Annual Management Report

Fiscal Year 2020
 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

TABLE OF CONTENTS 

Agency Head Letter 

Management's Discussion & Analysis 

Independent Auditors' Report 

Financial Statements 

Balance Sheet 

Statement of Net Cost 

Statement of Changes in Net Position 

Statement of Budgetary Resources 

Notes to the Financial Statements 

Note 1 Summary of Significant Accounting Policies 

Note 2 Fund Balance with Treasury 

Note 3 Investments 

Note 4 Accounts Receivable, Net 

Note 5 Direct Loans and Loan Guaranties, Non-Federal Borrowers 

Note 6 Property and Equipment, Net 

Note 7 Liabilities Covered and Not Covered by Budgetary Resources 

Note 8 Borrowings from Treasury 

Note 9 Downward Reestimate Payable to Treasury 

Note 10 Unearned Revenue 

Note 11 Insurance Program Liabilities and Claim Recoveries 

Note 12 Other Liabilities 

Note 13 Leases 

Note 14 Budgetary Resources 

Note 15 Reconciliation of Net Cost of Operations to Net Outlays 

Note 16 Reclassification of Balance Sheet, Statement of Net Cost, and 

Statement of Changes in Net Position for Financial Reporting Compilation Process 

Required Supplementary Information 

Combining Statement of Budgetary Resources by Major Budget Account 

Other Information 

Report on Improper Payments 
 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

AGENCY HEAD LETTER 

December 8, 2020 

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 important 

information about DFC’s year-end financial results. The report reflects DFC’s 

successful financial management and stewardship of taxpayer 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. 

I am pleased that DFC has successfully received an unmodified audit opinion which underscores our prudent 

management of exposure through sound underwriting and effective governance. In FY 2020, DFC’s revenue 

exceeded its cost by $232 million, DFC had combined total exposure of $29.7 billion, and DFC maintained 

corporate reserves of $6.2 billion in Treasury securities. DFC achieved these excellent financial results by adding 

new commitments of $4.8 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. taxpayers by engaging the private sector to help solve the world’s most pressing development challenges. 

Sincerely, 

Adam S. Boehler 

Chief Executive Officer 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

MISSION 

On October 5, 2018, President Trump signed the Better Utilization of Investments Leading to Development (BUILD) 

Act into law—landmark legislation that reformed and strengthened U.S. development finance capabilities into a new 

federal agency to help address development challenges and foreign policy priorities of the United States. 

U.S. International Development Finance Corporation (DFC) is a modern, consolidated agency that brings together 

the capabilities of Overseas Private Investment Corporation (OPIC) and the United States Agency for International 

Development’s (USAID) Development Credit Authority (DCA), while introducing new and innovative financial 

products to better bring private capital to the developing world. The U.S. will have more flexibility to support 

investments in developing countries to drive economic growth, create stability, and improve livelihoods. 

DFC makes America a stronger and more competitive leader on the global development stage, with greater ability 

to partner with allies on transformative projects and provide financially sound alternatives to state-directed 

initiatives that can leave developing countries worse off. 

ORGANIZATION 

BOARD OF DIRECTORS 

DFC’s Board of Directors consists of nine members – four from Federal government agencies, four from the private 

sector, and DFC’s Chief Executive Officer (CEO). Government members include the Secretary of State, Administrator 

of the USAID, Secretary of Commerce, and the Secretary of the U.S. Department of the Treasury, or their designees. 

All members are appointed by the President of the United States and confirmed by the Senate. 

The Board of Directors, which meets quarterly, provides policy guidance to the Corporation and approves all major 

insurance, project finance and investment funds projects. 

DEVELOPMENT ADVISORY COUNCIL 

The Development Advisory Council was established by the BUILD Act, which created DFC. Members are appointed 

by DFC’s CEO in consultation with the agency’s Chief Development Officer and with the approval of its Board. 

Members advise the agency on ways to increase development impact. The inaugural members of the Development 

Advisory Council were appointed in fiscal year (FY) 2020. 

OFFICE OF ACCOUNTABILITY 

The Office of Accountability is an independent office within DFC that addresses concerns, complaints, or conflicts 

about environmental or social issues that may arise around DFC-supported projects. The Office provides projectaffected communities, project sponsors, and project workers an opportunity to have concerns independently 

reviewed and addressed. In FY 2020, DFC established an Independent Accountability Mechanism (IAM) to 

implement requirements under 22 U.S.C. § 9614. The functions of the IAM will be to: (1) annually evaluate and 

report to the Board and Congress regarding compliance with environmental, social, labor, human rights, and 

transparency standards, consistent with DFC statutory mandates; (2) provide a forum for resolving concerns 

regarding the impacts of specific DFC-supported projects with respect to such standards; and (3 ) provide advice 

regarding DFC projects, policies, and practices. In establishing an IAM, the DFC has reflected upon and utilized the 

best practices among 17 international financial institutions and bilateral investment and export assistance 

organizations to provide an effective mechanism for addressing concerns regarding the social and environmental 

impacts of proposed projects. The objective of the IAM is to improve the Corporation’s effectiveness in fulfilling its 

mission by ensuring compliance with DFC requirements and enhancing information flow between locally impacted 

communities, project sponsors and decision- makers. DFC also expects to benefit from the independent advice that 

an IAM will be able to provide. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

DFC ORGANIZATIONAL STRUCTURE 

The organizational chart below is as of September 30, 2020. In November 2020, DFC created the Office of Equity 

Investments that reports to the Office of the Chief Executive. The Office of Equity Investments will be included on 

the organizational chart in the FY 2021 DFC Annual Management Report. 

Board of Directors 

Office of 

Accountability 

Office of the 

Inspector General 

Office of Financial & Portfolio Management | CFO 

Office of the Chief 

Executive 

Chief Development 

Officer 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 Investment Funds 

Office of External Affairs 

Office of Information Technology | CIO 

Office of Strategic Initiatives 

Office of U.S. Investments 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS 

ADMINISTRATION PRIORITIES 

DFC is building on the strengths of the former development finance programs at OPIC and DCA, while introducing 

reforms and new tools to enhance the effectiveness of U.S. development finance efforts and improve taxpayer 

protections, transparency, and interagency coordination. The BUILD Act provides the DFC the authority to issue 

insurance or reinsurance, make loans and guaranties, and provide financing to private equity funds. In addition to 

these core programs, the BUILD Act provides the authority to invest in equity interests and support feasibility studies. 

DFC’s program funding is deployed in coordination with the Department of State (State), USAID, the Millennium 

Challenge Corporation (MCC), and others to support developmental projects in less developed countries. During FY 

2020, Administration priorities included the following. These priorities align with DFC’s strategic goals detailed on 

the next page. 

INDO-PACIFIC STRATEGY 

Seeks to promote market-based economic governance, sustainable infrastructure 

investment, and open, fair, and reciprocal trade. The strategy envisions a peaceful 

and secure region of sovereign nations, supports a framework for economic growth 

that is private sector-led, and encourages a governance model that promotes growth through 

open, transparent, and rules-based economies. Strategic partnerships forged with Japan, Australia, 

and others in the region to combine resources, technical expertise, and private sector funding are 

instrumental to DFC addressing the Indo-Pacific’s economic and development needs. 

2X WOMEN’S INITIATIVE (2X) 

The 2X Women’s Initiative aims to unlock the multi-trillion dollar opportunity that 

women represent by catalyzing investment in projects that support the world’s 

women. Investments under 2X support women as entrepreneurs, leaders, 

employees, and consumers. Since its inception, DFC’s 2X Women’s Initiative has invested over $7 

billion towards gender smart investments. Further, 2X plays a key role in advancing the 

Administration’s broader Women’s Global Development and Prosperity (W-GDP) Initiative, 

notably through a recent collaboration in the W-GDP Fund. DFC will utilize its unique investment 

toolkit to catalyze and scale a USAID grant funded project focused on economically empowering 

women. 

PROSPER AFRICA 

Unlocks the U.S.’s competitive advantage to accelerate two-way investment and 

trade with Africa. State-directed investments have left many African states with 

unsustainable debt or projects, making the DFC’s model of private sector-led 

development all the more important. A focus on infrastructure, information and 

communications technology, value chains, and logistics can help advance African countries on their 

journey to self-reliance. 

AMÉRICA CRECE 

Promotes regional security with our close neighbors and key partners in Latin 

America and the Caribbean. This region accounts for almost one quarter of DFC's 

global portfolio and is the site of DFC investments in critical infrastructure, energy, 

agriculture, and financial services. The América Crece initiative is an innovative, 

whole-of-government approach to designing achievable energy and infrastructure growth 

programs that address the most pressing investment barriers in each market. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

STRATEGIC GOALS 

Development and foreign policy challenges require a new transformational approach – supported by the tools, 

strategy and resources to meet these challenges. DFC extends its core capability of mobilizing market-based, privatesector led development in support of development outcomes and U.S. foreign policy. DFC, as part of U.S. 

development efforts, complements a diverse set of U.S. foreign policy tools and traditional assistance efforts. DFC 

uses its financing tools in partnership with the private sector to fulfill three key aims: 

GOAL 1: MAXIMIZE DEVELOPMENT IMPACT 

DFC mobilizes private sector investment to advance development in emerging 

economies around the world. DFC is prioritizing low- to middle-income 

countries and uses its capital to promote projects that empower women. 

Further, DFC promotes projects that support job creation through small 

business growth and supports populations with limited access to financing. 

GOAL 2: DRIVE PRIVATE CAPITAL TOWARD U.S. FOREIGN POLICY 

OBJECTIVES 

DFC serves as a critical tool of American foreign policy, mobilizing investment 

in regions, and industry sectors of strategic importance. DFC strives to be one 

of the most effective, nimble tools of the U.S. foreign policy apparatus by 

playing a critical role in bringing new capital to emerging market development 

and providing an alternative to state-led investment by authoritarian regimes. 

GOAL 3: MANAGE TAXPAYER RISK THROUGH APPROPRIATE 

INVESTMENT GROWTH 

DFC will prudently manage its portfolio and share risks with the private 

sector and qualifying sovereign entities through co-financing and structuring 

of tools. DFC promotes the creation of new sources of private capital in areas 

of strategic interest, as well as innovative programs and partnerships to 

maximize outcomes. 

STRATEGIC GOALS IN PRACTICE 

DFC’s process of evaluating investment funds and fund managers is a prime example of how DFC uses the three 

strategic goals to drive investment decision-making. When evaluating funds and fund managers DFC considers 

several criteria to ensure that the potential investment meets DFC’s three goals. The illustration below maps each 

criterion to the goal(s) it is aimed to evaluate the investment fund and manager against. 

Evaluation Criteria Goal 1 Goal 2 Goal 3 

— Demonstration of how the proposed fund and its investments may have a 

positive developmental impact on the host country/countries  

— Ability of the fund manager to comply with DFC’s policies related to 

environmental and social sustainability as well as respect for human and 

worker rights 

— Relevant track record of the prospective management team making longterm risk investments in emerging markets, and the team’s country or  

regional experience 

— Viability and thoughtfulness of the proposal; consistency and clarity of the 

investment thesis, value creation strategy, and proposed exit strategies   

— Ability of the fund manager to raise enough equity capital to close the 

proposed fund in a reasonable amount of time 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

28% 

$8,500,000 

Latin America 

27% 

$8,000,000 

Africa 

6% 

T O TA L 

$ 2 9 , 9 0 0 , 0 0 0 

INVESTMENT PORTFOLIO 

DFC’s three strategic goals are the guiding principles that drive decision-making when choosing projects to invest in, 

finance, or insure. These program types are detailed below and correspond with the breakout of gross cost and 

revenue on DFC’s Statement of Net Cost (SNC). Each program type meets DFC’s three goal approach. 

• Insurance – DFC offers political risk insurance coverage up to $1 billion against losses due to currency 

inconvertibility, government interference, and political violence including 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. DFC also supports equity funds that help address the shortfall of 

private equity capital in developing countries and help these economies access long-term growth capital, 

management skills, and financial expertise. 

DFC’s investment portfolio by region is presented at left 

INVESTMENT COMMITMENTS BY REGION and demonstrates the agency’s commitment to the 

(DOLLARS IN THOUSANDS) Administration’s priorities in Latin America, Africa, and 

the Indo-Pacific regions. The largest project for each 18% 

$5,400,000 prioritized region is detailed below. Indo Pacific 

Latin America 11% 

$3,200,000 DFC supports lending to micro, small, and medium Eurasia enterprises (MSMEs) in Ecuador that are owned by, led 

by, or support women through a finance agreement for 10% a $100 million loan to Banco Pichincha. This will enable $3,000,000 

Middle East Banco Pichincha to expand its lending portfolio for 

MSMEs. The project is expected to reach 53,000 female $1,800,000 

Multiple Regions entrepreneurs in its first five years and will help address 

a significant credit gap for MSMEs owned or led by 

women. Despite employing approximately 40 percent of the country’s workforce, MSMEs in Ecuador suffer an 

estimated shortfall in access to credit of $18 billion, equivalent to 17 percent of the gross domestic product (GDP). 

The credit gap is particularly wide for women, who own only 14 percent of the country’s MSMEs. 

Africa 

DFC is supporting Phanes Energy Renewables with a loan up to $50 million to develop, construct, and operate a 37 

megawatt (MW) solar photovoltaic power project located in the Nkhotakota district of the Republic of Malawi. This 

project is expected to have a highly developmental impact by expanding Malawi’s capacity to generate clean energy. 

The country has an installed power capacity of only 450 MW, and this limited supply is frequently subject to load 

shedding and blackouts. Estimates for the country suggest at least a 100 MW gap between peak demand and power 

supply in the country. This project is one of the first utility scale photovoltaic solar power plants in Malawi and has 

the potential to attract future solar power investments in a low-income country. 

Indo-Pacific 

The COVID-19 pandemic and stay-at-home orders have exacerbated the challenges of providing affordable quality 

education in India. In a country where 800 million of the country’s 1.3 billion people live on less than $2.50 a day, 

many families have limited access to computers and smart phones and the schools serving these low-income 

communities often lack the technology to pivot to online learning. DFC financing helps Varthana support thousands 

of small affordable private schools that fill the gap government schools cannot meet. When the COVID-19 pandemic 

forced these schools to close their doors, Varthana stepped in to help them put together online learning plans that 

would be accessible to families with the most basic phones. By curating lessons that are available online and helping 

schools organize live online classes and asynchronous learning that could be delivered over low-tech devices, 

Varthana has helped students in 1,300 schools continue their education. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

STRATEGIC GOAL 1: 

MAXIMIZE DEVELOPMENT IMPACT 

GOAL PROGRESS 

DFC is committed to focusing on maximizing impact in low-income countries (LIC), lower-middle income (LMIC) 

countries, and fragile states. For additional information, including project-specific details and commitment amounts, 

refer to DFC’s Active Projects Database at https://www.dfc.gov/our-impact/all-active-projects. This database is 

updated approximately 45 days after the end of each quarter. 

DFC is committed to supporting projects that deliver impactful benefits to people across developing countries. To 

better evaluate the development potential of a project, the agency designed Impact Quotient (IQ), a modernized 

tool that measures impact throughout the life of the project. IQ supports DFC in its mission to finance solutions to 

the most critical challenges facing the developing world today. DFC uses IQ to inform decisions to support projects, 

track development impact of projects over time, report development outcomes to 

Development Snapshot: key stakeholders, and use findings to inform future projects and maximize impact. 

55 out of 82 projects (67 percent) A team of DFC economists and environmental and social policy analysts implement 

DFC has approved between IQ to provide an objective and systematic assessment of potential and current January 2020 and September 30, projects. This team also analyzes data on expected and actual impact to further 2020 are focused in LICs, LMICs, or 

fragile states. calibrate the tool and guide future investment decisions. IQ enables DFC to classify 

projects into three categories: highly developmental, developmental, and 

intermediate. For additional information, visit https://www.dfc.gov/ourimpact/impact-quotient-iq. 

SUPPORTING A FEMALE ENTREPRENEUR IN MONGOLIA 

Challenge 

Mongolia’s mining sector accounts for almost one-quarter of the national GDP but this strong 

concentration in a single industry leaves the country vulnerable to economic shocks. With a national 

poverty rate of almost 30 percent, Mongolia is seeking to diversify its economy and provide more 

opportunity for workers in rural communities. 

Solution and Impact 

DFC's $5 million loan is helping Goyol Cashmere, a local producer of wool and cashmere knitwear, construct a new 

factory and purchase additional equipment in order to expand production. Cashmere is the third largest export in 

Mongolia, where cashmere goats are well suited for the harsh climate. 

The country's cashmere industry, which represents 28 percent of the 

world's cashmere market, provides stable incomes to over 100,000 

people across the country. Goyol Cashmere sources 50 percent of its raw 

cashmere materials from rural herders to produce high-quality knitwear 

that is exported to bolster Mongolia's economy. 

The project advances DFC’s 2X Women’s Initiative to support businesses 

that economically empower women. Goyol Cashmere was founded by 

Ariunaa Byambakhuu, an entrepreneur who started to create her own 

knitwear as a teenager while working at a cashmere factory. She launched 

her business in 2005 and has expanded from five employees to more than 

100, 80 percent of whom are women. Byambakhuu remains a majority 

shareholder in the business today and supports the many working 

mothers she employs, with onsite childcare and employee housing. Photo Credit: DFC 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

STRATEGIC GOAL 2: 

DRIVE PRIVATE CAPITAL TOWARD U.S. FOREIGN POLICY OBJECTIVES 

GOAL PROGRESS 

In crafting the BUILD Act, Congress recognized that DFC could play a key role in advancing U.S. foreign policy creating 

economic opportunities for citizens in developing countries, including in fragile and conflict-affected areas, and 

promoting an alternative to predatory finance. 

Predatory investors can weaken confidence in democratic and free-market systems, saddle countries with 

unsustainable debt, erode sovereignty, and ignore the needs of local communities. This approach stands in stark 

contrast to what DFC offers. DFC supports infrastructure projects that are developmentally and financially sound, 

without displacing the private sector, and DFC supports small and medium-sized enterprises (SMEs), enabling 

entrepreneurship often ignored by state-led competitors. 

DFC exemplifies the United States’ comparative advantage over non-transparent financing models supported by 

some countries by highlighting transparency in procurement processes, free-market economic principles, financial 

sustainability, high environmental, social, and worker rights standards, and a willingness to invest in SMEs. 

Engagement with the private sector spurs sustainable development, achieves better outcomes, and leverages the 

vast resources of commercial enterprise throughout the world. Alongside our government and international 

partners, the U.S. approach to development finance seeks to uplift societies, building stable and prosperous futures 

for their citizens. DFC investments support transparent, competitive markets and the rule of law. 

BOLSTERING GABON’S CRITICAL INFRASTRUCTURE 

Challenge 

Gabon requires significant investment in infrastructure to support trade and diversify its economy. 

The country ranks 150 out of 160 on the World Bank’s Logistics Performance Index. Although oil 

accounts for the majority of its exports, oil reserves are declining and the government is focused on 

strengthening its non-oil economy, including mining, wood-processing, agribusiness and services. 

Solution and Impact 

Political risk insurance is supporting construction of a 

mineral and specialized bulk terminal port, which will 

advance economic growth by increasing the country’s 

ability to import and export goods. This project supports 

the development, construction, operation and 

maintenance of a mineral and specialized bulk terminal 

port, Gabon Special Economic Zone (GSEZ) Mineral Port, in 

the city of Owendo near Libreville, Gabon. The port will be 

a viable logistics solution for the export and import of 

minerals and other products. 

The GSEZ Mineral Port is part of Plan Gabon Emergent, an 

initiative by the Government of Ghana to diversify the 

economy and promote public and private investment. A stronger and more diversified economy will also help 

address significant income inequality in Gabon, where the unemployment rate is 28 percent, and more than onethird of the people live below the poverty line. 

Investments in Gabon help promote regional security and advance U.S. interest in a region of critical strategic 

importance. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

STRATEGIC GOAL 3: 

MANAGE TAXPAYER RISK THROUGH APPROPRIATE INVESTMENT GROWTH 

GOAL PROGRESS 

In addition to providing direct loans and loan guaranties for investments, as a result of the BUILD Act, DFC is also 

equipped to provide equity financing, either directly into projects or to support emerging market investment funds. 

Equity funding allows DFC to more effectively drive development, while capturing returns for the taxpayer in outyears if the investments are financially successful. 

DFC can provide direct equity into projects in the developing world which will have developmental impact or advance 

U.S. foreign policy. An equity investment can be particularly important when operating in credit constrained 

environments or early stage companies. DFC's ability to make equity investments will allow to play a catalytic role in 

mobilizing private sector capital on behalf of U.S. interests abroad. 

DFC-supported funds help address the shortfall of private equity capital in developing countries and help these 

economies access long-term growth capital, management skills, and financial expertise, all of which are key factors 

in expanding economic development and creating new opportunities for people in low-income and developing 

nations. 

Through direct loan and loan guaranty programs, DFC continues to build on the strengths of the existing 

development finance programs by introducing reforms and new tools to enhance the effectiveness of U.S. 

development finance efforts and improve taxpayer protections. Some of these improvements include: 

• An Office of Inspector General (OIG) devoted to DFC oversight; 

• Risk-sharing with the private sector through co-financing and structuring of tools such that private 

sector partners have sufficient “skin in the game” alongside the U.S. Government; 

• Additionality to private sector resources (i.e. mobilizing investment that would not otherwise have 

occurred); 

• Enhanced risk management through concentration risk limitations and diversification of the overall 

exposure of DFC’s portfolio; and, 

• More modern and transparent monitoring and evaluation framework. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

ANALYSIS OF THE FINANCIAL STATEMENTS 

FINANCIAL POSITION 

In accordance with the Chief Financial Officers Act of 1990 and the Government Management Reform Act of 1994, 

DFC prepares financial statements, which include the Balance Sheet, Statement of Net Cost, Statement of Changes 

in Net Position, and the Statement of Budgetary Resources. The following table summarizes DFC’s financial position 

as of September 30, 2020 across key metrics in each of the four principal financial statements. 

The BUILD Act created DFC as a new federal agency, combining the capabilities of OPIC and the Development Credit 

Authority, which had previously been housed in the USAID. DFC operations began after receipt of the FY 2020 

appropriation in December 2019; therefore, the financial data presented in this section does not reflect a full year 

of activity. Comparative data will be provided in upcoming years. 

SUMMARY OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2020 

(Dollars in Thousands) 

Balance Sheet 

Assets 

Fund Balance with Treasury 

Investments 

Credit Program Receivable 

Other 

Total Assets 

Liabilities 

Borrowings from Treasury 

Liability for Reestimates and Capital Transfers to Treasury 

Other 

Total Liabilities 

Total Net Position 

Total Liabilities and Net Position 

Net Position 

Total Unexpended Appropriations 

Cumulative Results of Operations 

Net Position 

Net Cost 

Gross Costs 

Less: Earned Revenue 

Net Cost of Operations 

Budgetary Resources 

Unobligated Balance from Prior Year Budget Authority 

Appropriations 

Borrowing Authority 

Spending Authority from Offsetting Collections 

Total Budgetary Resources 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

1,616,126 

6,195,838 

4,201,086 

11,179 

12,024,229 

4,677,759 

999,425 

174,767 

5,851,951 

6,172,278 

12,024,229 

105,992 

6,066,286 

6,172,278 

65,397 

(297,786) 

(232,389) 

6,625,902 

286,391 

4,107,290 

1,177,669 

12,197,252 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

BALANCE SHEET BALANCE SHEET 

(D OL L ARS I N TH OUS AN DS) The Balance Sheet is a representation of DFC’s financial condition 

13% 

T O TA L 

$ 1 2 , 0 2 4 , 2 2 9 

< 0.5% 

$11,099 

Other 

at the end of the fiscal year.

+

-

= 

 It shows: $15,000,000 

Assets: the resources available to meet DFC’s statutory $10,000,000 requirements; 

Liabilities: the amounts DFC owes that will require $5,000,000 

payment from the available resources; and, 

Net Position: the difference between DFC’s assets and $-

liabilities. 

$12,024,229 

$6,172,278 

$5,851,951 

Total Assets Total Liabilities Total Net Position 

ASSETS 

As of September 30, 2020, DFC held $12 billion in assets. DFC’s 

ASSETS BY TYPE assets are primarily composed of Investments, Credit Program (DOLLARS IN THOUSANDS) 

Receivable, and Fund Balance with Treasury. 

The largest category of assets is Investments at $6.2 billion, 

52% 35% 

$6,195,838 $4,201,166 which represents 52 percent of all DFC assets. DFC’s Investments Credit Program investments as of September 30, 2020 comprised of Treasury Receivable 

Market-based Securities. DFC has the authority to invests funds 

derived from revenue related to its insurance programs. DFC 

also has the authority to make equity investments into funds 

or projects as partnerships with other entities. These 

$1,616,126 investments help fulfill DFC’s strategic goals of maximizing Fund Balance 

with Treasury development impact and managing taxpayer risk. During FY 

2020, DFC entered into agreements to make $120 million in equity investments, which are scheduled for FY 2021. 

Credit Program Receivable is DFC’s second largest asset category at $4.2 billion or 35 percent of total assets. This 

category represents receivables for loans made to support critical infrastructure, energy, and other projects 

requiring large investments. The value of the receivable is based on the net present value of the expected future 

cash flows. 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 on page 13. 

Fund Balance with Treasury (FBWT) was $1.6 billion or 13 percent of DFC’s total assets. Congressional appropriations, 

loan disbursements and collections, and interest and fee collections all impact the balance of FBWT. 

LIABILITIES 

As of September 30, 2020, DFC owed $5.9 billion in liabilities. 

LIABILITIES BY TYPE DFC’s liabilities are primarily composed of Borrowings from 

(DOLLARS IN THOUSANDS) Treasury and the Liability for Reestimates and Capital 

Transfers to Treasury. 

Borrowings from Treasury is DFC’s largest liability balance at 17% 

80% 

TOTAL 

$ 5 , 8 5 1 , 9 5 1 

$999,425 $4.7 billion or 80 percent of total liabilities. These borrowings Liability for Reestimates $4,677,759 and Capital Transfers to are used to fund credit program loans, as discussed above for Borrowings from Treasury Treasury the Credit Program Receivable. 

3% 

$174,767 Liability for Reestimates and Capital Transfers to Treasury is Other 

DFC’s second largest liability at $1 billion or 17 percent of 

total liabilities. This category represents amounts owed to 

Treasury for excess funding per Federal credit program 

requirements. 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 on page 14. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

STATEMENT OF NET COST 

The Statement of Net Cost captures the use of appropriated STATEMENT OF NET COST funds and measures the program costs to the taxpayer. In FY (D OL L ARS I N TH OUS AN DS)

2020, DFC operated in a “negative net cost” to the taxpayer 100,000 and effectively contributed to the overall reduction of the - budget deficit. DFC’s net excess revenue over cost for FY 2020 

was $232 million, as illustrated by the graphic at right. Subject (100,000) 

to the appropriations process, some of the funds were used (200,000) 

to cover administrative and program expenses.

 (300,000) 

DFC categorizes cost and revenue into three components

65,397 

(297,786) 

 (400,000) based on the agency’s investment portfolio: 1) Insurance, 2) 

Financing, and 3) Equity. The highest costing, or earning, Total Gross Cost Total Earned Revenue 

activities within each category are highlighted below. 

INSURANCE 

INSURANCE GROSS COST 

(DOLLARS IN THOUSANDS) Gross cost for the insurance category was $15.1 million, driven 

primarily by an increase in bad debt expense on insurance claims 

28% receivable that were paid by OPIC and transferred into the DFC, and 

68% $4,145 administrative execution costs, which comprised 96 percent of total Administrative $10,330 Execution insurance gross cost. DFC provides Political Risk Insurance for Bad Debt TOTAL Expense on GROSS COST overseas investments against several risk types. For detailed Insurance Claims $15,131 4% information about the insurance program, refer to Note 11 in the 

$656 

Other Financial Section. Administrative execution costs are an allocation of 

indirect operating costs that support the insurance program. 

The financing category is the primary driver for DFC’s “negative net 

cost” as it experienced a gross benefit of $369 million, which reflects 

a strong return on the agency’s investments. The financing gross 

benefit is comprised of revenue and negative subsidy expenses on 

the Investment Guaranty and Direct Loan programs. Negative subsidy 

on loans and loan guaranties helps drive the generation of revenue 

and reflects that the estimated net present value of the future 

projected cash flows is reducing costs for the agency. 

Gross cost for the equity category was $8.9 million, driven primarily 

by administrative execution costs related to identifying and 

evaluating potential investments, which comprised 92 percent of 

total equity gross cost. The equity investment category is newly 

developed, having been authorized under the BUILD Act. The first 

8% round of equity investments were approved for $120 million by the 

$682 Board of Directors in 2020, supporting initiatives that will advance Other 

DFC’s 2X Women’s Initiative, as well as development in the regions of 

Africa, Latin America, the Indo-Pacific in accordance with the agency 

priorities detailed in the preceding Performance Section. As of 

September 30, 2020, equity investments have been authorized, but not executed; therefore, revenue has not yet 

been generated. In future years we expect this program to show strong investment returns. 

FINANCING 

EQUITY 

EQUITY GROSS COST 

(DOLLARS IN THOUSANDS) 

92% 

$8,253 

Administrative 

Execution 

T O TA L 

G R O S S CO S T 

$ 8 , 9 3 5 

12 
 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

STATEMENT 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 Statement of Budgetary Resources (SBR) presents the sources of 

DFC’s budgetary resources, their status at the end of the year, and net outlays. 

SOURCES OF FUNDING 

In FY 2020, DFC’s largest source of funding was the 

Unobligated Balance from Prior Year Budget Authority at $6.6 

billion or 54 percent of total funding. This consists of 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. 

DFC’s second largest source of funding was Borrowing 

Authority at $4.1 billion or 34 percent of total funding. This 

source of funding is closely tied to DFC’s Credit Program 

Receivable and Borrowings from Treasury liability. 

DFC’s other sources of funding included Spending Authority from Offsetting Collections at $1.2 billion or ten percent, 

followed by Congressional Appropriations. 

STATUS OF FUNDING 

In FY 2020, DFC obligated $5.1 billion or 42 percent of its total 

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 of $6.7 billion are mostly 

from funds transferred in from OPIC’s Insurance program. $6 

billion of these funds are represented on the Balance Sheet as 

investments in Treasury securities. 

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, is referred to as “subsidy cost.” Under the Federal Credit Reform Act, 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. DFC’s financial results are dominated by these 

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

SUBSIDY COSTS OF NEW DISBURSEMENTS 

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

inflows over the life of the direct loans obligated or loan guaranties committed. Historical information and various 

assumptions are used, including the probabilities of default, borrower prepayments, or recoveries, and the projected 

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

are then discounted to the point of loan disbursement to determine the net present value. If the present value of 

estimated cash outflows exceeds cash inflows, there is a positive subsidy cost. If the present value of estimated cash 

inflows exceeds cash outflows, there is a negative subsidy. When loans are disbursed DFC recognizes this subsidy 

cost (or negative subsidy) in the Statement of Net Costs. In FY 2020, DFC recognized net subsidy costs reductions of 

$213 million. 

13 
 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

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. 

Reestimates that increase subsidy costs are referred to as upward reestimates, while reestimates that decrease 

subsidy costs are referred to as downward reestimates. The following are the primary drivers of DFC’s annual 

reestimated subsidy costs. 

Reevaluation of Risk Ratings 

In fulfilling its mission to partner with the private sector to finance solutions to the most critical challenges facing 

the developing world, DFC must balance the risks associated with assuming credit and other emerging market risks 

that the private sector is unable or unwilling to accept. 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. Each year, these factors are considered 

and ratings on all active loans are reevaluated and corresponding default and recovery assumptions are updated 

accordingly. 

Credit Risk: The risk that a borrower may not have sufficient funds to service its debt or may not be willing 

to service its debt 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 as a result of expropriation of the obligor's property, war, or inconvertibility of the borrower's 

currency into U.S. dollars. 

Updates to Loan Level Discount Rates 

Actual project cash flows and the estimation of the timing of future inflows and outflows are discounted with 

respect to the time value of money using the OMB’s Credit Subsidy Calculator (CSC). The CSC is a tool that converts 

actual and future projected cash flows to their net present value in order to determine the reestimated credit 

subsidy cost. The CSC produces the single effective rate, equivalent to the rate at which DFC owes interest on debt 

held by the Treasury and earns interest on cash balances held at the Treasury. This single effective rate is a loanspecific discount rate first calculated at obligation. 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, using actual loan activity, updated 

forecasts, and all available actual interest rates. While on a portfolio level, revised discount rates are calculated 

annually, each loan only receives a revised discount rate once in its lifetime. 

Updates to Interest Rates 

Each year, OMB updates the President’s Economic Assumptions (PEA) and releases their associated PEA curves, 

one for Treasury and one for LIBOR rates according to those assumptions. These rates are used to project future 

interest for loans with floating interest rates. Updating these rates will only have an effect on loans with floating 

Treasury or floating LIBOR interest rates which need to be updated each year. 

Updates to Projected Cash Flows with Actual Data 

Loan level accounting transactions are captured from the general ledger and used in the current year of the cash 

flows. This replaces the projections developed from the prior year reestimates and thus captures all amortization 

changes including timing of disbursements; collection of principal, interest, fees, and recoveries; as well as writeoff and the realization of defaults. 

LIMITATIONS OF THE FINANCIAL STATEMENTS 

The principal financial statements have been prepared to report the financial position and results of operations of 

DFC, pursuant to the requirements of 31 U.S.C. § 3515(b). While the statements have been prepared from the books 

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

and the formats prescribed by OMB, the statements are in addition to the financial reports used to monitor and 

control budgetary resources, which are prepared from the same books and records. The statements should be read 

with the realization that they are for a component of the U.S. government, a sovereign entity. 

14 
 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE 

MANAGEMENT’S STATEMENT OF ASSURANCE 

The DFC management is responsible for establishing and maintaining effective internal controls and financial 

management systems to ensure efficient and effective operations, reliable reporting, and compliance with laws and 

regulations. DFC evaluated its internal control processes using OMB Circular No. A-123, Management's 

Responsibility for Enterprise Risk Management and Internal Control, as a framework and provides reasonable 

assurance that its system of internal control over operations, reporting, and compliance, including considerations of 

fraud, met management's objectives and was operating effectively as of September 30, 2020. DFC is not aware of 

any material weaknesses in internal control. As DFC continues to establish and mature its operations, the agency 

will continue to implement its Enterprise Risk Management program and build and strengthen its internal controls 

over reporting. 

SUMMARY OF INTERNAL CONTROL ASSESMENT 

The DFC internal control program is guided by OMB Circular No. A-123, Management’s Responsibility for Enterprise 

Risk Management and Internal Control, to support the agency’s strategic, operational, compliance, and reporting 

objectives. FY 2020 was a year of transition for DFC as the corporation integrated the operations of the OPIC and 

USAID DCA pursuant to the BUILD Act of 2018. As part of that transition, DFC issued new operational directives 

which necessitated changes to policies, procedures, and processes. Given these operational changes and time 

needed to allow new processes to be designed, implemented, and mature, DFC focused its internal control resources 

on various activities designed to enhance and strengthen DFC’s ability to identify and respond to risk, including but 

limited to its risk assessment, risk register, entity level control assessment, fraud risk profiles, payment integrity 

testing, service organization monitoring, and data quality planning. No material weaknesses were identified, and 

the results of this year’s activities, combined with management’s role in the daily 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 2021, DFC will continue to implement its Enterprise Risk 

Management program and build and strengthen its internal controls over reporting. 

FORWARD-LOOKING INFORMATION 

COVID-19 

The COVID-19 pandemic continues to have an impact on the global economy and creates uncertainty regarding the 

future performance of DFC projects. During FY 2020 DFC reviewed the potential effect of COVID-19 on its portfolio 

and worked with borrowers to mitigate adverse impact on project performance. Potential impacts on the portfolio 

have been considered in DFC’s risk assessment of project performance and are incorporated into accounting 

estimates in the financial statements. DFC continues to closely monitor the possible effects on the portfolio due to 

the COVID-19 pandemic. 

DIVIDEND 

The BUILD Act requires the DFC Board of Directors to annually assess its financial position and determine an 

appropriate dividend. Such a dividend would be paid from Cumulative Results of Operations, thereby reducing its 

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

EVOLUTION OF PRODUCTS 

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

program flexibilities. DFC may be exposed to an increasingly uncertain probability of repayment as DFC has limited 

prior experience with some of these new products. For example, DFC is authorized to issue direct loans in foreign 

currencies which subjects DFC to risk of foreign currency fluctuations. DFC is applying its best available modeling to 

15 
 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

properly structure and price these transactions and will continue to adapt its modeling based on actual loan 

experience. 

DFC is authorized to take equity stakes in its project companies to fulfill its development mandate. In FY 2020 DFC 

agreed to make $120 million dollars in equity investments in several projects. These are not reflected in the balance 

sheet as of September 30, 2020 as these have not yet disbursed. As equity investments are made in the future these 

will increasingly drive financial performance due to market and other factors affecting investment values. DFC 

leverages it decades of institutional experience investing in Investment Funds and comparable deals to ensure DFC 

is making sound, investments while balancing its development objectives. 

16 
 

 

 

 

 

 

 

 

 

 

 

Independent Auditors’ Report 

Chief Executive Officer 

United States International Development Finance Corporation 

In our audit of the fiscal year 2020 financial statements of the United States International 

Development Finance Corporation (DFC), we found: 

• DFC’s financial statements as of and for the fiscal year ended September 30, 2020, are 

presented fairly, in all material respects, in accordance with United States of America 

(U.S.) generally accepted accounting principles; 

• One significant deficiency for fiscal year 2020 in internal control over financial reporting 

based on the limited procedures we performed; and 

• No reportable noncompliance for fiscal year 2020 with provisions of applicable laws, 

regulations, contracts, and grant agreements we tested and no other matters. 

The following sections discuss in more detail (1) our report on the financial statements, which 

includes required supplementary information (RSI) 1 and other information2 included with the 

financial statements; (2) our report on internal control over financial reporting; (3) our report on 

compliance with laws, regulations, contracts, and grant agreements and other matters; and (4) 

DFC’s response to our findings and recommendations. 

Report on the Financial Statements 

We have audited DFC’s financial statements in accordance with U.S. generally accepted auditing 

standards; the standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 19-03, Audit Requirements for Federal Financial Statements 

(OMB Bulletin 19-03). DFC’s financial statements comprise the balance sheet as of September 

30, 2020; the related statements of net cost, changes in net position, and combined budgetary 

resources for the fiscal year then ended; and the related notes to the financial statements. 

We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for 

our audit opinion. 

1The RSI consists of Management’s Discussion and Analysis and the Combining Statement of Budgetary Resources, 

which are included with the financial statements. 2Other information consists of all the other information included with the financial statements, other than the RSI and 

the auditors’ report. 

17
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent Auditors’ Report (Continued) 

Management’s Responsibility 

DFC management is responsible for (1) the preparation and fair presentation of these financial 

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, 

measuring, and presenting the RSI in accordance with U.S. generally accepted accounting 

principles; (3) preparing and presenting other information included in documents containing the 

audited financial statements and auditors’ report, and ensuring the consistency of that information 

with the audited financial statements and the RSI; and (4) maintaining effective internal control 

over financial reporting, including 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. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. 

Government Auditing Standards require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free from material misstatement. We are 

also responsible for applying certain limited procedures to RSI and other information included with 

the financial statements. 

An audit of financial statements involves performing procedures to obtain audit evidence about 

the amounts and disclosures in the financial statements. The procedures selected depend on the 

auditors’ judgment, including the auditors’ assessment of the risks of material misstatement of the 

financial statements, whether due to fraud or error. In making those risk assessments, the auditors 

consider internal control relevant to the entity’s preparation and fair presentation of the financial 

statements 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 entity’s internal control. 

Accordingly, we express no such opinion. An audit of financial statements also involves evaluating 

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

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

financial statements. Our audit also included performing such other procedures as we considered 

necessary in the circumstances. 

Opinion on Financial Statements 

In our opinion, DFC’s financial statements present fairly, in all material respects, DFC’s financial 

position as of September 30, 2020, and its net cost of operations, changes in net position, and 

budgetary resources for the fiscal year then ended in accordance with U.S. generally accepted 

accounting principles. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting 

Standards Advisory Board (FASAB) require that the RSI be presented to supplement the 

financial statements. Although the RSI is not a part of the financial statements, FASAB 

considers this information to be an essential part of financial reporting for placing the 

financial statements in appropriate operational, economic, or historical context. We have 

applied certain limited procedures to the RSI in accordance with Government Auditing 

Standards, which consisted of inquiries of management about the methods of preparing 

the RSI and comparing the information for consistency with management’s responses to 

the auditors’ inquiries, the financial statements, and other knowledge we obtained during 

the audit of the financial statements, in order to report omissions or material departures 

from FASAB guidelines, if any, identified by these limited procedures. We did not audit 

18
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent Auditors’ Report (Continued) 

and we do not express an opinion or provide any assurance on the RSI because the limited 

procedures we applied do not provide sufficient evidence to express an opinion or provide 

any assurance. 

Other Information 

DFC’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional 

analysis and is not a required part of the financial statements or the RSI. In addition, 

management has included references to information on websites or other data outside of 

the Annual Management Report. We read the other information included with the financial 

statements in order to identify material inconsistencies, if any, with the audited financial 

statements. Our audit was conducted for the purpose of forming an opinion on DFC’s 

financial statements. We did not audit and do not express an opinion or provide any 

assurance on the other information. 

Report on Internal Control over Financial Reporting 

In connection with our audit of DFC’s financial statements, we considered DFC’s internal control 

over financial reporting, consistent with our auditors’ responsibility discussed below. We 

performed our procedures related to DFC’s internal control over financial reporting in accordance 

with Government Auditing Standards. 

Management’s Responsibility 

DFC management is responsible for (1) maintaining effective internal control over financial 

reporting, including 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; (2) evaluating the effectiveness of internal control 

over financial reporting based on the criteria established under 31 U.S.C. 3512 (c), (d) (commonly 

known as the Federal Managers’ Financial Integrity Act (FMFIA)); and (3) providing assurance 

statement on the overall effectiveness on internal control over financial reporting included in 

management’s discussion and analysis (MD&A). 

Auditors’ Responsibility 

In planning and performing our audit of DFC’s financial statements as of and for the year ended 

September 30, 2020, in accordance with Government Auditing Standards, we considered DFC’s 

internal control over financial reporting 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 over financial reporting. Accordingly, we do not express an opinion on the DFC’s 

internal control over financial reporting. We are required to report all deficiencies that are 

considered to be material weaknesses or significant deficiencies. We did not consider or evaluate 

all internal controls relevant to operating objectives as broadly established by the FMFIA, such as 

those controls relevant to preparing performance information and ensuring efficient operations. 

Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, the objectives of which are to provide reasonable 

assurance that (1) transactions are properly recorded, processed, and summarized to permit the 

preparation of financial statements in accordance with U.S. generally accepted accounting 

principles, and assets are safeguarded against loss from unauthorized acquisition, use, or 

disposition, and (2) transactions are executed in accordance with provisions of applicable laws, 

19
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent Auditors’ Report (Continued) 

including those governing the use of budget authority, regulations, contracts, and grant 

agreements, noncompliance with which could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent, or 

detect and correct, misstatements due to fraud or error. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described above, and was not 

designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies or to express an opinion on the effectiveness of DFC’s internal control over 

financial reporting. Given these limitations, material weaknesses and/or significant deficiencies 

may exist that have not been identified. However, during our audit, we did not identify any 

deficiencies in internal control over financial reporting that we consider to be a material weakness. 

We did identify a certain deficiency in internal control over financial reporting that we consider to 

be a significant deficiency, described below and in Exhibit A. 

• Controls Over Reconciliation of SF 132s to SF 133s Need Improvement 

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 over financial reporting, 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 over financial reporting that is less 

severe than a material weakness, yet important enough to merit attention by those charged with 

governance. 

During our 2020 audit, we identified deficiencies in DFC’s internal control over financial reporting 

that we do not consider to be material weaknesses or significant deficiencies. Nonetheless, these 

deficiencies warrant DFC management’s attention. We have communicated these matters to DFC 

management and, where appropriate, will report on them separately. 

Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of DFC’s internal 

control over financial reporting and the results of our procedures, and not to provide an opinion 

on the effectiveness of DFC’s internal control over financial reporting. This report is an integral 

part of an audit performed in accordance with Government Auditing Standards in considering 

internal control over financial reporting. Accordingly, this report on internal control over financial 

reporting is not suitable for any other purpose. 

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements and 

Other Matters 

In connection with our audit of DFC’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our 

auditors’ responsibility discussed below. We caution that noncompliance may occur and not be 

detected by these tests. We performed our tests of compliance in accordance with Government 

Auditing Standards. 

20
 

 

 

 

 

 

 

 

 

 

Independent Auditors’ Report (Continued) 

Management’s Responsibility 

DFC management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to DFC. 

Auditors’ Responsibility 

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, 

contracts, and grant agreements applicable to DFC that have a direct effect on the determination 

of material amounts and disclosures in DFC’s financial statements, and perform certain other 

limited procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, 

and grant agreements applicable to DFC. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

and Other Matters 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and 

grant agreements disclosed no instances of noncompliance or other matters for fiscal year 2020 

that would be reportable under Government Auditing Standards. 

The objective of our tests was not to provide an opinion on compliance with laws, regulations, 

contracts, and grant agreements applicable to DFC. Accordingly, we do not express such an 

opinion. 

Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements and 

Other Matters 

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of 

that testing, and not to provide an opinion on compliance. This report is an integral part of an audit 

performed in accordance with Government Auditing Standards in considering compliance. 

Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is 

not suitable for any other purpose. 

DFC’s Response to Audit Findings and Recommendations 

DFC’s management responded that they concur with the audit report and agree to implement the 

auditor’s recommendation. DFC’s response was not subjected to the auditing procedures applied 

in the audit of the financial statements and, accordingly, we express no opinion on it. 

CliftonLarsonAllen LLP 

Greenbelt, Maryland 

December 4, 2020 

21
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Independent Auditors’ Report (Continued)

Exhibit A 

Significant Deficiency 

Controls Over Reconciliation of SF 132s to SF 133s Need Improvement 

Condition 

The SF 132 is the Apportionment and Reapportionment Schedule which documents the 

Office of Management and Budget’s (OMB) apportionment approval. The SF 133 is the Report 

on Budget Execution and Budgetary Resources and should agree to the DFC’s financial 

statements. The SF 132s and SF 133s should be reconciled monthly as this is a key control to 

ensure proper monitoring of the budgetary authority received and the status of funds. The 

reconciliations provide assurance that DFC has properly reported the SF 133s monthly to 

Treasury and OMB as required, the Statement of Budgetary Resources to external readers and 

could prevent potential antideficiency violations. 

DFC did not complete entering all the beginning balances to stand up the new agency until June 

2020 and it was DFC’s plan to complete the SF 132 to SF 133 reconciliation for June and 

September of 2020. However, the June 30, 2020 SF 132 to SF 133 reconciliation was not 

prepared for the following four Treasury Account Symbols (TAS) listed below: 

• 071-2018-2020-0100 • 077-2020-2022-0110 

• 071-2019-2021-0100 • 077-X-4483 

Due to the lack of these key interim reconciliations, DFC was delayed in completing its yearend 

financial statements and reconciliations. If DFC had completed the reconciliations sooner and 

communicated with OMB sooner the issues could have been resolved more timely and delays 

avoided. DFC plans to complete SF 132 to SF 133 reconciliations monthly beginning in fiscal year 

2021. 

Criteria 

Government Accountability Office’s (GAO’s) Standard for Internal Control in the Federal 

Government (Green Book), section 0V4.08, Documentation Requirements, states, in part: 

“Documentation is a necessary part of an effective internal control 

system...Documentation is required for the effective design, implementation, 

and operating effectiveness of an entity’s internal control system...” 

Office of Management and Budget (OMB) Number A-11, Preparation, Submission, and Execution 

of the Budget, section 15.4 states: 

“The Antideficiency Act requires OMB to apportion the accounts and to monitor 

spending; prohibits agencies from spending more than the amounts appropriated 

or apportioned, whichever is lower; requires that agencies control their spending; 

and provides penalties for overspending. 

Specifically, agencies may not: 

• Purchase services and merchandise before appropriations are enacted 

and accounts are apportioned; 

• Enter into contracts that exceed the appropriation for the year or the 

amount apportioned by OMB, whichever is lower; or 

• Pay bills when there is no cash in the appropriation or fund account.” 

Cause 

The DFC was formed in fiscal year 2020 and the staff were challenged with many additional tasks. 

22
 

 

 

Independent Auditors’ Report (Continued)

Exhibit A 

Significant Deficiency 

Due to time constraints four of the SF 132 to SF 133 reconciliations were only done at year-end. 

Effect 

If the SF 132s and SF 133s do not reconcile the DFC is at risk of improperly reporting their 

budgetary accounts and potentially being antideficient. 

Recommendations 

We recommend that DFC management prepare the SF 132 to SF 133 reconciliations monthly for 

all TASs. The reconciliations should include evidence of supervisory review, and resolutions to 

any reconciling items including communications to Treasury and OMB when significant 

differences are identified and resolved. 

23
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

FINANCIAL STATEMENTS 

BALANCE SHEET 

(dollars in thousands) 

As of September 30, 2020 2020 

Assets 

Intragovernmental: 

Fund Balance with Treasury (Note 2) $ 1,616,126 

Investments (Note 3) 6,195,838 

Total Intragovernmental 7,811,964 

With the Public: 

Accounts Receivable, Net (Note 4) 10,055 

Credit Program Receivable, Net (Note 5) 4,201,086 

Property and Equipment, Net (Note 6) 482 

Other Assets 642 

Total Assets $ 12,024,229 

Liabilities 

Intragovernmental: 

Borrowings from Treasury (Note 8) $ 4,677,759 

Liability for Reestimates and Capital Transfers to Treasury (Note 9) 999,425 

Other Liabilities (Note 12) 1,466 

Total Intragovernmental 5,678,650 

With the Public: 

Loan Guaranty Liability (Note 5) 13,052 

Unearned Revenue (Note 10) 133,843 

Insurance Program Liabilities (Note 11) 16,537 

Other Liabilities (Note 12) 9,869 

Total Liabilities $ 5,851,951 

Net Position 

Unexpended Appropriations 105,992 

Cumulative Results of Operations 6,066,286 

Total Net Position 6,172,278 

Total Liabilities and Net Position $ 12,024,229 

The accompanying notes are an integral part of these statements. 

24
 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

FINANCIAL STATEMENTS 

STATEMENT OF NET COST 

(in thousands) 

For the Period Ended September 30, 2020 2020 

Insurance Program 

Gross Costs 

Operating Costs 

Total Gross Costs 

Less: Earned Revenue 

Net Insurance Program Costs 

Financing Program 

Gross Costs 

Operating Costs 

Subsidy Costs/(Reduction) 

Reestimates 

Total Gross Costs 

Less: Earned Revenue 

Net Financing Program Costs 

Equity Program 

Gross Costs 

Operating Costs 

Total Gross Costs 

Net Equity Program Costs 

$ 15,131 

15,131 

(141,557) 

(126,426) 

134,753 

(212,938) 

119,516 

41,331 

(156,229) 

(114,898) 

8,935 

8,935 

8,935 

Net Cost of Operations $ (232,389) 

The accompanying notes are an integral part of these statements. 

25
 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

FINANCIAL STATEMENTS 

STATEMENT OF CHANGES IN NET POSITION 

(in thousands) 

For the Period Ended September 30, 2020 2020 

Unexpended Appropriations 

Beginning Unexpended Appropriations 

Appropriations Received 

Appropriations Transferred-In 

Other Adjustments 

Appropriations Used 

Total Unexpended Appropriations 

$ -

286,391 

122,382 

(7,927) 

(294,854) 

105,992 

Cumulative Results of Operations 

Beginning Balance -

Budgetary Financing Sources 

Appropriations Used 

Transfers In/Out Without Reimbursement 

294,854 

(2,585,265) 

Other Financing Sources (Non-exchange) 

Transfers In/Out Without Reimbursement 

Imputed Financing 

Offset to Non-entity Collections 

Total Financing Sources 

Net Cost of Operations 

Net Change 

8,528,166 

2,192 

(406,050) 

5,833,897 

232,389 

6,066,286 

Cumulative Results of Operations 6,066,286 

Net Position $ 6,172,278 

The accompanying notes are an integral part of these statements. 

26
 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

FINANCIAL STATEMENTS 

COMBINED STATEMENT OF BUDGETARY RESOURCES 

Non-Budgetary 

Credit Reform 

(in thousands) Financing 

For the Period Ended September 30, 2020 Budgetary Accounts 

Budgetary Resources 

Unobligated Balance from Prior Year Budget Authority, Net 

Appropriations 

Borrowing Authority 

Spending Authority from Offsetting Collections 

Total Budgetary Resources 

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 

Outlays (Net) and Disbursements (Net) 

Outlays, net 

Distributed Offsetting Receipts 

Agency Outlays, Net 

Disbursements, Net 

$ 

$ 

$ 

$ 

$ 

$ 

 6,072,305 

286,391 

-

695,603 

 7,054,299 

 558,128 

90,071 

6,362,427 

6,452,498 

43,673 

6,496,171 

 7,054,299 

 (91,921) 

(357,761) 

 (449,682) 

$ 

$ 

$ 

$ 

$ 

 553,597 

-

4,107,290 

482,066 

 5,142,953 

 4,524,224 

243,870 

374,859 

618,729 

-

618,729 

 5,142,953 

641,793 

The accompanying notes are an integral part of these statements. 

27
 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. REPORTING ENTITY 

The DFC is a U.S. Government corporation created under the BUILD Act. 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. On October 5, 2018, the President of the United States 

signed the BUILD Act (Public Law 115-254) establishing DFC. The BUILD Act specified a transition period during which 

the assets, liabilities, and functions of OPIC and certain functions of the USAID were to be transferred to DFC. The 

transition period occurred during FY 2020, which coincides with DFC’s first year of operation. The creation of DFC 

extends the authority for OPIC and USAID legacy programs through 2025. 

B. BASIS OF ACCOUNTING AND PRESENTATION 

The format of the financial statements and footnotes are presented in accordance with the form and content 

guidance provided in OMB Circular No. A-136, Financial Reporting Requirements (A-136). DFC’s financial statements 

are presented on the accrual and budgetary basis of accounting in accordance with U.S. GAAP promulgated by the 

Financial Accounting Standards Advisory Board (FASAB). Under the accrual basis, revenues are recognized when 

earned, and expenses are recognized when a liability is incurred, without regard to receipt or payment of cash. 

Budgetary accounting recognizes the legal commitment or obligation of funds in advance of the proprietary accruals 

and facilitates compliance with legal constraints and controls over the use of Federal funds. The accompanying 

Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position have been prepared on an accrual 

basis. The Statement of Budgetary Resources has been prepared in accordance with budgetary accounting rules. 

Significant intra-agency transactions and balances have been eliminated from the principal statements for 

presentation on a consolidated basis, except for the Statement of Budgetary Resources, which is presented on a 

combined basis in accordance with A-136. As such, intra-agency transactions have not been eliminated from the 

Statement of Budgetary Resources. 

DFC began activities after receipt of the current year appropriation to fund the agency, in December 2019. As a 

result, the activities presented in these statements and notes do not reflect a full twelve months of operations. 

Additionally, only one year of the financial statements and notes is presented for FY 2020, DFC’s first partial fiscal 

year of operation. 

C. FUND BALANCE WITH TREASURY 

FBWT is the aggregate amount of funds in DFC’s accounts with the U.S. Department of Treasury (Treasury). Treasury 

processes cash receipts and disbursements on DFC’s behalf to pay liabilities and finance authorized purchases. DFC’s 

accounting records are reconciled with Treasury’s records on a regular basis. DFC’s FBWT includes all of its general, 

revolving, and deposit funds. The general fund is used for subsidy and reestimates, revolving funds are used for 

operating expenses and DFC’s finance and insurance programs, and deposit funds are for taxes withheld on 

payments to contractors. 

D. INVESTMENTS 

DFC has investments in Treasury securities and is authorized to make direct equity investments in specific projects 

and emerging market investment funds. As of September 30, 2020, DFC only has investments in Treasury securities, 

with pending direct equity investments for FY 2021. Investments in Treasury securities are carried at face value, net 

of unamortized discount or premium, and are held to maturity. DFC has the ability and intent to hold its investments 

until maturity or until the carrying cost can be otherwise recovered. 

E. PROPERTY AND EQUIPMENT, NET 

DFC’s property and equipment consists of general-purpose equipment used by the agency. The majority of DFC 

property and equipment was transferred from OPIC, including equipment and internal use software. DFC capitalizes 

property 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 

28
 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

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

capitalization criteria when purchased, as well as normal repairs and maintenance. The cost of property and 

equipment acquired under a capital lease is the amount recognized as a liability for the capital lease at its inception. 

Depreciation and amortization of property and equipment are computed using the straight-line method over the 

estimated useful life of the asset or lease term, whichever is shorter, with periods ranging from 5 to 10 years. 

F. FEDERAL EMPLOYEE BENEFITS 

LEAVE 

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

annual leave is adjusted to reflect current pay rates as well as forfeited “use or lose” leave. Amounts are reported 

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

taken. 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 

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

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. 

IMPUTED FINANCING 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 (FICA), 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 Statement of Net Cost and imputed 

financing in the Statement of Changes in Net Position. 

FEDERAL EMPLOYEES’ COMPENSATION ACT 

The Federal Employees’ Compensation Act (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. 

G. INSURANCE PROGRAM 

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

Insurance 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 

29
 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

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. 

H. COMMITMENTS AND CONTINGENCIES 

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. 

I. CLASSIFIED ACTIVITIES 

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. 

NOTE 2: FUND BALANCE WITH TREASURY 

(dollars in thousands) 

As of September 30, 2020 

Status of Fund Balance with Treasury 

Unobligated Balance 

Available $ 913,202 

Unavailable 43,673 

Obligated Balance not yet Disbursed 659,251 

Total FBWT $ 1,616,126 

At September 30, 2020, there were no unreconciled differences between Treasury records and balances reported 

on DFC’s general ledger. DFC’S 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. 

30
 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 3: INVESTMENTS 

Amortized 

(dollars in thousands) 

As of September 30, 2020 Cost 

(Premium)/ 

Discount 

Interest 

Receivable 

Investments, 

Net Market Value 

Treasury Non-Marketable, Marketbased Securities 

Notes $ 5,864,236 $ 1,149 $ 27,734 $ 5,893,119 $ 6,264,417 

Bonds 300,312 (114) 2,521 302,719 355,467 

Total Investments $ 6,164,548 $ 1,035 $ 30,255 $ 6,195,838 $ 6,619,884 

By statute, DFC is authorized to invest funds derived from fees and other revenues related to its insurance programs 

in Treasury non-marketable, market-based Securities and make equity investments in non-Treasury projects and 

emerging market investment funds. 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 investments until maturity or until the carrying 

cost can be otherwise recovered. 

NOTE 4: ACCOUNTS RECEIVABLE, NET 

(dollars in thousands) 

As of September 30, 2020 

Public Accounts Receivable 

Accounts Receivable $ 2,540 

Insurance Settlement 20,757 

Allowance for Uncollectible Amounts (13,242) 

Accounts Receivable, Net $ 10,055 

Accounts receivable are amounts due to DFC from the public and other Federal agencies. Receivables from the public 

result from fees and premiums from insurance policies, and assets acquired in insurance claims settlements. 

Accounts receivable are reduced to net realizable value by an allowance for uncollectible amounts. Allowances are 

based on management’s periodic evaluations of the underlying assets. In its evaluation, management considers 

numerous factors, including, but not limited to, general economic conditions, asset composition, and prior loss 

experience. 

31
 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 5: DIRECT LOANS AND LOAN GUARANTIES, NON-FEDERAL BORROWERS 

A. DIRECT LOAN AND LOAN GUARANTY PROGRAMS 

DFC has the following direct loan and loan guaranty programs: 

Name of Program Description 

Direct Loan Program Direct loans by DFC, and loans transferred from OPIC and USAID’s DCA to DFC. Loans are 

for critical infrastructure, energy, and other projects requiring large investments. 

Loan Guaranties Loan Guaranties by DFC, and agreements transferred from OPIC and DCA to DFC. Loan 

guaranties are for critical infrastructure, energy, and other projects requiring large 

investments. 

Legacy Loans DFC administers loans that were previously initiated by USAID under the Debt Reduction 

Loan program, initiated after FY 1991, and the Economic Assistance Loan program, which 

were initiated prior to FY 1992. 

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 Federal Credit Reform Act (FCRA) governs direct loans made after fiscal year 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. FCRA also governs loan 

guaranties made after fiscal year 1991. The liability is determined by calculating the net present value of expected 

future cash flows for outstanding guaranties in a manner similar to 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. 

BUDGETARY ACCOUNTING FOR LOAN PROGRAMS 

DFC’s loan disbursements 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, multi-year, 

or no year appropriation authority to cover the estimated long-term costs of the loan programs. The non-subsidized 

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 reestimate increase of subsidy costs that occurs after the year in which a loan is 

disbursed. Reestimate reductions of subsidy costs are returned to Treasury and are unavailable to DFC. As required 

by the FCRA, DFC uses budgetary “program accounts” to account for appropriation authority in its credit programs 

and non-budgetary “financing accounts” to account for credit program cash flow. Estimates and reestimates of credit 

program subsidy expenses are recorded in DFC’s program accounts. 

NON-BUDGETARY CREDIT REFORM FINANCING ACCOUNTS 

Actual cash flows for direct loan and loan guaranty programs 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 uninvested funds; pay interest expense on outstanding borrowings; and transfer negative subsidy to Treasury’s general 

fund receipt account. New subsidy funded from DFC’s non-credit spending authority and appropriated upward 

subsidy reestimate 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 Statement of 

32
 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

Budgetary Resources and the Budget of the United States and are excluded from the determination of the budget 

deficit or surplus. 

SUBSIDY FUNDING UNDER FEDERAL CREDIT REFORM 

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. 

VALUATION METHODOLOGY FOR DIRECT LOANS AND LOAN GUARANTIES 

The value of direct loans and loan guaranties 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. DFC’s models vary in the specific methodologies employed to forecast 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 OMB’s Credit Subsidy Calculator that has both 

forecasted and actual Treasury interest rates. Loans have been made in both U.S. dollars and foreign currencies. 

Loans extended in foreign currencies that were originated by USAID and transferred into DFC were made with or 

without “Maintenance of Value” (MOV). Foreign currency exchange gain or loss is recognized upon receipt of loan 

repayments on loans 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 

DFC’s rating methodology for its Federal Credit Reform 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 with Moody’s Analytics. The methodology rates the portfolio risk with a consistent and standardized 

approach. 

33
 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

B. DIRECT LOANS, NET 

(dollars in thousands) 

As of September 30, 2020 

Loans 

Receivable, 

Gross 

Value of 

Allowance for Allowance for Assets 

Fees & Loan Loss (or Subsidy Cost Related to 

Interest Present Value (Present Direct Loans, 

Receivable Allowance) Value) Net 

Loans Obligated Prior to FY 1992 

Legacy Loans 

Loans Obligated After FY 1991 

Direct Loans 

Legacy Loans 

Total Loans Receivable 

$ 593,361 

3,659,289 

655,960 

$ 4,908,610 

$ 389,345 $ (535,868) $ - $ 446,838 

97,775 - (238,276) 3,518,788 

21,206 (838,249) (161,083) 

$ 508,326 $ (535,868) $ (1,076,525) $ 3,804,543 

C. TOTAL AMOUNT OF DIRECT LOANS DISBURSED 

(dollars in thousands) 

As of September 30, 2020 

Direct Loan Disbursements $ 919,700 

D. SUBSIDY EXPENSE AND REESTIMATES FOR DIRECT LOAN PROGRAMS BY COMPONENT 

(dollars in thousands) 

As of September 30, 2020 Direct Loans 

Subsidy Expense for New Direct Loans Disbursed 

Interest Differential $ 1,883 

Defaults (85,974) 

Fees and Other Collections 193,080 

Other (18,456) 

Total Subsidy Expense for New Direct Loans Disbursed 90,533 

Modifications and Reestimates 

Interest Rate Reestimates 14,751 

Technical Reestimates 59,234 

Total Reestimates 73,985 

Total Direct Loan Subsidy Expense $ 164,518 

34
 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

E. SCHEDULE FOR RECONCILING DIRECT LOAN SUBSIDY COST ALLOWANCE 

(dollars in thousands) 

As of September 30, 2020 

Beginning balance of the subsidy cost allowance 

Subsidy cost allowance transferred-in 

Add: subsidy expense for direct loans disbursed during the year 

Adjustments: 

Fees accrued 

Loans written off 

Subsidy allowance amortization 

Other 

Total adjustments 

Ending balance of the subsidy cost allowance before reestimates 

Add or subtract subsidy reestimates 

Ending balance of the subsidy cost allowance 

$ 

$ 

-

(962,425) 

90,533 

(508) 

3,196 

(134,329) 

993 

(130,648) 

(1,002,540) 

(73,985) 

(1,076,525) 

F. DEFAULTED LOAN GUARANTIES 

Defaulted Value of Assets 

Loan Allowance for Allowance for Related to 

Guaranties Loan Loss (or Subsidy Cost Defaulted Loan 

(dollars in thousands) Receivable, Interest Present Value (Present Guaranties 

As of September 30, 2020 Gross Receivable Allowance) Value) Receivable, Net 

Loans Obligated Prior to FY 1992 

Legacy Loan Guaranties $ 85,046 $ 11,671 $ (40,609) $ - $ 56,108 

Loans Obligated After FY 1991 

Loan Guaranties 366,371 18,103 (263,354) 121,120 

Legacy Loan Guaranties 77,174 53,839 - - 131,013 

Total $ 528,591 $ 83,613 $ (40,609) $ (263,354) $ 308,241 

DFC has fees receivable related to the Loan Guaranties in the amount of $88,302 as of September 30, 2020 that are 

reported as part of the Credit Program Receivables balance on the Balance Sheet. 

G. GUARANTIED LOANS OUTSTANDING 

GUARANTIED LOANS OUTSTANDING 

(dollars in thousands) Outstanding Principal of Amount of Outstanding Principal 

As of September 30, 2020 Guarantied Loans, Face Value Guarantied 

Loan Guaranties $ 10,629,819 $ 10,322,937 

Legacy Loan Guaranties 186,560 186,560 

Total $ 10,816,379 $ 10,509,497 

35
 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NEW LOAN GUARANTIES DISBURSED 

(dollars in thousands) Principal of Guarantied Loans, 

As of September 30, 2020 Face Value Amount of Principal Guarantied 

Loan Guaranties $ 1,331,896 $ 1,246,620 

Legacy Loan Guaranties - -

Total $ 1,331,896 $ 1,246,620 

H. LIABILITY FOR LOAN GUARANTIES 

Liabilities for Loan 

Losses on Liabilities for Guaranties 

Pre-1992 Post-1991 Liabilities for 

(dollars in thousands) Guaranties, Guaranties, Loan 

As of September 30, 2020 Present Value Present Value Guaranties 

Loans Obligated Prior to FY 1992 

Legacy Loan Guaranties $ (1,924) $ - $ (1,924) 

Loans Obligated After FY 1991 

Loan Guaranties - (149,006) (149,006) 

Legacy Loan Guaranties - 163,982 163,982 

Total Liability for Loan Guaranties $ (1,924) $ 14,976 $ 13,052 

I. SUBSIDY EXPENSE FOR LOAN GUARANTIES BY PROGRAM AND COMPONENT 

(dollars in thousands) Loan Legacy Loan 

As of September 30, 2020 Guaranties Guaranties Total 

Subsidy Expense for New Loan Guaranties Disbursed 

Defaults $ 110,386 $ - $ 110,386 

Fees and Other Collections (288,339) - (288,339) 

Other 55,548 - 55,548 

Total Subsidy Expense for New Loan Guaranties Disbursed (122,405) - (122,405) 

Reestimates 

Interest Rate Reestimates (9,627) (3,317) (12,944) 

Technical Reestimates 59,234 (759) 58,475 

Total Reestimates 49,607 (4,076) 45,531 

Total Loan Guaranty Subsidy Expense $ (72,798) $ (4,076) $ (76,874) 

36
 

 

 

 

 

 

 

 

 

 

 

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, 2020 

Beginning balance of the loan guaranty liability $ -

Loan guaranty liability transferred-in (51,531) 

Add: total subsidy income/(expense) for guarantied loans disbursed during the year (122,405) 

Adjustments: 

Fees accrued 192,058 

Actual claims paid (180,524) 

Loans acquired 107,966 

Subsidy allowance amortized 23,553 

Other 328 

Total adjustments 143,381 

Ending balance of the loan guaranty liability before reestimates (30,555) 

Add or subtract total subsidy reestimates by component 45,531 

Ending balance of the loan guaranty liability $ 14,976 

K. SUBSIDY RATES BY PROGRAM AND COMPONENT 

Defaults, 

net of 

As of September 30, 2020 recoveries Interest Fees Other Total 

Direct Loans 

Direct Loans 10.25% - -24.24% - -13.99% 

Direct Loan Investment Funds 1.99% -1.87% -11.30% - -11.18% 

Direct Loans in Foreign Currencies 17.49% - -4.17% -13.32% -

Hybrid Participation Notes 33.70% -0.68% -8.02% - 25.00% 

Loan Guaranties 

USAID Mission-led Guaranties 4.33% - -1.05% - 3.28% 

Loan Guaranties 8.59% - -18.10% - -9.51% 

Guarantied Loan Investment Funds 17.97% - -16.56% - 1.41% 

Non-Honoring of Sovereign Guaranties 2.18% - -8.34% - -6.16% 

Limited Arbitral Award Coverage 3.57% - -5.96% - -2.39% 

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 

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 subsidy reestimates. 

L. ADMINISTRATIVE EXPENSES 

DFC incurs administrative expenses to carry out its credit reform programs. The administrative expense for direct 

loan and loan guaranties is $64,119 thousand for the period ended September 30, 2020. 

37
 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 6: PROPERTY AND EQUIPMENT, NET 

(dollars in thousands) 

As of September 30, 2020 

Equipment 

Internal-Use Software 

Total Property and Equipment, Net 

Cost 

$ 3,925 

9,584 

$ 13,509 

$ 

$ 

Accumulated 

Depreciation 

(3,443) 

(9,584) 

(13,027) 

Net Book Value 

$ 482 

-

$ 482 

(dollars in thousands) 

Balance as of October 1, 2019 

Transfers In 

Depreciation Expense 

Balance as of September 30, 2020 

Acquisition Cost 

$ -

13,509 

-

$ 13,509 

$ 

$ 

Accumulated 

Depreciation 

-

(12,882) 

(145) 

(13,027) 

Net PP&E 

$ -

627 

(145) 

$ 482 

NOTE 7: LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES 

Liabilities of Federal agencies are classified as liabilities covered or not covered by budgetary resources. DFC’s 

liabilities not covered by budgetary resources primarily consist of accrued unfunded annual leave. DFC’s liabilities 

not requiring budgetary resources consists of rent incentives. 

(dollars in thousands) 

As of September 30, 2020 

Intragovernmental 

Unfunded FECA Liability $ 301 

Total Intragovernmental 301 

With the Public 

Unfunded Annual Leave 5,215 

Actuarial FECA Liability 428 

Total With the Public 5,643 

Total Liabilities Not Covered by Budgetary Resources 5,944 

Total Liabilities Covered by Budgetary Resources 5,833,398 

Total Liabilities Not Requiring Budgetary Resources 12,609 

Total Liabilities $ 5,851,951 

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 it 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. 

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. 

38
 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 8: BORROWINGS FROM TREASURY 

DFC’s debt comes from direct borrowings from the U.S. Treasury to fund the portion of direct loans not covered by 

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. During FY 2020 borrowings from Treasury 

were transferred in from OPIC and USAID to DFC. 

(dollars in thousands) 

As of September 30, 2020 

Debt to the Treasury 

Beginning Balance $ -

Borrowings Transferred In 5,341,670 

Net Borrowings (663,911) 

Ending Balance $ 4,677,759 

NOTE 9: LIABILITY FOR REESTIMATES AND CAPITAL TRANSFERS TO TREASURY 

Federal credit programs are required to transfer to Treasury excess funding. Loans and loan guaranties made after 

FY 1991 that are covered under FCRA are reestimated each year. The loans and loan guaranties where the 

reestimate indicates 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. Loan and 

loan guaranties made prior to FY 1992 are not covered under the Federal Credit Reform Act, however, excess funding 

is still required to be transferred to Treasury in the form of a capital transfer. 

The balance of the Liability for Reestimates and Capital Transfers to Treasury consists of the following: 

(dollars in thousands) 

As of September 30, 2020 

Downward Reestimates 

Capital Transfers to Treasury 

Ending Balance 

$ 

$ 

342,662 

656,763 

999,425 

NOTE 10: UNEARNED REVENUE 

(dollars in thousands) 

As of September 30, 2020 

Finance Retainer Fees and Deferred Facility Fees $ 121,234 

Rent Incentives 12,609 

Total Unearned Revenue: $ 133,843 

DFC may charge a retainer and other working capital fees in conjunction with each project. Working capital fees are 

maintained in non-budgetary financing funds. Facility fees collected in excess of $50,000 are amortized over the life 

of the project. 

39
 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 11: INSURANCE PROGRAM LIABILITIES AND CLAIM RECOVERIES 

DFC provides Political Risk Insurance for overseas investments against six different risks: (1) inconvertibility of 

currency; (2) expropriation; (3) bid, performance, advance payment, and other guaranty coverages; (4) political 

violence; (5) reinsurance; and (6) breach of contract for capital markets. On a case-by-case basis, DFC may rewrite 

and renew insurance coverage beyond the initial term of the original insurance contract issued. 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. 

1) Insurance coverage against inconvertibility protects the investor from increased restrictions on the 

investor’s ability to convert local currency into U.S. dollars. Inconvertibility insurance does not protect 

against devaluation of a country’s currency. 

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 

project. 

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 

current coverage in force at the time of the loss and may be reduced by the insured’s recoveries from other sources. 

In certain instances, DFC’s requirement to pay up to the single highest coverage amount may be reduced by stoploss and risk-sharing agreements. Finally, losses on insurance claims may be reduced by recoveries by DFC as 

subrogee of the insured’s claim against the host government. Payments made under insurance contracts that result 

in recoverable assets are included in Accounts Receivable net of an allowance for uncollectible amounts. 

DFC’s liability for unearned insurance retainer fees and unearned insurance premiums as of September 30, 2020 was 

$16,537 thousand. DFC did not have any claims incurred or paid, or claims recoveries received during FY 2020. 

The liability for losses on remaining coverage 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 it is the period the 

insurance is in-force and unexpired. DFC has no liability for losses on remaining coverage as of September 30, 2020. 

In addition to requiring formal applications for claimed compensation, DFC’s contracts generally require investors to 

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. DFC has no contingent liabilities related to insurance claims as of September 30, 2020. 

40
 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

DFC’s current exposure for all policies in force, or Current Exposure to Claims at September 30, 2020 was $2.7 billion. 

DFC’s broader measure of exposure is limited to “Maximum Contingent Liability” as defined in legislation as $3.6 

billion at September 30, 2020. This amount is DFC’s estimate of maximum exposure to insurance claims, which 

includes standby coverage for which DFC is committed but not currently at risk. 

NOTE 12: OTHER LIABILITIES 

(dollars in thousands) Non-Current 

As of September 30, 2020 Liabilities Current Liabilities Total Liabilities 

Intragovernmental 

Employer Contributions & Payroll Taxes Payable $ - $ 1,165 $ 1,165 

Unfunded FECA Liability 165 136 301 

Total Intragovernmental 165 1,301 1,466 

With the Public 

Accounts Payable - 759 759 

Accrued Funded Payroll & Benefits - 3,376 3,376 

Accrued Unfunded Annual Leave - 5,215 5,215 

Liability for Deposit Funds - 91 91 

Actuarial FECA Liability 428 - 428 

Total Liabilities With the Public 428 9,441 9,869 

Total Other Liabilities $ 593 $ 10,742 $ 11,335 

NOTE 13: LEASES 

OPERATING LEASES 

DFC leases commercial facilities under a multi-year operating lease agreement, as amended, which expires in May 

2029. 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 Balance Sheet and are amortized to recognize 

rent expense on a straight-line basis over the life of the lease. Rental expense was approximately $6.9 million for 

fiscal year 2020. The following table presents future rental payments. 

(dollars in thousands) Non-Federal Lease 

For the Years Ending: Payments 

2020 $ 8,394 

2021 9,638 

2022 9,661 

2023 9,901 

2024 10,148 

After 2024 38,482 

Total Future Lease Payments $ 86,224 

41
 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

NOTE 14: BUDGETARY RESOURCES 

A. PERMANENT INDEFINITE APPROPRIATIONS 

The Federal Credit Reform Act of 1990 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. 

Section 235(c) of the Foreign Assistance Act of 1961 (FAA) 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 statute to borrow from Treasury should funds in DFC’s reserves be 

insufficient to discharge obligations arising under its insurance program. 

B. ANNUAL APPROPRIATIONS 

DFC receives an annual appropriation for operations and programs. Under current law (Public Law 116-94, 133 Stat. 

2840), DFC’s offsetting collections are to be used to reduce DFC’s annual appropriation from the General Fund to 

zero. The offsetting collections to be used for this purpose include investment earnings, non-insurance fees, and 

negative subsidy. 

C. BORROWING AUTHORITY 

DFC is required to borrow from Treasury’s Bureau of the Fiscal Service to fund the unsubsidized portion of direct 

loan disbursements. DFC is authorized to borrow funds to disburse negative subsidy or pay claims in excess of the 

amount of subsidy and collections maintained in the financing funds. At the end of fiscal year 2020, DFC had $5,534 

million in borrowing authority carried over to fund direct loans and pay future claims. 

D. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

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. 

(dollars in thousands) 

As of September 30, 2020 Federal Non-Federal Total 

Unpaid $ 1,042,158 $ 4,694,430 $ 5,736,588 

Paid - 642 642 

Total Obligations $ 1,042,158 $ 4,695,072 $ 5,737,230 

E. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE BUDGET OF THE U.S. 

GOVERNMENT 

Agencies are required to explain material differences between their Statement of Budgetary Resources (SBR) and 

the Budget of the U.S. Government. This disclosure reconciles the prior year’s Statement of Budgetary Resources to 

the actual balances per the upcoming year’s budget. For example, DFC’s FY 2020 SBR will be reconciled to the actual 

balances per the 2022 Budget of the U.S. Government which will be released in FY 2021. As a result, DFC will not 

have anything to report until FY 2021. The Budget with the actual amounts for this current year will be available at 

a later date at https://www.whitehouse.gov/omb/budget/. 

NOTE 15: RECONCILIATION OF NET COST OF OPERATIONS TO NET OUTLAYS 

Budgetary accounting is used for planning and control purposes and relates to both the receipt and use of cash, as 

well as reporting the Federal deficit. Financial accounting is intended to provide a picture of the government's 

financial operations and financial position, so it presents information on an accrual basis. The accrual basis includes 

information about costs arising from the consumption of assets and the incurrence of liabilities. The reconciliation 

42
 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

of net outlays, presented on a budgetary basis, and the net cost, presented on an accrual basis, provides an 

explanation of the relationship between budgetary and financial accounting information. The reconciliation serves 

not only to identify costs paid for in the past and those that will be paid in the future, but also to assure integrity 

between budgetary and financial accounting. The analysis below illustrates this reconciliation by listing the key 

differences between net cost and net outlays. 

(dollars in thousands) Intra 

For the Period Ended September 30, 2020 governmental With the public Total 

Net Cost $ 47,009 $ (25,288) $ 21,721 

Components of Net Cost That Are Not Part of Net Outlays: 

Property and Equipment Depreciation - (145) (145) 

Year-end Credit Reform subsidy Re-estimates (118,200) - (118,200) 

Increase/(decrease) in assets: 

Accounts Receivable - 10,055 10,055 

Credit Program Receivable - (53,288) (53,288) 

Investments 68,067 - 68,067 

(Increase)/decrease in liabilities: -

Loan Guaranty Liability - 1,924 1,924 

Unearned Revenue - (132,614) (132,614) 

Subsidy Payable to the Financing Account 284,391 - 284,391 

Liability for Reestimates and Capital Transfers to Treasury (656,763) - (656,763) 

Insurance Program Liabilities - (16,537) (16,537) 

Other Liabilities (1,894) (9,440) (11,334) 

Other Financing Sources: -

Imputed Costs (2,192) - (2,192) 

Transfers out (in) without reimbursement 512,994 - 512,994 

Total Components of Net Cost That Are Not Part of Net 86,403 (200,045) (113,642) 

Outlays 

Components of Net Outlays That Are Not Part of Net Cost: 

Distributed Offsetting Receipts (357,761) - (357,761) 

Total Components of Net Outlays That Are Not Part of Net (357,761) - (357,761) 

Cost 

Net Outlays (calculated) (224,349) (225,333) (449,682) 

Related Amounts on the Statement of Budgetary Resources 

Outlays, Net (91,921) 

Distributed Offsetting Receipts (357,761) 

Total Agency Outlays, Net $ (449,682) 

NOTE 16: RECLASSIFICATION OF BALANCE SHEET, STATEMENT OF NET COSTS, 

AND STATEMENT OF CHANGES IN NET POSITION FOR FINANCIAL REPORTING 

COMPILATION PROCESS 

To prepare the Financial Report of the U.S. Government (FR), the Department of the Treasury requires agencies to 

submit an adjusted trial balance, which is a listing of amounts by U.S. 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 Balance Sheet, Reclassified Statement of Net 

Cost, and a Reclassified Statement of Changes in Net Position for each agency, which are accessed using GTAS. 

Treasury eliminates all intragovernmental balances from the reclassified statements and aggregates lines with the 

same title to develop the FR statements. This note shows DFC’s financial statements and DFC’s reclassified 

43
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

statements prior to elimination of intragovernmental balances and prior to aggregation of repeated FR line items. 

The GTAS balances on the Reclassified Balance Sheet and Statement of Changes in Net Position require additional 

manual adjustments in order to accurately reflect DFC’s activity. A copy of the 2019 FR can be found here: 

https://www.fiscal.treasury.gov/reports-statements/ and a copy of the 2020 FR will be posted to this site as soon as 

it is released. 

The term “intragovernmental” is used in this note to refer to amounts that result from other components of the 

Federal Government. 

The term “non-Federal” is used in this note to refer to Federal Government amounts that result from transactions 

with non-Federal entities. These include transactions with individuals, businesses, non-profit entities, and State, 

local, and foreign governments. 

FY 2020 DFC Balance Sheet Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line 

Amounts 

(in thousands) 

Amounts 

(in thousands) 

Plus: Manual 

Adjustment 

(in thousands) 

Adjusted 

Amounts 

(in thousands) 

Reclassified Financial 

Statement Line 

ASSETS ASSETS 

Intra-Governmental 

Assets 

Intra-Governmental 

Assets 

FBWT $ 1,616,126 $ 1,616,126 - $ 1,616,126 FBWT 

Investments, Net 6,195,838 

6,165,583 

-

6,165,583 

Federal Investments 

30,255 

-

30,255 

Interest Receivable -

Investments 

Total Investments, Net 6,195,838 

6,195,838 

-

6,195,838 

Total Reclassified 

Investments, Net 

Advances - 19 - 19 Advances to Others and 

Prepayments 

(19) - (19) Other Assets 

Total Advances - - - - Total Advances to Other 

and Prepayments 

Total Intragovernmental Assets $ 7,811,964 $ 7,811,964 $ - $ 7,811,964 Total Intragovernmental Assets 

Accounts Receivable, 

Net 

10,055 10,055 - 10,055 Accounts Receivable, Net 

Credit Program 

Receivable, Net 

4,201,086 4,099,890 - 4,099,890 Loans Receivable, Net 

101,196 - 101,196 Accounts Receivable, Net 

Total Credit Program 

Receivable, Net 

4,201,086 4,201,086 - 4,201,086 Total Credit Program 

Receivable, Net 

Property and Equipment, 

Net 

482 482 - 482 General Property, Plant 

and Equipment, Net 

Other Assets 642 642 - 642 Other Assets 

Total Assets $ 12,024,229 $ 12,024,229 $ - $ 12,024,229 Total Assets 

44
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

FY 2020 DFC Balance Sheet Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line 

Amounts 

(in thousands) 

Amounts 

(in thousands) 

Plus: Manual 

Adjustment 

(in thousands) 

Adjusted 

Amounts 

(in thousands) 

Reclassified Financial 

Statement Line 

LIABILITIES LIABILITIES 

Intra-Governmental 

Liabilities 

Intra-Governmental 

Liabilities 

Borrowings from 

Treasury 

$ 4,677,759 $ 4,677,759 - $ 4,677,759 Loans Payable 

Liability for Reestimates 

and Capital Transfers to 

Treasury 

999,425 999,425 - 999,425 Liability to General Fund 

for Custodial and Other 

Non-Entity Assets 

Other Liabilities 1,466 632 - 632 Benefit Program 

Contributions Payable 

158 - 158 Other liabilities (without 

reciprocals) 

676 - 676 Federal employee and 

veteran benefits payable 

Total Other Liabilities 1,466 1,466 - 1,466 Total Other Liabilities 

Total IntraGovernmental Liabilities $ 5,678,650 $ 5,678,650 $ - $ 5,678,650 Total Intra-Governmental 

Liabilities 

Loan Guaranty Liability $ 13,052 $ 13,052 - $ 13,052 Loan Guaranty Liability 

Unearned Revenue 133,843 133,843 - 133,843 Other liabilities 

Insurance Program 

Liabilities 

16,537 15,717 - 15,717 Insurance and guaranty 

program liabilities 

820 - 820 Other liabilities 

Total Insurance Program 

Liabilities 

16,537 16,537 - 16,537 Total Insurance Program 

Liabilities 

Other Liabilities 9,869 3,467 - 3,467 Other liabilities 

1,031 (272) 759 Accounts payable 

5,643 - 5,643 Federal employee and 

veteran benefits payable 

Total Other Liabilities 9,869 10,141 (272) 9,869 Total Reclassified Other 

Liabilities 

Total Liabilities $ 5,851,951 $ 5,852,223 $ (272) $ 5,851,951 Total Liabilities 

NET POSITION NET POSITION 

Unexpended 

Appropriations 

$ 105,992 $ 116,983 $ (10,991) $ 105,992 Unexpended 

appropriations - Funds 

other than those from 

Dedicated Collections 

Cumulative Results of 

Operations 

6,066,286 6,055,206 11,080 6,066,286 Cumulative results of 

operations - Funds other 

than those from 

Dedicated Collections 

Total Net Position 6,172,278 6,172,189 89 6,172,278 Total Net Position - Funds 

other than those from 

Dedicated Collections 

Total Liabilities & Net 

Position 

$ 12,024,229 $ 12,024,412 $ (183) $ 12,024,229 Total Liabilities & Net 

Position 

45
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

FY 2020 DFC Statement of Net Cost Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line 

Amounts 

(in thousands) 

Amounts 

(in thousands) Reclassified Financial Statement Line 

Gross Costs $ - $ (32,507) Non-Federal Gross Cost 

Operating Costs 158,819 6,907 Benefit Program Costs 

Subsidy costs (212,938) 2,192 Imputed Costs 

Re-estimates 119,516 -

517 Buy/Sell Costs 

88,288 Borrowing and Other Interest 

Expense 

Other Expenses (w/o Reciprocals) 

Total Gross Costs 65,397 65,397 Total Reclassified Gross Costs 

Earned Revenue (297,786) (107,854) Non-Federal Earned Revenue 

(1,299) Buy/Sell Revenue 

(103,749) Federal Securities Interest Revenue 

Including Associated Gains/Losses 

(Exchange) 

(84,884) Borrowing and Other Interest 

Revenue 

(189,932) Total Federal Earned Revenue 

Total Earned Revenue (297,786) (297,786) Total Reclassified Earned Revenue 

Net Cost $ (232,389) $ (232,389) Net Cost 

FY 2020 DFC Statement of Changes in Net 

Position 

Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line 

Amounts 

(in thousands) 

Amounts 

(in thousands) 

Plus: Manual 

Adjustment 

(in thousands) 

Adjusted 

Amounts 

(in thousands) 

Reclassified Financial 

Statement Line 

Unexpended 

Appropriations 

Unexpended 

Appropriations 

Unexpended 

Appropriations, Beginning 

Balance 

$ - $ - $ - $ - Net Position, Beginning of 

Period 

Appropriations received 286,391 286,391 - 286,391 Appropriations Received 

as Adjusted 

Appropriations 

transferred in/out 

122,382 152,609 - 152,609 Non-Expenditure 

Transfers-In of 

Unexpended 

Appropriations and 

Financing Sources 

(Federal) 

(30,227) - (30,227) Non-Expenditure 

Transfers-Out of 

Unexpended 

Appropriations and 

Financing Sources 

(Federal) 

Total Non-Expenditure 

Transfers-In/Out of 

Unexpended 

Appropriations and 

Financing Sources 

(Federal) 

122,382 122,382 - 122,382 Total Reclassified NonExpenditure TransfersIn/Out of Unexpended 

Appropriations and 

Financing Sources 

(Federal) 

46
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

FY 2020 DFC Statement of Changes in Net 

Position 

Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line 

Amounts 

(in thousands) 

Amounts 

(in thousands) 

Plus: Manual 

Adjustment 

(in thousands) 

Adjusted 

Amounts 

(in thousands) 

Reclassified Financial 

Statement Line 

Other Adjustments (7,927) (7,927) - (7,927) Appropriations received 

as adjusted 

Appropriations Used (294,854) (283,075) (11,779) (294,854) Appropriations Used 

(Federal) 

Total Unexpended 

Appropriations 

105,992 117,771 (11,779) 105,992 Total Unexpended 

Appropriations 

Cumulative Results of 

Operations 

Cumulative Results of 

Operations 

Cumulative Results, 

Beginning Balance 

- - - - Net Position, Beginning of 

Period 

Appropriations Used 294,854 283,075 11,779 294,854 Appropriations Expended 

Transfers In/Out without 

Reimbursement 

Budgetary 

(2,585,265) 1,799,492 - 1,799,492 Non-Expenditure 

Transfers-in of 

Unexpended 

Appropriations and 

Financing Sources 

(4,384,757) - (4,384,757) Non-Expenditure 

Transfers-Out of 

Unexpended 

Appropriations and 

Financing Sources 

Total Transfers In/Out 

without Reimbursement -

Budgetary 

(2,585,265) (2,585,265) - (2,585,265) Total Reclassified 

Transfers In/Out without 

Reimbursement -

Budgetary 

Other Financing Sources 

(Nonexchange) 

Other Financing Sources 

(Nonexchange) 

Transfers In/Out without 

Reimbursement Other 

8,528,166 9,103,262 - 9,103,262 Transfers-in without 

reimbursement 

(575,096) - (575,096) Transfers-out without 

reimbursement 

Total Transfers In/Out 

without Reimbursement -

Other 

8,528,166 8,528,166 - 8,528,166 Total Reclassified 

Transfers In/Out without 

Reimbursement – Other 

Imputed Financing 2,192 2,192 - 2,192 Imputed Financing 

Sources (Federal) 

Offset to Non-entity 

Collections 

(406,050) (357,761) - (357,761) Non-entity collections 

transferred to the General 

Fund of the U.S. 

Government 

(48,289) - (48,289) Accrual for non-entity 

amounts to be collected 

and transferred to the 

General Fund of the U.S. 

Government 

Total Offset Non-entity 

Collections 

(406,050) (406,050) - (406,050) Total Reclassified Offset 

Non-entity Collections 

Total Financing Sources 5,833,897 5,822,118 11,779 5,833,897 Total Financing Sources 

47
 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

NOTES TO THE FINANCIAL STATEMENTS 

FY 2020 DFC Statement of Changes in Net 

Position 

Line Items Used to Prepare FY 2020 Government-wide 

Financial Statement Line 

Amounts 

(in thousands) 

Amounts 

(in thousands) 

Plus: Manual 

Adjustment 

(in thousands) 

Adjusted 

Amounts 

(in thousands) 

Reclassified Financial 

Statement Line 

Net (Cost)/Benefit of 

Operations 

232,389 232,389 - 232,389 Reclassified Net Cost of 

Operations 

Ending Balance -

Cumulative Results of 

Operations 

6,066,286 6,054,507 11,779 6,066,286 Net Position - Ending 

Balance 

Total Net Position $ 6,172,278 $ 6,172,278 - $ 6,172,278 Total Net Position 

48
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 

COMBINING STATEMENT OF BUDGETARY RESOURCES BY MAJOR BUDGET 

ACCOUNT 

(in thousands) 

For the Year Ended September 30, 2020 

Insurance 

Budgetary 

Finance 

Budgetary 

Equity 

Budgetary 

Inspector 

General 

Budgetary 

Non-Budgetary 

Credit Reform 

Accounts 

Budgetary Resources 

Unobligated Balance from Prior Year 

Budget Authority, Net $ 5,993,819 $ 78,486 $ - $ - $ 553,597 

Appropriations - 284,391 - 2,000 -

Borrowing Authority - - - - 4,107,290 

Spending Authority from Offsetting 

Collections 278,043 267,560 150,000 - 482,066 

Total Budgetary Resources $ 6,271,862 $ 630,437 $ 150,000 $ 2,000 $ 5,142,953 

Status of Budgetary Resources 

New obligations and upward adjustments 

(total) $ 113,418 $ 324,288 $ 120,000 $ 422 $ 4,524,224 

Unobligated Balance, End of Year 

Apportioned, unexpired accounts 40,079 18,414 30,000 1,578 243,870 

Unapportioned, unexpired accounts 6,118,171 244,256 - - 374,859 

Unexpired unobligated balance, end of year $ 6,158,250 $ 262,670 $ 30,000 $ 1,578 $ 618,729 

Expired unobligated balance, end of year 194 43,479 - - -

Unobligated Balance, end of year (total) 6,158,444 306,149 30,000 1,578 618,729 

Total Budgetary Resources 

Outlays, net 

Distributed Offsetting Receipts 

Agency Outlays, Net 

$ 

$ 

6,271,862 

(121,452) 

-

(121,452) 

630,437 

$ 179,531 

(357,761) 

$ (178,230) 

150,000 

$ (150,000) 

-

$ (150,000) 

$ 

$ 

2,000 

-

-

-

5,142,953 

Disbursements, Net $ 641,793 

49
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

APPENDIX 

PAYMENT INTEGRITY 

In accordance with OMB guidance on the implementation of the Payment Integrity Information Act (PIIA) of 2019, 

DFC performed a risk assessment and determined that its programs were low risk and not susceptible to significant 

improper payments. To further assess the operating effectiveness of its internal control over payment integrity, DFC 

utilized tested disbursements in two of its largest programs with outlays, direct loans and investment guaranties, 

and the results of the testing confirmed these programs do not represent significant improper payment risk and that 

DFC’s internal controls to prevent improper payments are operating effectively. 

50
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

APPENDIX 

ACRONYM LISTING 

ACRONYM DEFINITION 

BUILD 

CEO 

CFO 

CIO 

CSC 

DCA 

DFC 

DOL 

FAA 

FASAB 

FBWT 

FCRA 

FECA 

FERS 

FICA 

FR 

FY 

GDP 

GSEZ 

GTAS 

IAM 

IQ 

LIC 

LMIC 

MCC 

MOV 

MSME 

MW 

OIG 

OMB 

OPM 

PEA 

PIIA 

SBR 

SFFAS 

SME 

SNC 

U.S. 

USAID 

Better Utilization of Investments Leading to Development 

Chief Executive Officer 

Chief Financial Officer 

Chief Information Officer 

Credit Subsidy Calculator 

Development Credit Authority 

U.S. International Development Finance Corporation 

Department of Labor 

Foreign Assistance Act of 1961 

Financial Accounting Standards Advisory Board 

Fund Balance with Treasury 

Federal Credit Reform Act 

Federal Employees’ Compensation Act 

Federal Employees Retirement System 

Federal Insurance Contributions Act 

Financial Report of the U.S. Government 

Fiscal year 

Gross domestic product 

Gabon Special Economic Zone 

Governmentwide Treasury Account Symbol Adjusted Trial Balance System 

Independent Accountability Mechanism 

Impact quotient 

Low-income country 

Lower-middle income countries 

Millennium Challenge Corporation 

“Maintenance of Value” 

Micro, small, and medium enterprises 

Megawatt 

Office of Inspector General 

Office of Management and Budget 

Office of Personnel Management 

President’s Economic Assumptions 

Payment Integrity Information Act 

Statement of Budgetary Resources 

Statement of Federal Financial Accounting Standards 

Small and medium-sized enterprises 

Statement of Net Cost 

United States 

United States Agency for International Development 

51