DFC activities in accordance with U.S. Generally Accepted 

Accounting Principles (GAAP) promulgated by the Financial Accounting Standards Advisory Board (FASAB). FASAB is 

the official body for setting accounting standards of the U.S. Government. The format of the financial statements 

and notes are presented in accordance with the form and content guidance provided in Office of Management and 

Budget (OMB) Circular No. A-136, Financial Reporting Requirements (A-136). Significant intra-agency transactions 

and balances have been eliminated from the principal statements for presentation on a consolidated basis, except 

for the Combined Statements of Budgetary Resources, which are presented on a combined basis in accordance with 

A-136. As such, intra-agency transactions have not been eliminated from the Combined Statements of Budgetary 

Resources. 

BASIS OF ACCOUNTING: 

DFC͛ν transactions are recorded on an accrual and a budgetary basis of accounting. Under the accrual basis, revenue 

is recognized when earned, and expenses are recognized when incurred, regardless of when cash is exchanged. The 

accompanying Consolidated Balance Sheets, Consolidated Statements of Net Cost, and Consolidated Statements of 

Changes in Net Position are prepared on an accrual basis. 

Budgetary accounting is based on concepts set forth by OMB Circular A-11, Preparation, Submission, and Execution 

of the Budget, as amended, which provides instructions on budget execution. Budgetary accounting is designed to 

recognize the budgetary resources and the related status of those budgetary resources, including the obligation and 

outlay of funds according to legal requirements, which in many cases is made prior to the occurrence of an accrualbased transaction. Budgetary accounting is essential for compliance with legal constraints and controls over the use 

of Federal funds. 

COMBINED STATEMENTS OF BUDGETARY RESOURCES: 

The Combined Statements of Budgetary Resources have been prepared in accordance with budgetary accounting 

concepts and definitions. The Combined Statements of Budgetary Resources present: 

Budgetary Resources: Budgetary resources are amounts available to incur obligations in a fiscal year (FY). DF͛ν 

budgetary resources include unobligated balances of resources from prior years and new resources, consisting of 

appropriations, borrowing authority, and spending authority from offsetting collections ̈́ DF͛ν ̼Ϣ͇ͽ͋χ̯ιΘ ι͋νΪϢι̽͋ν 

are from both mandatory and discretionary spending authority. Mandatory spending authority is controlled by laws 

other than appropriations acts, such as authority provided under the BUILD Act. Discretionary spending authority is 

budgetary resources (except those provided to fund mandatory spending programs) provided in appropriations acts. 

Status of Budgetary Resources: Displays the status of the funding for the fiscal year, including whether the sources 

have been obligated for use, or if they were not obligated. Unobligated sources are displayed as funds that are 

apportioned for use, unapportioned for use, or expired. Obligations are legally binding agreements that will result 

35 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in outlays in the future. Unobligated amount means the cumulative amount of budget authority that remains 

available for obligation under law in unexpired accounts. 

Outlays, Net: Outlays are payments to liquidate an obligation (other than the repayment to the Treasury of debt 

principal). Outlays are a measure of Government spending. Net outlays display budgetary outlays for DFC, reduced 

by actual offsetting collections, and distributed offsetting receipts. Offsetting collections are payments to the 

government that, by law, are credited directly to expenditure accounts and deducted from gross budget authority 

and outlays of the expenditure account, rather than added to receipts, and are authorized to be spent for the 

purposes of the account without further action by Congress. DF͛ν Ϊ͕͕ν͋χχΊΣͽ ̽ΪΜΜ͋̽χΊΪΣν ΊΣ̽ΜϢ͇͋ χ·͋ ι͋̽͋Ίζχ Ϊ͕ 

interest, fees, and other revenue. Distributed offsetting receipts are collections credited to general fund receipt 

̯̽̽ΪϢΣχν χ·̯χ Ϊ͕͕ν͋χ ͽιΪνν ΪϢχΜ̯Θν ̈́ DF͛ν ͇ΊνχιΊ̼Ϣχ͇͋ Ϊ͕͕ν͋χχΊΣͽ ι͋̽͋Ίζχν ΊΣ̽ΜϢ͇͋ Σ͋ͽ̯χΊϭ͋ νϢ̼νΊ͇Θ ̯Σ͇ ͇ΪϮΣϮ̯ι͇ 

reestimates that are transferred from DFC to general fund receipt accounts of the Treasury. 

Disbursements, Net: Non-budgetary disbursements are limited to the DFC͛ν ΣΪΣ-budgetary credit reform financing 

accounts χ·̯χ ̯̽̽ΪϢΣχ ͕Ϊι DF͛ν ͇Ίι͋̽χ ΜΪ̯Σν ̯Σ͇ ΜΪ̯Σ ͽϢ̯ι̯ΣχΘ ζιΪͽι̯΢ν ϢΣ͇͋ι χ·͋ F͇͋͋ι̯Μ ι͇͋Ίχ ·͕͋Ϊι΢ !̽χ Ϊ͕ 

1990 (FCRA). Disbursements include payments for loans, and loan guaranty claim payments, reduced offsetting 

collections of loan principal, loan interest, fees and subsidy amounts received. 

RECLASSIFICATION: 

The FY 2021 Consolidated Balance Sheet was reclassified to conform to the FY 2021 financial statement presentation 

requirements in accordance with OMB Circular No. A-136, as amended. The reclassification included a change in the 

presentation of Intragovernmental Other Liabilities to include a separate category for Liability for Capital Transfers 

to the General Fund of the Treasury, which was previously included in the line Liability to the General Fund of the 

US Government for Other Non-Entity Assets. New disclosures have been added to these Consolidated Balance Sheet 

lines to provide additional clarity to the reader of this report. The reclassifications had no effect on total assets, total 

liabilities, or net position. 

RESTATEMENT: 

DFC restated the FY 2021 Statement of Budgetary Resources for a change in the amount reported on the line 

Distributed Offsetting Receipts. The amount has been corrected to agree to Treasury. See Note 19 for additional 

information. 

INTRAGOVERNMENTAL AND WITH THE PUBLIC TRANSACTIONS: 

Statement of Federal Financial Accounting Standards (SFFAS) 1, Accounting for Selected Assets and Liabilities, 

distinguishes between intragovernmental and with the public assets and liabilities. Intragovernmental assets and 

liabilities arise from transactions among Federal entities. Intragovernmental assets are claims other Federal entities 

owe to DFC. Intragovernmental liabilities are claims DFC owes to other Federal entities, whereas with the public 

assets and liabilities arise from transactions with public entities. The term public entities encompass domestic and 

foreign persons and organizations outside the U.S. Government. With the public assets are claims of DFC against 

public entities. With the public liabilities are amounts that DFC owes to public entities. 

USE OF ESTIMATES: 

DFC management has made certain estimates and assumptions when reporting assets, liabilities, revenue, and 

expenses and disclosures in the notes. Uncertainties associated with these estimates exist and actual results may 

differ from these estimates; however, DFC estimates are based on historical experience, current events and other 

assumptions that are believed to be reasonable under the facts and circumstances. Significant estimates underlying 

the accompanying financial statements as of the date of these financial statements include allowances for loans 

receivable and loan guaranty liabilities (see Note 5 for additional information), liability for losses on remaining 

coverage of insurance programs, and recoveries on insurance claims (see Note 16 for additional information). 

PUBLIC PRIVATE PARTNERSHIPS: 

SFFAS 49, Public-Private Partnerships, requires the disclosure of risk-sharing arrangements with expected lives 

greater than five years between public and private sector entities. The intent of SFFAS 49 is to capture and disclose 

36 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C. FUND BALANCE WITH TREASURY 

 

 

 

 

 

off-balance sheet activity and potential risk-sharing arrangement or transactions the government is exposed to for 

these acχΊϭΊχΊ͋ν ̈́ ͱ̯ΣΘ Ϊ͕ DF͛ν χι̯Σν̯̽χΊΪΣν ν·̯ι͋ ΢any of the characteristics of public-private partnerships as 

͇͕͋ΊΣ͇͋ ̼Θ ΋FF!΋ 49 ̈́ !ΜΜ Ϊ͕ DF͛ν ν͋ιϭΊ̽͋ν ̯Σ͇ ζιΪ͇Ϣ̽χν (ΊΣνϢι̯Σ̽͋΂ ̽ι͇͋Ίχ΂ ̯Σ͇ ͋θϢΊχΘ ΊΣϭ͋νχ΢͋Σχν) Ϯ·Ί̽· ̯ι͋ 

ζιΪϭΊ͇͇͋ χΪ χ·͋ ·ζιΊϭ̯χ͋ ν͋̽χΪι͛ ̯Σ͇ ͋ϳζΪse DFC to risk-sharing transactional agreements are all captured on the 

Consolidated Balance Sheets, along with any estimated losses, and disclosed in the accompanying notes to the 

financial statements. See the principal financial statements and Note 1, Note 3, Note 5, and Note 16. 

CHANGES IN ACCOUNTING PRINCIPLE: 

In FY 2022, DFC changed its accounting method for loans and loan guaranties made prior to FY 1992, as allowed 

under GAAP and Treasury guidance. In FY 2021 and prior, DFC reported a Liability for Capital Transfers to the General 

Fund of the Treasury. Loan and loan guaranties made prior to FY 1992 are not covered under FCRA, and excess 

funding not obligated is required to be transferred to Treasury in the form of a capital transfer. The accounting 

guidance for the year end closing entries for liquidating funds is set by Treasury. Treasury allows agencies to close 

activity to cumulative results of operations, or to a liability account for capital transfers due to Treasury. Either 

method is allowable. In FY 2021, DFC recorded a liability for capital transfers due to Treasury, which represented a 

liability for future proceeds to be paid to Treasury. In FY 2022, DFC changed its accounting method to close its annual 

ι͋ϭ͋ΣϢ͋ν΂ ̯̽χΊϭΊχΊ͋ν΂ ̯Σ͇ χι̯Σν͕͋ιν χΪ ̽Ϣ΢ϢΜ̯χΊϭ͋ ι͋νϢΜχν Ϊ͕ Ϊζ͋ι̯χΊΪΣν΂ Ϯ·Ί̽· ι͋νϢΜχ͇͋ ΊΣ ι͇͋Ϣ̽ΊΣͽ DF͛ν ΜΊ̯̼ΊΜity to 

Treasury and increasing the cumulative results of operations. See Note 12 for additional information. 

ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE: 

FASAB has issued the following pronouncements that will affect future financial presentation, as well as DF͛ν 

financial management practices and operations upon implementation. DFC has not completed the process of 

evaluating the effects of adopting these accounting and is unable to determine the materiality of changes that 

adopting will have on its FY 2024 financial position, FY 2024 results of operations, and FY 2024 changes in net 

position. The accounting standards will not have any impact on the accounting for budgetary activity. 

SFFAS 54, Leases: An Amendment of SFFAS 5, Accounting for Liabilities of the Federal Government, and SFFAS 6, 

Accounting for Property, Plant, and Equipment, revises the current Federal financial reporting standards for 

lease accounting and requires that Federal lessees recognize a lease liability and a leased asset at the 

commencement of the lease term, unless the lease agreement meets any of the scope exclusions or the 

definition/criteria of short term leases, or contracts or agreements that transfer ownership, or 

intragovernmental leases. SFFAS 54 has been modified by the following standards: 

SFFAS 57, Omnibus Amendments 2019, amends certain references to leases affected by SFFAS 54, as well 

as other minor changes to improve the clarity of existing statements. 

SFFAS 58, Deferral of the Effective Date of SFFAS 54, Leases, defers SFFAS 54, Leases: An Amendment of 

SFFAS 5, Accounting for Liabilities of the Federal Government, and SFFAS 6, Accounting for Property, Plant, 

and Equipment: SFFAS 58 defers SFFAS 54 until FY 2024. Earlier implementation is not permitted. 

SFFAS 60, Omnibus Amendments 2021: Leases-Related Topics; SFFAS 60 provides clarifications and 

improves consistency throughout SFFAS 54, SFFAS 57, SFFAS 5, and SFFAS 6. SFFAS 60 also amends and 

rescinds certain requirements in SFFAS 54 that were determined to be less likely to yield meaningful 

information. 

Fund Balance with Treasury (FBWT) is the aggregate amount of funds in DFC͛ν ̯̽̽ΪϢΣχν ϮΊχ· the U.S. Department of 

Treasury (Treasury). Treasury processes cash receipts and disbursements on DFC͛ν ̼͋·̯Μ͕ χΪ ζ̯Θ ΜΊ̯̼ΊΜΊχΊ͋ν ̯Σ͇ 

finance authorized purchases. DFC͛ν ̯̽̽ΪϢΣχΊΣͽ ι͋̽Ϊι͇ν ̯ι͋ ι͋̽ΪΣ̽ΊΜ͇͋ ϮΊχ· Αι̯͋νϢιΘ͛ν ι͋̽Ϊιds on a regular basis. 

DF͛ν FΡΑ includes all its general, revolving, and deposit funds. The general fund is used for subsidy and 

reestimates, revolving funds are used for operating expenses and DFC͛ν ͕ΊΣ̯Σ̽͋ ̯Σ͇ ΊΣνϢι̯Σ̽͋ ζιΪͽι̯΢ν΂ ̯Σ͇ ͇͋ζΪνΊχ 

funds are for taxes withheld on payments to contractors. 

37 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

D.	 INVESTMENTS, NET 

 

 

 

 

 

 

 

E.	 DIRECT LOANS AND LOAN GUARANTIES 

 

 

 

 

 

 

 

 

 

 

 

 

DFC has authority to make investments in Treasury securities and equity investments with the public in specific 

projects and emerging market investment funds. Investments in Treasury securities are carried at face value, net of 

unamortized discount or premium, and are held to maturity. Since fair value is not defined in Federal accounting 

standards, DFC follows the accounting and reporting in Financial Accounting Standards Codification (ASC) 321 

Investments – Equity Securities to report fair value of equity investments with the public. Fair value is determined 

under ASC 820, which establishes a three-level valuation hierarchy based upon observable and non-observable 

inputs. 

•	 Level 1 reflects the unadjusted quoted prices in active markets for identical assets that the reporting entity 

can access at the measurement date. 

•	 Level 2 reflects inputs other than quoted prices in Level 1 that are directly or indirectly observable for the 

asset. 

•	 Level 3 reflects unobservable inputs for the asset. 

DF͛ν ͋θϢΊχΘ ΊΣϭ͋νχ΢͋Σχν ϮΊχ· χ·͋ ζϢ̼ΜΊ̽ ̯ι͋ Ϊ͕χ͋Σ ͽ͋Ϊͽι̯ζ·Ί̯̽ΜΜΘ ̽ΪΣ̽͋Σχι̯χ͇͋ ΊΣ ι͋ͽΊΪΣν νϢ̽· ̯ν !͕ιΊ̯̽Σ΂ !νΊ̯Σ΂ Ϊι 

Indian subcontinental regions. These foreign investments serve to develop and support the underfunded sectors of 

χ·͋ ι͋ͽΊΪΣ͛ν ΢̯ιΙ͋χζΜ̯̽͋ ̯Σ͇ ̯ι͋ Ϊ͕χ͋Σ ΊΣ ΢̯ιΙ͋χν χ·̯χ ͇Ϊ ΣΪχ ·̯ϭ͋ ̯Σ ͋νχ̯̼ΜΊν·͇͋ marketplace with the breadth 

and scope comparable to one of the US markets. Because the investments are made in regions with less developed 

markets, there are no observable inputs to value the investments. Therefore, DFC is valuing the investments using 

unobservable inputs. As a practical expedient, ASC 820 allows DFC to value investments at net asset value when a 

readily determined fair value is not available, and the investment is providing a net asset value that is measured 

under appropriate standards. Net asset value is the amount of net assets in the investment attributable to each 

share of capital stock outstanding at the close of a period. Net asset value excludes the effects of assuming 

conversion of outstanding convertible securities, whether their conversion would have a diluting effect. When 

neither a fair value nor a net asset value is available, ASC 321 allows DFC to report equity investments at cost minus 

any impairment. DFC has the ability and intent to hold its investments until maturity or until the carrying cost can 

be otherwise recovered. 

FCRA governs direct loans made after FY 1991. FCRA loans are valued at the present value of expected future cash 

flows, discounted at the interest rate of Treasury Marketable Securities. The subsidy allowance represents the 

difference between the outstanding loans receivable balance and the net present value of the estimated cash flows 

of the loans over their remaining term. The subsidy allowance is subtracted from the outstanding loans receivable 

balance to obtain the net loans receivable balance. DFC issues direct loans in U.S. dollars as well as in foreign 

currencies. FCRA also governs loan guaranties made after FY 1991. The liability is determined by calculating the net 

present value of expected future cash flows for outstanding guaranties in a manner like that used to determine the 

subsidy allowance for direct loans. Loan guaranty liability can be positive or negative, and if negative, is reported as 

an asset on the Balance Sheet. Guarantied loans acquired by DFC upon borrower default are established as loans 

receivable and are valued in a similar manner as direct loans under FCRA. 

DF͛ν ΜΪ̯Σν ̯Σ͇ ΜΪ̯Σ ͽϢ̯ι̯ΣχΊ͋ν ΢̯͇͋ ζιΊΪι χΪ FY 1992 are reported under the allowance-for-loss method. Under 

the allowance-for-loss method, the nominal amount of the direct loans is reduced by an allowance for uncollectible 

amounts and the liability for loan guarantees is the amount the entity estimates will more likely than not require a 

future cash outflow to pay default claims. 

DIRECT LOANS WITH FOREIGN GOVERNMENTS 

DFC holds direct loans where the other party is a sovereign nation that were initially provided by USAID prior to 2015 

and were transferred to DFC at its inception under the provisions of the BUILD Act. 

BUDGETARY ACCOUNTING FOR LOAN PROGRAMS 

DFC͛ν ΜΪ̯Σ ͇Ίν̼Ϣιν͋΢͋Σχν under FCRA are financed by appropriation authority for long-term loan subsidy cost and 

borrowings from Treasury for the remaining non-subsidized portion of the loans. Congress may authorize one-year, 

38 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F. GENERAL PROPERTY, PLANT AND EQUIPMENT, NET 

 

 

 

 

 

 

 

 

 

 

multi-year, or no year appropriation authority to cover the estimated long-term costs of the loan programs. The nonsubsidized portion of each loan disbursement, financed initially under permanent indefinite authority to borrow 

funds from Treasury, is repaid from collections of loan fees, loan repayments, and default recoveries. Permanent 

indefinite authority is available to fund any reestimated increase of subsidy costs that occurs after the year in which 

a loan is disbursed. Reestimated reductions of subsidy costs are returned to Treasury and are unavailable to DFC. As 

required by the FCRA, DFC Ϣν͋ν ̼Ϣ͇ͽ͋χ̯ιΘ ͞ζιΪͽι̯΢ ̯̽̽ΪϢΣχν͟ χΪ ̯̽̽ΪϢΣχ ͕Ϊι ̯ζζιΪζιΊ̯χΊΪΣ ̯Ϣχ·ΪιΊχΘ ΊΣ Ίχν ̽ι͇͋Ίχ 

programs and non-̼Ϣ͇ͽ͋χ̯ιΘ ͕͞ΊΣ̯Σ̽ΊΣͽ ̯̽̽ΪϢΣχν͟ χΪ ̯̽̽ΪϢΣχ ͕Ϊι ̽ι͇͋Ίχ ζιΪͽι̯΢ ̯̽ν· ͕ΜΪϮ ̈́ EνχΊ΢̯χ͋ν ̯Σ͇ 

reestimates of credit program subsidy expenses are recorded in DFC͛ν ζιΪͽι̯΢ ̯̽̽ΪϢΣχν ̈́ 

NON-BUDGETARY CREDIT REFORM FINANCING ACCOUNTS 

Actual cash flows for direct loan and loan guaranty programs under FCRA are recorded in separate Credit Reform 

Financing Accounts within Treasury. These accounts borrow funds from Treasury; make direct loan disbursements; 

pay claims on guarantied loans; collect principal, interest, and fees from borrowers; earn interest from Treasury on 

any un-invested funds; pay interest expense on outstanding borrowings; and transfer negative subsΊ͇Θ χΪ Αι̯͋νϢιΘ͛ν 

general fund receipt account. New subsidy funded from DFC͛ν ΣΪΣ-credit spending authority and appropriated 

upward subsidy reestimates are received in program accounts and transferred to non-budgetary credit reform 

financing accounts. The budgetary resources and activities for these accounts are presented separately in the 

Combined Statements of Budgetary Resources and the Budget of the United States and are excluded from the 

determination of the budget deficit or surplus. 

SUBSIDY FUNDING UNDER FCRA 

FCRA requires that the credit subsidy costs of direct loans and loan guaranties be expensed in the year loans are 

disbursed. The cost expressed as a percentage of loans disbursed is termed the subsidy rate. DFC receives an annual 

appropriation from Congress and transfers from USAID to fund its credit program subsidy. DFC records subsidy 

expenses when loans are disbursed. Subsidy for loans disbursed in foreign currencies is calculated in U.S. dollars and 

DFC does not change the subsidy amount for foreign currency fluctuations during the year. In accordance with FCRA, 

subsidy costs are reestimated annually. 

INTEREST RECEIVABLE 

Interest receivable is comprised of accrued interest on loans receivable (direct loans and defaulted loan guaranties). 

Initial unpaid interest on defaulted loan guaranties that DFC acquires with the loan is treated as part of the principal 

of the loan receivable. Interest income is accrued at the contractual rate on the outstanding principal. Purchased 

interest is carried at cost. DFC accrues interest on non-performing loans unless the loans are in litigation or in the 

process of being modified. DFC adjusts the allowances for interest receivable based on loan performance to reduce 

the net interest receivable. 

DFC͛s property, plant and equipment consists of general-purpose equipment used by the agency. DFC capitalizes 

property, plant, and equipment at historical cost for acquisitions that have an estimated useful life of two years or 

more. DFC has a capitalization threshold of $50,000 for equipment, furniture, vehicles, and leasehold improvements, 

and $250,000 for internal use software. DFC expenses property, plant and equipment acquisitions that do not meet 

the capitalization criteria when purchased, as well as normal repairs and maintenance. Depreciation and 

amortization of property, plant and equipment are computed using the straight-line method over the estimated 

useful life of the asset with periods ranging from 5 to 10 years. 

LEASES: 

DFC follows SFFAS 5 Accounting for Liabilities of The Federal Government to determine whether leases meet the 

definition of a capital lease. Capital leases are recorded on the Consolidated Balance Sheets as assets under capital 

Μ̯͋ν͋ ̯ν ζ̯ιχ Ϊ͕ G͋Σ͋ι̯Μ  ́ιΪζ͋ιχΘ΂  ́Μ̯Σχ ̯Σ͇ EθϢΊζ΢͋Σχ ̈́ DF͛ν ̯̽ζΊχ̯ΜΊΣ̯χΊΪΣ χ·ι͋ν·ΪΜ͇ ͕Ϊι ̯̽ζΊχ̯Μ Μ͋ases is $50,000. 

The cost of property, plant and equipment acquired under a capital lease is the amount recognized as a liability for 

the capital lease at its inception. Payments for capital leases are recorded against the liability for capital lease, with 

39 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

G. LIABILITIES 

 

 

 

 

 

 

H. ACCOUNTS PAYABLE 

 

I. FEDERAL EMPLOYEE BENEFITS PAYABLE 

 

 

 

 

 

 

an interest component expensed. Depreciation and amortization of capital leases are computed using the straightline method over the estimated useful life of the asset or lease term, whichever is shorter. 

Liabilities represent probable and measurable future outflows of resources because of past transactions or events 

and are recognized when incurred, regardless of whether there are budgetary resources available to pay the 

liabilities. However, liabilities cannot be liquidated without legislation providing resources and legal authority. 

LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES: 

Liabilities covered by budgetary resources include liabilities incurred that are covered by realized budgetary 

resources as of the Balance Sheet date. Budgetary resources include: (1) new budget authority, (2) unobligated 

balances of budgetary resources at the beginning of the year or net transfers of prior year balances during the year, 

(3) spending authority from offsetting collections, and (4) recoveries of unexpired budget authority through 

downward adjustments of prior year obligations. Liabilities covered by budgetary resources also includes liabilities 

that are to be funded by permanent indefinite appropriations and may be apportioned by OMB without further 

̯̽χΊΪΣ ̼Θ χ·͋ ΪΣͽι͋νν ̯Σ͇ ϮΊχ·ΪϢχ ̯ ̽ΪΣχΊΣͽ͋Σ̽Θ ·̯ϭΊΣͽ χΪ ̼͋ ΢͋χ ͕Ίινχ΂ νϢ̽· ̯ν DF͛ν ͇ΪϮΣϮ̯ι͇ ι͋͋νχΊ΢̯χ͋s 

payable to Treasury. 

Liabilities not covered by budgetary resources are liabilities that will require budgetary resources to liquidate the 

liabilities. 

LIABILITIES NOT REQUIRING BUDGETARY RESOURCES: 

Liabilities not requiring budgetary resources are liabilities that will not require the use of budgetary resources, such 

as unearned revenue which is reduced as the revenue is earned. 

CURRENT AND NON-CURRENT LIABILITIES: 

DFC discloses its other liabilities between current and noncurrent liabilities in accordance with SFFAS 1, Accounting 

for Selected Assets and Liabilities. The current liabilities represent liabilities that DFC expects to settle within the 

twelve months of the Consolidated Balance Sheet dates. Noncurrent liabilities represent liabilities that DFC does not 

expect to be settled within twelve months of the Consolidated Balance Sheet dates (see Note 13, Other Liabilities). 

Accounts Payable includes amounts owed but not yet paid to intragovernmental and with the public entities for 

goods and services received by DFC. DFC estimates and records accruals when services and goods are performed or 

received. 

LEAVE 

Employee annual leave is accrued when earned and reduced as leave is taken. Each year the balance of accrued 

̯ΣΣϢ̯Μ Μ̯͋ϭ͋ Ίν ̯͇ΖϢνχ͇͋ χΪ ι͕͋Μ͋̽χ ̽Ϣιι͋Σχ ζ̯Θ ι̯χ͋ν ̯ν Ϯ͋ΜΜ ̯ν ͕Ϊι͕͋Ίχ͇͋ ͞Ϣν͋ Ϊι ΜΪν͋͟ Μ̯͋ϭ͋ ̈́ !΢ΪϢΣχν ̯ι͋ ι͋ζΪιχ͇͋ 

as unfunded to the extent current or prior year appropriations are not available to fund annual leave earned but not 

taken. Funded and unfunded sick leave and other types of non-vested leave are expensed as taken. 

EMPLOYEE HEALTH AND LIFE INSURANCE BENEFITS 

DFC employees may choose to participate in the contributory Federal Employees Health Benefit and the Federal 

Employees Group Life Insurance programs. DFC matches a portion of the employee contributions to each program. 

Such matching contributions are recognized as current operating expenses. 

EMPLOYEE PENSION BENEFITS 

DFC employees participate in either the Civil Service Retirement System or the Federal Employees Retirement 

System (FERS) and Social Security. These systems provide benefits upon retirement and in the event of death, 

disability, or other termination of employment, and may also provide pre-retirement benefits. They may also include 

40 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

J. INSURANCE AND GUARANTY PROGRAM LIABILITIES 

 

 

 

 

 

K. COMMITMENTS AND CONTINGENCIES 

L. NET POSITION 

 

benefits to survivors and their dependents, and they may contain early retirement or other special features. DFC͛ν 

contributions to both retirement plans, as well as to the government-wide Federal Insurance Contribution Act, 

administered by the Social Security Administration, are recognized as current operating expenses. Federal employee 

benefits also include the Thrift Savings Plan. For FERS employees, DFC matches employee contributions to the plan, 

subject to limitations. The matching contributions are recognized as current operating expenses. 

FEDER!L EMPLOYEES’ COMPENS!TION !CT 

Α·͋ F͇͋͋ι̯Μ E΢ζΜΪΘ͋͋ν͛ Ϊ΢ζ͋Σν̯χΊΪΣ !̽χ (FECA) provides income and medical cost protection to covered Federal 

civilian employees injured on the job and to beneficiaries of employees whose deaths are attributable to job-related 

injury or disease. The FECA program is administered by the Department of Labor (DOL). DOL pays valid claims as they 

occur, which are billed to DFC annually and funded and paid approximately 15 months later. DOL also calculates an 

estimated actuarial liability for future benefits based upon historical experience and other economic variables. 

In accordance with Statement of Federal Financial Accounting Standards (SFFAS) No. 51, Insurance Programs, the 

Insurance and Guaranty Program liability represents the liability for unearned premiums and fees, claims incurred 

but not reported, claims submitted but not yet paid, and estimated losses on remaining coverage. The losses on 

remaining coverage includes the estimated amounts to be paid to settle claims, including claim adjustment expenses 

for the remaining open arrangement period, net of unearned premiums as of the end of the fiscal year, and net of 

future premiums due after the end of the fiscal year that relate to the remaining open arrangement period. 

In accordance with SFFAS 5, Accounting for Liabilities of the Federal Government, as amended by SFFAS 12, 

Recognition of Contingent Liabilities Arising from Litigation: An Amendment of SFFAS 5, Accounting for Liabilities of 

the Federal Government ι͋̽ΪͽΣΊΣ͋ν ̽ΪΣχΊΣͽ͋Σχ ΜΊ̯̼ΊΜΊχΊ͋ν ΊΣ DF͛ν ΪΣνΪΜΊ͇̯χ͇͋ ̯Μ̯Σ̽͋ ΋·͋͋χν ̯Σ͇ ΪΣνolidated 

Statements of Net Cost when the loss is determined to be probable and reasonably estimable. In the event of an 

adverse judgment against the Government, some of the liabilities may be payable from the U.S. Treasury. DFC 

evaluates all contingent liabilities based on three criteria: probable, reasonably possible, and remote. DFC recognizes 

that the estimated liability may be a specific amount or a range of amounts. If some amount within the range is a 

better estimate than any other amount within the range, that amount is recorded. If no amount within the range is 

a better estimate than any other amount, the minimum amount of the range is recorded and the range and a 

description of the nature of the contingency are disclosed. DFC records an accrual for contingent liabilities if the 

liability is probable and reasonably estimable and discloses those contingencies that are reasonably possible. DFC 

does not disclose or record contingent liabilities when the loss is considered remote. FΪι ΢̯χχ͋ιν Ϯ·͋ι͋ DF͛ν 

Counsel is unable to express an opinion regarding the likely outcome of the case and an estimate of the potential 

ΜΊ̯̼ΊΜΊχΘ ̯̽ΣΣΪχ ̼͋ ΢̯͇͋΂ χ·͋ χΪχ̯Μ ̯΢ΪϢΣχ ̽Μ̯Ί΢͇͋ ̯ͽ̯ΊΣνχ χ·͋ ͽΪϭ͋ιΣ΢͋Σχ Ίν ̽Μ̯ννΊ͕Ί͇͋ ̯ν ͞·̯͋νΪΣ̯̼ΜΘ  ́ΪννΊ̼Μ͋͟ ̯Σ͇ 

disclosed if available. DFC is currently involved in certain legal claims and has received notifications of potential 

claims in the normal course of business. There are substantial factual and legal issues that might bar any recovery in 

these matters. It is not possible to evaluate the likelihood of any unfavorable outcome, nor is it possible to estimate 

the amount of compensation, if any, that may be determined to be owed in the context of a settlement. 

Management believes that the resolution of these claims will not have a material adverse impact on DFC. 

Net position is the residual difference between assets and liabilities and consists of Unexpended Appropriations and 

Cumulative Results of Operations. 

UNEXPENDED APPROPRIATIONS 

ΕΣ͋ϳζ͋Σ͇͇͋ ̯ζζιΪζιΊ̯χΊΪΣν ΊΣ̽ΜϢ͇͋ χ·͋ ζΪιχΊΪΣ Ϊ͕ χ·͋ DF͛ν ̯ζζιΪζιΊ̯χΊΪΣν ι͋ζι͋ν͋Σχ͇͋ ̼Θ ϢΣ͇͋ΜΊϭ͋ι͇͋ Ϊι͇͋ιν ̯Σ͇ 

unobligated balances. Delivered orders result in expended appropriations and reduce the total reported as 

Unexpended Appropriations. Undelivered orders are the value of orders of goods or services which have not been 

actually or constructively received. DFC receives annual appropriations that are reduced and repaid to Treasury 

͇ϢιΊΣͽ χ·͋ ͕Ίν̯̽Μ Θ̯͋ι ͕ιΪ΢ DF͛ν Ϊ͕͕ν͋χχΊΣͽ ̽ΪΜΜ͋̽χΊΪΣν ͕ιΪ΢ ζιΪͽι̯΢ν Ϊχ·͋ι χ·̯Σ χ·͋ ͜ΣνϢι̯Σ̽͋ ζιΪͽι̯΢΂ ̯ν Ϯ͋ΜΜ ̯ν 

41 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

M. REVENUE AND OTHER FINANCING SOURCES AND USES 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

N. EXPENSES 

 

 

 

O. CLASSIFIED ACTIVITIES 

 

negative subsidy. DFC also receives appropriations for subsidy to fund its direct loan and loan guaranty programs, as 

well as appropriations transferred in from other agencies for specific programs. DFC does not have funds from 

dedicated collections. 

CUMULATIVE RESULTS OF OPERATIONS 

Cumulative results of operations consist of the net difference since inception between expenses and losses; revenue 

and gains; and other financing sources. DFC does not have funds from dedicated collections. 

EXCHANGE AND NON-EXCHANGE REVENUE 

DFC classifies revenue as either exchange revenue or nonexchange revenue. Exchange revenue arises when DFC 

provides goods or services to intragovernmental or with the public entities in exchange for inflows of resources. 

Exchange revenue is presented in the Consolidated Statements of Net Cost and serves to offset the costs of these 

goods and services. DFC activities recognize exchange revenue primarily from fees earned from its direct loan and 

loan guaranty programs, insurance premiums, earnings from investments and from the reimbursements for goods 

and services provided other Federal Agencies. Nonexchange revenues are inflows of resources that the Government 

demands or receives by donation. Nonexchange revenue is considered to reduce the cost of operations and is 

reported in the Consolidated Statements of Changes in Net Position as a financing source. DF͛ν does not have any 

non-exchange revenue. 

OTHER FINANCING SOURCES AND USES 

Other financing sources, include additional inflows of resources that increase the results of operations during the 

reporting period. DF͛ν other financing sources come from unexpended appropriation transfers-in and nonexpenditure transfers-in and are recognized as financing sources when used. Other financing sources also include: 

(1) transfers-in/out without reimbursement; and (2) imputed financing with respect to costs subsidized by another 

Federal entity. Transfers-In/Out Without Reimbursement include capital transfers of excess funding for direct loan 

and loan programs made prior to FY 1992, as well as negative subsidy and downward reestimates of direct loans and 

loan guaranties that are transferred to general fund receipt accounts of Treasury. 

IMPUTED FINANCING AND IMPUTED COSTS 

DFC recognizes the full cost of providing all employee benefits and future retirement benefits, including life and 

health insurance, at the time employee services are rendered. Eligible retired DFC employees, and retired OPIC 

employees, can continue to participate in health and life insurance plans. The cost of these benefits is funded 

through DFC contributions, employee compensation to the extent withheld from employee and retiree pay, from 

matching of employee withholding for Thrift Savings Plan and Federal Insurance Contributions Act, and by the Office 

of Personnel Management (OPM) which administers the retirement programs for DFC employees. OPM calculates 

imputed costs as the actuarial present value of future benefits attributed to services rendered by covered employees 

and eligible retired DFC employees during the accounting period, net of the amounts contributed by employees, 

retirees, and DFC. DFC recognizes these imputed costs in the Statements of Net Cost and imputed financing in the 

Statements of Changes in Net Position. 

Expenses are recognized when there are outflows, usage of assets, or incurrences of liabilities (or a combination) 

͕ιΪ΢ ̯̽ιιΘΊΣͽ ΪϢχ ͕ϢΣ̽χΊΪΣν ι͋Μ̯χ͇͋ χΪ DF͛ν ̯̽χΊϭΊχΘ ̯Σ͇ ι͋Μ̯χ͇͋ ζιΪͽι̯΢ν΂ ͕Ϊι Ϯ·Ί̽· ̼͋Σ͕͋Ίχν ͇Ϊ ΣΪχ ͋ϳχ͋Σ͇ ̼͋Θond 

the present operating period. For financial reporting purposes, operating expenses are recognized in the period 

incurred. 

Accounting standards require all reporting entities to disclose that accounting standards allow certain presentations 

and disclosures to be modified, if needed, to prevent the disclosure of classified information. 

42 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

(dollars in thousands) 

As of September 30

Status of Fund Balance with Treasury 

2022 2021 

Unobligated Balance 

Available $ 1,554,950 $ 560,084 

Unavailable 32,157 33,523 

Obligated Balance not yet Disbursed 

Total Fund Balance With Treasury $ 

1,043,896 

2,631,003 

1,614,964 

$ 2,208,571 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 2: FUND BALANCE WITH TREASURY 

As of September 30, 2022 and 2021, there were no unreconciled differences between Treasury records and balances 

reported on DFC͛s general ledger. DF͛΋ FBWT is classified as unobligated balance available, unobligated balance 

unavailable, and obligated balance not yet disbursed. Unobligated available balances represent amounts that are 

apportioned for obligation in the current fiscal year and unexpired appropriations available for incurring new 

obligations. Unobligated unavailable balances represent amounts that are in expired appropriations and not 

available for incurring new obligations. Obligated balances not yet disbursed include undelivered orders or delivered 

orders received but not yet paid. Obligated balances for loans and loan guaranties are supported by borrowing 

authority, and DFC borrows funds from the Treasury prior to making the disbursements. DFC does not have any nonbudgetary FBWT balances. 

NOTE 3: INVESTMENTS, NET 

DF͛ν ΊΣϭ͋νχ΢͋Σχν΂ Σ͋χ ̯ι͋ ̽Ϊ΢ζιΊν͇͋ Ϊ͕ Αι̯͋νϢιΘ ΣΪΣ-marketable, market-based securities, consisting of: 

Amortized 

(dollars in thousands) Acquisition (Premium)/ Interest Net Unrealized Market 

As of September 30, 2022 value Discount Receivable Investments Gain/(Loss) Value 

Treasury Non-Marketable, 

Market-based Securities 

Notes $ 5,838,033 $ 9,649 $ 26,539 $ 5,874,221 $ (461,854) $ 5,412,367 

Bonds 329,984 356 1,481 331,821 (29,993) 301,828 

Total Intragovernmental 

Investments, net $ 6,168,017 $ 10,005 $ 28,020 $ 6,206,042 $ (491,847) $ 5,714,195 

Amortized 

(dollars in thousands) Acquisition (Premium)/ Interest Net Unrealized Market 

As of September 30, 2021 value Discount Receivable Investments Gain/(Loss) Value 

Treasury Non-Marketable, 

Market-based Securities 

Notes $ 5,912,806 $ (132) $ 26,883 $ 5,939,557 $ 163,955 $ 6,103,512 

Bonds 215,617 (374) 1,687 216,930 31,464 248,394 

Total Intragovernmental 

Investments, net $ 6,128,423 $ (506) $ 28,570 $ 6,156,487 $ 195,419 $ 6,351,906 

43 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)	 2022 2021 

Other Securities and Investments 

Beginning Balance as of October 1 $ 95,318 $ -

Valuation Adjustments 6,723 -

Return of Investments (5,276) 

Acquisitions of investments 78,172 95,318 

Ending Balance as of September 30 $ 174,937 $ 95,318 

 

DF͛ν ν͋̽ϢιΊχΊ͋ν ̯Σ͇ ΊΣϭ͋νχ΢͋Σχν΂ Σ͋χ ϮΊχ· χ·͋ ζϢ̼ΜΊ̽ ̽ΪΣνΊνχν Ϊ͕ ́ 

(dollars in thousands) 

As of September 30 

Equity Securities Valued at Net Asset Value 

Equity Securities Valued at Cost less Impairment 

$ 

2022 

Other 

128,934 

46,003 

$ 

2021 

Other 

-

95,318 

Total Securities and Investments, Net $ 174,937 $ 95,318 

By statute, DFC is authorized to invest its corporate reserve funds in Treasury non-marketable, market-based 

securities. Corporate reserve funds are derived from fees and other revenues related to its insurance program and 

funds transferred into DFC from OPIC in FY 2020. Treasury market-based securities are carried at face value, net of 

unamortized discount or premium, and are held to maturity. Premiums or discounts are amortized using the 

effective yield method. Interest income is compounded semi-annually by Treasury and adjusted to include an accrual 

for interest earned to September 30. DFC has the ability and intent to hold its intragovernmental investments until 

maturity or until the carrying cost can be otherwise recovered. 

DF͛ν ͋θϢΊχΘ ΊΣϭ͋νχ΢͋Σχν with the public consisted of investments in: 

•	 Limited partnerships in private equity funds which are managed by a General Partner. As a limited partner, 

DFC has a limited liability to the extent of the investment, no managerial authority, and invests into the 

͕ϢΣ͇ χΪ ̯̽·Ί͋ϭ͋ ι͋χϢιΣν ͕ιΪ΢ χ·͋ ͕ϢΣ͇͛ν ζΪιχ͕ΪΜΊΪ Ϊ͕ ΊΣϭ͋νχ΢͋Σχν; and 

•	 Direct investments into private companies that are not listed on a public exchange. Direct investments are 

generally illiquid and treated as long-term investments. 

DFC began making equity investments with the public in FY 2021. DFC is statutorily limited in making investments 

that are currently traded in active markets. DFC is required to seek to exit investment positions as soon as such exit 

is commercially feasible, and DFC limits its active market participation to avoid any actual or perceived market 

distortion. 

The investments where no net asset value is available are valued at cost minus any impairment. As of September 30, 

2022 and 2021, the investments with the public had no impairment. 

DF͛ν ΊΣϭ͋νχ΢͋Σχ ϮΊχ· χ·͋ ζϢ̼ΜΊ̽ ̯̽χΊϭΊχΘ Ίν ̯ν ͕ΪΜΜΪϮν ́ 

DFC also has hybrid investments that are constructed as loans that may convert to equity investments. These hybrid 

investments are accounted for under FCRA and are therefore not reported in the above schedules of investments. 

44 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

(dollars in thousands) (Reclassified) 

As of September 30

Intragovernmental Accounts Receivable 

2022 

 

2021 

 Subsidy receivable from Treasury 

Total Intragovernmental Accounts Receivable, Net 

With the Public Accounts Receivable 

$ 609 

609 

$ -

-

 Fees Receivable 111,400 98,637 

 Insurance Premiums Receivable 1,866 1,719 

 Insurance Settlements Receivable 21,071 20,804 

 Other Receivables 128 128 

 Allowance for Uncollectible Amounts 

Total With the Public Accounts Receivable, Net 

Total Accounts Receivable, Net 

(13,310) 

121,155 

$ 121,764 

(13,356) 

107,932 

$ 107,932 

 

 

 

 

 

 

 

 

 

A. DIRECT LOAN AND LOAN GUARANTY PROGRAMS 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 4: ACCOUNTS RECEIVABLE, NET 

Intragovernmental accounts receivable consist of amounts due from Treasury for subsidy on a modified direct loan 

receivable in the Legacy loan program for a loan made prior to FY 1992. The amount is expected to be collected in 

full in FY 2023. With the public accounts receivable are primarily amounts due to DFC for fees for insurance policies, 

fees from loan and loan guaranty agreements, premiums from insurance policies, and assets acquired in insurance 

claims settlements. With the public accounts receivable are reduced to net realizable value by an allowance for 

ϢΣ̽ΪΜΜ͋̽χΊ̼Μ͋ ̯΢ΪϢΣχν ̈́ !ΜΜΪϮ̯Σ̽͋ν ̯ι͋ ̼̯ν͇͋ ΪΣ ΢̯Σ̯ͽ͋΢͋Σχ͛ν ζ͋ιΊΪ͇Ί̽ ͋ϭ̯ΜϢ̯χΊΪΣν Ϊ͕ χ·͋ ϢΣ͇͋ιΜΘΊΣͽ ̯νν͋χν ̈́ Direct 

loan and loan guaranty fees receivable allowances are based on the same percentage of the allowances for the 

underlying direct loan or loan guaranty. In its evaluation, management considers numerous factors, including, but 

not limited to, general economic conditions, asset composition, and prior loss experience. 

NOTE 5: LOANS RECEIVABLE, NET AND LOAN GUARANTY LIABILITIES 

DFC administers the following direct loan and loan guaranty programs: 

Name of Program Description 

Direct Loan Program DΊι͋̽χ ΜΪ̯Σν ̼Θ DF΂ ̯Σ͇ ΜΪ̯Σν χι̯Σν͕͋ιι͇͋ ͕ιΪ΢ ͸ ́͜ ̯Σ͇ Ε΋!͜D͛ν Development Credit 

Authority (DCA) to DFC. Direct loans are disbursements to a borrower under a contract 

χ·̯χ ι͋θϢΊι͋ν ι͋ζ̯Θ΢͋Σχ χΪ DF ϮΊχ· ΊΣχ͋ι͋νχ ̈́ DF͛ν ͇Ίι͋̽χ ΜΪ̯Σν ΊΣϭ͋νχ ̯̽ιΪνν ν͋̽χΪιν 

including energy, healthcare, critical infrastructure, and technology. DFC also provides 

financing for small businesses and women entrepreneurs in order to create jobs in 

emerging markets. All of the loans included in this program were made after FY 1991 and 

are accounted for under FCRA. 

Loan Guaranties Loan Guaranties by DFC, and agreements transferred from OPIC and DCA to DFC. Loan 

guaranties are agreements where DFC provides guaranties with respect to the payment 

of all or a part of the principal or interest on a debt obligation of a borrower to a lender. 

DF͛ν ΜΪ̯Σ ͽϢ̯ι̯ΣχΊ͋ν νϢζζΪιχ ΊΣϭ͋νχ΢͋Σχν ̯̽ιΪνν ν͋̽χΪιν ΊΣ̽ΜϢ͇ΊΣͽ ͋Σ͋ιͽΘ΂ ·̯͋Μχ·̯̽ι͋΂ 

critical infrastructure, and technology. DFC also provides loan guaranties for small 

businesses and women entrepreneurs in order to create jobs in emerging markets. All of 

the loan guaranties included in this program were made after FY 1991 and are accounted 

for under FCRA. 

45 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Program Description 

Legacy Loans DFC administers loans that were previously initiated by USAID under the Debt Reduction 

Loan program, initiated after FY 1991 which are accounted for under FCRA. This program 

also includes loans under the Economic Assistance Loan program, which were initiated 

prior to FY 1992 which are not accounted for under FCRA. 

Legacy Loan 

Guaranties 

DFC administers loan guaranties that were previously administered by USAID under the 

Microenterprise and Small Enterprise Development Guarantied Loan program; the Urban 

and Environmental Credit Guarantied Loan programs, and the Housing and Other Credit 

Guaranty programs. These programs include loans that were initiated before FY 1992 and 

after FY 1991. The loans made before FY 1992 are not accounting for under FCRA. The 

loans made after FY 1991 are accounted for under FCRA. 

VALUATION METHODOLOGY FOR DIRECT LOANS AND LOAN GUARANTIES 

The valuation methodology of direct loans and loan guaranties made after FY 1991 is based on the net present value 

of their expected future cash flows. DFC estimates future cash flows for direct loans and loan guaranties using 

economic and financial credit subsidy models. DFC͛ν ΢Ϊ͇͋Μν ϭ̯ιΘ ΊΣ χ·͋ νζ͋̽Ί͕Ί̽ ΢͋χ·Ϊ͇ΪΜΪͽΊ͋ν ͋΢ζΜΪΘ͇͋ χΪ ͕Ϊι̯͋̽νχ 

future program cash flows. In general, however, models for all major credit programs use historical data as the basis 

for assumptions about future program performance and then translate these assumptions into nominal cash flow 

estimates by applying rules about program structure. Nominal cash flow forecasts are discounted using ͸ͱ͛ν Credit 

Subsidy Calculator that has both forecasted and actual Treasury interest rates. Loans have been made in both U.S. 

dollars and foreign currencies ̯Σ͇ χ·͋ DF͛ν νϢ̼νΊ͇Θ ΢Ϊ͇͋Μν ΊΣ̽ΪιζΪι̯χ͋ χ·͋ ͋ϳ̽·̯Σͽ͋ ιΊνΙ. Loans extended in foreign 

currencies that were originaχ͇͋ ̼Θ Ε΋!͜D ̯Σ͇ χι̯Σν͕͋ιι͇͋ ΊΣχΪ DF Ϯ͋ι͋ ΢̯͇͋ ϮΊχ· Ϊι ϮΊχ·ΪϢχ ͞ͱ̯ΊΣχ͋Σ̯Σ̽͋ Ϊ͕ 

Π̯ΜϢ͋͟ (ͱ͸Π) ̈́ FΪι͋ΊͽΣ ̽Ϣιι͋Σ̽Θ ͋ϳ̽·̯Σͽ͋ ͽ̯ΊΣ Ϊι ΜΪνν Ίν ι͋̽ΪͽΣΊΣ͇͋ ϢζΪΣ ι͋̽͋Ίζχ Ϊ͕ ΜΪ̯Σ ι͋ζ̯Θ΢͋Σχν ΪΣ ΜΪ̯Σν 

extended without MOV and reflected in the net credit programs receivable balance. The net loans receivable or the 

value of assets related to direct loans is not the same as expected proceeds from selling the loans. 

Historical data is used as the basis for program performance assumptions. The historical data undergoes quality 

review and analysis prior to its use in developing model assumptions. Key input to the subsidy models varies by 

program and includes items such as: 

• Contractual terms of the loan or guaranty such as loan amount, interest rate, maturity, and grace period 

• Borrower characteristics 

• Estimated changes in foreign currency valuations 

• Loan performance assumptions, such as default and recovery rates 

• Loan fee rates 

DF͛ν rating methodology for its FCRA reestimates is based on industry best practices and the expert judgment of a 

core panel of officers from origination, monitoring, credit policy and risk management who worked in conjunction 

ϮΊχ· ͱΪΪ͇Θ͛ν !Σ̯ΜΘχΊ̽ν ̈́ The methodology rates the portfolio risk with a consistent and standardized approach. 

DF͛ν χΪχ̯Μ Σ͋χ νϢ̼νidy reestimates for direct loan and loan guaranties for FY 22 is $221 million. Some of the key 

drivers of the increase include global economic unsteadiness resulting from COVID, the war in Ukraine, and the 

resurgence in the value of the US dollar. These factors as well as individual project drivers resulted in several risk 

rating downgrades and downgrades in estimated recovery ratings, which increase the reestimates. DFC has several 

loans denominated in foreign currencies. The increase in value of the US dollar resulted in projected losses in value 

of the foreign currencies against the dollar, which increased the upward reestimates. Additionally, two direct loans 

experienced significant full prepayments in FY2022, leading to a loss of future fees and interest spread, resulting in 

a higher net upward reestimates. The increases in interest rates, with projects disbursing into higher interest rates 

than those assumed at the time of obligation, resulted in downward reestimates that help offset the upward 

reestimates. 

46 
Value of 

Allowance for Assets 

(dollars in thousands) 

As of September 30, 2022 

Loans 

Receivable, 

Gross 

Fees & 

Interest 

Receivable 

Allowance for 

Loan Loss 

Subsidy Cost 

(Present 

Value) 

Related to 

Direct Loans, 

Net 

Loans Obligated Prior to FY 1992 

Legacy Loans $ 353,569 $ 421,356 $ (510,361) $ - $ 264,564 

Loans Obligated After FY 1991 

Direct Loans 7,199,422 96,671 - (129,364) 7,166,729 

Legacy Loans 

Total Direct Loans Receivable 

Defaulted Loan Guaranties Receivable 

650,895 29,145 - (907,279) (227,239) 

8,203,886 547,172 (510,361) (1,036,643) 7,204,054 

(Table F) 

Total Loans Receivable, Net 

1,265,125 112,991 (56,658) (1,001,741) 319,717 

$ 9,469,011 $ 660,163 $ (567,019) $ (2,038,384) $ 7,523,771 

Value of 

Allowance for Assets 

(dollars in thousands) 

As of September 30, 2021 

Loans 

Receivable, 

Gross 

Fees & 

Interest 

Receivable 

Allowance for 

Loan Loss 

Subsidy Cost 

(Present 

Value) 

Related to 

Direct Loans, 

Net 

Loans Obligated Prior to FY 1992 

Legacy Loans $ 394,226 $ 403,303 $ (535,868) - $ 261,661 

Loans Obligated After FY 1991 

Direct Loans 6,197,890 83,511 - (83,567) 6,197,834 

Legacy Loans 

Total Direct Loans Receivable 

Defaulted Loan Guaranties Receivable 

655,894 38,540 - (865,467) (171,033) 

7,248,010 525,354 (535,868) (949,034) 6,288,462 

(Table F) 

Total Loans Receivable, Net 

739,233 97,147 $ (40,581) $ (353,473) $ 442,326 

$ 7,987,243 $ 622,501 $ (576,449) $ (1,302,507) $ 6,730,788 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

B. DIRECT LOANS, NET 

C. TOTAL AMOUNT OF DIRECT LOANS DISBURSED 

(dollars in thousands) 

As of September 30 2022 2021 

Direct Loan Disbursements $ 1,953,927 $ 3,140,075 

47 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

D. SUBSIDY EXPENSE AND REESTIMATES FOR DIRECT LOAN PROGRAMS BY COMPONENT 

 

 

 

(dollars in thousands) 

As of September 30 2022 2021 

Subsidy Expense for New Direct Loans Disbursed 

Interest Differential $ (7,852) $ (4,744) 

Defaults 156,636 96,633 

Fees and Other Collections (275,013) (212,563) 

Other 13,639 (36,484) 

Total Subsidy Expense for New Direct Loans Disbursed (112,590) (157,158) 

Modifications and Reestimates 

Total modifications 637 (967) 

Net Interest Rate Reestimates 23,582 (45,493) 

Net Technical Reestimates 49,304 79,423 

Total Net Reestimates 72,886 33,930 

Total Direct Loan Subsidy Expense $ (39,067) $ (124,195) 

E. SCHEDULE FOR RECONCILING DIRECT LOAN SUBSIDY COST ALLOWANCE 

 

 

(dollars in thousands) 

As of September 30 2022 2021 

Beginning balance of the subsidy cost allowance $ (949,034) $ (1,076,525) 

Add: subsidy expense for direct loans disbursed during the year 112,590 157,158 

Adjustments: 

Loan modifications (637) 967 

Fees accrued (5,090) (2,829) 

Loans written off 66,195 109,099 

Subsidy allowance amortization (187,759) (102,964) 

Other (22) (10) 

Total adjustments (127,313) 4,263 

Ending balance of the subsidy cost allowance before reestimates (963,757) (915,104) 

Add or subtract subsidy net reestimates (72,886) (33,930) 

Ending balance of the subsidy cost allowance $ (1,036,643) $ (949,034) 

F. DEFAULTED LOAN GUARANTIES 

 

 

Defaulted Value of Assets 

Loan Allowance for Related to 

Guaranties Subsidy Cost Defaulted Loan 

(dollars in thousands) Receivable, Interest Allowance for (Present Guaranties 

As of September 30, 2022 Gross Receivable Loan Loss Value) Receivable, Net 

Loans Obligated Prior to FY 1992 

Legacy Loan Guaranties $ 90,490 $ 13,344 $ (56,658) $ - $ 47,176 

Loans Obligated After FY 1991 

Loan Guaranties 1,089,137 34,080 - (994,690) 128,527 

Legacy Loan Guaranties 85,498 65,567 - (7,051) 144,014 

Total $ 1,265,125 $ 112,991 $ (56,658) $ (1,001,741) $ 319,717 

48 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

(dollars in thousands) 

As of September 30, 2021 

Loans Obligated Prior to FY 1992 

Legacy Loan Guaranties 

Loans Obligated After FY 1991 

Loan Guaranties 

Legacy Loan Guaranties 

Total 

Defaulted 

Loan 

Guaranties 

Receivable, 

Gross 

$ 82,624 

578,162 

78,447 

$ 739,233 

Interest 

Receivable 

$ 13,865 

26,510 

56,772 

$ 97,147 

Allowance for 

Loan Loss 

$ (40,581) 

-

-

$ (40,581) 

Allowance for 

Subsidy Cost 

(Present 

Value) 

$ -

(353,473) 

-

$ (353,473) 

Value of Assets 

Related to 

Defaulted Loan 

Guaranties 

Receivable, Net 

$ 55,908 

251,199 

135,219 

$ 442,326 

G. GUARANTIED LOANS OUTSTANDING 

GUARANTIED LOANS OUTSTANDING 

 

 

 

 

(dollars in thousands) 

As of September 30, 2022 

Loan Guaranties 

Legacy Loan Guaranties 

Total 

Outstanding Principal of 

Guarantied Loans, Face Value 

$ 9,768,556 

102,933 

$ 9,871,489 

Amount of Outstanding 

Principal Guarantied 

$ 9,454,989 

102,933 

$ 9,557,922 

 

 

 

 

(dollars in thousands) 

As of September 30, 2021 

Loan Guaranties 

Legacy Loan Guaranties 

Total 

Outstanding Principal of 

Guarantied Loans, Face Value 

$ 10,397,305 

134,600 

$ 10,531,905 

Amount of Outstanding 

Principal Guarantied 

$ 10,064,675 

134,600 

$ 10,199,275 

 

 

NEW LOAN GUARANTIES DISBURSED 

 

 

 

 

 

 

 

(dollars in thousands) 

As of September 30, 2022 

Loan Guaranties 

Total 

Principal of Guarantied 

Loans, Face Value 

$ 1,561,172 

$ 1,561,172 

Amount of Principal 

Guarantied 

$ 1,401,109 

$ 1,401,109 

(dollars in thousands) 

As of September 30, 2021 

Loan Guaranties 

Total 

Principal of Guarantied 

Loans, Face Value 

$ 1,353,910 

$ 1,353,910 

Amount of Principal 

Guarantied 

$ 1,082,922 

$ 1,082,922 

 

49 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

H. LIABILITY FOR LOAN GUARANTIES 

Liabilities for 

Losses on Pre- Liabilities for Post- Loan Guaranties 

(dollars in thousands) 1992 Guaranties, 1991 Guaranties, Liabilities for 

As of September 30, 2022 Present Value Present Value Loan Guaranties 

Loans Obligated Prior to FY 1992 

Legacy Loan Guaranties $ - $ - $ -

Loans Obligated After FY 1991 

Loan Guaranties - (275,134) (275,134) 

Legacy Loan Guaranties 

Total Liability for Loan Guaranties 

- 183,768 183,768 

$ - $ (91,366) $ (91,366) 

Liabilities for 

Losses on Pre- Liabilities for Post- Loan Guaranties 

(dollars in thousands) 1992 Guaranties, 1991 Guaranties, Liabilities for 

As of September 30, 2021 Present Value Present Value Loan Guaranties 

Loans Obligated Prior to FY 1992 

Legacy Loan Guaranties $ (4,681) $ - $ (4,681) 

Loans Obligated After FY 1991 

Loan Guaranties - 84,028 84,028 

Legacy Loan Guaranties 

Total Liability for Loan Guaranties 

- 166,734 166,734 

$ (4,681) $ 250,762 $ 246,081 

I. SUBSIDY EXPENSE FOR LOAN GUARANTIES BY PROGRAM AND COMPONENT 

(dollars in thousands) Legacy Loan 

As of September 30, 2022 Loan Guaranties Guaranties Total 

Subsidy Expense for New Loan Guaranties Disbursed 

Defaults $ 48,017$ - $ 48,017 

Fees and Other Collections (99,704) - (99,704) 

Other 

Total Subsidy Expense for New Loan Guaranties Disbursed 

6,505 - 6,505 

(45,182) - (45,182) 

Modifications and Reestimates 

Total modifications (2,824) - (2,824) 

Net Interest Rate Reestimates 23,118 10,881 33,999 

Net Technical Reestimates 

Total Net Reestimates 

Total Loan Guaranty Subsidy Expense 

112,082 2,244 114,326 

135,200 13,125 148,325 

$ 87,194$ 13,125$ 100,319 

50 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

J. SCHEDULE FOR RECONCILING THE LOAN GUARANTY LIABILITY 

(dollars in thousands) 

As of September 30

Beginning balance of the loan guaranty liabilities 

2022 

$ 250,762 

2021 

$ 14,976 

Less: claims paid to lenders (721,173) (265,904) 

Add: fees accrued 249,006 281,183 

Add: loans acquired - 159,121 

Add: subsidy expense for guarantied loans disbursed during the year 22,387 25,900 

Less: negative subsidy payments (67,569) (103,385) 

Add: upward reestimates 344,533 371,740 

Less: downward reestimates (196,209) (238,832) 

Subsidy allowance amortized 29,745 5,064 

Loan guaranty modifications (2,824) 899 

Other 

Ending balance of the loan guaranty liability 

(24) 

$ (91,366) 

-

$ 250,762 

K. SUBSIDY RATES BY PROGRAM AND COMPONENT 

Defaults, 

net of 

As of September 30, 2022 recoveries Interest Fees Other Total 

Direct Loans 

Direct Loans 10.17% - (18.23)% - (8.06)% 

Direct Loan Investment Funds 19.02% (6.11)% (16.16)% - (3.25)% 

Direct Loans in Foreign Currencies 39.75% (45.00)% (10.86)% 26.11% 10.00% 

Loan Guaranties 

USAID Mission-led Guaranties 6.11% - (0.74)% - 5.37% 

Loan Guaranties 8.77% - (12.70)% - (3.93)% 

Limited Arbitral Award Coverage 5.98% - (9.67)% - (3.69)% 

 

 

 

(dollars in thousands) Legacy Loan 

As of September 30, 2021 Loan Guaranties Guaranties Total 

Subsidy Expense for New Loan Guaranties Disbursed 

Defaults $ 68,833 $ - $ 68,833 

Fees and Other Collections (193,895) - (193,895) 

Other 47,577 - 47,577 

Total Subsidy Expense for New Loan Guaranties Disbursed (77,485) - (77,485) 

Modifications and Reestimates 

Total modifications 899 - 899 

Interest Rate Reestimates 19,836 34,012 53,848 

Technical Reestimates 115,256 (36,196) 79,060 

Total Net Reestimates 135,092 (2,184) 132,908 

Total Loan Guaranty Subsidy Expense $ 58,506 $ (2,184) $ 56,322 

The subsidy rates presented above are consistent with the estimated subsidy rates published in the Federal Credit 

Supplement to the Budget of the U.S. Government except for differences due to rounding. The published budget 

formulation subsidy rates are notional, for illustrative purposes only, as DFC estimates subsidy on a loan-by-loan 

51 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

L. ADMINISTRATIVE EXPENSES 

 

 

M. LOANS RECEIVABLE 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands) Accumulated 

As of September 30, 2022 Acquisition Cost Depreciation Net Book Value 

Equipment $ 3,925 $ (3,770) $ 155 

Internal-Use Software 9,584 (9,584) -

Total Property and Equipment, Net $ 13,509 $ (13,354) $ 155 

(dollars in thousands) Accumulated 

As of September 30, 2021 Acquisition Cost Depreciation Net Book Value 

Equipment $ 3,925 $ (3,614) $ 311 

Internal-Use Software 

Total Property and Equipment, Net 

9,584 (9,584) -

$ 13,509 $ (13,198) $ 311 

basis at the time of obligation. These rates cannot be applied to the direct loans and loan guaranties disbursed during 

the current reporting year to yield the subsidy expense. The subsidy expense for new loans reported in the current 

year could result from the disbursements of loans obligated in the current and prior fiscal years. Subsidy expense 

reported in the current year also includes the cost of modifications and subsidy reestimates. 

DFC incurs administrative expenses to carry out its credit reform programs. This amount is determined by annual 

appropriation legislation. The administrative expense for direct loan and loan guaranties is $108,597 thousand and 

$93,462 thousand for the period ended September 30, 2022 and 2021, respectively. 

Loans receivable, net, reported on the Balance Sheet for all direct loans and defaulted guaranteed loans receivable 

include the following. 

(dollars in thousands) 

As of September 30 2022 

Beginning balance of the loans receivable, net $ 6,730,788 

Add: loan disbursements 1,953,927 

Less: principal payments received (1,109,368) 

Add: loan guaranty claim payments converted to loans receivable 723,683 

Add: interest accruals 61,576 

Less: fees accrued (5,090) 

Add: capitalized fees to loan principal 20,966 

Less: subsidy expense (14,784) 

Add: negative subsidy payments 127,374 

Less: upward reestimates (269,220) 

Add: downward reestimates 196,334 

Less: subsidy allowance amortization (187,759) 

Loan modifications (637) 

Allowance for loan and interest loss adjustments (704,019) 

Ending balance of loans receivable, net $ 7,523,771 

NOTE 6: GENERAL PROPERTY, PLANT AND EQUIPMENT, NET 

DF͛ν ͽ͋Σ͋ι̯Μ ζιΪζ͋ιχΘ΂ ζΜ̯Σχ ̯Σ͇ ͋θϢΊζ΢͋Σχ ̽ΪΣνΊνχ Ϊ͕ χ·͋ ͕ΪΜΜΪϮΊΣͽ ́ 

52 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

Accumulated 

(dollars in thousands) 

Balance as of October 1, 2021 

Acquisition Cost 

$ 13,509 

Depreciation 

$ (13,198) 

Net Book Value 

$ 311 

Depreciation Expense 

Balance as of September 30, 2022 

-

$ 13,509 

(156) 

$ (13,354) 

(156) 

$ 155 

Accumulated 

(dollars in thousands) 

Balance as of October 1, 2020 

Acqu

$ 

isition Cost 

13,509 

Depreciation 

$ 

 

 (13,027) 

Net B

$ 

ook Value 

 482 

Depreciation Expense 

Balance as of September 30, 2021 $ 

-

 13,509 $ 

(171) 

 (13,198) $ 

(171) 

 311 

(dollars in thousands) 

As of September 30 2022 2021 

Advances for Claim Payments 

Total Advances and Prepayments 

$ 

$ 

 1,247 $ 3,794 

 1,247 $ 3,794 

 

 

 

 

 

 

(dollars in thousands) 

As of September 30 

Intragovernmental 

2022 2021 

 

Unfunded FECA Liability 

Total Intragovernmental 

$ 144 

144 

$ 386 

386 

With the Public 

Federal Employee Benefits Payable 6,149 6,133 

Insurance and Guaranty Program Liabilities 

Total With the Public 

Total Liabilities Not Covered by Budgetary Resources 

 

43,685 

49,834 

49,978 

 

133 

6,266 

6,652 

Total Liabilities Covered by Budgetary Resources 

Total Liabilities Not Requiring Budgetary Resources 

Total Liabilities 

9,369,303 

157,581 

$ 9,576,862 

9,049,701 

159,279 

$ 9,215,632 

Roll forward of general property, plant and equipment, net: 

NOTE 7: ADVANCES AND PREPAYMENTS 

DF͛ν ̯͇ϭ̯Σ̽͋ν ̯Σ͇ ζι͋ζ̯Θ΢͋Σχν ̽ΪΣνΊνχ Ϊ͕ χ·͋ ͕ΪΜΜΪϮΊΣͽ ́ 

DF͛ν ̯͇ϭ̯Σ̽͋ν ̯ι͋ ι͋Μ̯χ͇͋ χΪ χ·͋ ͫ͋ͽ̯̽Θ ͫΪ̯Σ GϢ̯ι̯ΣχΘ ζιΪͽι̯΢ν ̈́ Α·͋ ̯΢ΪϢΣχν ι͋ζι͋ν͋Σχ ̯͇ϭ̯Σ̽͋ν that DFC has 

paid to the bank that processes the claims for the Legacy Loan Guaranties. Because claims need to be paid timely, 

estimates for claims are requested from DFC by the bank, in advance of the claim payment. When a claim payment 

request is received from the bank, DFC pays the request and records the advance. When the bank pays the claims 

and provides the claim payment information to DFC, DFC reduces the advance and recognizes the decrease to the 

loan guaranty liability. 

NOTE 8: LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES 

53 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands) 

As of September 30 2022 2021 

Debt to the Treasury 

Beginning Balance $ 7,723,761 $ 4,677,759 

Net Borrowings 

Ending Balance $ 

1,241,210 3,046,002 

 8,964,971 $ 7,723,761 

(dollars in thousands) 

As of September 30 

Intragovernmental Advances from Others and Deferred Revenue 

2022 

 

2021 

Advances from Other Federal Agencies 

Total Intragovernmental Advances from Others and Deferred Revenue 

$ 3,561 

3,561 

 

$ 5,053 

5,053 

With the Public Advances from Others and Deferred Revenue 

Finance Retainer Fees and Deferred Facility Fees 127,320 127,750 

Rent Incentives 

Total With the Public Advances from Others and Deferred Revenue 

Total Advances from Others and Deferred Revenue 

14,194 

141,514 

$ 145,075 

12,791 

140,541 

$ 145,594 

Liabilities covered by budgetary resources consist of liabilities incurred which are covered by realized budgetary 

resources as of the Balance Sheet date. Budgetary resources encompass not only new budget authority but also 

other resources available to cover liabilities for specified purposes in a given year. Liabilities are considered covered 

by budgetary resources if they are to be funded by permanent indefinite appropriations, which have been enacted 

and signed into law and are available for use as of the Balance Sheet date, provided that the resources may be 

apportioned by OMB without further action by the Congress and without a contingency having to be met first. DF͛ν 

liabilities covered by budgetary resources primarily consist of borrowings payable to Treasury and downward 

reestimates payable to Treasury. The downward reestimates liability is considered a liability covered by budgetary 

resources because the balance is supported by permanent indefinite appropriations, to be apportioned by OMB 

without further action by the Congress and without a contingency having to be met first. 

Liabilities not covered by budgetary resources require future congressional action whereas liabilities covered by 

budgetary resources reflect prior congressional action. Regardless of when the congressional action occurs, when 

the liabilities are liquidated, Treasury will finance the liquidation in the same way that Treasury finances all other 

disbursements, which is to borrow from the public if the Government has a budget deficit, and to use current receipts 

if the Government has a budget surplus. DFC͛ν ΜΊ̯̼ΊΜΊχΊ͋ν ΣΪχ ̽Ϊϭ͋ι͇͋ ̼Θ ̼Ϣ͇ͽ͋χ̯ιΘ ι͋νΪϢι̽͋ν ζιΊ΢̯ιΊΜΘ ̽ΪΣνΊνχ Ϊ͕ 

insurance claims payable and accrued unfunded annual leave ΊΣ FΧ 2022 ̈́ ͜Σ FΧ 2021 DF͛ν ΜΊ̯̼ΊΜΊχΊ͋ν ΣΪχ ̽Ϊϭ͋ι͇͋ ̼Θ 

budgetary resources primarily consisted of unfunded annual leave. During FY 2022, DFC had increased liabilities for 

insurance primarily due to the wartime activities in Ukraine impacting insured energy projects. 

Liabilities not requiring budgetary resources consist mostly of unearned revenues that will be earned by providing 

services by the passage of time. 

NOTE 9: DEBT 

DF͛ν ͇̼͋χ ̽Ϊ΢͋ν ͕ιΪ΢ ͇Ίι͋̽χ ̼ΪιιΪϮΊΣͽν ͕ιΪ΢ χ·͋ Ε ̈́΋ ̈́ Αι̯͋νϢιΘ χΪ ͕ϢΣ͇ χ·͋ ζΪιχΊΪΣ Ϊ͕ ͇Ίι͋̽χ ΜΪ̯Σν ΣΪχ ̽Ϊϭ͋ι͇͋ ̼Θ 

subsidy appropriations, disbursements of downward subsidy reestimates, and pay claims in excess of the amount of 

subsidy and collections maintained in the non-budgetary financing funds. In FY 2022, DFC increased borrowings to 

finance the increased direct loans portfolio. 

NOTE 10: ADVANCES FROM OTHERS AND DEFERRED REVENUE 

DF͛ν ̯͇ϭ̯Σ̽͋ν ͕ιΪ΢ Ϊχ·͋ιν ̯Σ͇ ͇͕͋͋ιι͇͋ ι͋ϭ͋ΣϢ͋ν ̽ΪΣνΊνχν Ϊ͕ ́ 

54 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

(dollars in thousands) 

As of September 302022 2021 

Entity 

Intragovernmental Liabilities 

Financing Funds Payable to the General Fund Receipt Account $ (392,542) $ (415,130) 

Non-Entity 

Intragovernmental Assets 

General Fund Receipt Accounts Receivable 392,542 415,130 

Intragovernmental Liabilities 

Liability to the General Fund of the US Government for Other 

 Non-Entity Assets - Downward Reestimate Payable to Treasury 

Balance Sheet Reported Payable 

(392,542) 

$ (392,542) 

(415,130) 

$ (415,130) 

 

 

 

 

 

 

DFC charges retainer and other fees in conjunction with each project. The fees are received in advance and earned 

over time. Facility fees collected exceeding $50,000 are amortized over the life of the project. DFC maintains fees 

for use in future years. Advances and deferred revenue also consist of unearned rent incentives that are amortized 

against rent expense, as well as advances from other Federal agencies for reimbursable agreements. 

NOTE 11: NON-ENTITY REPORTING 

Non-entity assets are assets held by DFC but not available to be used by DFC. These are funds that DFC has 

transferred or will transfer to Treasury general fund receipt accounts for downward reestimates and negative 

νϢ̼νΊ͇Θ ̯΢ΪϢΣχν ͕Ϊι DF͛ν ͇Ίι͋̽χ ΜΪ̯Σ ̯Σ͇ ΜΪ̯Σ ͽϢ̯ι̯ΣχΊ͋ν ΢̯͇͋ ϢΣ͇͋ι F·!΂ ̯ν Ϯ͋ΜΜ ̯ν ͋ϳcess funds related to direct 

loan and loan guarantees made prior to FY 1992. During the year, DFC transfers funds to Treasury general fund 

receipt accounts, and at year-end Treasury sweeps the funds, reducing the balance of fund balance with Treasury in 

the general fund receipts accounts to zero. At year-end, DFC accrues current year reestimates. Loans and loan 

guaranties made after FY 1991 that are covered under FCRA are reestimated each year. The loans and loan 

guaranties where the reestimates indicate that the amount of subsidy needed will be less than the prior year, or 

where the present value of the cash flows is positive, is a downward reestimate, requiring funds to be transferred 

to Treasury. DFC cannot transfer these funds until they receive authority from OMB, which will occur in the 

succeeding fiscal year. When recording the downward reestimate accrual, DFC records a payable to the Treasury 

general fund receipt account for the downward reestimates payable in its financing funds. DFC also records an 

̯̽̽ΪϢΣχν ι͋̽͋Ίϭ̯̼Μ͋ ΊΣ χ·͋ ͽ͋Σ͋ι̯Μ ͕ϢΣ͇ ι͋̽͋Ίζχ ̯̽̽ΪϢΣχ ͕Ϊι χ·͋ ι͋̽͋Ίϭ̯̼Μ͋ ͕ιΪ΢ DF͛ν ͕ΊΣ̯Σ̽ΊΣͽ ͕ϢΣ͇ν ̈́ FΪι 

consolidated financial statements presentation, DFC eliminates the payables to the non-entity fund and the nonentity Treasury general fund receipt accounts receivable from the DFC entity funds, leaving a payable to the General 

Fund of the US Government for the downward reestimates. The downward reestimates payable is a current liability 

to be paid in the subsequent fiscal year. The downward reestimates liability is considered a liability covered by 

budgetary resources because the balance is supported by permanent indefinite appropriations, to be apportioned 

by OMB without further action by the Congress and without a contingency having to be met first. The table below 

shows the balance of the entity and non-entity assets and liabilities for the downward reestimate accrued as of 

September 30, 2022 and 2021. 

NOTE 12: LIABILITY FOR CAPITAL TRANSFERS TO THE GENERAL FUND OF THE 

TREASURY 

The Liability for Capital Transfers to the General Fund of the Treasury had a balance of zero in FY 2022, and a balance 

of $656,763 thousand in FY 2021. The liability in FY 2021 represented future payments due to Treasury from future 

collections in the liquidating funds that account for the loans and loan guaranties made prior to FY 1992. Treasury 

guidance allows agencies to close revenue and expense activity in liquidating funds to a liability account for the 

future amounts to be paid to Treasury in the form of a capital transfer, or to cumulative results of operations. In FY 

55 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

(dollars in thousands) 

As of September 30 

Intragovernmental: 

2022 

 

2021 

 

Other Liabilities 

Employer Contributions & Payroll Taxes Payable $ 287 $ 639 

Unfunded FECA Liability 

Total Intragovernmental 

144 

431 

386 

1,025 

With the Public: 

Accrued Funded Payroll and Benefits 4,359 5,972 

Liability for Deposit Funds 

Total With the Public 

Total Other Liabilities 

-

4,359 

$ 4,790 

91 

6,063 

$ 7,088 

 

(dollars in thousands) 

As of September 30 2022 2021 

Disbursements in transit $ 6,771 $ -

Other 

Total Accounts Payable $ 

274 1 

 7,045 $ 1 

(dollars in thousands) 

As of September 30, 2022 2021 

Accrued Unfunded Annual Leave $ 6,149 $ 5,705 

Employer Contributions and Payroll Taxes Payable 98 1,354 

Unfunded Actuarial FECA Liability 

Total Federal Employee Benefits Payable $ 

- 428 

 6,247 $ 7,487 

2022, DFC reduced the FY 2021 liability balance and increased the balance in cumulative results of operations 

χ·ιΪϢͽ· ̯ ̽·̯Σͽ͋ ΊΣ ̯̽̽ΪϢΣχΊΣͽ ζιΊΣ̽ΊζΜ͋ ̈́ Α·͋ ̽·̯Σͽ͋ ΊΣ ̯̽̽ΪϢΣχΊΣͽ ζιΊΣ̽ΊζΜ͋ Ίν ν·ΪϮΣ ΪΣ DF͛ν ΪΣνΪΜΊ͇̯χ͇͋ 

Statements of Changes in Net Position as an adjustment to the FY 2022 beginning balance of Cumulative Results of 

Operations. 

NOTE 13: OTHER LIABILITIES 

DF͛ν Ϊχ·͋ι ΜΊ̯̼ΊΜΊχΊ͋ν ̽ΪΣνΊνχν Ϊ͕ the following current liabilities: 

NOTE 14: ACCOUNTS PAYABLE 

DF͛ν ̯̽̽ΪϢΣχν ζ̯Θ̯̼Μ͋ν ̽ΪΣνΊνχ Ϊ͕ ̯ ͇Ίι͋̽χ ΜΪ̯Σ ͇Ίν̼Ϣιν͋΢͋Σχ ΊΣ χι̯ΣνΊχ ̯Σ͇ Ϊχ·͋ι ζ̯Θ̯̼Μ͋ν ϮΊχ· χ·͋ ζϢ̼ΜΊ̽ ͕Ϊι 

services as of September 30, 2022. In FY 2021, accounts payable consisted of other payables with the public for 

services. 

NOTE 15: FEDERAL EMPLOYEE BENEFITS PAYABLE 

Federal employee benefits payable consists of: 

DFC employees accrue annual leave, which DFC records as a liability to be funded in future years. FECA provides 

coverage to Federal civilian employees who have sustained work-related injuries or disease by providing appropriate 

monetary and medical benefits and help in returning to work. The program is funded by DOL, and DFC is charged by 

D͸ͫ ͕Ϊι FE! ζ̯Θ΢͋Σχν ΢̯͇͋ ΪΣ DF͛ν ̼͋·̯Μ͕ ̈́ Α·͋ FE! ΜΊ̯̼ΊΜΊχΘ ̯̼Ϊϭ͋ Ίν χ·͋ ̯̽χϢ̯ιΊ̯Μ ͋νχΊ΢̯χ͇͋ ̯΢ΪϢΣχ χΪ ̼͋ 

provided in the future. 

56 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands) 

As of September 30 2022 2021 

Unearned Insurance Premiums $ 12,507 $ 13,594 

Unpaid Insurance Claims 43,685 133 

Total Insurance Program Liabilities: $ 56,192 $ 13,727 

NOTE 16: INSURANCE AND GUARANTY PROGRAM LIABILITIES 

DFC provides Political Risk Insurance for overseas investments against any or all political risks such as currency 

inconvertibility and transfer restrictions, expropriation, war, terrorism, civil disturbance, breach of contract, or nonhonoring of financial obligations. The initial term is typically 3 to 20 years. Policies are renewable yearly at the option 

of the insured. Insurance premiums received are amortized over the coverage period. Insurance coverage includes: 

1) the investor from increased restrictions on the 

ΊΣϭ

Insurance coverage against inconvertibility protects 

͋νχΪι͛ν ̯̼ΊΜΊχΘ χΪ ̽ΪΣϭ͋ιχ ΜΪ̯̽Μ ̽Ϣιι͋Σ̽Θ ΊΣχΪ Ε ̈́΋ ̈́ ͇ΪΜΜ̯ιν ̈́ ͜Σ̽ΪΣϭ͋ιχΊ̼ΊΜΊχΘ ΊΣνϢι̯Σ̽͋ ͇Ϊ͋ν ΣΪχ ζιΪχ͋̽χ 

̯ͽ̯ΊΣνχ ͇͋ϭ̯ΜϢ̯χΊΪΣ Ϊ͕ ̯ ̽ΪϢΣχιΘ͛ν ̽Ϣιι͋Σ̽Θ ̈́ 

2) Expropriation coverage provides compensation for losses due to confiscation, nationalization, or other 

governmental actions that deprive investors of their fundamental rights in the investment. 

3) Guaranties issued on behalf of a U.S. exporter of goods or services, or a U.S. contractor in favor of a foreign 

government buyer can be covered against the risk of a wrongful calling. The guaranties usually are in the 

form of irrevocable, on-demand, standby letters of credit. A wrongful calling is one that is not justified by 

the terms of the underlying contract, or the invitation for bids. 

4) Insurance against political violence insures investors against losses caused by politically motivated acts of 

violence (war, revolution, insurrection, or civil strife, including terrorism and sabotage). 

5) Reinsurance can increase underwriting capacity and support development in countries where investors 

have difficulty obtaining political risk insurance, DFC can reinsure licensed U.S. and international insurance 

companies. 

6) DFC political risk insurance supports U.S. capital market financing structures that catalyze private capital in 

emerging markets. 

In general, pricing is determined based on the individual coverage issues and the unique risk profile of the investment 

ζιΪΖ͋̽χ ̈́ DF͛ν ̽Ϊνχν Ϊ͕ χ·͋ ͜ΣνϢι̯Σ̽͋ ζιΪͽι̯m are $54,989 thousand and $8,862 thousand for the years ended 

September 30, 2022 and 2021, respectively. DFC collected $21,901 thousand and $18,916 thousand in insurance 

ζι͋΢ΊϢ΢ν ͕Ϊι χ·͋ Θ̯͋ιν ͋Σ͇͇͋ ΋͋ζχ͋΢̼͋ι 30΂ 2022 ̯Σ͇ 2021΂ ι͋νζ͋̽χΊϭ͋ΜΘ ̈́ DF͛ν ͜ΣνϢι̯Σce program is self-funded, 

uses no appropriated funds in the administration of the program, and did not borrow any funds from the Treasury 

for the years ended September 30, 2022 and 2021. 

DFC is able to invest proceeds from its insurance program in Treasury non-marketable, market-based securities. See 

Note 3 for additional information. 

Under most DFC insurance contracts, investors may obtain all coverages, but claim payments may not exceed the 

single highest coverage amount. Claim payments are limited by the value of the investment and the amount of 

̽Ϣιι͋Σχ ̽Ϊϭ͋ι̯ͽ͋ ΊΣ ͕Ϊι̽͋ ̯χ χ·͋ χΊ΢͋ Ϊ͕ χ·͋ ΜΪνν ̯Σ͇ ΢̯Θ ̼͋ ι͇͋Ϣ͇̽͋ ̼Θ χ·͋ ΊΣνϢι͇͋͛ν ι͋̽Ϊϭ͋ιΊ͋ν ͕ιΪ΢ Ϊχ·͋ι νΪϢι̽es. 

͜Σ ̽͋ιχ̯ΊΣ ΊΣνχ̯Σ̽͋ν΂ DF͛ν ι͋θϢΊι͋΢͋Σχ χΪ ζ̯Θ Ϣζ χΪ χ·͋ νΊΣͽΜ͋ ·Ίͽ·͋νχ ̽Ϊϭ͋ι̯ͽ͋ ̯΢ΪϢΣχ ΢̯Θ ̼͋ ι͇͋Ϣ͇̽͋ ̼Θ νχΪζloss and risk-sharing agreements. Finally, losses on insurance claims may be reduced by recoveries by DFC as 

νϢ̼ιΪͽ͋͋ Ϊ͕ χ·͋ ΊΣνϢι͇͋͛ν ̽Μ̯Ί΢ against the host government or payments from reinsurance policies obtained by DFC 

from commercial entities. Payments made under insurance contracts that result in recoverable assets are included 

in Accounts Receivable net of an allowance for uncollectible amounts. 

57 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

(dollars in thousands) 2022 2021 

Unpaid Insurance Claims as of October 1 $ 133 $ -

Claims Expense 43,837 259 

Less: Claims Paid (285) (126) 

Unpaid Insurance Claims as of September 30 $ 43,685 $ 133 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DF ·̯ν ϢΣζ̯Ί͇ ΊΣνϢι̯Σ̽͋ ̽Μ̯Ί΢ν χ·̯χ ̯ι͋ ι͋̽Ϊι͇͇͋ ̯ν ϢΣ͕ϢΣ͇͇͋ ΜΊ̯̼ΊΜΊχΊ͋ν ̈́ DF͛ν ΜΊ̯̼ΊΜΊχΘ ͕Ϊι ϢΣζ̯Ί͇ ΊΣνϢι̯Σ̽͋ ̽Μ̯Ί΢ν 

and activity for FY 2022 and 2021 are as follows: 

The increase in unpaid insurance claims in FY 2022 is primarily related to a reported insurance claim for political 

violence in the Ukraine due to the current war in Ukraine. The claim expense for the Ukraine policy includes the 

gross claim amount of $45 million less $4.5 million in estimated recoveries. The claims paid in FY 2022 and FY 2021 

were all related to contracts that were started under DFC. 

The liability for losses on remaining coverage as of September 30, 2022 and 2021, represents the estimated amounts 

to be paid to settle claims, including claim adjustment expenses, for the remaining open arrangement period in 

excess of the sum of both: 

a) related unearned premiums as of the end of the reporting period, and
 

b) premiums due after the end of the reporting period that relate to the remaining open arrangement period.
 

The open arrangement period is the elected coverage period under the insurance policy, since the elected coverage 

period is the period the insurance is in-force and unexpired. As of September 30, 2022 and 2021, DFC had no liability 

for losses on remaining coverage. 

In addition to requiring formal applications for claimed compensation, DFC͛ν ̽ΪΣχι̯̽χν ͽ͋Σ͋ι̯ΜΜΘ ι͋θϢΊι͋ ΊΣϭ͋νχΪιν χΪ 

notify DFC promptly of host government action that the investor has reason to believe is or may become a claim. 

Compliance with this notice provision sometimes results in the filing of notices of events that do not mature into 

claims. 

DFC͛ν ̽Ϣιι͋Σχ ͋ϳζΪνϢι͋ ͕Ϊι ̯ΜΜ policies in force for the elected coverage periods, or Current Exposure to Claims as of 

September 30, 2022 and 2021 was $3.5 billion and $2.6 billion, respectively. 

NOTE 17: LEASES 

OPERATING LEASES 

DFC leases commercial facilities under a multi-year operating lease agreement, as amended, which expires in 

February 2035. Under the terms of the lease, DFC receives a tenant improvement allowance for space refurbishment 

as well as other incentives. The value of these incentives is deferred in the Consolidated Balance Sheets and are 

amortized to recognize rent expense on a straight-line basis over the life of the lease. In FY 2022, DFC extended the 

lease approximately six years and leased additional space to support expanding administrative offices. Rental 

expense was approximately $8.3 million and $6.4 million for the year ended September 30, 2022 and 2021, 

respectively. The following table presents future non-cancelable rental payments. 

58 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

(dollars in thousands) With the Public Lease 

For the Years Ending: 

2023 

Payments 

$ 9,661 

2024 10,931 

2025 12,024 

2026 12,323 

2027 12,631 

After 2027 

Total Future Lease Payments	 

96,137 

$ 153,707 

A.	 NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT FORWARD 

(dollars in thousands) 

For the Years Ended September 30 2022	 2021 

Non-Budgetary Non-Budgetary
 

Credit Reform Credit Reform 

Financing Financing
 

Budgetary Accounts Budgetary Accounts 

Unobligated Balance, Prior Year $ 6,521,648 $ 1,316,876 $ 6,496,171 $ 618,729 

Borrowing Authority Withdrawn - (644,589) - (335,992) 

Repayments of Borrowings to 

Treasury - (505,860) (155,200) 

Capital Transfers to the General Fund 

 of the U.S. Treasury (8,077) - (235,383) (20,145) 

Recoveries of Prior Year Obligations 24,351 649,653 46,140 336,148 

Transfers-in of Prior Year Authority 9,322 - 30,000 -

Cancelled Authority - - (116) -

Unobligated Balance from Prior Year 

 Budget Authority, Net $ 6,547,244 $ 816,080 $ 6,336,812 $ 443,540 

 

 

 

 

 

 

 

 

 

NOTE 18: BUDGETARY RESOURCES 

Differences between the Unobligated Balance, end of year, and the Unobligated Balance from Prior Year Budget 

Authority, as presented on the FY 2021 Combined Statement of Budgetary Resources are primarily due to the 

following: 

•	 Borrowing Authority Withdrawn: At the end of each year, borrowing authority from the prior year is 

withdrawn, and new borrowing authority is received at the beginning of the next year. 

•	 Repayments of Borrowings to Treasury: DFC repays borrowings from Treasury for its direct loan and loan 

guaranty programs, reducing budget authority. 

•	 Capital Transfers to the General Fund of the U.S. Treasury: The excess funds held by liquidating funds for 

direct loan and loan guaranty programs made before FY 1992, are transferred to Treasury each year, 

reducing the budget authority. 

•	 Recoveries of Prior Year Obligations: These include reductions of obligations that made in previous years, 

mostly in the direct loan program. 

•	 Transfers-in of Prior Year Authority: DFC received funds from USAID transferred in to support direct loans 

and loan guaranties initially made in prior years. 

•	 Cancelled Authority is authority that no longer available to DFC. 

59 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

B. PERMANENT INDEFINITE APPROPRIATIONS 

 

 

 

 

 

 

 

 

C. ANNUAL APPROPRIATIONS 

 

 

D. BORROWING AUTHORITY 

 

 

 

 

E. USE OF UNOBLIGATED BALANCES 

 

 

 

 

 

 

 

 

F. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

 

(dollars in thousands) 

For the Year Ended September 30, 2022Intragovernmental With the Public Total 

Unpaid $ 797,106 $ 7,189,338 $ 7,986,444
 

Paid 

Total Obligations $ 

- 1,247 1,247
 

797,106 $ 7,190,585 $ 7,987,691 

(dollars in thousands) 

For the Year Ended September 30, 2021 Intragovernmental With the Public Total 

Unpaid $ 898,540 $ 4,693,153 $ 5,591,693
 

Paid 

Total Obligations $ 

- 3,794 3,794
 

 898,540 $ 4,696,947 $ 5,595,487 

FCRA authorizes permanent, indefinite appropriations from Treasury, as appropriate, to carry out all obligations 

resulting from the financing program. Permanent indefinite authority is available to fund any reestimated increase 

of subsidy costs that occurs after the year in which a loan is disbursed. Reestimated reductions of subsidy costs are 

returned to Treasury and are unavailable to DFC. 

The BUILD Act established a fund which shall be available for discharge of liabilities under insurance or reinsurance 

or under similar predecessor authority. All valid claims arising from insurance issued by DFC constitute obligations 

on which the full faith and credit of the United States of America is pledged for full payment. DFC is authorized by 

νχ̯χϢχ͋ χΪ ̼ΪιιΪϮ ͕ιΪ΢ Αι̯͋νϢιΘ ν·ΪϢΜ͇ ͕ϢΣ͇ν ΊΣ DF͛ν ι͋ν͋ιϭ͋ν ̼͋ ΊΣνϢ͕͕Ί̽Ί͋Σχ χΪ ͇Ίν̽·̯ιͽ͋ Ϊbligations arising under 

its insurance program. 

DFC receives an annual appropriation for operations ̯Σ͇ ζιΪͽι̯΢ν ̈́ DF͛ν Ϊ͕͕ν͋χχΊΣͽ ̽ΪΜΜ͋̽χΊΪΣν derived from 

investment earnings, non-insurance fees, and negative subsidy are to be Ϣν͇͋ χΪ ι͇͋Ϣ̽͋ DF͛ν ̯ΣΣϢ̯Μ ̯ζζιΪζιΊ̯χΊΪΣ ̈́ 

DFC Ίν ι͋θϢΊι͇͋ χΪ ̼ΪιιΪϮ ͕ιΪ΢ Αι̯͋νϢιΘ͛ν Ϣι̯͋Ϣ Ϊ͕ χ·͋ FΊν̯̽Μ ΋͋ιϭΊ̽͋ χΪ ͕ϢΣ͇ χ·͋ ϢΣνϢ̼νΊ͇ΊΣ͇͋ ζΪιχΊΪΣ Ϊ͕ ͇Ίι͋̽χ 

loan disbursements. DFC is authorized to borrow funds to disburse negative subsidy or pay claims exceeding the 

amount of subsidy and collections maintained in the financing funds. As of September 30, 2022 and 2021, DFC had 

$8,545 million and $8,084 million, respectively, in borrowing authority carried over to fund direct loans and pay 

future claims. 

Unobligated balances on the Combined Statements of Budgetary Resources includes both expired and unexpired 

̯Ϣχ·ΪιΊχΘ ̈́ ΕΣ͋ϳζΊι͇͋ ̯Ϣχ·ΪιΊχΘ ΊΣ̽ΜϢ͇͋ν ̼Ϊχ· ̯ζζΪιχΊΪΣ͇͋ ̯Σ͇ ϢΣ̯ζζΪιχΊΪΣ͇͋ ͕ϢΣ͇ν ̈́ DF͛ν ̯͇΢ΊΣΊνχι̯χΊϭ͋ spending 

authority is available for five additional fiscal years after the year of expiration for recording and adjusting previously 

ι͋̽Ϊι͇͇͋ Ϊ̼ΜΊͽ̯χΊΪΣν ̼Ϣχ ̯̽ΣΣΪχ ̼͋ Ϣν͇͋ χΪ ͕ϢΣ͇ Σ͋Ϯ Ϊ̼ΜΊͽ̯χΊΪΣν ̈́ !ν νζ͋̽Ί͕Ί͇͋ ΊΣ DF͛ν ̯ΣΣϢ̯Μ ̯ζζιΪζιΊ̯χΊΪΣ΂ DF͛ν 

equity aϢχ·ΪιΊχΘ Ίν ̯ϭ̯ΊΜ̯̼Μ͋ ͕Ϊι χ·͋ χ͋ι΢ Ϊ͕ χ·͋ ϢΣ͇͋ιΜΘΊΣͽ ͋θϢΊχΘ ΊΣϭ͋νχ΢͋Σχ΂ ̯Σ͇ DF͛ν ͇Ίν̼Ϣιν͋΢͋Σχ ̯Ϣχ·ΪιΊχΘ ͕Ϊι 

program funds supporting the credit programs is available for eight additional fiscal years after the year of expiration. 

ΕΣ͇͋ι DF͛ν ̯ζζιΪζιΊ̯χΊΪΣ law (Public Law 117-103, Section 7011), funds that were originally obligated during the 

period of availability, and deobligated in a subsequent fiscal year, are available for obligation for an additional four 

years. Funds remaining after the period of availability become cancelled authority and are returned to Treasury. 

Undelivered Orders include loan and related subsidy obligations that have been issued but not disbursed and 

obligations for goods and services ordered that have not been received. 

60 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

G. EXPLANATION OF DIFFERENCES BETWEEN THE COMBINED STATEMENT OF BUBDGETARY 

RESOURCES AND THE BUDGET OF THE U.S. GOVERNMENT 

 

 

New (Restated) 

Obligations Distributed 

(dollars in millions) Budgetary and Upward Offsetting 

For the Year Ended September 30, 2021 Resources Adjustments Receipts * Net Outlays 

Combined Statement of Budgetary 

Resources $ 13,067 $ 5,228 $ 323 $ 2,658 

Expired Funds not reported in 2023 

President's Budget (34) - - (20) 

Variances as a Result of OPIC funds 

transferred to DFC - - - (6) 

Timing - - 18 -

Other - (1) - -

Budget of the U.S. Government $ 13,033 $ 5,227 $ 341 $ 2,632 

 

 

 

 

 

* Α·͋ DΊνχιΊ̼Ϣχ͇͋ ͸͕͕ν͋χχΊΣͽ ·͋̽͋Ίζχν ·̯ϭ͋ ̼͋͋Σ ι͋νχ̯χ͇͋ ͕ιΪ΢ χ·͋ ζι͋ϭΊΪϢν Θ̯͋ι͛ν ι͋ζΪιχ͇͋ ̯΢ΪϢΣχ χΪ ̯ΜΊͽΣ ϮΊχ· χ·͋ FΧ 2021 ιestated 

Statement of Budgetary Resources. See Note 19, Restatement. 

Agencies are required to explain material differences between their Combined Statement of Budgetary Resources 

(΋·) ̯Σ͇ χ·͋ Ϣ͇ͽ͋χ Ϊ͕ χ·͋ Ε ̈́΋ ̈́ GΪϭ͋ιΣ΢͋Σχ ̈́ Α·Ίν ͇Ίν̽ΜΪνϢι͋ ι͋̽ΪΣ̽ΊΜ͋ν χ·͋ ζιΊΪι Θ̯͋ι͛ν ΋χ̯χ͋΢͋Σχ Ϊ͕ Ϣ͇ͽ͋χ̯ιΘ 

·͋νΪϢι̽͋ν χΪ χ·͋ ̯̽χϢ̯Μ ̼̯Μ̯Σ̽͋ν ζ͋ι χ·͋ Ϣζ̽Ϊ΢ΊΣͽ Θ̯͋ι͛ν budget. 

FΪι ͋ϳ̯΢ζΜ͋΂ DF͛ν FΧ 2022 ΋· ϮΊΜΜ ̼͋ ι͋̽ΪΣ̽ΊΜ͇͋ χΪ χ·͋ ̯̽χϢ̯Μ ̼̯Μ̯Σ̽͋ν ζ͋ι χ·͋ 2024 Ϣ͇ͽ͋χ Ϊ͕ χ·͋ Ε ̈́΋ ̈́ GΪϭ͋ιΣ΢͋Σχ 

which will be released in FY 2023. The Budget with the actual amounts for this current year will be available later at 

https://www.whitehouse.gov/omb/budget/. 

Balances reported in the FY 2021 Combined ΋χ̯χ͋΢͋Σχ Ϊ͕ Ϣ͇ͽ͋χ̯ιΘ ·͋νΪϢι̽͋ν ̯Σ͇ χ·͋ ι͋Μ̯χ͇͋  ́ι͋νΊ͇͋Σχ͛ν Ϣ͇ͽ͋χ 

are shown in the table above for Budgetary Resources, Obligations, Distributed Offsetting Receipts, Net Outlays, and 

any related differences. The differences reported are due to differing reporting requirements for expired and 

unexpired appropriations between the Treasury guidance used to prepare the SBR and the OMB guidance used to 

ζι͋ζ̯ι͋ χ·͋  ́ι͋νΊ͇͋Σχ͛ν Ϣ͇ͽ͋χ ̈́ Α·͋ ΋· ΊΣ̽ΜϢ͇͋ν ̼Ϊχ· ϢΣ͋ϳζΊι͇͋ ̯Σ͇ ͋ϳζΊι͇͋ ̯ζζιΪζιΊ̯χΊΪΣν΂ Ϯ·ΊΜ͋ χ·͋  ́ι͋νΊ͇͋Σχ͛ν 

Budget discloses only unexpired budgetary resources that are available for new obligations. Other minor differences 

are the result of rounding variances. 

NOTE 19: RESTATEMENT 

In FY 2021 DFC included as part of the Distributed Offsetting Receipts on the Combined Statement of Budgetary 

·͋νΪϢι̽͋ν΂ χ·͋ ̯΢ΪϢΣχν χι̯Σν͕͋ιι͇͋ χΪ χ·͋ D͋ζ̯ιχ΢͋Σχ Ϊ͕ Αι̯͋νϢιΘ ͕ιΪ΢ DF͛ν ΜΊθϢΊ͇̯χΊΣͽ ̯̽̽ΪϢΣχν ̈́ DF͛ν 

liquidating accounts support the direct loans and loan guaranties that were made by USAID prior 1992 and were 

transferred into DFC. The Department of Treasury considers the transferred funds to be repayments of capital 

investments instead of distributed offsetting receipts. FY 2021 was the first year that DFC transferred funds from the 

liquidating accounts. The restatement details are provided below for the FY 2021 Combined Statement of Budgetary 

Resources. The restatement impacted the explanation of the differences between the Combined Statement of 

Budgetary Resources and the Budget of the U.S. Government in Note 18, and the FY 2021 reconciliation of the net 

cost of operations to net outlays in Note 20. 

2021 Budgetary 

(dollars in thousands) As Previously 2021 Budgetary 

For the Period Ended September 30, 2021 Reported Adjustments As Restated 

Outlays (Net) and Disbursements (Net) 

Outlays, net $ 24,442 $ - $ 24,442 

Distributed Offsetting Receipts (783,325) 460,517 (322,808) 

Agency Outlays, Net $ (758,883) $ 460,517 $ (298,366) 

61 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

NOTE 20: RECONCILIATION OF NET COST OF OPERATIONS TO NET OUTLAYS 

The Net Cost to Net Outlays Reconciliation schedule reconciles the Net Cost (reported in the Statements of Net Cost) 

to the Net Outlays (reported in the Combined Statements of Budgetary Resources). The reconciliation clarifies the 

relationship between budgetary and proprietary accounting information. Reconciliation items included: 1) 

Transactions which did not result in an outlay but did result in a cost; and 2) Unpaid expenses included in the net 

cost in this reporting period but not yet included in outlays. Components of net cost that are not part of net outlays 

are most commonly (1) the result of allocating assets to expenses over more than one reporting period (e.g., 

depreciation); (2) the temporary timing differences between outlays/receipts and the operating expense/revenue 

during the period; and (3) cost financed by other Federal entities (imputed inter-entity cost). The analysis below 

illustrates this reconciliation by listing the key differences between net cost and net outlays. In accordance with A136 guidance, the presentation of the Reconciliation of Net Costs of Operations to Net Outlays excludes financing 

funds activity for programs subject to FCRA. Line items presented below, such as the Net Cost as well as the increases 

and decreases in assets and liabilities do not include financing funds and cannot be compared to the Consolidated 

Statements of Net Cost and the Consolidated Balance Sheets. Loans Receivable and Loan Guaranty Liability activity 

is reported below for the liquidating funds for loans and loan guaranties made prior to FY 1992. 

In FY 2022 and 2021, the key reconciling differences between the net cost and net outlays for DFC included: (1) the 

accrual of the reestimates in the program funds. The accruals impact the costs but have an impact on the net outlays 

in the succeeding year; (2) collections of pre-1992 loans receivable that are recorded as offsets to net outlays, but 

have no impact on the net cost; (3) a decrease in the prior year subsidy payable from the DFC credit program funds 

to the DFC financing funds. The subsidy was recorded as a payable in the prior year and paid in the current year, 

which impacts the net outlays, but has no current year impact on the net cost; (4) transfers in without 

reimbursement represent DFC transfers of funds into the operating funds that do not have an impact on the net cost 

of operations, but are included in net outlays; and (5) distributed offsetting receipts which are funds that DFC has 

sent to the General Fund of the Treasury for its credit programs under FCRA. These amounts reduce the net outlays 

on the Combined Statements of Budgetary Resources, but have no impact on the net cost to DFC. 

The FY 2021 reconciliation was reclassified for consistent presentation to FY 2022. The reclassification did not impact 

the net cost of operations or net outlays. The FY 2021 reconciliation also includes a restatement of the Distributed 

Offsetting Receipts line as explained in Note 19. 

62 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

(dollars in thousands) IntraFor the Period Ended September 30, 2022 governmental With the Public Total 

Net Cost (115,898) 334,924 219,026 

Components of Net Cost That Are Not Part of Net Outlays: 

Property and Equipment Depreciation - (156) (156) 

Year-end Credit Reform Subsidy Accrual Reestimates (221,211) - (221,211) 

Gains/Losses on Investments - 6,723 6,723 

Increase/(decrease) in assets: 

Accounts Receivable, Net - 1,422 1,422 

Loans Receivable, net - (5,828) (5,828) 

Investments, net 1,529 - 1,529 

Advances and Prepayments - (822) (822) 

Negative Loan Guaranty Liability - (4,681) (4,681) 

(Increase)/decrease in liabilities: 

Accounts Payable - (273) (273) 

Subsidy Payable to the Financing Account 581,968 - 581,968 

Federal Employee Benefits Payable - 1,239 1,239 

Loan Guaranty Liability - - -

Insurance and Guaranty Program Liabilities - (42,465) (42,465) 

Advances from Others and Deferred Revenue 1,492 (1,170) 322 

Other Liabilities 593 1,704 2,297 

Other Financing Sources: 

Imputed Costs (3,520) - (3,520) 

Total Components of Net Cost That Are Not Part of Net 

Outlays 360,851 (44,307) 316,544 

Components of Net Outlays That Are Not Part of Net 

Cost: 

Acquisition of Investments - 78,172 78,172 

Repayment of Investment Assets - (5,276) (5,276) 

Total Components of Net Outlays That Are Not Part of 

Net Cost - 72,896 72,896 

Financing Sources: 

Transfers in without reimbursement (198,340) - (198,340) 

Total Financing Sources (198,340) - (198,340) 

Miscellaneous Items: 

Distributed Offsetting Receipts (426,222) - (426,222) 

Total Miscellaneous Items (426,222) - (426,222) 

Net Outlays (379,609) 363,513 (16,096) 

Agency Outlays, Net (16,096) 

63 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

(Restated) 

(dollars in thousands) Intra- (Restated) 

For the Period Ended September 30, 2021 governmental With the Public Total 

Net Cost $ 98,689 $ 26,364 $ 125,053 

Components of Net Cost That Are Not Part of Net Outlays: 

Property and Equipment Depreciation - (171) (171) 

Year-end Credit Reform Subsidy Accrual Reestimates (168,649) - (168,649) 

Increase/(decrease) in assets: 

Accounts Receivable, net - (13,990) (13,990) 

Loans Receivable, net - (178,197) (178,197) 

Investments, net 773 - 773 

Advances and Prepayments - 1,239 1,239 

Negative Loan Guaranty Liability - - -

(Increase)/decrease in liabilities: 

Accounts Payable - 758 758 

Subsidy Payable to the Financing Account 462,178 - 462,178 

Federal Employee Benefits Payable - (491) (491) 

Loan Guaranty Liability - 2,757 2,757 

Insurance and Guaranty Program Liabilities - 1,991 1,991 

Advances from Others and Deferred Revenue - (10,817) (10,817) 

Other Liabilities (912) (2,596) (3,508) 

Other Financing Sources: 

Imputed Costs (3,069) - (3,069) 

Total Components of Net Cost That Are Not Part of Net 

Outlays 290,321 (199,517) 90,804 

Components of Net Outlays That Are Not Part of Net 

Cost: 

Acquisition of Investments - 95,318 95,318 

Repayment of Investment Assets - - -

Total Components of Net Outlays That Are Not Part of 

Net Cost - 95,318 95,318 

Financing Sources: 

Transfers in without reimbursement (286,733) - (286,733) 

Total Financing Sources (286,733) - (286,733) 

Miscellaneous Items: 

Distributed Offsetting Receipts (322,808) - (322,808) 

Total Miscellaneous Items (322,808) - (322,808) 

Net Outlays (220,531) (77,835) (298,366) 

Agency Outlays, Net $ (298,366) 

NOTE 21: RECLASSIFICATION OF FINANCIAL STATEMENT LINE ITEMS FOR 

FINANCIAL REPORT COMPILATION PROCESS 

To prepare the Financial Report of the U.S. Government (Financial Report), the Department of the Treasury requires 

agencies to submit an adjusted trial balance, which is a listing of amounts by U.S. Standard General Ledger account 

that appear in the financial statements. Treasury uses the trial balance information reported in the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) to develop a Reclassified Statement of Net 

Cost, and a Reclassified Statement of Changes in Net Position for each agency, which are accessed using GTAS. 

64 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury eliminates all intragovernmental balances from the reclassified statements and aggregates lines with the 

same title to develop the Financial Report statem͋Σχν ̈́ Α·Ίν ΣΪχ͋ ν·ΪϮν DF͛ν ͕ΊΣ̯Σ̽Ί̯Μ νχ̯χ͋΢͋Σχν ̯Σ͇ DF͛ν 

reclassified statements prior to elimination of intragovernmental balances and prior to aggregation of repeated 

Financial Report line items. A copy of the 2021 Financial Report (FR) can be found here: 

https://www.fiscal.treasury.gov/reports-statements/ and a copy of the 2022 FR will be posted to this site as soon as 

it is released. 

Α·͋ χ͋ι΢ ͞ΊΣχι̯ͽΪϭ͋ιΣ΢͋Σχ̯Μ͟ Ίν Ϣν͇͋ ΊΣ χ·Ίν ΣΪχ͋ χΪ ι͕͋͋ι χΪ ̯΢ΪϢΣχν χ·̯χ ι͋νϢΜχ ͕ιΪ΢ Ϊχ·͋ι ̽Ϊ΢ζΪΣ͋Σχν Ϊ͕ χ·͋ 

Federal Government. 

Α·͋ χ͋ι΢ ͞ΣΪΣ-F͇͋͋ι̯Μ͟ Ίν Ϣν͇͋ ΊΣ χ·Ίν ΣΪχ͋ χΪ ι͕͋͋ι χΪ F͇͋͋ι̯Μ GΪϭ͋ιΣ΢͋Σχ ̯΢ΪϢΣχν χ·̯χ ι͋νϢΜχ ͕ιΪ΢ χι̯Σν̯̽χΊΪΣν 

with non-Federal entities. These include transactions with individuals, businesses, non-profit entities, and State, 

local, and foreign governments. Amounts shown in the DFC Statement of Net Cost column are totals from the FY 

2022 Consolidated Statement of Net Cost by program. Unrealized gains and losses are reported as a net number on 

the FY 2022 Consolidated Statement of Net Cost. 

FY 2022 DFC Statement of Net Cost Line Items Used to Prepare FY 2022 Government-wide Statement of Net Cost 

Financial Statement 

Line 

Amounts 

(dollars in 

thousands) 

Other Than Dedicated 

Collections 

(dollars in thousands) Reclassified Financial Statement Line 

Gross Costs Non-Federal Costs 

Operating Costs $ 404,148 $ 270,949 Non-Federal Gross Cost 

Subsidy costs (159,960) 270,949 Total Non-Federal Costs 

Reestimates 221,211 

Unrealized Losses 7,052 Intragovernmental Costs 

14,383 Benefit Program Costs 

3,520 Imputed Costs 

5,148 Buy/Sell Costs 

178,451 Borrowing and Other Interest Expense 

201,502 Total Intragovernmental Costs 

Total Gross Costs 472,451 472,451 Total Reclassified Gross Costs 

Earned Revenue (412,799) (227,840) Non-Federal Earned Revenue 

Investment Revenue (29,402) Intragovernmental Revenue 

Unrealized Gains (13,775) (17,023) Buy/Sell Revenue 

(131,668) Federal Securities Interest Revenue Including 

Associated Gains/Losses (Exchange) 

(79,445) Borrowing and Other Interest Revenue 

(228,136) Total Intragovernmental Earned Revenue 

Total Earned Revenue (455,976) (455,976) Total Reclassified Earned Revenue 

Net Cost $ 16,475 $ 16,475 Net Cost 

65 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

NOTES TO THE FINANCIAL STATEMENTS
 

 

 

 

FY 2022 DFC Statement of Changes in Net Position 

Line Items Used to Prepare FY 2022 Government-wide 

Statement of Changes in Net Position 

Financial Statement Line 

Amounts 

(dollars in 

thousands) 

Other Than 

Dedicated 

Collections 

(dollars in 

thousands) Reclassified Financial Statement Line 

Unexpended Appropriations Unexpended Appropriations 

Unexpended Appropriations, Beginning 

Balance $ 171,177 $ 171,177 Unexpended Appropriations, Beginning Balance 

Appropriations received 928,884 928,884 Appropriations Received 

Appropriations transferred in/out 9,322 9,322 Appropriations transferred in/out 

Appropriations Used (708,598) (708,598) Appropriations Used 

Total Unexpended Appropriations 400,785 400,785 Total Unexpended Appropriations 

Cumulative Results of Operations Cumulative Results of Operations 

Cumulative Results, Beginning Balance 5,916,392 5,916,392 Cumulative Results, Beginning Balance 

Changes in Accounting Principles 656,763 656,763 Changes in Accounting Principles 

Appropriations Used 708,598 708,598 Appropriations Used 

Imputed Financing 3,520 3,520 Imputed Financing Sources 

Offset to Non-entity Collections (496,160) (496,160) Other 

Net Cost of Operations (16,475) (16,475) Net Cost of Operations 

Cumulative Results of Operations 6,772,638 6,772,638 Cumulative Results of Operations 

Total Net Position $ 7,173,423 $ 7,173,423 Net Position 

66 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
 

 

 

 

 

 

 

 

 

 

 

COMBINING STATEMENT OF BUDGETARY RESOURCES BY MAJOR BUDGET 

ACCOUNT 

Inspector Non-Budgetary 

(dollars in thousands) Insurance Finance Equity General Credit Reform 

For the Year Ended September 30, 2022 Budgetary Budgetary Budgetary Budgetary Accounts 

Budgetary Resources 

Unobligated Balance from Prior Year $ 6,246,361 $ 103,007 $ 195,839 $ 2,037 $ 816,078 

Budget Authority, Net 

Appropriations - 585,393 340,691 2,800 -

Borrowing Authority - - - - 5,521,406 

Spending Authority from Offsetting 

Collections 238,320 68,120 159,309 - 935,253 

Total Budgetary Resources $ 6,484,681 $ 756,520 $ 695,839 $ 4,837 $ 7,272,737 

Status of Budgetary Resources 

New obligations and upward adjustments 

(total) $ 209,656 $ 670,748 $ 588,250 $ 3,462 $ 5,975,518 

Unobligated Balance, End of Year 

Apportioned, unexpired accounts 104,208 18,026 107,589 687 6,608 

Unapportioned, unexpired accounts 6,169,409 36,997 - 688 1,290,611 

Unexpired unobligated balance, end of year $ 6,273,617 $ 55,023 $ 107,589 $ 1,375 $ 1,297,219 

Expired unobligated balance, end of year 1,408 30,749 - - -

Unobligated Balance, end of year (total) 6,275,025 85,772 107,589 1,375 1,297,219 

Total Budgetary Resources $ 6,484,681 $ 756,520 $ 695,839 $ 4,837 $ 7,272,737 

Outlays, net $ (85,861) $ 518,808 $ (26,413) $ 3,592 

Distributed Offsetting Receipts - (426,222) - -

Agency Outlays, Net $ (85,861) $ 92,586 $ (26,413) $ 3,592 

Disbursements, Net $ 1,195,213 

67 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
 

 

 

 

 

 

 

 

 

 

(Restated) Inspector Non-Budgetary 

(dollars in thousands) Insurance Finance Equity General Credit Reform 

For the Year Ended September 30, 2021 Budgetary Budgetary Budgetary Budgetary Accounts 

Budgetary Resources 

Unobligated Balance from Prior Year 

Budget Authority, Net $ 6,202,984 $ 102,250 $ 30,000 $ 1,578 $ 443,540 

Appropriations - 464,360 128,134 2,000 -

Borrowing Authority - - - - 4,409,313 

Spending Authority from Offsetting 

Collections 165,943 67,896 321,866 - 726,817 

Total Budgetary Resources $ 6,368,927 $ 634,506 $ 480,000 $ 3,578 $ 5,579,670 

Status of Budgetary Resources 

New obligations and upward adjustments 

(total) $ 136,252 $ 542,514 $ 284,161 $ 2,436 $ 4,262,794 

Unobligated Balance, End of Year 

Apportioned, unexpired accounts 44,137 32,086 195,839 1,142 157,512 

Unapportioned, unexpired accounts 6,188,286 26,635 - - 1,159,364 

Unexpired unobligated balance, end of year $ 6,232,423 $ 58,721 $ 195,839 $ 1,142 $ 1,316,876 

Expired unobligated balance, end of year 252 33,271 - - -

Unobligated Balance, end of year (total) 6,232,675 91,992 195,839 1,142 1,316,876 

Total Budgetary Resources $ 6,368,927 $ 634,506 $ 480,000 $ 3,578 $ 5,579,670 

Outlays, net $ (67,168) $ 244,325 $ (154,401) $ 1,686 

Distributed Offsetting Receipts - (322,808) - -

Agency Outlays, Net $ (67,168) $ (78,483) $ (154,401) $ 1,686 

Disbursements, Net $ 2,633,100 

68 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

OTHER INFORMATION (UNAUDTED)
 

 

 

 

 

 

 

SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT ASSURANCES 

The following tables provide a summary of audit-related material weaknesses and management-identified material 

weaknesses: 

Summary of Financial Statement Audit 

Audit Opinion Unmodified 

Restatement Yes 

Material Weaknesses Beginning 

Balance New Resolved Consolidated Ending Balance 

Financial Reporting of 

Distributed Offsetting 

Receipts 

- 1 1 - -

Total Material Weaknesses - 1 1 - -

Summary of Management Assurances 

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2) 

Statement of Assurance Unmodified 

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance 

Financial Reporting of 

Distributed Offsetting 

Receipts 

- - 1 - - -

Total Material 

Weaknesses - - 1 - - -

DFC acknowledges the control deficiency noted in the audit report, and also agrees with the auditor that the issue 

was resolved as of the end of the reporting period leaving no open material weaknesses as of September 30, 2022. 

REPORT ON THE PAYMENT INTEGRITY INFORMATION ACT 

In accordance with OMB guidance on the implementation of the Payment Integrity Information Act (PIIA) of 2019, 

DFC performed a risk assessment on payment integrity and determined that its programs present a low risk and not 

susceptible to sΊͽΣΊ͕Ί̯̽Σχ Ί΢ζιΪζ͋ι ζ̯Θ΢͋Σχν ̈́ ͜Σ ̯͇͇ΊχΊΪΣ΂ DF͛ν ͸͕͕Ί̽͋ Ϊ͕ χ·͋ ͜Σνζ͋̽χΪι G͋Σ͋ι̯Μ ͕ΪϢΣ͇ ΊΣ Ίχν ̯Ϣ͇Ίχ 

χ·̯χ DF͛ν ζ̯Θ΢͋Σχ ΊΣχ͋ͽιΊχΘ ζιΪͽι̯΢ ͕ϢΜΜΘ ̽Ϊ΢ζΜΊ͇͋ ϮΊχ·  ́͜͜! ̯Σ͇ ΊννϢ͇͋ ΣΪ ͕ΊΣ͇ΊΣͽν Ϊι ι͋̽Ϊ΢΢͋Σ͇̯χΊΪΣν χΪ χ·͋ 

agency. 

CLIMATE-RELATED FINANCIAL RISK 

By identifying the right opportunities for financing and enabling private sector investment in climate solutions, DFC 

aims to take advantage of a rapidly closing window of opportunity to tackle climate change globally, while continuing 

to support sustainable economic growth in developing countries. 

REPORTS: 

•	 Climate Action Plan - DFC has published its Climate Action Plan in accordance with Executive Order 14008. 

•	 2022 Climate Adaptation Report – DFC has published its Climate Adaptation Report, reporting on its 

progress against its Climate Action Plan, in accordance with Executive Order 14057. 

•	 Green House Gas (GHG) Emissions Inventory Report - P.L. 111-117 Sec 7079(a) required that OPIC (now 

DFC) reduce the GHG emissions associated with its projects by at least 30% over 10 years and 50% over 15 

years. This report tracks progress on achievement of those emission reduction goals. The most recent report 

issued in FY2022 addresses portfolio emission in FY2020. 

69 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

OTHER INFORMATION (UNAUDTED)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GOVERNANCE, STRATEGY, RISK MANAGEMENT, AND METRICS: 

GOVERNANCE 

ΜΊ΢̯χ͋ ̯̽χΊΪΣ Ίν ̯Σ ΊΣχ͋ͽι̯Μ ζ̯ιχ Ϊ͕ DF͛ν ϭΊνΊΪΣ ̯Σ͇ ̼ϢνΊΣ͋νν νχι̯χ͋ͽΘ ̯Σ͇ ·͋Σ̽͋ Ϊϭ͋ινΊͽ·χ ΪΣ DF͛ν νχι̯χ͋ͽΘ ̯Σ͇ 

performance is covered across various functions and committees. 

•	 DF͛ν ·Ί͕͋ ̯Σ͇ D͋ζϢχΘ ΜΊ΢̯χ͋ ͸͕ficers are responsible for guiding implementation of the activities 

͇͋ν̽ιΊ̼͇͋ ΊΣ DF͛ν ΜΊ΢̯χ͋ !̽χΊΪΣ  ́Μ̯Σ΂ ΊΣ ̽ΪΪι͇ΊΣ̯χΊΪΣ ϮΊχ· DF Μ̯͇͋͋ιν·Ίζ ̯̽ιΪνν Ίχν ͇͋ζ̯ιχ΢͋Σχν ΊΣ̽ΜϢ͇ΊΣͽ 

̼Ϣχ ΣΪχ ΜΊ΢Ίχ͇͋ χΪ DF͛ν ·Ί͕͋ D͋ϭ͋ΜΪζ΢͋Σχ ͸͕͕Ί̽͋ι΂ ·Ί͕͋ FΊΣ̯Σ̽Ί̯Μ ͸͕͕Ί̽͋ι΂ ·ief Risk Officer, General 

Counsel, and Vice Presidents of the Offices of Development Policy, Structured Finance and Insurance, 

Development Credit, and Equity and Investment Funds. 

•	 DFC commitments are ultimately approved by the DFC Board of Directors and/or the Chief Executive Officer, 

according to the nature and scope of the investment in question. Investment decision-making is aided by 

the advice of the Credit, Equity Evaluation and/or Investment Committees as appropriate. 

•	 On a technical level, day-to-day responsibilities for identifying and assessing climate risks to individual 

investments are led by the Office of Development Policy, with a dedicated team of environmental analysts 

responsible for screening and assessing new investments for physical climate risks and with impact analysts 

responsible for scoring the development impact of all DFC investments. These assessments are included in 

analysis which supports investment decision-making at senior management and Board levels. DFC 

continues to develop and refine its approach to mitigate identified risks in longer-term planning. 

STRATEGY 

Climate change poses risk to the economies and markets in which DFC operates. Project performance can be 

impacted by physical risks, such as extreme weather, or policy, legal, technology, market and reputational risks 

arising from the shift to a low-carbon and climate-resilient economy. 

•	 DFC adopted the Climate Action Plan in response to Executive Order 14008. The plan prioritizes adaptation 

actions that allow DFC to incorporate adaptation and resiliency considerations throughout the lifecycle of 

DF͛ν ζιΪΖ͋̽χν χΪ ΢̯ϳΊ΢ΊΣ͋ χ·͋ ͇͋ϭ͋ΜΪζ΢͋Σχ Ί΢ζ̯̽χ ̯Σ͇ ΢ΊΣΊ΢ΊΣ͋ χ·͋ ͕ΊΣ̯Σ̽Ί̯Μ ιΊνΙ Ϊ͕ χ·͋ ̯ͽ͋Σ̽Θ͛ν 

investments. The plan ͕Ϣιχ·͋ι ͋ϳζΜ̯ΊΣν χ·͋ νχ͋ζν Σ͇͇͋͋͋ χΪ ̯̽·Ί͋ϭ͋ DF͛ν ̽ΜΊ΢̯χ͋ Ϊ̼Ζectives: achieving Net 

Zero emissions by 2040 and ensuring at least 33% of all new commitments are climate-linked starting in 

FY2023. 

•	 The plan is comprised of five priority action areas: 

•	 Drive DFC Investments Toward Adaptation and Resilient Climate Objectives 

•	 Mobilize Additional Private Climate Finance Capital 

•	 Enhance Portfolio Diversity to Reduce Risk 

•	 Integrate Climate Risk Analysis When Developing Deals 

•	 Embed Climate Lens into Transactions and Impact Measurement 

RISK MANAGEMENT 

•	 DFC is a financial institution that engages in direct lending, equity investment, investment in funds, and 

ζιΪϭΊ͇͋ν ΊΣνϢι̯Σ̽͋ ̯Σ͇ χ͋̽·ΣΊ̯̽Μ ̯ννΊνχ̯Σ̽͋ ͽι̯Σχν ̈́ Α·͋ ̯ͽ͋Σ̽Θ͛ν ̽ΜΊ΢̯χ͋ vulnerabilities, therefore, stem 

͕ιΪ΢ DF͛ν ζΪνχϢι͋ ̯ν ̯ ͕ΊΣ̯Σ̽Ί̯Μ ν͋ιϭΊ̽͋ν ̯ͽ͋Σ̽Θ ̈́ !s an institutional investor, climate impacts can affect 

the projected results of DFC supported projects. For general debt instruments such as loans, for example, 

debt-repayment capacity can be affected by the alteration of underlying cash-flow values due to climate 

change, leading to deterioration of financial positions including default. For equity investments, climate-

͇ιΊϭ͋Σ ͇͋ϭΊ̯χΊΪΣν ͕ιΪ΢ ͋ϳζ͋̽χ͇͋ ι͋νϢΜχν χ·̯χ ̯͕͕͋̽χ ̯Σ ΊΣϭ͋νχ΢͋Σχ͛ν ϭ̯ΜϢ̯χΊΪΣ ̯ι͋ ι͋Μ͋ϭ̯Σχ ͕Ϊι projecting 

returns on equity and planning exit strategies. Some equity investments will also be affected as analysts 

incorporate information about climate change impacts into their company valuations. 

70 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

OTHER INFORMATION (UNAUDTED)
 

•	 At a project level, DFC has been incorporating climate change resiliency assessments since 2015 in response 

to Executive Order 13677. Executive Order 13677 on Climate-Resilient International 

Development requires the integration of climate-resilience considerations into all U.S. international 

development work. To meet the requirements under EO 13677, DFC has incorporated climate resiliency 

screening into its existing environmental and social impact assessment process. Using publicly available 

climate-change data, screening tools and information, and inter-agency collaboration, the environmental 

and social team developed a reference checklist for use in conducting the climate resiliency screening. 

Coordination with internal stakeholders as well as external advisors (e.g., credit policy department, 

independent engineers, consultants) is undertaken to gain additional input. Results of the climate resiliency 

ν̽ι͋͋ΣΊΣͽ ̯ι͋ ͇Ϊ̽Ϣ΢͋Σχ͇͋ ΊΣ DF͛ν ΊΣχ͋ιΣ̯Μ ͋ΣϭΊιΪΣ΢͋Σχ̯Μ ̯Σ͇ νΪ̽Ί̯Μ ̯νν͋νν΢͋Σχν ̈́ 

METRICS 

•	 Target: Net zero emissions by 2040 (includes assumptions of no new carbon-intensive investments after 

2030 and addition of less than 700,000 tCO2e per year) 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION
 

APPENDIX (UNAUDITED)
 

ACRONYM LISTING
 

ACRONYM DEFINITION 

ACFD American Catalyst Facility for Development 

ASC Financial Accounting Standards Codification 

BUILD Better Utilization of Investments Leading to Development 

CFO Chief Financial Officer 

CIO Chief Information Officer 

COVID-19 Coronavirus Disease 2019 

CSC Credit Subsidy Calculator 

DCA Development Credit Authority 

DFC U.S. International Development Finance Corporation 

DOL Department of Labor 

EO Executive Order 

EDGE Enhancing Development and Growth through Clean Energy 

FASAB Financial Accounting Standards Advisory Board 

FBWT Fund Balance with Treasury 

FCRA Federal Credit Reform Act of 1990 

FECA F͇͋͋ι̯Μ E΢ζΜΪΘ͋͋ν͛ Ϊ΢ζ͋Σν̯χΊΪΣ !̽χ 

FERS Federal Employees Retirement System 

FMFIA F͇͋͋ι̯Μ ͱ̯Σ̯ͽ͋ιν͛ FΊΣ̯Σ̽Ί̯Μ ͜Σχ͋ͽιΊχΘ !̽χ Ϊ͕ 1982 

FR Financial Report 

FY Fiscal year 

GAAP Generally accepted accounting principles 

GHG Green House Gas 

GTAS Government-wide Treasury Account Symbol Adjusted Trial Balance System 

IQ Impact quotient 

KYC Know Your Client 

MCC Millennium Challenge Corporation 

MOV Maintenance of Value 

MTU Mission Transaction Unit 

OMB Office of Management and Budget 

OPIC Overseas Private Investment Corporation 

OPM Office of Personnel Management 

PGII Partnership for Global Infrastructure and Investment 

PIIA Payment Integrity Information Act 

SBR Statement of Budgetary Resources 

SFFAS Statement of Federal Financial Accounting Standards 

Treasury U.S. Department of Treasury 

U.S. United States 

USAID United States Agency for International Development 

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