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 Loans Receivable, Net and Loan Guaranty Liabilities

Note 6 General Property and Equipment, Net

Note 7 Advances and Prepayments

Note 8 Liabilities Covered and Not Covered by Budgetary Resources

Note 9 Debt

Note 10 Federal Employee Benefits Payable

Note 11 Insurance Program Liabilities 

Note 12 Advances from Others and Deferred Revenue

Note 13 Other Liabilities

Note 14 Leases

Note 15 Budgetary Resources

Note 16 Reconciliation of Net Cost to Net Outlays

Note 17

Reclassification of the 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 

On behalf of 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 the Corporation 

and 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 another unmodified audit opinion which underscores our 

prudent management of exposure through sound underwriting and effective governance. In FY 2021, DFC’s 

revenue exceeded its cost by $162 million, had combined total exposure of $32.8 billion, and maintained 

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

new commitments of $6.8 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 economic development challenges.

Sincerely,

Dev Jagadesan

Acting Chief Executive Officer

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

BACKGROUND, MISSION, AND ORGANIZATION

The United States International Development Finance Corporation (DFC) is the official development finance 

institution (DFI) of the United States. DFC is an independent Executive Branch agency that partners with the private 

sector to finance solutions to the most critical challenges facing the developing world today. DFC’s private sector 

tools provide a critical bridge between federal resources and dynamic private sector driven development. DFC seeks 

to generate financial returns for the American taxpayer through its investments. To learn more about our mission, 

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

DFC is led by its Chief Executive Officer, with oversight from its Board of Directors, Development Advisory Council, 

Office of Accountability, and Office of Inspector General. 

DFC ORGANIZATIONAL STRUCTURE

The organizational chart below is as of September 30, 2021. 

Board of Directors

Office of 

Independent 

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 Equity & Investment Funds

Office of External Affairs

Office of Information Technology | CIO

Office of Human Resources Management

Office of U.S. Operations

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

ADMINISTRATION PRIORITIES

The Better Utilization of Investments Leading to Development (BUILD) Act provides DFC the authority to issue 

insurance or reinsurance, make loans and guaranties, and invest equity in investment funds and individual 

enterprises. In addition to these core programs, the BUILD Act provides the authority to offer a variety of technical 

assistance to potential projects.

DFC’s program funding is deployed in coordination with the Executive Branch agencies charged with implementing 

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

developmental projects in less developed countries. During fiscal year (FY) 2021, DFC’s priorities aligned with its 

strategic goals and included the following:

CLIMATE

DFC uses its investment tools to support projects that help mitigate climate change-causing 

greenhouse gas emissions and those that boost adaptation and resilience in the most vulnerable 

global communities.

HEALTH

DFC supports the international response to COVID-19, building more resilient healthcare supply 

chains and expanding access to healthcare professionals, facilities, and lifesaving treatments. DFC 

is also increasing access to clean drinking water and improved sanitation in schools and healthcare 

facilities, and seeks to strengthen global agricultural value chains by investing in projects that help 

farmers increase yields, reduce food waste, and expand exports.

GENDER EQUITY

DFC, through its 2X Initiative, invests in women and girls globally to address their distinct needs 

and unlock opportunities through financial services, support for small businesses, and projects run 

by and directly targeted to women.

INCLUSIVE GROWTH

DFC prioritizes high developmental impact projects in low-income and lower middle-income 

countries with a focus on accelerating economic growth in indigenous and underserved 

communities to reduce extreme poverty and income inequality.

INFORMATION & COMMUNICATIONS TECHNOLOGY

DFC supports information and communications technology projects that have the potential to 

drive additional opportunity and growth in developing markets where increased connectivity can 

help spur transformative opportunities.

REGIONAL FOCUS AREAS

DFC seeks to grow its portfolio of catalytic investments especially in Africa, Southeast Asia, and the 

Northern Triangle to drive broad-based, values-driven, private sector-led growth that expands 

economic opportunity and advances U.S. development objectives.

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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, 

strategies and resources to meet these challenges. DFC extends its core capability of mobilizing market-based, 

private-sector 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 six key goals:

GOAL 1: CONFRONT THE CLIMATE CRISIS

President Biden has named climate change the “existential threat of our time” and called 

on DFC to support investment in climate mitigation, resilience, and adaptation in the 

developing world. While climate change impacts all countries, emerging economies are 

often particularly vulnerable because they lack the infrastructure, insurance, and 

agricultural technology to protect against severe weather. 

GOAL 2: SUPPORT THE GLOBAL COVID RESPONSE

COVID-19 has presented a global health emergency and exposed a staggering need for 

improved healthcare infrastructure in the developing world. DFC’s financing tools can 

mobilize private sector resources to help counter the devastating economic consequences 

of the pandemic. DFC will continue to seek opportunities to increase liquidity through 

onlending institutions to businesses impacted by shutdowns.

GOAL 3: ADVANCE WOMEN’S ECONOMIC EMPOWERMENT

DFC will increase its commitments to projects that empower women. Women drive growth 

and foster stability in their communities, yet also face significant barriers to achieving full 

participation in and contribution to their economies. 

GOAL 4: MAXIMIZE DEVELOPMENT IMPACT

DFC is committed to investing in projects that address the biggest challenges the world 

faces, with a strong focus on low-income and lower middle-income countries and 

underserved communities. This work encompasses a broad range of issues, from food 

insecurity to energy poverty to causes of migration. DFC works to expand access to 

healthcare, technology, modern infrastructure, and financial services.

GOAL 5: DRIVE PRIVATE CAPITAL TOWARD U.S. FOREIGN POLICY OBJECTIVES

DFC’s investments advance American values, including transparency, respect for the 

environment, economic inclusivity, and good governance. DFC works with like-minded 

investment partners and the private sector to develop projects that are financially 

sustainable, and coordinates directly with other U.S. government agencies, including the 

National Security Council, State, and United States Agency for International Development 

(USAID), to ensure that it issupporting U.S. foreign policy priorities. DFC adheres to the high 

governance standards of international financial institutions related. DFC operates 

transparently, ensures debt sustainability, and respects internationally recognized 

environmental and social safeguards.

GOAL 6: GROWING THE QUANTITY AND QUALITY OF OUR INVESTMENTS

DFC will further develop the quantity and quality of its portfolio through the furtherance of 

equity investments, mobilization of private investment, and collaboration with partners.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

STRATEGIC GOALS IN PRACTICE

INVESTMENT PORTFOLIO

DFC’s 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 helps meets DFC’s goals.

• Insurance – DFC offers political risk insurance coverage 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.

• Technical Assistance – DFC’s technical assistance program funds a variety of technical assistance

interventions including feasibility studies, training and project-related support that implement DFC’s 

mission of mobilizing private capital to advance development and support U.S. foreign policy objectives. 

Technical assistance grants are designed to increase the development impact or improve the commercial 

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

assistance will be designed to complement, but does not duplicate, work funded by other agencies or 

sources of financing. 

DFC’s investment portfolio demonstrates the agency’s commitment to the underserved regions where DFC can 

maximize development impact and advance U.S. foreign policy objectives. A link to an interactive map of DFC’s 

investments by country and type of investment can be found here. 

STRATEGIC GOAL 1: 

CONFRONT THE CLIMATE CRISIS

GOAL PROGRESS

DFC is a leader in financing projects that help countries generate clean energy, including solar, wind, hydro, 

geothermal and biomass. The agency has increased its focus on the global climate crisis with a series of bold 

commitments, including achieving net-zero emissions across its portfolio by 2040, focusing one-third of all new 

investments on climate by 2023, increasing technical support for climate projects, and issuing calls for applications 

for climate-focused funds and distributed renewable energy projects.

PROTECTING SMALLHOLDER FARMERS AND LOW-INCOME 

POPULATIONS AGAINST NATURAL DISASTERS

Challenge

Natural disasters resulting from climate adaption, such as floods, 

droughts, and hurricanes, push 26 million people into poverty each 

year and result in an estimated $300 billion in economic losses. Lowincome communities and smallholder farmers in developing 

countries are often the hardest hit because few have sufficient 

insurance against natural disasters. While almost half of all losses in 

developed countries are covered by insurance, only ten percent of losses in developing countries have similar 

protection.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

Solution and Impact

A DFC loan is helping the InsuResilience Investment Fund, a fund managed by BlueOrchard, to work with financial 

institutions to develop and expand insurance to protect smallholder farmers and other climate-vulnerable and lowincome populations in developing countries against extreme weather and other natural disasters resulting from the 

climate crisis.

InsuResilience aims to protect more than 100 million of the most vulnerable people on the planet by developing

insurance products for micro and small and medium enterprises, including smallholder farmers. Expanded access to 

insurance can reduce losses and humanitarian impacts by enabling more rapid response and relief efforts, especially 

within the agriculture sector. 

STRATEGIC GOAL 2: 

SUPPORT THE GLOBAL COVID RESPONSE

GOAL PROGRESS

DFC is playing a key role in the Biden Administration’s efforts to build permanent, sustainable, and diversified 

manufacturing capacity around the world to help developing countries access more vaccines and prepare for future 

pandemics. The agency is also working to expand access to critical therapeutics, introduce medical equipment 

designed for low-resource environments, and bolster liquidity to help struggling small businesses continue to 

operate. 

EXPANDING VACCINE MANUFACTURING IN THE DEVELOPING 

WORLD

Challenge

The COVID-19 pandemic has exposed weaknesses in healthcare 

infrastructure in the developing world, as well as the lack of sufficient 

manufacturing capacity to produce adequate supplies of vaccines. 

Developing countries in particular require more access to vaccines as

production and distribution capacity limits the number available to 

them.

Solution and Impact

DFC is providing Indian manufacturer Biological E Ltd. financing to increase capacity to support its efforts to produce 

at least 1 billion doses of COVID-19 vaccines by the end of 2022. This project is part of the DFC’s Global Health and 

Prosperity Initiative, under which the agency is working to increase manufacturing, production and distribution 

capacity for vaccines, including the COVID-19 vaccine. The vaccines Biological E plans to produce with the assistance 

of DFC’s financing complement existing efforts to maximize vaccination rates globally as rapidly as possible.

Biological E is a woman-founded business, also advancing DFC’s 2X Women’s Initiative to promote global gender 

equity.

STRATEGIC GOAL 3: 

ADVANCE WOMEN’S ECONOMIC EMPOWERMENT

GOAL PROGRESS

Under the Agency’s 2X Women’s Initiative, DFC has catalyzed more than $7 billion of investments in projects that 

are owned by women, led by women, or provide a product or service that empowers women. In 2020, DFC 

committed to catalyzing an additional $6 billion of private sector investment in global women's economic 

empowerment over the next three years, and in FY21, DFC made significant progress on this commitment.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

HELPING A GROWING POPULATION OF REFUGEES ACCESS 

CRITICAL FINANCIAL SERVICES

Challenge

An estimated 70 million people around the world live as international 

refugees or are displaced within their own borders, with the vast 

majority located developing countries and women often bearing the 

brunt of the displacement. These refugees often lack critical services 

including financial services that are essential to accessing food, 

education, healthcare, and to working as entrepreneurs. By 2030, 

global forced migration is estimated to exceed 300 million people.

Solution and Impact

A $20 million loan to Kiva Refugee Investment Fund LLC will support microfinance lending to refugees, internally 

displaced persons, and impacted host populations in 13 countries. The lending will reach borrowers in multiple 

lower-income countries including Uganda and El Salvador, as well as countries such as Jordan that are strained by 

large refugee populations.

The fund has raised $11.5 million of equity and $1 million of additional debt financing and aims to ultimately reach 

up to 200,000 borrowers. In addition to providing access to critical financing, the project will also help provide access 

to training related to financial literacy and business development.

By reaching a population that is significantly underserved by traditional lenders, the project will advance DFC’s work 

to support inclusive growth by investing in marginalized communities. With 70 percent of the loans expected to 

reach female borrowers, the project will also advance DFC’s 2X Women’s Initiative to advance women’s economic 

empowerment.

STRATEGIC GOAL 4:

MAXIMIZE DEVELOPMENT IMPACT

GOAL PROGRESS

Serving the most vulnerable populations is core to DFC’s mission and at the heart of DFC’s investment goals. DFC is 

expanding its approach to business development by building on strong relationships with existing clients while 

focusing additional efforts on stakeholder engagement to bring in new clients to pursue the most developmental 

opportunities.

When DFC was created through the BUILD Act, it was directed to create a modernized development impact 

measurement tool. In 2020 DFC launched the Impact Quotient (IQ) framework to monitor and measure the 

development impact of every project it supports, across multiple categories including growth to the local economy, 

inclusion of underserved populations, and the innovation that is supported through the introduction of new 

products, services, or the financial structure of the deal. 

DFC will look for ways to expand the uses of its IQ framework to monitor and measure the development impact of 

every project it supports over the life of the project, to assess the long-term impact, and to use the data it collects

to make adjustments to individual projects and inform future investments to further advance DFC’s development 

objectives.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCING ELECTRIC BUSES TO IMPROVE 

TRANSPORTATION AND REDUCE EMISSIONS IN 

SENEGAL

Challenge

Dakar, Senegal’s economic and political capital, is one of West Africa’s 

largest cities with 3.8 million inhabitants, a number that is expected 

to grow by a further 40 percent in the next decade. The city faces a 

significant shortage of critical infrastructure to meet the needs of a 

growing population and to improve trade and connectivity with the 

rest of the world.

Solution and Impact

DFC financing to the Meridiam Infrastructure Africa Fund is supporting the Dakar Bus Rapid Transit project to expand 

mass transit in and around the city. The project will introduce more than 140 electric buses and construct new roads 

and garages for the fleet.

The Dakar Bus Rapid Transit project is part of a comprehensive plan to restructure the city’s transportation network 

by 2025. The plan includes two parts: a hard infrastructure component comprised of the construction of roads, 

stations, and a garage for the use of the new buses, and an operational infrastructure component which will procure 

and maintain the bus fleet in addition to operating the network for 10 years.

The project is expected to improve traffic and air quality in Dakar, and by improving accessibility, it will foster the 

development of more businesses and create jobs.

STRATEGIC GOAL 5: 

DRIVE PRIVATE CAPITAL TOWARD U.S. FOREIGN POLICY OBJECTIVES

GOAL PROGRESS

DFC investment in critical sectors like climate, food security, agriculture, and global health not only helps improve 

livelihoods for those most in need, but also has direct implications for the health and security of Americans 

themselves. By investing in vaccine manufacturing around the world, DFC will help countries be more prepared for 

epidemics that might otherwise become global pandemics. Investment in climate solutions can help communities 

mitigate and adapt to extreme weather that might otherwise lead to displacement and migration. Achieving 

economic and political stability in less developed countries is a key foreign policy objective of the U.S. and is 

inextricably intertwined with increasing private sector investment. DFC’s focus on development in low and lower 

middle-income countries helps to promote global stability and offers an alternative to predatory development 

models. 

SUPPORTING SMALL BUSINESS GROWTH IN GUATEMALA

Challenge

Although micro, small, and medium enterprises in Guatemala 

account for an estimated 99 percent of economic activity in the 

country, these businesses often struggle to access financing. 

According to the small and medium-sized enterprises (SME) Finance 

Forum, SMEs and microenterprises in Guatemala face a $14 billion 

financing gap, and women-owned businesses and businesses in 

small cities and rural areas are particularly challenged.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

Solution and Impact

DFC committed $200 million in financing to Guatemala’s Banco Industrial to expand lending to small and medium 

enterprises and businesses that are owned by or led by women. The financing has enabled Banco Industrial to 

support businesses across the country in a range of sectors, and help provide stability in the region which is a key 

foreign policy objective.

Some of the Guatemalan businesses that were able to access loans included a meat seller that used a loan to 

introduce cold storage, a footwear manufacturer that purchased new equipment to improve production times, a 

toy maker that expanded into a new line of educational toys, and a manufacturer of automotive accessories that 

expanded its product line. Banco Industrial has also provided financing that enabled a payroll systems company to 

upgrade its technology, and enabled a bed manufacturer expand its business into neighboring countries.

STRATEGIC GOAL 6: 

GROWING THE QUALITY AND QUANTITY OF OUR INVESTMENTS

GOAL PROGRESS

DFC isincreasing its portfolio size in terms of the number of projects supported, as well as dollars invested or insured. 

With flexibility granted through the BUILD Act, DFC is positioned to deploy more capital and to have an even greater 

impact in the developing world.

Equity Investments

The authority to make equity investments is a key tool for achieving developmental and strategic outcomes. Equity 

is often an effective investment tool for earlier stage companies that offer an innovative solution or technology, but 

are not in a position to take on debt. Potential equity investments come from at least four sources: (1) co-investment 

rights in most or all funds in which DFC invests, (2) reviewing our loan and insurance portfolios for companies or 

projects that are good candidates for equity investment, (3) referrals from other DFI partners; and (4) direct business 

development opportunities.

Mobilize Private Investment 

Private capital mobilization in support of sustainable, broad-based economic growth, poverty reduction, and 

development advances U.S. foreign policy interests. Through demand-driven partnerships with the private sector, 

DFC leverages private-sector resources to promote economic growth in developing countries, helping to extend 

American influence and to reinforce American values, such as the rule of law, transparency, and fair business 

practices. Emerging market trading partners that adhere to free-market principles and promote transparent, rulesbased governance today will provide robust markets for American goods and services tomorrow.

DFC offers financing and other innovative financial products that drive private capital investment in challenging 

emerging markets to address local needs. DFC offers loans, guarantees, equity investments, political risk insurance 

and feasibility studies to catalyze significant amounts of private capital into emerging markets. This backing is 

essential to mobilizing government and private resources into supporting key sectors such as infrastructure, power, 

water, and health. These investments improve the quality of life for millions, laying the groundwork for modern 

economies, and helping provide financing for women or others who have lacked sufficient—or any—access to 

commercial financing.

Collaborate with Partners to Maximize Impact 

DFC is creating valuable partnerships with other U.S. federal agencies, development finance institutions, nongovernmental organizations (NGO), think tanks, and the private sector to maximize development impact. DFC 

recognizes that non-government stakeholders play a critical advisory and partnership role.

DFC leverages the expertise and thought leadership that outside stakeholders provide to advance its development 

mandate. DFC and many foundations share a common mission but bring different resources and tools to the table. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

DFC will continue to leverage expertise and grant funding from foundations to expand its impact. DFC values the 

resources non-government stakeholders bring to the table including research, sector expertise, and regional 

presence. 

HELPING A WOMEN-OWNED BUSINESS EXPAND ACCESS TO 

WOMEN’S HEALTH AND SANITATION PRODUCTS

Challenge

Women in Sub-Saharan Africa struggle to access personal care 

products due to unreliable supply chains as well as a lack of retail in 

rural areas and slums. In Kenya, an estimated one million girls 

regularly miss school because of a lack of sanitation products. The 

COVID-19 pandemic has exacerbated these challenges by increasing 

demand for soap, hand sanitizer, and masks.

Solution and Impact

Equity financing is helping the women-owned and women-led e-commerce business Kasha, expand its business 

selling personal care products to women in Kenya and Rwanda. Kasha offers an online store accessible through basic 

mobile phones, where consumers can browse, order, make payment and arrange for delivery. The company also 

works with a network of agents, most of them community health workers, who reach out to women in more remote 

areas to assist them with their purchases. To date, the company has served 70,000 customers, most of them lowincome women.

In addition to offering a product that benefits women and girls, Kasha was founded by two women and has women 

representing half of its senior leadership and almost one-third of its staff. The Kasha project advances multiple DFC 

initiatives, including the 2X Women’s Initiative. Because Kasha has responded to the COVID-19 pandemic by 

expanding its product offerings to include masks, sanitizer and related health and safety items, it also advances the 

Global Health and Prosperity Initiative.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

PRODUCING RELIABLE FINANCIAL INFORMATION

DFC uses an Oracle cloud based general ledger financial accounting and reporting system to record daily transactions 

such as budget execution, recording assets, and making payments.

FINANCIAL CONDITION, POSITION, AND RESULTS

FINANCIAL POSITION

DFC operations began in December 2019; therefore, the comparative financial data presented in this section does 

not reflect a full year of activity for FY 2020.

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

BALANCE SHEET

The Balance Sheet is a representation of DFC’s financial condition at the end of the fiscal year. It shows:

Assets: resources available to meet DFC’s statutory requirements; 

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

Net Position: the difference between DFC’s assets and liabilities.

ASSETS

DFC’s assets are primarily composed of Investments, Loans Receivable, and Fund Balance with Treasury.

+

-

=

 $-

 $2,000,000

 $4,000,000

 $6,000,000

 $8,000,000

2020 2021

ASSETS OVER TIME

(DOLLARS IN THOUSANDS)

Investments

Loans Receivable

Fund Balance with Treasury

Other

15,303,201 

9,215,632 

6,087,569 

 -

 5,000,000

 10,000,000

 15,000,000

 20,000,000

BALANC E S H E ET

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

Total Assets Total Liabilities Total Net Position

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

The largest category of assets in FY 2021 is Loans Receivable, which represents money owed to DFC for loans it made

to support development across sectors including energy, healthcare, critical infrastructure, and technology, as well 

as financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC’s loan 

portfolio generates loan interest and fees for DFC. 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). 

In FY 2021, DFC’s loans receivable increased by $2.6 billion, due to the expansion of DFC’s investment capacities 

provided under the BUILD Act.

Investments are comprised of Treasury Market-based Securities and equity investments. DFC has the authority to 

invest funds derived from revenue related to its insurance programs, in order to support possible future insurance 

payments. DFC invests these funds in Treasury Securities, which are stable investments that earn a return of between 

0.375% and 7.875%. Although DFC’s investments in Treasury securities have temporarily declined by approximately 

$40 million due to investment maturities which have yet to be reinvested, DFC’s investments are enough to cover 

insurance exposure. To understand more about DFC’s insurance, see Note 11.

In FY 2021, DFC began making equity investments in funds and projects through partnerships with other entities. 

The equity investments are another tool that DFC uses to invest in programs and projects to support its mission and 

goals. Equity investments can be highly developmental because of their ability to support early- and growth-stage 

companies that would otherwise not be able to take on debt, especially companies in low and lower-middle income

countries. As a financial tool, direct equity provides DFC with greater flexibility to invest in early- and growth-stage 

companies, partner with other financial institutions, and enable investees to scale operations more efficiently to 

create greater development impact. As investments are made in the future, they will increasingly drive financial 

performance due to market and other factors affecting investment values. DFC leverages decades of institutional 

experience investing in Investment Funds and comparable deals to ensure DFC is making sound investments while 

balancing its development objectives. 

Fund Balance with Treasury (FBWT), the Federal government equivalent of cash, is made up of Congressional 

appropriations, loan disbursements and collections, and interest and fee collections. The increase of approximately 

$592 million in FBWT is due to increases in appropriated resources provided to fund DFC’s financing and equity 

programs and collections on existing loans.

LIABILITIES

DFC’s liabilities are primarily composed of Debt 

in the form of Borrowings from Treasury, and 

the Liability to the General Fund of the U.S 

Government. 

Debt is DFC’s largest liability balance, and 

represents amounts borrowed from the U.S. 

Department of Treasury (Treasury) to fund 

loans, as discussed above for the Loans 

Receivable. DFC pays interest to Treasury on the 

borrowings until DFC pays the funds back to 

Treasury. DFC’s debt balance has increased by 

approximately $3 billion from FY 2020, which is 

reflected in offsetting increase in Loans 

Receivable and FBWT, as discussed above. 

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U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

DFC’s Liability to the General Fund of the U.S. 

Government are amounts owed to Treasury 

for excess revenues over expenses in the Loan 

and Loan Guaranty programs. 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. 

STATEMENT OF NET COST

The Statement of Net Cost captures the use of 

appropriated funds and measures the program 

costs to the taxpayer. In FY 2021, DFC had net 

income, or “negative net costs”, meaning DFC 

generated more revenue than its gross costs. DFC’s 

revenue over cost for FY 2021 was $162 million, 

compared to $232 million in FY 2020. 

DFC categorizes cost and revenue into four 

components based on the agency’s investment 

portfolio: 1) Insurance, 2) Financing, 3) Equity, and 

4) Technical Assistance. 

INSURANCE

DFC’s revenue over costs for its insurance 

program was $148 million in FY 2021 and $126 

million in FY 2020. The increase in net revenue 

was driven primarily by increases in fees and 

insurance premiums earned. Gross costs 

decreased in FY 2021, primarily due to a reduction 

in bad debt expenses, offset by increases in 

administrative execution costs. In FY 2020, DFC 

recorded a bad debt expense on insurance claims 

receivable that were paid by Overseas Private 

Investment Corporation (OPIC) and transferred 

into the DFC, which was not a recurring item in FY 

2021. DFC provides Political Risk Insurance for 

overseas investments against several risk types. 

For detailed information about the insurance 

program, refer to Note 11 in the Financial Section. Administrative execution costs are an allocation of indirect 

operating costs that support the insurance program.

 $-

 $2,000,000

 $4,000,000

 $6,000,000

 $8,000,000

 $10,000,000

2020 2021

LIABILITIES OVER TIME

(DOLLARS IN THOUSANDS)

Debt

Liability to the General Fund of the US Government

Other

384,832 

297,786 223,166 

65,397 

 -

 100,000

 200,000

 300,000

 400,000

 500,000

FY 2021 FY 2020

STATEMENT OF NET COST

(DOLLARS IN THOUSANDS)

Total Earned Revenue Total Gross Cost

157,335 

141,557 

8,862 15,131 

 -

 50,000

 100,000

 150,000

 200,000

FY 2021 FY 2020

INSURANCE PROGRAM

(DOLLARS IN THOUSANDS)

Earned Revenue Gross Cost

14
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCING 

The financing program had revenues over costs in 

the amount of $29 million in FY 2021, compared to 

$115 million in FY 2020. Although DFC had a $70 

million increase in fees and interest revenue on its 

loan and loan guaranties, the revenues were offset 

by increases in interest paid to Treasury for 

borrowings to fund direct loans and loan 

guaranties, increased administrative execution 

costs, and an increase in the estimated subsidy 

needed to fund the loans and guaranties in the 

future. DFC has a large loan guaranty for a project 

that is significantly impaired that negatively 

impacted reestimated subsidy expense. For 

additional explanations of subsidy and how loans 

are valued, see Significant Factors Influencing 

Financial Results .

EQUITY

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

investments in FY 2021. The investment balances are on the Balance Sheet, and the investments are too recent to 

have generated gains or losses that would be reflected in the Statement of Net Cost. The Equity program did 

generate $1.6 million of dividend revenues, offset by $15 million in administrative costs related to identifying and 

evaluating potential investments. 

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) is divided in four sections, 

1) Budgetary Resources; 2) Status of Budgetary Resources; 3) Net Outlays; and 4) Disbursements.

BUDGETARY RESOURCES = STATUS OF BUDGETARY RESOURCES

Displays the sources of DFC’s funding, such as 

appropriations from Congress, collections from the 

public and other agencies, and authority to borrow 

from Treasury.

•Displays the status of the funding, such as whether 

the sources have been obligated for use, or if they 

were not obligated. Unobligated sources are 

displayed as funds that are apportioned for use, 

unapportioned for use, or expired.

SOURCES OF FUNDING

In FY 2021 and FY 2020, DFC’s largest source of funding was the Unobligated Balance from Prior Year Budget 

Authority which includes 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. 

460,566 

369,167 431,185 

254,269 

 -

 100,000

 200,000

 300,000

 400,000

 500,000

FY 2021 FY 2020

FINANCING PROGRAM

(DOLLARS IN THOUSANDS)

Total Earned Revenue and Subsidy

Gross Cost & Reestimates

15
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

Borrowing Authority allows DFC to borrow funds from 

Treasury to make its loans. The borrowings are reflected 

on the balance sheet as Borrowings from Treasury, and 

the loans are reflected on the balance sheet as Loans 

Receivable.

DFC receives annual appropriations to fund subsidy on 

loans and loan guaranties, equity, technical assistance, 

and for operations. Except for the Office of the Inspector 

General, DFC reduces its annual appropriation from the 

General Fund, in an amount equal to offsetting collections 

received during the fiscal year. In FY 2021, DFC reduced 

its $569 million appropriation from the General Fund by 

$441 million of offsetting collections, resulting in a net appropriation from the General Fund of $128 million. In FY 

2020, DFC received $299 million in appropriations that were fully returned to the Treasury before September 30, 

2020.

STATUS OF FUNDING

New obligations represent direct loan commitments, related 

positive and negative subsidy commitments, contractual 

commitments, and other reservations of funds to operate the 

agency to meet its mission and goals.

Unobligated unapportioned funds are mostly 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. 

NET OUTLAYS

Net outlays displays budgetary outlays for 

DFC, reduced by collections of interest, fees, 

and other revenue. In FY 2021, DFC had 

outlays of $24 million, compared to negative 

$92 million in FY 2020. In FY 2020 the amount 

is negative because DFC’s collections 

exceeded expenditures. Net Outlays were 

further reduced by Distributed Offsetting 

Receipts of $783 million and $358 million in 

fiscal years 2021 and 2020 respectively. 

Distributed offsetting receipts are agency 

profits from the direct loan and loan guaranty 

programs that are distributed back to the U.S. 

Treasury.

DISBURSEMENTS

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

Credit Reform Act of 1990. DFC had net disbursements of $2.6 billion in FY 2021 and $642 million in FY 2020 for 

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

16
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

including, but not limited to, collections of loan principal and loan interest, collections of fees and subsidy. These are 

displayed separately from Net Outlays because the disbursements are excluded from U.S. budget surplus or deficit 

totals. The increase in disbursements is directly traceable to the increase in loans receivable and increase in debt 

owed to Treasury reflected on the balance sheet. 

SIGNIFICANT FACTORS INFLUENCING FINANCIAL RESULTS

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

the programs, 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 finance portfolio.

SUBSIDY COSTS OF NEW DISBURSEMENTS

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

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

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

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

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

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

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

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

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

REESTIMATED SUBSIDY COSTS

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

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

The following are the primary drivers of DFC’s annual reestimated subsidy costs.

Reevaluation of Risk Ratings

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

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

political/country risk, which may be defined as follows:

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

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

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

or its insured due to factors such as war, if a country nationalizes, or takes over the borrower’s 

property, or if a country disallows the borrower’s payments to be converted into U.S. dollars.

Updates to Loan Level Discount Rates

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

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

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

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

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

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

calculate the reestimated cash flows. 

Updates to Interest Rates

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

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

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

17
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

Updates to Projected Cash Flows with Actual Data

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

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

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

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

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

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.

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE

MANAGEMENT’S STATEMENT OF ASSURANCE

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 the 

objectives of agency management and was operating effectively as of September 30, 2021. 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

In FY 2021, DFC continued to mature and grow as an organization after the integration of operations of OPIC and 

USAID DCA in FY 2020 and the agency’s internal control program continues to respond to the increasing complexity 

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

testing approach that was adopted by the agency’s Senior Management Council. Under this approach, key business 

processes identified by management were tested pursuant to the guidance in OMB Circular No. A-123. Risk was 

assessed based on both quantitative as well as qualitative factors, including financial materiality, mission orientation, 

the complexity and frequency of transactions, and exposure to fraud. DFC assessed its entity-level control 

environment as well as the design and operating effectiveness of its internal controls in the Finance: Direct Loans 

and Investment Guaranties process. In addition, DFC began its internal control assessment over its Budgetary 

Resources Management process which is planned to be completed in FY 2022.

No material weaknesses in internal control 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 

2022, 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 investments and receivables. During FY 2021 DFC reviewed the potential effect of COVID18
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

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 evaluate its financial position and assess 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 

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

experience.

19
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Independent Auditors’ Report 

Acting Chief Executive Officer 

United States International Development Finance Corporation 

In our audits of the fiscal years 2021 and 2020 financial statements of the United States 

International Development Finance Corporation (DFC), we found: 

 DFC’s financial statements as of and for the fiscal years ended September 30, 2021, and

2020, are presented fairly, in all material respects, in accordance with United States of 

America (U.S.) generally accepted accounting principles; 

 No material weaknesses for fiscal year 2021 in internal control over financial reporting 

based on the limited procedures we performed; and 

 No reportable noncompliance for fiscal year 2021 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 the accompanying financial statements of DFC, which comprise the balance 

sheets as of September 30, 2021, and 2020; the related statements of net cost, changes in net 

position, and combined budgetary resources for the fiscal years then ended; and the related notes 

to the financial statements. 

We conducted our audits 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. 21-04, Audit Requirements for Federal Financial Statements (OMB Bulletin 21-04). 

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

our audit opinion. 

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

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. 

20
Independent Auditors’ Report (Continued) 

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 audits. 

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 audits 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, 2021, and 2020, and its net cost of operations, changes in net 

position, and combined budgetary resources for the fiscal years 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 audits 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 

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. 

21
Independent Auditors’ Report (Continued) 

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. We read the 

other information included with the financial statements in order to identify material 

inconsistencies, if any, with the audited financial statements. Our audits were 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 audits 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 an assurance 

statement on the overall effectiveness of 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, 2021, in accordance with Government Auditing Standards, we considered the 

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 or on management’s assurance statement on the overall 

effectiveness on internal control over financial reporting. Accordingly, we do not express an 

opinion on the DFC’s internal control over financial reporting or on management’s assurance 

statement on the overall effectiveness of 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, 

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. 

22
Independent Auditors’ Report (Continued) 

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, during our audit, we did not identify any deficiencies 

in internal control over financial reporting that we consider to be material weaknesses. However, 

material weaknesses or significant deficiencies may exist that have not been identified. 

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 2021 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 

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 audits 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. 

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 

23
Independent Auditors’ Report (Continued) 

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 2021 

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. 

Status of Prior Year’s Control Deficiency 

We have reviewed the status of DFC’s corrective actions with respect to the finding and 

recommendations included in the prior year’s Independent Auditors’ Report, dated December 4, 

2020. The status of the prior year finding is presented in Exhibit A. 

CliftonLarsonAllen LLP 

Greenbelt, Maryland 

November 12, 2021 

24
Independent Auditors’ Report (Continued) 

Exhibit A 

Summary of Prior Year Findings

Our assessment of the current status of the finding related to the prior year audit is presented 

below:

FY 2020 Finding Type Fiscal Year 2021 

Status 

Controls Over Reconciliation of SF 132s to SF 133s 

Need Improvement 

Significant 

Deficiency 

Closed 

 

25
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

BALANCE SHEET

(dollars in thousands) (Reclassified) 

As of September 30, 2021 2020

Assets

Intragovernmental:

Fund Balance with Treasury (Note 2) $ 2,208,571 $ 1,616,126

Investments (Note 3) 6,156,487 6,195,838

Total Intragovernmental 8,365,058 7,811,964

With the Public:

Accounts Receivable, Net (Note 4) 107,932 98,357

Loans Receivable Net (Note 5) 6,730,788 4,112,784

General Property and Equipment, Net (Note 6) 311 482

Securities and Investments (Note 3) 95,318 -

Advances and Prepayments (Note 7) 3,794 642

Total Assets 15,303,201 $ 12,024,229 

Liabilities

Intragovernmental:

Debt (Note 9) $ 7,723,761 $ 4,677,759 

Advances from Others and Deferred Revenue (Note 12) 5,053 -

Other Liabilities

Liability to the General Fund of the US Government for Other

Non-Entity Assets (Note 13) 1,071,893 999,425

Other Liabilities (Note 13) 1,025 1,466

Total Intragovernmental 8,801,732 5,678,650 

With the Public:

Accounts Payable 1 759

Federal Employee Benefits Payable (Note 10) 7,487 5,643

Loan Guaranty Liabilities (Note 5) 246,081 13,052 

Insurance Program Liabilities (Note 11) 13,727 15,717

Advances from Others and Deferred Revenue (Note 12) 140,541 134,663

Other Liabilities (Note 13) 6,063 3,467

Total Liabilities $ 9,215,632 $ 5,851,951 

Net Position

Unexpended Appropriations – Funds Other than those from 

Dedicated Collections 171,177 105,992

Cumulative Results of Operations - Funds Other than those

from Dedicated Collections 5,916,392 6,066,286

Total Net Position 6,087,569 6,172,278 

Total Liabilities and Net Position $ 15,303,201 $ 12,024,229 

The accompanying notes are an integral part of these statements. 

26
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

STATEMENT OF NET COST

(in thousands)

For the Period Ended September 30, 2021 2020

Insurance Program

Gross Costs

Operating Costs $ 8,862 $ 15,131 

Total Gross Costs 8,862 15,131 

Less: Earned Revenue (157,335) (141,557)

Net Insurance Program Costs (148,473) (126,426)

Financing Program

Gross Costs

Operating Costs 264,347 134,753 

Subsidy Costs/(Reduction) (234,711) (212,938)

Reestimates 166,838 119,516 

Total Gross Costs 196,474 41,331 

Less: Earned Revenue (225,855) (156,229)

Net Financing Program Costs (29,381) (114,898)

Equity Program

Gross Costs

Operating Costs 15,236 8,935

Total Gross Costs 15,236 8,935

Less: Earned Revenue (1,642) -

Net Equity Program Costs 13,594 8,935

Technical Assistance Program

Gross Costs

Operating Costs 2,594 -

Total Gross Costs 2,594 -

Net Technical Assistance Program Costs 2,594 -

Net Cost of Operations $ (161,666) $ (232,389)

The accompanying notes are an integral part of these statements. 

27
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN NET POSITION

(in thousands)

For the Period Ended September 30, 2021 2020

Unexpended Appropriations

Beginning Unexpended Appropriations $ 105,992 $ -

Appropriations Received 594,494 286,391

Appropriations Transferred-In 30,000 122,382

Other Adjustments - (7,927)

Appropriations Used (559,309) (294,854)

Total Unexpended Appropriations 171,177 105,992

Cumulative Results of Operations

Beginning Balance 6,066,286 -

Other Adjustments (116) -

Appropriations Used 559,309 294,854

Transfers In/Out Without Reimbursement 14 5,942,901

Imputed Financing 3,069 2,192

Offset to Non-entity Collections (873,836) (406,050)

Net Cost of Operations 161,666 232,389

Net Change (149,894) 6,066,286

Cumulative Results of Operations 5,916,392 6,066,286

Net Position $ 6,087,569 $ 6,172,278

The accompanying notes are an integral part of these statements. 

28
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

COMBINED STATEMENT OF BUDGETARY RESOURCES

(in thousands)

For the Period Ended September 30, 2021 Budgetary 

Non-Budgetary 

Credit Reform 

Financing 

Accounts 

Budgetary Resources

Unobligated Balance from Prior Year Budget Authority, Net $ 6,336,812 $ 443,540

Appropriations 594,494 -

Borrowing Authority - 4,409,313

Spending Authority from Offsetting Collections 555,705 726,817

Total Budgetary Resources $ 7,487,011 $ 5,579,670

Status of Budgetary Resources

New obligations and upward adjustments (total) $ 965,363 $ 4,262,794

Unobligated Balance, End of Year

Apportioned, unexpired accounts 273,204 157,512

Unapportioned, unexpired accounts 6,214,921 1,159,364

Unexpired unobligated balance, end of year 6,488,125 1,316,876

Expired unobligated balance, end of year 33,523 -

Unobligated Balance, end of year (total) 6,521,648 1,316,876

Total Budgetary Resources $ 7,487,011 $ 5,579,670

Outlays (Net) and Disbursements (Net)

Outlays, net $ 24,442

Distributed Offsetting Receipts (783,325)

Agency Outlays, Net $ (758,883)

Disbursements, Net $ 2,633,100

The accompanying notes are an integral part of these statements. 

29
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

COMBINED STATEMENT OF BUDGETARY RESOURCES

(in thousands)

For the Period Ended September 30, 2020 Budgetary 

Non-Budgetary 

Credit Reform 

Financing 

Accounts 

Budgetary Resources

Unobligated Balance from Prior Year Budget Authority, Net $ 6,072,305 $ 553,597 

Appropriations 286,391 -

Borrowing Authority - 4,107,290 

Spending Authority from Offsetting Collections 695,603 482,066 

Total Budgetary Resources $ 7,054,299 $ 5,142,953 

Status of Budgetary Resources

New obligations and upward adjustments (total) $ 558,128 $ 4,524,224 

Unobligated Balance, End of Year

Apportioned, unexpired accounts 90,071 243,870 

Unapportioned, unexpired accounts 6,362,427 374,859 

Unexpired unobligated balance, end of year 6,452,498 618,729 

Expired unobligated balance, end of year 43,673 -

Unobligated Balance, end of year (total) 6,496,171 618,729 

Total Budgetary Resources $ 7,054,299 $ 5,142,953 

Outlays (Net) and Disbursements (Net)

Outlays, net $ (91,921)

Distributed Offsetting Receipts (357,761)

Agency Outlays, Net $ (449,682)

Disbursements, Net $ 641,793

The accompanying notes are an integral part of these statements. 

30
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. REPORTING ENTITY

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

created under the Better Utilization of Investments Leading to Development (BUILD) Act. 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 the Overseas Private Investment Corporation (OPIC) and 

certain functions of the United States Agency for International Development (USAID) were to be transferred to DFC. 

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

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 Office of Management and Budget (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. Generally Accepted Accounting Principles (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.

The format of the Balance Sheet has changed to reflect more detail for certain line items, as required for all 

significant reporting entities by OMB Circular A-136. This change does not affect totals for assets, liabilities, or net 

position and is intended to allow readers of this Report to see how the amounts shown on the Balance Sheet are 

reflected on the Government-wide Balance Sheet, thereby supporting the preparation and audit of the Financial 

Report of the United States Government. The presentation of the FY 2020 Balance Sheet was modified to be 

consistent with the FY 2021 presentation.

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 in December 2019. As a result, the activities presented in these statements and notes for FY 

2020 do not reflect a full twelve months of operations.

C. FUND BALANCE WITH TREASURY

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 authority to make investments in Treasury securities and direct equity investments in specific projects and 

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

discount or premium, and are held to maturity. DFC also has the authority to make equity investments in nonTreasury projects and emerging market investment funds. Since fair value is not defined in federal accounting 

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

31
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

Investments – Equity Securities. Under ASC 321, equity investments are reported at fair value. When a readily 

determined fair value is not available, the equity investment can be reported at cost minus any impairment. DFC has 

the ability and intent to hold its investments until maturity or until the carrying cost can be otherwise recovered.

E. PROPERTY AND EQUIPMENT, NET 

DFC’s property and equipment consists of general-purpose equipment used by the agency. Most 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 $250,000 

for internal use software. DFC expenses property and equipment acquisitions 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 

32
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

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 

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, 2021 2020

Status of Fund Balance with Treasury

Unobligated Balance

Available $ 560,084 $ 913,202

Unavailable 33,523 43,673

Obligated Balance not yet Disbursed 1,614,964 659,251

Total FBWT $ 2,208,571 $ 1,616,126

At September 30, 2021 and 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. 

33
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: INVESTMENTS

(dollars in thousands)

As of September 30, 2021

Acquisition 

value

Amortized 

(Premium)/ 

Discount

Interest 

Receivable

Net 

Investments

Unrealized 

Gain/(Loss)

Market 

Value

Treasury Non-Marketable, 

 Market-based Securities

Notes $ 5,912,806 $ (132) $ 26,883 $ 5,939,557 $ 163,955 $ 6,103,512

Bonds 215,617 (374) 1,687 216,930 31,464 248,394

Total Intragovernmental 

Securities and Investments $ 6,128,423 $ (506) $ 28,570 $ 6,156,487 $ 195,419 $ 6,351,906

Other Securities and Investments

Available for Sale Equity

 Securities $ 95,318 $ - $ - $ 95,318 $ - $ 95,318

Total Other Securities

and Investments $ 95,318 $ - $ - $ 95,318 $ - $ 95,318

(dollars in thousands)

As of September 30, 2020

Acquisition 

Value

Amortized 

(Premium)/ 

Discount

Interest 

Receivable

Net 

Investments

Unrealized 

Gain/(Loss)

Market 

Value

Treasury Non-Marketable, 

 Market-based Securities

Notes $ 5,864,236 $ 1,149 $ 27,734 $ 5,893,119 $ 371,298 $ 6,264,417 

Bonds 300,312 (114) 2,521 302,719 52,748 355,467 

Total Intragovernmental 

Securities and Investments $ 6,164,548 $ 1,035 $ 30,255 $ 6,195,838 $ 424,046 $ 6,619,884 

Measurement of Non-Federal Securities

(dollars in thousands)

As of September 30, 2021 Purchase Price Total

Available for Sale Equity Securities $ 95,318 $ 95,318 

Total Non-Federal Securities $ 95,318 $ 95,318

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 intragovernmental investments until maturity or 

until the carrying cost can be otherwise recovered.

DFC’s Other Securities and Investments include investments in limited partnerships, preferred stock, common stock, 

and equity shares in investment funds. DFC began making these investments in FY 2021. As of September 30, 2021, 

the investments have no impairment, and there are no readily determined fair values for the investments. DFC is 

reporting non-Federal investments listed above at purchase price in accordance with ASC 321.

34
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

DFC’s non-Federal investment activity is as follows:

(dollars in thousands) 2021

Other Securities and Investments

Balance as of October 1, 2020 $ -

Acquisitions of investments 95,318

Balance as of September 30, 2021 $ 95,318

DFC also has hybrid investments that are structed as loans that may convert to equity investments. These hybrid 

investments are accounted for under the Federal Credit Reform Act (FCRA) while the loans are active, and are 

therefore not reported in the above schedules of investments.

NOTE 4: ACCOUNTS RECEIVABLE, NET

(dollars in thousands)

As of September 30, 2021

(Reclassified)

2020

Public Accounts Receivable

 Accounts Receivable $ 100,483 $ 90,842

 Insurance Settlement 20,804 20,757

 Allowance for Uncollectible Amounts (13,355) (13,242)

Accounts Receivable, Net $ 107,932 $ 98,357

Accounts receivable are amounts due to DFC from the public from fees and premiums from insurance policies, fees

from loan and loan guaranty agreements, 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. 

NOTE 5: LOANS RECEIVABLE, NET AND LOAN GUARANTY LIABILITIES

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 Development Credit 

Authority (DCA) to DFC. Direct loans are disbursements to a borrower under a contract 

that requires repayment to DFC with interest. DFC’s direct loans invest across sectors 

including energy, healthcare, critical infrastructure, and technology. DFC also provides 

financing for small businesses and women entrepreneurs in order to create jobs in 

emerging markets.

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

guaranties are agreements where DFC provides guaranties with respect to the payment 

of all or a part of the principal or interest on any debt obligation of a borrower to a lender. 

DFC’s loan guaranties support investments across sectors including energy, healthcare, 

critical infrastructure, and technology. DFC also provides loan guaranties for small 

businesses and women entrepreneurs in order to create jobs in emerging markets.

35
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

Name of Program Description

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

Loan program, initiated after FY 1991, 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 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.

DFC also has direct loans related to capitalized fees that are not covered under FCRA in the amount of $1,533 

thousand as of September 30, 2021.

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 

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 

36
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

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’srating 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.

B. DIRECT LOANS, NET

(dollars in thousands)

As of September 30, 2021

Loans 

Receivable, 

Gross

Fees & 

Interest 

Receivable

Allowance for 

Loan Loss (or 

Present Value 

Allowance)

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of 

Assets 

Related to 

Direct Loans, 

Net

Loans Obligated Prior to FY 1992

Legacy Loans $ 394,226 $ 403,303 $ (535,868) - $ 261,661

Loans Obligated After FY 1991

Direct Loans 6,197,890 83,511 - (83,567) 6,197,834

Legacy Loans 655,894 38,540 - (865,467) (171,033)

Total Loans Receivable $ 7,248,010 $ 525,354 $ (535,868) $ (949,034) $ 6,288,462

37
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

(dollars in thousands)

As of September 30, 2020

Loans 

Receivable, 

Gross

Fees & 

Interest 

Receivable

Allowance for 

Loan Loss (or 

Present Value 

Allowance)

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of 

Assets 

Related to 

Direct Loans, 

Net

Loans Obligated Prior to FY 1992

Legacy Loans $ 593,361 $ 389,345 $ (535,868) $ - $ 446,838 

Loans Obligated After FY 1991

Direct Loans 3,659,289 97,775 - (238,276) 3,518,788 

Legacy Loans 655,960 21,206 - (838,249) (161,083)

Total Loans Receivable $ 4,908,610 $ 508,326 $ (535,868) $ (1,076,525) $ 3,804,543 

C. TOTAL AMOUNT OF DIRECT LOANS DISBURSED

(dollars in thousands)

As of September 30, 2021 2020

Direct Loan Disbursements $ 3,140,075 $ 919,700 

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

(dollars in thousands)

As of September 30, 2021 2020

Subsidy Expense for New Direct Loans Disbursed

Interest Differential $ (4,744) $ (1,883)

Defaults 96,633 85,974

Fees and Other Collections (212,563) (193,080)

Other (36,484) 18,456

Total Subsidy Expense for New Direct Loans Disbursed (157,158) (90,533)

Modifications and Reestimates

Total modifications (967) -

Interest Rate Reestimates (45,493) 14,751 

Technical Reestimates 79,423 59,234 

Total Reestimates 33,930 73,985 

Total Direct Loan Subsidy Expense $ (124,195) $ (16,548)

38
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, 2021 2020

Beginning balance of the subsidy cost allowance $ (1,076,525) $ -

Subsidy cost allowance transferred-in (962,425)

Add: subsidy expense for direct loans disbursed during the year 157,158 90,533 

Adjustments:

Loan modifications 967 -

Fees accrued (2,829) (508)

Loans written off 109,099 3,196 

Subsidy allowance amortization (102,964) (134,329)

Other (10) 993 

Total adjustments 3,296 (130,648)

Ending balance of the subsidy cost allowance before reestimates (915,104) (1,002,540)

Add or subtract subsidy reestimates (33,930) (73,985)

Ending balance of the subsidy cost allowance $ (949,034) $ (1,076,525)

F. DEFAULTED LOAN GUARANTIES

(dollars in thousands)

As of September 30, 2021

Defaulted 

Loan 

Guaranties 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss (or 

Present Value 

Allowance)

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of Assets 

Related to 

Defaulted Loan 

Guaranties 

Receivable, Net

Loans Obligated Prior to FY 1992

Legacy Loan Guaranties $ 82,624 $ 13,865 $ (40,581) $ - $ 55,908

Loans Obligated After FY 1991

Loan Guaranties 578,162 26,510 - (353,473) 251,199

Legacy Loan Guaranties 78,447 56,772 - - 135,219

Total $ 739,233 $ 97,147 $ (40,581) $ (353,473) $ 442,326

(dollars in thousands)

As of September 30, 2020

Defaulted 

Loan 

Guaranties 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss (or 

Present Value 

Allowance)

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of Assets 

Related to 

Defaulted Loan 

Guaranties 

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

39
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

G. GUARANTIED LOANS OUTSTANDING 

GUARANTIED LOANS OUTSTANDING

(dollars in thousands)

As of September 30, 2021

Outstanding Principal of 

Guarantied Loans, Face Value

Amount of Outstanding 

Principal Guarantied

Loan Guaranties $ 10,397,305 $ 10,064,675

Legacy Loan Guaranties 134,600 134,600

Total $ 10,531,905 $ 10,199,275

(dollars in thousands)

As of September 30, 2020

Outstanding Principal of 

Guarantied Loans, Face Value

Amount of Outstanding 

Principal Guarantied

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

Legacy Loan Guaranties 186,560 186,560 

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

NEW LOAN GUARANTIES DISBURSED 

(dollars in thousands)

As of September 30, 2021

Principal of Guarantied 

Loans, Face Value

Amount of Principal 

Guarantied

Loan Guaranties $ 1,353,910 $ 1,082,922

Legacy Loan Guaranties - -

Total $ 1,353,910 $ 1,082,922

(dollars in thousands)

As of September 30, 2020

Principal of Guarantied 

Loans, 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

(dollars in thousands)

As of September 30, 2021

Liabilities for 

Losses on Pre1992 Guaranties, 

Present Value

Liabilities for Post1991 Guaranties, 

Present Value

Loan Guaranties 

Liabilities for 

Loan Guaranties

Loans Obligated Prior to FY 1992

Legacy Loan Guaranties $ (4,681) $ - $ (4,681)

Loans Obligated After FY 1991

Loan Guaranties - 84,028 84,028

Legacy Loan Guaranties - 166,734 166,734

Total Liability for Loan Guaranties $ (4,681) $ 250,762 $ 246,081

40
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

(dollars in thousands)

As of September 30, 2020

Liabilities for 

Losses on Pre1992 Guaranties, 

Present Value

Liabilities for Post1991 Guaranties, 

Present Value

Loan Guaranties 

Liabilities for 

Loan 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)

As of September 30, 2021 Loan Guaranties

Legacy Loan 

Guaranties Total

Subsidy Expense for New Loan Guaranties Disbursed

Defaults $ 68,833 $ - $ 68,833

Fees and Other Collections (193,895) - (193,895)

Other 47,577 - 47,577

Total Subsidy Expense for New Loan Guaranties Disbursed (77,485) - (77,485)

Modifications and Reestimates

Total modifications 899 - 899

Interest Rate Reestimates 19,836 34,012 53,848

Technical Reestimates 115,256 (36,196) 79,060

Total Reestimates 135,092 (2,184) 132,908

Total Loan Guaranty Subsidy Expense $ 58,506 $ (2,184) $ 56,322

(dollars in thousands)

As of September 30, 2020 Loan Guaranties

Legacy Loan 

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)

41
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, 2021 2020

Beginning balance of the loan guaranty liabilities $ 14,976 $ -

Loan guaranty liability transferred-in (51,531)

Less claims paid to lenders (265,904) (180,524)

Add fees accrued 281,183 192,058

Add loans acquired 159,121 107,966

Add subsidy expense for guarantied loans disbursed during the year 25,900 15,143

Less negative subsidy payments (103,385) (137,548)

Add upward reestimate 371,740 293,863

Less downward reestimate (238,832) (248,332)

Subsidy allowance amortized 5,064 23,553

Loan guaranty modifications 899 -

Other - 328

Ending balance of the loan guaranty liability $ 250,762 $ 14,976

K. SUBSIDY RATES BY PROGRAM AND COMPONENT

As of September 30, 2021

Defaults, 

net of 

recoveries Interest Fees Other Total

Direct Loans

Direct Loans 9.64% - -14.79% - -5.15%

Direct Loan Investment Funds 4.68% -4.37% -9.04% - -8.73%

Loan Guaranties

USAID Mission-led Guaranties 5.07% - -2.02% - 3.05%

Loan Guaranties 9.21% - -21.69% - -12.48%

Limited Arbitral Award Coverage 4.38% - -8.07% - -3.69%

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. This amount is determined by annual 

appropriation legislation. The administrative expense for direct loan and loan guaranties is $93,462 and $64,119 

thousand for the period ended September 30, 2021 and 2020, respectively.

42
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6: PROPERTY AND EQUIPMENT, NET

(dollars in thousands)

As of September 30, 2021 Acquisition Cost 

Accumulated 

Depreciation Net Book Value 

Equipment $ 3,925 $ (3,614) $ 311

Internal-Use Software 9,584 (9,584) -

Total Property and Equipment, Net $ 13,509 $ (13,198) $ 311

(dollars in thousands)

As of September 30, 2020 Acquisition Cost 

Accumulated 

Depreciation Net Book Value 

Equipment $ 3,925 $ (3,443) $ 482 

Internal-Use Software 9,584 (9,584) -

Total Property and Equipment, Net $ 13,509 $ (13,027) $ 482 

(dollars in thousands) Acquisition Cost 

Accumulated 

Depreciation Net Book Value

Balance as of October 1, 2019 $ - $ - $ -

Transfers In 13,509 (12,882) 627

Depreciation Expense - (145) (145)

Balance as of September 30, 2020 $ 13,509 $ (13,027) $ 482 

Depreciation Expense (171) (171)

Balance as of September 30, 2021 $ 13,509 $ (13,198) $ 311

NOTE 7: ADVANCES AND PREPAYMENTS

(dollars in thousands)

As of September 30, 2021 2020

Advances $ 3,794 $ 642

Total Advances and Prepayments $ 3,794 $ 642

DFC’s advances are related to the Legacy Loan Guaranty programs. The amounts represent advances for claims that 

DFC pays to a bank that processes the loan guaranties. DFC processes an advance when a claim payment request is 

received from the bank, and recognizes the decrease to the loan guaranty liability when the claim reconciliation 

information is received from the bank.

43
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES

(dollars in thousands)

As of September 30, 2021

(Reclassified)

2020

Intragovernmental

Unfunded FECA Liability $ 386 $ 301 

Total Intragovernmental 386 301 

With the Public

Federal Employee Benefits Payable 6,134 5,643

Insurance and Guaranty Program Liabilities 132 -

Total With the Public 6,266 5,643 

Total Liabilities Not Covered by Budgetary Resources 6,652 5,944

Total Liabilities Covered by Budgetary Resources 9,049,701 5,833,398

Total Liabilities Not Requiring Budgetary Resources 159,279 12,609 

Total Liabilities $ 9,215,632 $ 5,851,951

Liabilities of Federal agencies are classified as liabilities covered, liabilities not covered by budgetary resources, and 

liabilities not requiring budgetary resources. 

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.

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. DFC’s liabilities not covered by budgetary resources primarily consist of 

accrued unfunded annual leave.

Liabilities not requiring budgetary resources consist mostly of unearned revenues that will be earned by providing 

services by the passage of time.

44
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9: DEBT

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, 2021 2020

Debt to the Treasury

Beginning Balance $ 4,677,759 $ -

Borrowings Transferred In - 5,341,670

Net Borrowings 3,046,002 (663,911)

Ending Balance $ 7,723,761 $ 4,677,759

NOTE 10: FEDERAL EMPLOYEE BENEFITS PAYABLE

(dollars in thousands)

As of September 30, 2021 2020

Accrued Unfunded Annual Leave $ 5,705 $ 5,215

Employer Contributions and Payroll Taxes Payable 1,354 -

Actuarial FECA Liability 428 428

Total Federal Employee Benefits Payable: $ 7,487 $ 5,643

DFC employees accrue annual leave, which DFC records as a liability to funded in future years. FECA provides 

coverage to federal civilian employees who have sustained work-related injuries or disease by providing appropriate 

monetary and medical benefits and help in returning to work. The program is funded DOL, and DFC is charged by 

DOL for FECA payments made on DFC’s behalf. The FECA liability above is the actuarial estimated amount to be 

provided in the future.

NOTE 11: INSURANCE PROGRAM LIABILITIES 

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

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

violence; and (5) 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).

45
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

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 Insurance Program liabilities consists of the following: 

(dollars in thousands)

As of September 30, 2021

(Reclassified)

2020

Unearned Insurance Premiums $ 13,594 $ 15,717

Unpaid Insurance Claims 133 -

Total Insurance Program Liabilities: $ 13,727 $ 15,717

In FY 2021, DFC has unpaid insurance claims that are recorded as unfunded liabilities. DFC did not have any claims 

incurred or paid, or claims recoveries received during FY 2020. DFC’s liability for unpaid insurance claims and activity 

for FY 2021 is as follows: 

(dollars in thousands) 2021

Unpaid Insurance Claims as of October 1, 2020 $ -

Claims Expense 259

Less: Claims Paid (126)

Unpaid Insurance Claims as of September 30, 2021 $ 133 

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, 2021.

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’s current exposure for all policies in force, or Current Exposure to Claims at September 30, 2021 was $2.6 billion. 

DFC’s broader measure of exposure is limited to Maximum Contingent Liability of $5.7 billion at September 30, 2021. 

46
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

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: ADVANCES FROM OTHERS AND DEFERRED REVENUE

(dollars in thousands)

As of September 30, 2021

(Reclassified) 

2020

Finance Retainer Fees and Deferred Facility Fees $ 127,750 $ 122,054 

Rent Incentives 12,791 12,609 

Total Advances from Others and Deferred Revenue $ 140,541 $ 134,663 

DFC’s advances from others and deferred revenue is the result of their ability to charge a retainer and other working 

capital fees in conjunction with each project. Working capital fees are maintained in funds for DFC’s use in future 

years. Facility fees collected in excess of $50,000 are amortized over the life of the project.

NOTE 13: OTHER LIABILITIES

(dollars in thousands)

As of September 30, 2021

(Reclassified) 

2020

Intragovernmental

Liability to the General Fund of the U.S. Government for Custodial and 

Other Non-Entity Assets $ 1,071,893 $ 999,425

Other Liabilities

Employer Contributions & Payroll Taxes Payable 639 1,165

Unfunded FECA Liability 386 301

Total Intragovernmental 1,072,918 1,000,891

With the Public

Accrued Funded Payroll and Benefits 5,972 3,376

Liability for Deposit Funds 91 91

Total With the Public 6,063 3,467

Total Other Liabilities $ 1,078,981 $ 1,004,358

DFC’s liability to the General Fund of the U.S. Government for Custodial and Other Non-Entity Assets consists of 

amounts due to Treasury for downward reestimates and capital transfers due 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 required to be transferred 

to Treasury in the form of a capital transfer. 

47
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 14: LEASES

OPERATING LEASES

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

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 $8.6 million and 

$6.9 million for fiscal years 2021 and 2020, respectively. The following table presents future non-cancelable rental 

payments.

(dollars in thousands)

For the Years Ending:

Non-Federal Lease 

Payments

2022 $ 9,638

2023 9,660

2024 9,901

2025 10,148

2026 10,401

After 2026 28,082

Total Future Lease Payments $ 77,830

NOTE 15: 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. 

The BUILD Act established a fund which shall be available for discharge of liabilities under insurance or reinsurance 

or under similar predecessor authority. All valid claims arising from insurance issued by DFC constitute obligations 

on which the full faith and credit of the United States of America is pledged for full payment. DFC is authorized by 

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 derived from investment earnings, non-insurance fees, and negative subsidy are 

to be used to reduce DFC’s annual appropriation from the General Fund to zero. 

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. As of September 30, 2021 and 2020, DFC had 

$8,084 million and $5,534 million, respectively, in borrowing authority carried over to fund direct loans and pay 

future claims.

48
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

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, 2021 Federal Non-Federal Total

Unpaid $ 898,540 $ 4,693,153 $ 5,591,693

Paid - 3,794 3,794

Total Obligations $ 898,540 $ 4,696,947 $ 5,595,487

(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

(dollars in millions)

For the Period Ended September 30, 2020

Budgetary 

Resources

New 

Obligations 

and Upward 

Adjustments

Distributed 

Offsetting 

Receipts Net Outlays 

Combined Statement of Budgetary 

Resources 

$ 12,197 $ 5,082 $ (358) $ 550 

Expired Funds not reported in 2022 

President's Budget

 (50) - - - 

Variances as a result of OPIC Transfer to DFC - - (57) (8)

Rounding (5) (2) - 1 

Budget of the U.S. Government $ 12,142 $ 5,080 $ (415) $ 543 

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 2021 SBR will be reconciled to the actual 

balances per the 2023 Budget of the U.S. Government which will be released in FY 2022. The Budget with the actual 

amounts for this current year will be available at a later date at https://www.whitehouse.gov/omb/budget/. 

Balances reported in the FY 2020 Statement of Budgetary Resources and the related President’s Budget are shown 

in the table above for Budgetary Resources, Obligations, Distributed Offsetting Receipts, Net Outlays, and any 

related differences. The differences reported are due to differing reporting requirements for expired and unexpired 

appropriations between the Treasury guidance used to prepare the SBR and the OMB guidance used to prepare the 

President’s Budget. The SBR includes both unexpired and expired appropriations, while the President’s Budget 

discloses only unexpired budgetary resources that are available for new obligations. Additionally, differences exist 

as a result of the mid-fiscal year creation of DFC during FY 2020 during which some funds remained in OPIC fund 

symbols, while others were transferred to DFC. Other minor differences are the result of rounding variances.

49
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

NOTE 16: 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 

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. In accordance with OMB Circular A-136 guidance, the presentation of 

the Reconciliation of Net Costs of Operations to Net Outlays excludes financing funds activity for programs subject 

to FCRA. Line items presented below, such as the Net Cost as well as the increases and decreases in assets and 

liabilities do not include financing funds and cannot be compared to the consolidated Statement of Net Cost and the 

consolidated Balance Sheet. Loans Receivable and Loan Guaranty Liability activity is reported below for the 

liquidating funds for loans and loan guaranties made prior to FY 1992.

(dollars in thousands)

For the Period Ended September 30, 2021

Intra 

governmental With the public Total

Net Cost $ 98,689 $ 26,364 $ 125,053

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

Property and Equipment Depreciation - (171) (171)

Year-end Credit Reform subsidy Re-estimates (168,649) - (168,649)

Increase/(decrease) in assets:

Accounts Receivable - (13,990) (13,990)

Loans Receivable - (178,197) (178,197)

Investments 773 95,318 96,091

Advances - 1,239 1,239

(Increase)/decrease in liabilities:

Accounts Payable - 758 758

Federal Employee Benefits Payable - (491) (491)

Loan Guaranty Liability - 2,757 2,757

Insurance Program Liabilities - 1,991 1,991

Advances from Others and Deferred Revenue - (10,817) (10,817)

Subsidy Payable to the Financing Account 462,178 - 462,178

Other Liabilities (912) (2,596) (3,508)

Other Financing Sources:

Imputed Costs (3,069) - (3,069)

Total Components of Net Cost That Are Not Part of Net 

Outlays

290,321 (104,199) 186,122

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

Transfers out (in) without reimbursement (286,733) - (286,733)

Distributed Offsetting Receipts (783,325) - (783,325)

Total Components of Net Outlays That Are Not Part of 

Net Cost

(1,070,058) - (1,070,058)

Net Outlays (calculated) (681,048) (77,835) (758,883)

Related Amounts on the Statement of Budgetary Resources

Outlays, Net 24,442

Distributed Offsetting Receipts (783,325)

Total Agency Outlays, Net $ (758,883)

50
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

(dollars in thousands)

For the Period Ended September 30, 2020

(Reclassified) 

Intra 

governmental

(Reclassified) 

With the public

(Reclassified) 

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 

Loans Receivable - (53,288) (53,288)

Investments 68,067 - 68,067 

(Increase)/decrease in liabilities: -

Accounts Payable - (759) (759)

Federal Employee Benefits Payable (428) (5,214) (5,642)

Loan Guaranty Liability - 1,924 1,924 

Insurance Program Liabilities - (15,717) (15,717)

Advances from Others and Deferred Revenue - (133,434) (133,434)

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

Liability to the General Fund of the US Government for 

Other Non-Entity Assets

(656,763) - (656,763)

Other Liabilities (1,466) (3,467) (4,933)

Other Financing Sources: -

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

Total Components of Net Cost That Are Not Part of Net 

Outlays

(426,591) (200,045) (626,636)

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

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

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

Total Components of Net Outlays That Are Not Part of 

Net Cost

 155,233 - 155,233

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 17: 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 

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 

51
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

manual adjustments in order to accurately reflect DFC’s activity. A copy of the 2020 FR can be found here: 

https://www.fiscal.treasury.gov/reports-statements/ and a copy of the 2021 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 2021 DFC Statement of Net Cost

Line Items Used to Prepare FY 2021 Government-wide Statement of Net Cost

Financial Statement 

Line

Amounts

(in thousands)

All Other 

Amounts 

(in thousands)

Plus: Manual 

Adjustment

(in thousands)

Adjusted 

Amounts 

(in thousands)

Reclassified Financial 

Statement Line

Gross Costs $ - $ 50,032 $ 272 $ 50,304 Non-Federal Gross Cost

Operating Costs 291,039 - - -

Subsidy costs (234,711) - - -

Reestimates 166,838 - - -

- 11,409 - 11,409 Benefit Program Costs

- 3,069 3,069 Imputed Costs

- 2,808 - 2,808 Buy/Sell Costs

- 155,576 155,576 Borrowing and Other 

Interest Expense

Total Gross Costs 223,166 222,894 272 223,166 Total Reclassified Gross 

Costs

Earned Revenue (384,832) (185,332) - (185,332) Non-Federal Earned 

Revenue 

(6,169) - (6,169) Buy/Sell Revenue

(131,499) - (131,499) Federal Securities 

Interest Revenue 

Including Associated 

Gains/Losses (Exchange)

(61,832) - (61,832) Borrowing and Other 

Interest Revenue

(199,500) - (199,500) Total Federal Earned

Revenue

Total Earned 

Revenue

 (384,832) (384,832) - (384,832) Total Reclassified 

Earned Revenue

Net Cost $ (161,666) $ (161,938) $ 272 $ (161,666) Net Cost

52
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

FY 2021 DFC Statement of Changes in Net 

Position Line Items Used to Prepare FY 2021 Government-wide 

Financial Statement Line

Amounts

(in thousands)

Amounts

(in thousands)

Plus: Manual 

Adjustments

(in thousands)

Adjusted 

Amounts

(in thousands)

Reclassified Financial 

Statement Line

Unexpended 

Appropriations

Unexpended 

Appropriations

Unexpended 

Appropriations, 

Beginning Balance

$ 105,992 $ 115,782 $ (9,790) $ 105,992 Net Position, Beginning 

of Period

Corrections of Errors - (10,343) 10,343 - Corrections of Errors

Appropriations received 594,494 594,494 - 594,494 Appropriations Received 

as Adjusted

Appropriations 

transferred in/out

30,000 30,000 - 30,000 Non-Expenditure 

Transfers-In of 

Unexpended 

Appropriations and 

Financing Sources

Appropriations Used (559,309) (558,864) (445) (559,309) Appropriations Used 

Total Unexpended 

Appropriations

171,177 171,069 108 171,177 Total Unexpended 

Appropriations

Cumulative Results, 

Beginning Balance 

6,066,286 6,056,225 10,061 6,066,286 Net Position, Beginning 

of Period

Corrections of Errors - 10,343 (10,343) - Corrections of Errors

Other Adjustments (116) (116) - (116) Other Adjustments

Appropriations Used 559,309 558,864 445 559,309 Appropriations 

Expended

Transfers In/Out without 

Reimbursement

14 14 - 14 Transfers In/Out without 

Reimbursement

Imputed Financing 3,069 3,069 - 3,069 Imputed Financing 

Sources

Offset to Non-entity 

Collections

(873,836) (873,836) - (873,836) Non-entity collections 

transferred to the 

General Fund of the U.S. 

Government 

Net (Cost)/Benefit of 

Operations

161,666 161,937 (271) $161,666 Reclassified Net Cost of 

Operations

Net Change (149,894) (150,068) 174 (149,894)

Ending Balance -

Cumulative Results of 

Operations 

5,916,392 5,916,500 (108) 5,916,392 Net Position - Ending 

Balance

Total Net Position $ 6,087,569 $ 6,087,569 $ - $ 6,087,569 Total Net Position

53
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, 2021

Insurance 

Budgetary

Finance 

Budgetary

Equity 

Budgetary

Inspector 

General 

Budgetary

Non-Budgetary

Credit Reform 

Accounts

Budgetary Resources

 Unobligated Balance from Prior Year

 Budget Authority, Net $ 6,202,984 $ 102,250 $ 30,000 $ 1,578 $ 443,540

 Appropriations - 464,360 128,134 2,000 -

 Borrowing Authority - - - - 4,409,313

 Spending Authority from Offsetting

 Collections 165,943 67,896 321,866 - 726,817

Total Budgetary Resources $ 6,368,927 $ 634,506 $ 480,000 $ 3,578 $ 5,579,670

Status of Budgetary Resources

 New obligations and upward adjustments

 (total) $ 136,252 $ 542,514 $ 284,161 $ 2,436 $ 4,262,794

 Unobligated Balance, End of Year

 Apportioned, unexpired accounts 44,137 32,086 195,839 1,142 157,512

 Unapportioned, unexpired accounts 6,188,286 26,635 - - 1,159,364

Unexpired unobligated balance, end of year $ 6,232,423 $ 58,721 $ 195,839 $ 1,142 $ 1,316,876

Expired unobligated balance, end of year 252 33,271 - - -

Unobligated Balance, end of year (total) 6,232,675 91,992 195,839 1,142 1,316,876

Total Budgetary Resources $ 6,368,927 $ 634,506 $ 480,000 $ 3,578 $ 5,579,670

Outlays, net $ (67,168) $ 244,325 $ (154,401) $ 1,686

Distributed Offsetting Receipts - (783,325) - -

Agency Outlays, Net $ (67,168) $ (539,000) $ (154,401) $ 1,686

Disbursements, Net $ 2,633,100

54
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

(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 6,271,862 630,437 150,000 2,000 5,142,953 

Outlays, net $ (121,452) $ 179,531 $ (150,000) $ -

Distributed Offsetting Receipts - (357,761) - - 

Agency Outlays, Net $ (121,452) $ (178,230) $ (150,000) $ -

Disbursements, Net $ 641,793

55
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

OTHER INFORMATION

REPORT ON THE PAYMENT INTEGRITY INFORMATION ACT

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

DFC performed a risk assessment on payment integrity and, in addition, tested the design and operating 

effectiveness of various payment disbursement controls. DFC determined that its programs present a low risk and 

not susceptible to significant improper payments.

56
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

APPENDIX

ACRONYM LISTING

ACRONYM DEFINITION

ASC Accounting Standards Codification

BUILD Better Utilization of Investments Leading to Development

CEO Chief Executive Officer

CFO Chief Financial Officer

CIO Chief Information Officer

CSC Credit Subsidy Calculator

DCA Development Credit Authority

DFC U.S. International Development Finance Corporation

DFI Development finance institution

DOL Department of Labor

FASAB Financial Accounting Standards Advisory Board

FBWT Fund Balance with Treasury

FCRA Federal Credit Reform Act

FECA Federal Employees’ Compensation Act

FERS Federal Employees Retirement System

FICA Federal Insurance Contributions Act

FR Financial Report of the U.S. Government

FY Fiscal year

GAAP Generally accepted accounting principles

GTAS Governmentwide Treasury Account Symbol Adjusted Trial Balance System

IQ Impact quotient

MOV “Maintenance of Value”

NGO Non-governmental Organization

OIG Office of Inspector General

OMB Office of Management and Budget

OPIC Overseas Private Investment Corporation

OPM Office of Personnel Management

PIIA Payment Integrity Information Act

SBR Statement of Budgetary Resources

SFFAS Statement of Federal Financial Accounting Standards

SME Small and medium-sized enterprises

SNC Statement of Net Cost

Treasury U.S. Department of Treasury

U.S. United States

USAID United States Agency for International Development

57