U.S. International 

Development Finance 

Corporation

Annual Management Report

Fiscal Year 2023 

dfc.gov
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION 

TABLE OF CONTENTS

2 

Agency Head Letter 3

Management's Discussion & Analysis (Unaudited) 

Background, Mission, and Organization 4

Performance Goals, Objectives, and Results 4

Analysis of Financial Statements, Financial Condition, Position, and Results 6

Analysis of Systems, Controls, and Legal Compliance 17

Forward-Looking Information 18

Inspector General’s Transmittal Letter 20

Independent Auditor's Report 21

Financial Statements

Consolidated Balance Sheets 26

Consolidated Statements of Net Cost 27 

Consolidated Statements of Changes in Net Position 28

Combined Statements of Budgetary Resources 29

Notes to the Financial Statements

Summary of Significant Accounting Policies 31

Note Disclosures Related to the Consolidated Balance Sheets 39

Note Disclosures Related to the Combined Statements of Budgetary Resources 54 

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

Statement of Changes in Net Position 60

Required Supplementary Information (Unaudited) 

Combining Statements of Budgetary Resources by Major Budget Account 62

Other Information (Unaudited)

Report on the Payment Integrity Information Act 64 

Appendix (Unaudited)

Acronym Listing 65
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

AGENCY HEAD LETTER

3 

November 15, 2023 

On behalf of the United States International Development Finance Corporation 

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

Management Report and Financial Statements, which provide important 

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

successful financial management and stewardship of taxpayer funds, as well as 

a steadfast commitment to accountability and transparency in all our programs 

and operations. Our financial strength and positioning allow DFC to be a leader 

and innovator in addressing international development challenges, while 

furthering the foreign policy priorities of the United States.

 

DFC has again successfully received an unmodified audit opinion which 

underscores our prudent management of exposure through sound underwriting and effective 

governance. Additionally, as required by OMB Circular No. A-136, I am pleased to confirm with reasonable 

assurance the completeness and reliability of the data presented in the FY 2023 Annual Management 

Report. As of the end of FY 2023, DFC had combined total projected exposure of $41.4 billion, DFC 

maintained corporate reserves of $6.2 billion in Treasury securities, and DFC recorded a negative net cost 

of $341 million. DFC achieved these excellent financial results by adding new commitments of $9.3 billion 

to support private sector projects and companies across its range of products - debt financing, equity 

commitments, technical assistance, and political risk insurance. 

Looking to FY 2024, DFC is undertaking efforts to evolve from the structure it inherited from its 

predecessor organizations – Overseas Private Investment Corporation (OPIC) and USAID’s Development 

Credit Authority (DCA) – to one that meets DFC’s structural and functional needs. Since its establishment 

in 2019, DFC has experienced significant growth in the scope of its work and the size of its workforce. DFC 

continues to grow to make full use of the authorities, resources, and tools provided by Congress. These

changes will position the agency to scale in line with anticipated growth, deepen sectoral expertise and 

client relationships, pursue proactive planning and business development, and expand career 

development opportunities for DFC staff. I look forward to sharing more with you in the coming year.

 

Sincerely, 

 Scott A. Nathan

Chief Executive Officer
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

4 

BACKGROUND, MISSION, AND ORGANIZATION

The U.S. International Development Finance Corporation (DFC or Corporation) is America’s development finance 

institution. DFC was launched in December 2019 with a mandate to partner with the private sector to finance 

solutions to the most critical challenges facing the developing world while advancing America’s foreign policy goals 

abroad. DFC’s transactions in developing markets directly further America’s interest in working towards a 

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

resources needed to expand access to finance, reliable energy, lifesaving healthcare, food security, and critical 

infrastructure and services. To learn more about our mission, organization, and background visit 

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

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

its Office of Accountability and Office of Inspector General. Generally, DFC’s departmental structure has reflected 

the types of financial products it offers. In fiscal year (FY) 2024, DFC will be shifting to a departmental structure that 

reflects key enduring sector priorities, which comprise the bulk of its investments. Further information regarding 

DFC’s Executive Staff and leadership can be found online at https://www.dfc.gov/who-we-are/ourpeople/executive-staff. 

PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

OVERVIEW

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

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

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

variety of technical assistance to potential projects.

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 FY 2022, DFC published its first Strategic Plan for the FYs 

2022-2026. Subsequently, DFC published its 2022 Annual Report, which details DFC’s impact through investments. 

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

WHAT DFC OFFERS

The tools available to DFC to support its goals are detailed below and correspond with the breakout of gross cost 

and revenue on DFC’s Statements of Net Cost.

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

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

underwriting capacity.

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

provision of loans and guaranties in a wide variety of industries such as critical infrastructure, energy, 

telecommunications, housing, agribusiness, financial services, and in projects that can achieve a positive

developmental impact, including for underserved communities.

• Equity – DFC makes equity investments in funds and invests direct equity into projects in the developing 

world which will have developmental impact or advance U.S. foreign policy. Equity investments can be 

highly developmental because of their ability to support early and growth-stage companies that would 

otherwise not be able to take on debt. For funds, it can be difficult to find investors willing to invest in

companies in low and lower-middle income countries where projected returns may not be viewed as 

commensurate with the risks. As a financial tool, equity provides DFC with greater flexibility to invest in 

strategically aligned companies and funds, partner with other financial institutions, and enable companies 

to scale operations more efficiently to create greater development impact.

• Technical Assistance and Feasibility Studies – DFC’s feasibility studies and technical assistance program 

accelerates project identification and preparation to better attract and support private investment in 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

5 

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

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

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

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

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

agencies by utilizing a competitively selected pool of contractors.

KEY PERFORMANCE RESULTS

FY 2023 COMMITMENTS

DFC’s commitments reflect the pressing need to address many of the world’s greatest challenges through the 

mobilization of private sector capital. With more than $9.3 billion committed to new projects in FY 2023, DFC has 

increased its commitments markedly year-over-year since its establishment in 2019. The 132 new transactions 

across the globe in FY 2023 advance developmental impact and strategic priorities around the world. The 

commitments align with DFC’s five priority sectors: energy, infrastructure, health, agribusiness, and small business 

support. 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. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

6 

ANALYSIS OF FINANCIAL STATEMENTS, FINANCIAL CONDITION, POSITION, AND 

RESULTS

FINANCIAL POSITION

SUMMARY OF FINANCIAL POSITION AS OF, AND FOR THE YEARS ENDED SEPTEMBER 30,

(Dollars in Thousands)

Balance Sheet 2023 2022 $ Change

% 

Change

Assets

Fund Balance with Treasury $ 3,041,884 $ 2,631,003 $ 410,881 16%

Investments, Net 6,548,937 6,380,979 167,958 3%

Loans Receivable, Net 10,242,062 7,523,771 2,718,291 36%

Other 189,638 214,532 (24,894) (12%)

Total Assets $ 20,022,521 $ 16,750,285 $ 3,272,236 20%

Liabilities

Debt $ 10,497,580 $ 8,964,971 $ 1,532,609 17%

Liabilities to the General Fund of the US

Government 580,530 392,542 187,988 48%

Other 882,568 219,349 663,219 302%

Total Liabilities 11,960,678 9,576,862 2,383,816 25%

Total Net Position 8,061,843 7,173,423 888,420 12%

Total Liabilities and Net Position $ 20,022,521 $ 16,750,285 $ 3,272,236 20%

Net Position 2023 2022 $ Change

% 

Change

Total Unexpended Appropriations $ 674,382 $ 400,785 $ 273,597 68%

Cumulative Results of Operations 7,387,461 6,772,638 614,823 9%

Net Position $ 8,061,843 $ 7,173,423 $ 888,420 12%

Net Cost 2023 2022 $ Change

% 

Change

Gross Costs $ 240,778 $ 465,399 $ (224,621) (48)%

Less: Earned Revenue (581,672) (448,924) (132,748) 30%

Net Cost of Operations $ (340,894) $ 16,475 $ (357,369) (2,169)%

Budgetary Resources 2023 2022 $ Change

% 

Change

Unobligated Balance from Prior Year Budget 

Authority $ 7,135,854 $ 7,363,322 $ (227,468) (3)%

Appropriations 1,236,707 928,884 307,823 33%

Borrowing Authority 6,424,983 5,521,406 903,577 16%

Spending Authority from Offsetting Collections 1,670,355 1,401,002 269,353 19%

Total Budgetary Resources $ 16,467,899 $ 15,214,614 $ 1,253,285 8%
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

7 

CONSOLIDATED BALANCE SHEETS 

The Consolidated Balance Sheets represent DFC’s financial condition at the end of the fiscal year. The Consolidated 

Balance Sheets show: 

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. 

$20,022,521 

$11,960,678 

$8,061,843 

 $-

 $5,000,000

 $10,000,000

 $15,000,000

 $20,000,000

 $25,000,000

FY 2023 BALANCE SHEET

(DOLLARS IN THOUSANDS )

Total Assets Total Liabilities Total Net Position

 $-

 $5,000,000

 $10,000,000

 $15,000,000

 $20,000,000

 $25,000,000

FY 2021 FY 2022 FY 2023

CONSOLIDATED BALANCE SHEET OVER TIME

(DOLLARS IN THOUSANDS)

Assets Liabilities Net Position
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

8 

ASSETS

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

(FBwT). 

The largest category of assets in FY 2023 is Loans 

Receivable, Net, which represents money owed to 

DFC for loans it made to support its development 

priorities. 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 for loans made after FY 1991. For 

loans made prior to FY 1992, loans are valued based 

on the expected future cash flow. DFC estimates 

future cash flows for direct loans and loan guaranties 

using economic and financial credit subsidy models

(for more information, refer to Significant Factors 

Influencing Financial Results). In FY 2023, DFC’s 

Loans Receivable, Net balance increased by $2.7 

billion, due to the expansion of DFC’s investment 

capacities provided under the BUILD Act. 

Investments, Net are comprised of U.S. 

Department of Treasury (Treasury) Marketbased Securities and equity investments. 

DFC has the authority to invest funds 

derived from revenue related to its 

insurance programs, in order to support 

possible future insurance payments. DFC 

invests these funds in Treasury Securities, 

which are stable investments that earn a 

return of between 0.375% and 6%. DFC’s 

investments in Treasury securities have 

increased by approximately $31 million due 

to the investment of fees from the 

insurance program. DFC’s investments are 

enough to cover insurance exposure. To 

understand more about DFC’s insurance, 

see Note 15.

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

goals. In FY 2023, DFC disbursed an additional $147 million in new equity investments, and recorded approximately 

$10 million in net unrealized gains and revenue on investments. Equity investments are critical to advancing 

development, particularly to support young, innovative businesses that may not be able to take on debt, or 

investment funds that have deep expertise in developing markets and where DFC can mobilize more private capital. 

By investing in equity, DFC can bring its expertise and U.S. interests to a project early in a project or company's 

lifecycle.

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.

 $-

 $2,000,000

 $4,000,000

 $6,000,000

 $8,000,000

 $10,000,000

 $12,000,000

FY 2021 FY 2022 FY 2023

ASSETS OVER TIME

(DOLLARS IN THOUSANDS)

Investments, Net Loans Receivable, Net

Fund Balance with Treasury Other
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

9 

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 $411 million in FBwT is due to 

increases in appropriated resources provided to fund DFC’s financing and equity programs, increases in collections 

on existing loans, and increases in earnings from DFC’s direct loan and loan guaranty programs, offset by increases 

in operating costs.

Other Assets decreased primarily due to a change in the Negative Loan Guaranty Liability. In FY 2022, DFC reported 

a Negative Loan Guaranty Liability of $91 million as an asset on the Consolidated Balance Sheet. In FY 2023, DFC is 

reporting a $710 million Loan Guaranty Liability as part of Other Liabilities on the Consolidated Balance Sheet. The 

change from assets to liabilities was mainly due to an adjustment in the allowance on defaulted loan guaranties and 

current year reestimates. 

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 

Treasury to fund loans, as discussed above 

for the Loans Receivable. DFC pays interest 

to the Treasury on the borrowings until DFC 

pays the funds back to the Treasury. DFC’s 

debt balance has increased by 

approximately $1.5 billion from FY 2022, 

which is reflected in offsetting increase in 

Loans Receivable and FBwT, as discussed 

above. 

DFC’s Liability to the General Fund of the 

U.S. Government are amounts owed to the 

Treasury for downward reestimates payable 

to the Treasury in the next fiscal year. The 

liability is reduced when the Office of Management and Budget (OMB) provides authority for DFC to transfer the 

funds. For more information, refer to the discussion of Reestimated Subsidy Costs. 

Other Liabilities primarily consists of DFC’s Loan Guaranty Liability in FY 2023 of $710 million. In FY 2022, DFC 

reported a Negative Loan Guaranty Liability of $91 million, reported as an Other Asset on the FY 2022 Consolidated 

Balance Sheet.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

10

CONSOLIDATED STATEMENTS OF NET COST

The Consolidated Statements of Net Cost measure the program costs to the taxpayer. In FY 2023, DFC had net income

of $340 million. In FY 2022, DFC had net costs of $16 million. When DFC generates more revenue than its gross costs 

it results in net income (or negative Net Cost), whereas when DFC incurs more gross costs than revenue it results in 

net cost. The decrease in net cost was primarily driven by the following:

• In FY 2023, DFC recorded a net downward reestimate of $102 million compared to FY 2022 when DFC 

recorded a net upward reestimate of $221 million. This is an estimate reflecting that DFC expects the Debt 

Financing programs will cost less than previously estimated. The change in estimate is driven by the better 

economic outlook in FY 2023 than in FY 2022 which included cumulative economic impacts of COVID and 

the war in Ukraine.

• Negative subsidy earnings, net of positive subsidy costs, increased by approximately $36 million. This is 

the expected earnings on loans disbursed, which is recognized at the time loans disburse. 

• Insurance claims expenses decreased from FY 2022 to FY 2023. FY2022 insurance claims expenses were 

higher due to a large claim recognized for a project in Ukraine. 

• The increases in revenues were partially offset by increases in FY 2023 of administrative operating costs as 

DFC continues to grow and receives larger administrative budgets. 

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

Technical Assistance. 

 $-

 $2,000,000

 $4,000,000

 $6,000,000

 $8,000,000

 $10,000,000

 $12,000,000

FY 2021 FY 2022 FY 2023

LIABILITIES OVER TIME

(DOLLARS IN THOUSANDS)

Debt Liabilities to the General Fund of the US Government Other
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

11

INSURANCE

DFC’s revenue over costs for its insurance program was $124 million in FY 2023 and $105 million in FY 2022. The 

increase in net revenue was driven primarily by a reduction in operating costs. In FY 2023 DFC had less insurance 

claims which were recorded as part of Gross Costs, than in FY 2022, when a large insurance claim was recorded 

related to political violence in Ukraine. DFC provides Political Risk Insurance for overseas investments against several 

risk types. For detailed information about the insurance program, refer to Note 15 in the Financial Section. 

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

DEBT FINANCING 

The debt financing program had a net income in FY 2023 of $261 million, compared to net cost in FY 2022 of $110 

million. The increase was driven primarily by the reestimates of the direct loans and loan guaranties recorded. In FY 

2023 DFC recorded a net downward reestimate of $102 million, in comparison to a net upward reestimate of $221 

$384,832 

$448,924 

$581,672

$223,166 

$465,399 

$240,778

 $-

 $100,000

 $200,000

 $300,000

 $400,000

 $500,000

 $600,000

 $700,000

FY 2021 FY 2022 FY 2023

CONSOLIDATED STATEMENTS 

OF NET COST

(DOLLARS IN THOUSANDS)

Total Earned Revenue Total Gross Costs

$157,335 $160,236 

$140,084

$8,862 

$54,989 

$16,086

 $-

 $20,000

 $40,000

 $60,000

 $80,000

 $100,000

 $120,000

 $140,000

 $160,000

 $180,000

FY 2021 FY 2022 FY 2023

INSURANCE PROGRAM

(DOLLARS IN THOUSANDS)

Earned Revenue Gross Costs
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

12

million recorded in FY 2022. The debt financing program also had a $159 million increase in fees and interest revenue 

on its loans and loan guaranties which were partially offset by increases in administrative execution costs.

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

EQUITY

In FY 2023, DFC recognized approximately $1 million in net unrealized gains on investments as reflected on the 

Consolidated Statements of Net Cost, compared to $7 million in unrealized gains in FY 2022. The Equity program 

also generated $9 million of revenues from dividends on DFC’s equity investments in FY 2023 compared to $10 

million in dividend revenues in FY 2022. In FY 2023 there were $41 million in administrative costs related to 

identifying and evaluating potential investments, compared to $19 million in administrative costs in FY 2022. The 

increase in expenses was driven by an expanding equity office that is building up the infrastructure for DFC’s future 

equity investments.

$460,566 $431,813 

$626,530

$431,185 

$541,444 

$365,826

 $-

 $100,000

 $200,000

 $300,000

 $400,000

 $500,000

 $600,000

 $700,000

FY 2021 FY 2022 FY 2023

DEBT FINANCING PROGRAM

(DOLLARS IN THOUSANDS)

Total Earned Revenue and Subsidy Gross Costs & Reestimates

$1,642 

$16,835 

$10,065

$15,236 

$18,790 

$40,501

 $-

 $5,000

 $10,000

 $15,000

 $20,000

 $25,000

 $30,000

 $35,000

 $40,000

 $45,000

FY 2021 FY 2022 FY 2023

EQUITY PROGRAM

(DOLLARS IN THOUSANDS)

Total Revenue and Unrealized Gains Gross Costs
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

13

COMBINED STATEMENTS OF BUDGETARY RESOURCES

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

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

into 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 the 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 2023 and FY 2022, DFC’s largest 

source of funding was the Unobligated 

Balance from Prior Year Budget Authority 

which includes unused budget authority 

since DFC’s inception, including 

collections from DFC’s insurance 

program, revenues from investments, 

prior year recoveries of obligations, as 

well as Budget Authority transferred in 

from OPIC and USAID under the BUILD 

Act to continue administering the 

programs, loans, and loan guaranties 

from the respective agencies.

Borrowing Authority allows DFC to borrow funds from the Treasury to make its loans. The borrowings are reflected 

on the balance sheet as Debt, and the loans are reflected on the balance sheet as Loans Receivable, Net. DFC’s 

increase in Borrowing Authority in FY 2023 is due to the expansion of DFC’s Debt Financing program. 

DFC receives the following appropriations:

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

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

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

collections received during the fiscal year. In FY 2023, DFC reduced its annual appropriations of $1,010 

million by $387 million, resulting in a net appropriation of $623 million. In FY 2022, DFC received $706 

million in annual appropriations and returned $359 million, resulting in a net appropriation from the 

General Fund of $347 million. 

• Permanent and indefinite appropriations are made available to DFC to pay for upward reestimates of 

subsidy on loans and loan guaranties. In FY 2023, DFC received $614 million in permanent and indefinite 

appropriations to pay for upward reestimates compared to $582 million in FY 2022.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

14

STATUS OF FUNDING

New obligations and Upward Adjustments 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. 

New Obligations and Upward Adjustments increased 

by approximately $1.3 billion in FY 2023 mainly due 

to increases in direct loans obligated, as DFC 

continues to expand the Debt Financing Program 

through direct loans.

Unobligated unapportioned funds are mostly from 

funds transferred in from OPIC’s Insurance program. 

$6.2 billion of these funds are represented on the 

Balance Sheet as investments in Treasury securities.

NET OUTLAYS

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

2023, DFC had net outlays of $591 million, compared to $410 million in FY 2022. Net Outlays were further reduced 

by Distributed Offsetting Receipts of $399 million and $426 million in fiscal years 2023 and 2022, respectively. 

Distributed Offsetting Receipts are comprised of negative subsidy and downward reestimates on direct loan and 

loan guaranty programs that DFC pays to the Treasury.

$24,442 

$410,126 

590,673

$322,808 

$426,222 

398,962

 $-

 $100,000

 $200,000

 $300,000

 $400,000

 $500,000

 $600,000

 $700,000

FY 2021 FY 2022 FY 2023

OUTLAYS, NET AND DISTRIBUTED OFFSETTING 

RECEIPTS

(DOLLARS IN THOUSANDS)

 Outlays, Net Distributed Offsetting Receipts
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

15

DISBURSEMENTS

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

Credit Reform Act of 1990 (FCRA). DFC had net disbursements of $1.6 billion in FY 2023 and $1.2 billion in FY 2022 

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

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

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

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

increase in debt owed to the 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 FCRA, direct loan and loan guaranty subsidy costs are 

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

Subsidy costs are reestimated on an annual basis. DFC’sfinancial 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 estimated 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 estimated cash outflows, that is 

recorded as a negative subsidy, which is a benefit to the Federal government. When loans are disbursed, DFC

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

REESTIMATED SUBSIDY COSTS

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

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

following are the primary drivers of 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:

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

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

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

insured due to factors such as war, if a country nationalizes, or takes over the 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 estimated cash flows to determine the subsidy cost. 

In accordance with OMB Circular No. 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. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

16

Updates to Interest Rates

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

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

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

Updates to Projected Cash Flows with Actual Data

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

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

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 more accurate assumptions of future cash flows from

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

INSURANCE PROGRAM CLAIMS

Insurance claims are assessed for probability of becoming an actual payment, and when payment is probable, claims 

are recorded, net of estimated recoveries, as expenses on the Consolidated Statement of Net Cost, and as Insurance 

and Guaranty Program Liabilities on the Consolidated Balance Sheet. In FY 2023, DFC recorded new insurance claims 

of approximately $6 million, compared to approximately $44 million in FY 2022. In FY 2023, $49 million of insurance 

claims were paid, reducing the insurance liabilities. The payments are reflected on the Statement of Budgetary 

Resources as part of Disbursements in FY 2023. 

EQUITY VALUATIONS

DFC’s equity investments are valued in accordance with accounting standards that require recording unrealized gains 

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

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

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

of the individual investments. In FY 2023 and FY 2022, several of the investments have been adjusted to net asset 

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

attributable to each share of capital stock outstanding at the close of a period. In FY 2023 and FY 2022, DFC recorded 

approximately $1 million and $7 million, respectively, in net unrealized gains on investments. DFC expects these 

investments to continue to grow in value and ultimately produce realized gains when DFC eventually sells 

investments.

LIMITATIONS OF THE FINANCIAL STATEMENTS

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

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

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

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

records. Users of the statements are advised that the statements are for a component of the U.S. Government.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

17

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE

FISCAL YEAR 2023 CHIEF EXECUTIVE OFFICER STATEMENT OF ASSURANCE 

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

establishing, maintaining, evaluating, and reporting on the agency’s internal controls consistent with the 

objectives of the Federal Managers’ Financial Integrity Act of 1982 (FMFIA).

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

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

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

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

and regulations, including considerations of fraud risk.

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

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

effectively as of September 30, 2023. DFC did not identify any material weaknesses in the design or 

operating effectiveness of the controls.

Scott A. Nathan

Chief Executive Officer

U.S. International Development Finance Corporation
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

18

SUMMARY OF INTERNAL CONTROL ASSESSMENT

In FY 2023, DFC continued to exhibit strength and increasing maturity in its risk and control environments. DFC 

evaluated its entity and transaction level internal controls using a risk-based assessment approach that was adopted 

by the agency’s Senior Management Council and developed pursuant to OMB Circular No. A-123, Management’s

Responsibility for Enterprise Risk Management and Internal Controls and its associated guidance. Risk was assessed 

both at the enterprise and business process levels based on both quantitative as well as qualitative factors, including 

but not limited to financial materiality, mission orientation, the complexity and frequency of transactions, and 

exposure to fraud. DFC continues to test the design and operating effectiveness of its controls pursuant to a 

rotational testing plan that is influenced by recurring updates to agency risk assessments. No material weaknesses 

in internal control were identified in FY 2023, 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 2024, DFC will 

continue to mature its Enterprise Risk Management program and further strengthen its internal controls over 

operations, reporting, and compliance through continued risk-based assessments and monitoring activities.

SYSTEMS COMPLIANCE

DFC’s Financial Management unit establishes funds controls in the Oracle financial system. All obligations are 

centralized in the Oracle system, and through those processes, DFC maintains control of its funding. Lending records 

and operations are maintained in an Oracle extension with direct integration to Oracle Government Financials.

LEGAL COMPLIANCE

Anti-Deficiency Act

DFC maintains compliance with the Anti-Deficiency Act (codified as amended in 31 U.S.C. §§ 1341, 1342, 1351, 1517) 

through several tiers of process and system controls to maintain funds control. Apportionments are developed in 

consultation with OMB and designed to provide DFC with funds consistent with DFC’s authorities in appropriations 

and authorizing legislation. DFC’s financial management system records apportionments and establishes automated 

funds controls. All obligations are centralized in the financial management system, and through those processes, 

DFC maintains control of its funding.

Federal Credit Reform Act of 1990

The Federal Credit Reform Act (FCRA) of 1990 (Public Law 101-508) establishes the accounting, budgeting, analysis, 

and display of loans and guaranties (i.e. Credit Reform). Credit Reform is therefore central to the budgetary and 

financial operation of the Corporation and its operations with the Treasury. The Corporation maintains several key 

processes and platforms in support of its Credit Reform implementation, and maintains data and modeling 

capabilities for each stage of its life cycle from budgetary formulation, to obligation, and throughout actual execution 

to ensure DFC maintains compliance with the Federal Credit Reform Act of 1990.

FORWARD-LOOKING INFORMATION

CLIMATE-RELATED RISKS

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

Executive Order 14008, Tackling the Climate Crisis at Home and Abroad, DFC established a Climate Action Plan in 

2021. Building an impactful portfolio of climate-smart investments is key to furthering DFC’s commitment to 

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

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

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

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

DFC’s climate reports include:

• Climate Action Plan - DFC has published its Climate Action Plan in accordance with Executive Order 14008.

• Climate Adaptation Reports – DFC has published Climate Adaptation Reports, reporting on its progress 

against its Climate Action Plan, in accordance with Executive Order 14057. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

19

• Green House Gas (GHG) Emissions Inventory Report - P.L. 111-117 Sec 7079(a) required that OPIC (now 

DFC) reduce the GHG emissions associated with its projects by at least 30% over 10 years and 50% over 15 

years. This report tracks progress on achievement of those emission reduction goals. The most recent report 

issued in FY 2022 addresses portfolio emission in FY 2021. 

DIVIDEND

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

dividend would be paid from Cumulative Results of Operations, thereby reducing DFC’s overall financial position. 

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

EVOLUTION OF PROGRAMS 

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

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

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

offer more loans in the currencies of the countries where the loans and investments are located. DFC’s involvement 

in the President’s Partnership for Global Infrastructure and Investment (PGI) is also driving DFC’s investments in the 

infrastructure areas of climate and energy security, digital connectivity, health and health security, and gender 

equity. As part of the PGI, DFC is particularly focused on sourcing strategic projects that help close the estimated 

$40 trillion infrastructure financing gap in developing countries and thereby provide an alternative to financial 

support from authoritarian governments. Additionally, DFC is responding through its investments to uncertainties 

throughout the world, such as food insecurity and climate change adversely impacting critical ecosystems necessary 

for food, shelter, and income.
20

MEMORANDUM:

DATE: November 15, 2023 

TO: MR. SCOTT NATHAN

CHIEF EXECUTIVE OFFICER 

MS. MILDRED CALLEAR 

VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

FROM: Mr. Anthony “Tony” Zakel 

Inspector General 

SUBJECT: DFC’s Consolidated Financial Statements for Fiscal Years 2023 and 2022

(Report Number DFC-24-003-C) 

Enclosed is the Fiscal Year 2023 Consolidated Financial Statement opinion audit report. 

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

audit the consolidated financial statements of the United States International Development 

Finance Corporation (DFC) for the fiscal years ended September 30, 2023 and 2022, report on 

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

The contract required the audit to be performed in accordance with U.S. generally accepted 

auditing standards, Office of Management and Budget audit guidance, and the Government 

Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s 

Financial Audit Manual. 

In its audit of DFC, RMA reported 

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

accordance with U.S. generally accepted accounting principles;

• no material weaknesses1 and no significant deficiencies2 in internal control over financial

reporting; and

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

RMA is responsible for the attached auditor’s report dated November 15, 2023 and the 

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

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

other matters. 

Anthony “Tony” Zakel

Inspector General

U.S. International Development Finance Corporation

1

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

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

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

a material weakness, yet important enough to merit attention by those charged with governance.
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Phone: (571) 429-6600 

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21

Independent Auditor’s Report

Chief Executive Officer, Chief Financial Officer, and Inspector General

United States International Development Finance Corporation

Report on the Audit of the Consolidated Financial Statements

Opinion 

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

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

September 30, 2023 and 2022, and the related consolidated statements of net cost, statement of

changes in net position, and the combined statements of budgetary resources, for the years then 

ended, and the related notes to the financial statements (collectively referred to as ‘consolidated 

financial statements’).

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

respects, the financial position of the DFC as of September 30, 2023 and 2022 and its net cost,

changes in net position, and combined budgetary resources for the years then ended, in accordance 

with U.S. generally accepted accounting principles. 

Basis for Opinion

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

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

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

Office of Management and Budget (OMB) Bulletin No. 24-01, Audit Requirements for Federal 

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our

report. We are required to be independent of the DFC and to meet our other ethical responsibilities,

in accordance with the relevant ethical requirements relating to our audit. We believe that the audit 

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

Other Matter – Interactive Data

Management has elected to reference to information on websites or other forms of interactive data 

outside the fiscal year 2023 Annual Management Report to provide additional information for the 

users of its consolidated financial statements. Such information is not a required part of the 

consolidated financial statements or supplementary information required by the Federal 

Accounting Standards Advisory Board. The information on these websites or the other interactive 

data has not been subjected to any of our auditing procedures, and accordingly we do not express 

an opinion or provide any assurance on it. 
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Responsibilities of Management for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial

statements in accordance with U.S. generally accepted accounting principles, and for the design, 

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

presentation of consolidated financial statements that are free from material misstatement, whether 

due to fraud or error. 

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial 

statements as a whole are free from material misstatement, whether due to fraud or error, and to 

issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of 

assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in 

accordance with GAAS, Government Auditing Standards, and OMB Bulletin No. 24-01, will

always detect a material misstatement when it exists. The risk of not detecting a material 

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve 

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

Misstatements are considered material if there is a substantial likelihood that, individually or in 

the aggregate, they would influence the judgment made by a reasonable user based on the 

consolidated financial statements.

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

Bulletin No. 24-01 we: 

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

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

whether due to fraud or error, and design and perform audit procedures responsive to those

risks. Such procedures include examining, on a test basis, evidence regarding the amounts and

disclosures in the financial statements.

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

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

opinion on the effectiveness of the DFC’s internal control. Accordingly, no such opinion is

expressed.

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

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

financial statements.

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

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

control-related matters that we identified during the audit.
1005 N. Glebe Road, Suite 610

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23

Required Supplementary Information

U.S. generally accepted accounting principles require management’s discussion and analysis be 

presented to supplement the basic consolidated financial statements. Such information is the 

responsibility of management and, although not a part of the basic consolidated financial 

statements, is required by the Federal Accounting Standards Advisory Board who considers it to 

be an essential part of financial reporting for placing the basic financial statements in an 

appropriate operational, economic, or historical context. 

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

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

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

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

obtained during our audit of the consolidated financial statements. We do not express an opinion 

or provide any assurance on the information because the limited procedures do not provide us with 

sufficient evidence to express an opinion or provide any assurance.

Other Information

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

The other information comprises the Table of Contents, Agency Head Letter, Inspector General’s 

Transmittal Letter, Other Information Section, and Appendix but does not include the consolidated

financial statements and our auditor’s report thereon. Our opinion on the consolidated financial 

statements does not cover the other information, and we do not express an opinion or any form of 

assurance thereon.

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

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

information and the consolidated financial statements, or the other information otherwise appears

to be materially misstated. If, based on the work performed, we conclude that an uncorrected 

material misstatement of the other information exists, we are required to describe it in our report.

Report on Internal Control Over Financial Reporting

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

September 30, 2023, we considered the DFC’s internal control over financial reporting (internal 

control) as a basis for designing audit procedures that are appropriate in the circumstances for the 

purpose of expressing our opinion on the consolidated financial statements, but not for the purpose 

of expressing an opinion on the effectiveness of the DFC’s internal control. Accordingly, we do 

not express an opinion on the effectiveness of the DFC’s internal control. We did not test all 

internal controls relevant to operating objectives as broadly defined by the Federal Managers’ 

Financial Integrity Act of 1982. 

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

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

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

combination of deficiencies, in internal control, such that there is a reasonable possibility that a 
1005 N. Glebe Road, Suite 610

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Phone: (571) 429-6600 

www.rmafed.com

Member of the American Institute of Certified Public Accountants’ Government Audit Quality Center

24

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

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

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

enough to merit attention by those charged with governance. 

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

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

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

deficiencies may exist that were not identified. Given these limitations, during our audit, we did 

not identify any deficiencies in internal control that we consider to be material weaknesses. 

However, material weaknesses or significant deficiencies may exist that were not identified. 

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the DFC’s consolidated financial 

statements are free from material misstatement, we performed tests of its compliance with certain

provisions of laws, regulations, and contracts, noncompliance with which could have a direct and 

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

compliance with those provisions was not an objective of our audit, and accordingly, we do not 

express such an opinion. The results of our tests disclosed no instances of non-compliance or other

matters that are required to be reported under Government Auditing Standards or OMB Bulletin 

No. 24-01.

DFC’s Response to Audit

DFC’s response to our audit can be found in Exhibit I. DFC’s response was not subject to the 

auditing procedures applied in the audit of the financial statements and, accordingly, we express 

no opinion on it. 

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Report on Internal Control over Financial 

Reporting and Report on Compliance and Other Matters sections of this report is solely to describe 

the scope of our testing of internal control and compliance and the results of that testing, and not 

to provide an opinion on the effectiveness of the DFC’s internal control or compliance. This section 

is an integral part of an audit performed in accordance with Government Auditing Standards in 

considering the DFC’s internal control and compliance. Accordingly, this communication is not 

suitable for any other purpose.

Arlington, VA 

November 15, 2023 
1005 N. Glebe Road, Suite 610

Arlington, VA 22201

Phone: (571) 429-6600 

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25

Exhibit 1: DFC Response
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

26

CONSOLIDATED BALANCE SHEETS 

(dollars in thousands)

As of September 30, 2023 2022

Assets

Intragovernmental:

Fund Balance with Treasury (Note 2) $ 3,041,884 $ 2,631,003

Investments, Net (Note 3) 6,237,010 6,206,042

Accounts Receivable, Net (Note 4) 21,627 609

Total Intragovernmental 9,300,521 8,837,654

With the Public:

Accounts Receivable, Net (Note 4) 167,807 121,155

Loans Receivable, Net (Note 5) 10,242,062 7,523,771

General Property, Plant and Equipment, Net (Note 6) 21 155

Advances and Prepayments (Note 7) 183 1,247

Investments, Net (Note 3) 311,927 174,937

Other Assets:

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

Total With the Public 10,722,000 7,912,631

Total Assets $ 20,022,521 $ 16,750,285

Liabilities (Note 8)

Intragovernmental:

Debt (Note 9) $ 10,497,580 $ 8,964,971

Advances from Others and Deferred Revenue (Note 10) 1,267 3,561

Other Liabilities:

Liability to the General Fund of the U.S. Government for Other 

Non-Entity Assets (Note 11) 580,530 392,542

Other Liabilities (Note 12) 390 431

Total Intragovernmental 11,079,767 9,361,505

With the Public:

Accounts Payable (Note 13) 2,389 7,045

Federal Employee Benefits Payable (Note 14) 7,344 6,247

Loan Guaranty Liabilities (Note 5) 710,092 -

Insurance and Guaranty Program Liabilities (Note 15) 11,183 56,192

Advances from Others and Deferred Revenue (Note 10) 144,524 141,514

Other Liabilities (Note 12) 5,379 4,359

Total With the Public 880,911 215,357

Total Liabilities 11,960,678 9,576,862

Commitments and Contingencies (Note 1)

Net Position

Unexpended Appropriations – Funds Other Than Dedicated 

Collections 674,382 400,785

Cumulative Results of Operations – Funds Other than Dedicated 

Collections 7,387,461 6,772,638

Total Net Position 8,061,843 7,173,423

Total Liabilities and Net Position $ 20,022,521 $ 16,750,285

The accompanying notes are an integral part of these principal financial statements. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

27

CONSOLIDATED STATEMENTS OF NET COST

(dollars in thousands)

For the Years Ended September 30, 2023 2022

Insurance Program

Gross Costs

Operating Costs $ 16,086 $ 54,989

Total Gross Costs 16,086 54,989

Less: Earned Revenue (140,084) (160,236)

Net Insurance Program Costs (123,998) (105,247)

Debt Financing Program

Gross Costs

Operating Costs 468,415 320,233

Subsidy Costs/(Reduction) (Note 5) (195,307) (159,960)

Net Reestimates (Note 5) (102,589) 221,211

Total Gross Costs 170,519 381,484

Less: Earned Revenue (431,223) (271,853)

Net Debt Financing Program Costs (260,704) 109,631

Equity Program

Gross Costs

Operating Costs 40,501 18,790

Total Gross Costs 40,501 18,790

Less: Net Unrealized (Gains) (931) (6,723)

Less: Earned Revenue (9,134) (10,112)

Net Equity Program Costs 30,436 1,955

Technical Assistance Program

Gross Costs

Operating Costs 13,672 10,136

Total Gross Costs 13,672 10,136

Less: Earned Revenue (300) -

Net Technical Assistance Program Costs 13,372 10,136

Net Cost of Operations $ (340,894) $ 16,475

The accompanying notes are an integral part of these principal financial statements. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

28

CONSOLIDATED STATEMENTS OF CHANGES IN NET POSITION

(dollars in thousands)

For the Years Ended September 30, 2023 2022

Unexpended Appropriations

Beginning Balance $ 400,785 $ 171,177

Appropriations Received 1,236,707 928,884

Appropriations Transferred-In 12,388 9,322

Other Adjustments (1,361) -

Appropriations Used (974,137) (708,598)

Net Change in Unexpended Appropriations 273,597 229,608

Total Unexpended Appropriations $ 674,382 $ 400,785

Cumulative Results of Operations

Beginning Balance 6,772,638 5,916,392

Adjustments:

Changes in Accounting Principles (Note 1) - 656,763

Beginning Balance as Adjusted 6,772,638 6,573,155

Appropriations Used 974,137 708,598

Imputed Financing 6,189 3,520

Offset to Non-entity Collections (728,286) (496,160)

Other Adjustments 21,889 -

Net Cost of Operations 340,894 (16,475)

Net Change in Cumulative Results of Operations 614,823 199,483

Total Cumulative Results of Operations $ 7,387,461 $ 6,772,638

Net Position $ 8,061,843 $ 7,173,423

The accompanying notes are an integral part of these principal financial statements. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

29

COMBINED STATEMENT OF BUDGETARY RESOURCES

(dollars in thousands)

For the Year Ended September 30, 2023 Budgetary 

Non-Budgetary 

Credit Reform 

Financing 

Accounts 

Budgetary Resources

Unobligated Balance from Prior Year Budget Authority, Net $ 6,486,341 $ 649,513

Appropriations 1,236,707 -

Borrowing Authority - 6,424,983

Spending Authority from Offsetting Collections 685,457 984,898

Total Budgetary Resources $ 8,408,505 $ 8,059,394

Status of Budgetary Resources

New Obligations and Upward Adjustments $ 1,732,011 $ 7,021,506

Unobligated Balance, End of Year

Apportioned, Unexpired Accounts 263,900 -

Unapportioned, Unexpired Accounts 6,386,434 1,037,888

Unexpired Unobligated Balance, End of Year 6,650,334 1,037,888

Expired Unobligated Balance, End of Year 26,160 -

Unobligated Balance, End of Year (Total) 6,676,494 1,037,888

Total Budgetary Resources $ 8,408,505 $ 8,059,394

Outlays, Net and Disbursements, Net

Outlays, Net $ 590,673

Distributed Offsetting Receipts (398,962)

Agency Outlays, Net $ 191,711

Disbursements, Net $ 1,609,419

The accompanying notes are an integral part of these principal financial statements. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

FINANCIAL STATEMENTS

30

COMBINED STATEMENT OF BUDGETARY RESOURCES

(dollars in thousands)

For the Year Ended September 30, 2022 Budgetary 

Non-Budgetary 

Credit Reform 

Financing 

Accounts 

Budgetary Resources

Unobligated Balance from Prior Year Budget Authority, Net $ 6,547,244 $ 816,078

Appropriations 928,884 -

Borrowing Authority - 5,521,406

Spending Authority from Offsetting Collections 465,749 935,253

Total Budgetary Resources $ 7,941,877 $ 7,272,737

Status of Budgetary Resources

New Obligations and Upward Adjustments $ 1,472,116 $ 5,975,518

Unobligated Balance, End of Year

Apportioned, Unexpired Accounts 230,510 6,608

Unapportioned, Unexpired Accounts 6,207,094 1,290,611

Unexpired Unobligated Balance, End of Year 6,437,604 1,297,219

Expired Unobligated Balance, End of Year 32,157 -

Unobligated Balance, End of Year (Total) 6,469,761 1,297,219

Total Budgetary Resources $ 7,941,877 $ 7,272,737

Outlays, Net and Disbursements, Net

Outlays, Net $ 410,126

Distributed Offsetting Receipts (426,222)

Agency Outlays, Net $ (16,096)

Disbursements, Net $ 1,195,213

The accompanying notes are an integral part of these principal financial statements.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31

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 (Public Law 115-254, 

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

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

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

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

B. BASIS OF PRESENTATION AND ACCOUNTING

BASIS OF PRESENTATION

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

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

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

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

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

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

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

Management and Budget (OMB) Circular No. A-136, Financial Reporting Requirements, as amended (A-136). 

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

presentation on a consolidated basis, except for the Combined Statements of Budgetary Resources, which are

presented on a combined basis in accordance with A-136. As such, intra-agency transactions have not been 

eliminated from the Combined Statements of Budgetary Resources. 

BASIS OF ACCOUNTING

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

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

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

Changes in Net Position are prepared on an accrual basis.

Budgetary accounting is based on concepts set forth by OMB Circular No. A-11, Preparation, Submission, and 

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

designed to recognize the budgetary resources and the related status of those budgetary resources, including the 

obligation and outlay of funds according to legal requirements, which in many cases is made prior to the occurrence 

of an accrual-based transaction. Budgetary accounting is essential for compliance with legal constraints and controls 

over the use of Federal funds. 

COMBINED STATEMENTS OF BUDGETARY RESOURCES

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

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

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

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

appropriations, borrowing authority, and spending authority from offsetting collections. DFC’s budgetary resources 

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

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

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

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

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

apportioned for use, unapportioned for use, or expired. Obligations are legally binding agreements that will result 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

32

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

available for obligation under law in unexpired accounts.

Outlays, Net: Outlays are payments to liquidate an obligation (other than the repayment to the U.S. Department of 

Treasury (Treasury) of debt principal). Outlays are a measure of Government spending. Net outlays display budgetary 

outlays for DFC, reduced by actual offsetting collections, and distributed offsetting receipts. Offsetting collections 

are payments to the government that, by law, are credited directly to expenditure accounts and deducted from 

gross budget authority and outlays of the expenditure account, rather than added to receipts, and are authorized to 

be spent for the purposes of the account without further action by Congress. DFC’s offsetting collections include the 

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

receipt accounts that offset gross outlays. DFC’s distributed offsetting receipts include negative subsidy and 

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

Disbursements, Net: Non-budgetary disbursements are limited to the DFC’s non-budgetary credit reform financing 

accounts that account for DFC’s direct loans and loan guaranty programs under the Federal Credit Reform Act of 

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

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

INTRAGOVERNMENTAL AND WITH THE PUBLIC TRANSACTIONS

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

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

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

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

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

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

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

USE OF ESTIMATES

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

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

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

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

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

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

on remaining coverage of insurance programs, and recoveries on insurance claims (see Note 15 for additional 

information). 

PUBLIC PRIVATE PARTNERSHIPS

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

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

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

these activities. Many of DFC’s transactions share many of the characteristics of public-private partnerships as 

defined by SFFAS 49. All of DFC’s services and products (insurance, credit, and equity investments) which are 

provided to the ‘private sector’ and expose DFC to risk-sharing transactional agreements are all captured on the 

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

financial statements. See the principal financial statements and Note 1, Note 3, Note 5, and Note 15.

CHANGES IN ACCOUNTING PRINCIPLE

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

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

the General Fund of the Treasury. Direct loans and loan guaranties made prior to FY 1992 are not covered under 

FCRA, and excess funding not obligated is required to be transferred to the Treasury in the form of a capital transfer. 

The accounting guidance for the year-end closing entries for liquidating funds is set by the Treasury. The Treasury 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

33

allows agencies to close such activity to cumulative results of operations, or to a liability account for capital transfers 

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

Treasury, which represented a liability for future proceeds to be paid to the Treasury. In FY 2022, DFC changed its 

accounting method to close its annual revenues, activities, and transfers to cumulative results of operations, which 

resulted in reducing DFC’s liability to the Treasury and increasing the cumulative results of operations. The change 

in accounting principle was reported on DFC’s Consolidated Statements of Changes in Net Position as of September 

30, 2022, as an adjustment to the FY 2022 beginning balance of Cumulative Results of Operations. 

ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE

FASAB has issued the following pronouncements that will affect future financial presentation, as well as DFC’s 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

information. 

SFFAS 61, Omnibus Amendments 2023: Leases-Related Topics II; SFFAS 61 amends SFFAS 54 and SFFAS 60 

by providing additional guidance along with technical corrections and clarifications. 

C. FUND BALANCE WITH TREASURY

Fund Balance with Treasury (FBwT) is the aggregate amount of funds in DFC’s accounts with the Treasury. The 

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

purchases. DFC’s accounting records are reconciled with the Treasury’s records on a regular basis. DFC’s FBwT

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

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

withheld on payments to contractors.

D. INVESTMENTS, NET

DFC has authority to invest its corporate reserve funds in Treasury non-marketable, market-based securities. 

Corporate reserve funds are derived from fees and other revenues related to its insurance program and funds 

transferred into DFC from OPIC in FY 2020. Investments in Treasury securities are carried at face value, net of 

unamortized discount or premium. Premiums or discounts are amortized using the effective yield method. Interest 

income is compounded semi-annually by the 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.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

34

Pursuant to 22 U.S.C. § 9621 and 22 U.S.C. § 9672, DFC is authorized to purchase equity securities as a minority 

investor in projects that have a clearly defined development and foreign policy purpose. DFC’s investment into a 

project cannot exceed 30 percent of the aggregate amount of all equity investment made into the project at the 

time DFC approves the investment. Investments must supplement and encourage, but not compete with private 

sector support. DFC must seek to sell and liquidate its equity investments as soon as commercially feasible, 

commensurate with other similar investor into the project and taking into consideration the national security 

interest of the United States. Since fair value is not defined in Federal accounting standards, DFC follows the 

accounting and reporting in Financial Accounting Standards Codification (ASC) 321 Investments – Equity Securities to 

report fair value of equity investments with the public. Fair value is determined under ASC 820, which establishes a 

three-level valuation hierarchy based upon observable and non-observable inputs.

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

can access at the measurement date.

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

asset.

• Level 3 reflects unobservable inputs for the asset. 

DFC’s equity investments with the public are often geographically concentrated in regions such as African, Asian, or 

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

the region’s marketplace and are often in markets that do not have an established marketplace with the breadth 

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

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

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

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

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

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

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

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

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

be otherwise recovered. 

E. ACCOUNTS RECEIVABLE, NET

Accounts receivable are reported at net realizable value, measured as the carrying amount less an allowance for loss 

provision. Allowances are based on management’s periodic evaluations of the underlying assets, considering factors 

including, but not limited to, materiality of the balance, general economic conditions, asset composition, and prior 

loss experience. Direct loan and loan guaranty fees receivable allowances are based on the same percentage of the 

allowances for the underlying direct loan or loan guaranty. Receivables from other Federal entities are deemed to 

be fully collectible. 

F. DIRECT LOANS AND LOAN GUARANTIES

FCRA governs direct loans made after FY 1991. In accordance with SFFAS 2, Accounting for Direct Loans and Loan 

Guarantees, SFFAS 18, Amendments to Accounting Standards For Direct Loans and Loan Guarantees in SFFAS 2, and 

SFFAS 19, Technical Amendments to Accounting Standards For Direct Loans and Loan Guarantees in SFFAS 2, FCRA 

direct loans are valued at the net 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 direct 

loans receivable balance and the net present value of the estimated cash flows of the direct loans over their 

remaining term. The subsidy allowance is subtracted from the outstanding direct loans receivable balance to obtain 

the net direct loans receivable balance. DFC holds direct loans that it issues and does not sell direct loans. DFC issues 

direct loans in U.S. dollars as well as in foreign currencies. FCRA also governs loan guaranties made after FY 1991. 

The guaranty liability is determined by calculating the net present value of expected future cash flows for 

outstanding guaranties in a manner like that used to determine the subsidy allowance for direct loans. Loan guaranty 

liability can be positive or negative, and if negative, is reported as an asset on the Balance Sheet as Other Assets, 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

35

Negative Loan Guaranty Liability. 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.

In accordance with SFFAS 2, DFC’s loans and loan guaranties made prior to FY 1992 are reported under the 

allowance-for-loss method. Under the allowance-for-loss method, the nominal amount of the direct loans is reduced 

by an allowance for uncollectible amounts and the liability for loan guarantees is the amount the entity estimates 

will more likely than not require a future cash outflow to pay default claims. 

DIRECT LOANS WITH FOREIGN GOVERNMENTS

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

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

BUDGETARY ACCOUNTING FOR LOAN PROGRAMS

DFC’s loan disbursements under FCRA are financed by appropriation authority for long-term loan subsidy cost and 

borrowings from the Treasury for the remaining non-subsidized portion of the loans. Congress may authorize oneyear, 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 the Treasury, is repaid from collections of loan fees, loan repayments, and default recoveries. 

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

year in which a loan is disbursed. Reestimated reductions of subsidy costs are returned to the 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 under FCRA are recorded in separate Credit Reform 

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

disbursements; pay claims on guaranteed loans; collect principal, interest, and fees from borrowers; earn interest 

from the Treasury on any un-invested funds; pay interest expense on outstanding borrowings; and transfer negative 

subsidy to the Treasury’s general fund receipt account. New subsidy funded from DFC’s annual appropriations and 

appropriations funding upward subsidy reestimates are received in program accounts and transferred to nonbudgetary credit reform financing accounts. The budgetary resources and activities for these accounts are presented 

separately on the Combined Statements of Budgetary Resources and the Budget of the United States and are 

excluded from the determination of the budget deficit or surplus. 

SUBSIDY FUNDING UNDER FCRA 

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

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

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

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

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

subsidy costs are reestimated annually.

INTEREST RECEIVABLE

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

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

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

interest on non-performing loans unless the loans are in litigation or in the process of being modified. DFC adjusts 

the allowances for interest receivable based on loan performance to reduce the net interest receivable.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

36

G. GENERAL PROPERTY, PLANT AND EQUIPMENT, NET 

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

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

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

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

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

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

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

LEASES

DFC accounts for leases in accordance with SFFAS 5, Accounting for Liabilities of The Federal Government, to 

determine whether leases meet the definition of a capital lease. Capital leases are recorded on the Consolidated 

Balance Sheets as assets under capital lease as part of General Property, Plant and Equipment. DFC’s capitalization 

threshold for capital leases is $50,000. The cost of property, plant and equipment acquired under a capital lease is 

the amount recognized as a liability for the capital lease at its inception. Payments for capital leases are recorded 

against the liability for capital lease, with an interest component expensed. Depreciation and amortization of capital 

leases are computed using the straight-line method over the estimated useful life of the asset or lease term, 

whichever is shorter. 

H. LIABILITIES

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

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

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

LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES

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

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

(3) borrowing authority, (4) unobligated balances of budgetary resources at the beginning of the year or net transfers 

of prior year balances during the year, (5) spending authority from offsetting collections, and (6) recoveries of 

unexpired budget authority through downward adjustments of prior year obligations. Liabilities covered by 

budgetary resources also includes liabilities that are to be funded by permanent indefinite appropriations and may 

be apportioned by OMB without further action by the Congress and without a contingency having to be met first. 

See Note 8 for additional information.

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

liabilities.

LIABILITIES NOT REQUIRING BUDGETARY RESOURCES

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

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

CURRENT AND NON-CURRENT LIABILITIES

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

for Selected Assets and Liabilities. The current liabilities represent liabilities that DFC expects to settle within 12

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

to be settled within 12 months of the Consolidated Balance Sheet dates (see Note 12, Other Liabilities).

I. DEBT 

DFC’s debt results from direct borrowings from the Treasury to fund the portion of direct loans not covered by 

subsidy appropriations, disbursements of downward subsidy reestimates, and payment of claims in excess of the

amount of subsidy and collections maintained in the non-budgetary financing funds. DFC makes periodic principal 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

37

repayments to the Treasury based on the analysis of its cash balances and future disbursement needs. The balance 

of the borrowings from the Treasury are reported as Debt on the Consolidated Balance Sheets.

J. ADVANCES FROM OTHERS AND DEFERRED REVENUE

DFC charges retainer and other fees in conjunction with individual projects. The fees are received in advance and 

earned over time in accordance with SFFAS 7, Accounting for Revenue and Other Financing Sources and Concepts for 

Reconciling Budgetary and Financial Accounting. Facility fees collected exceeding $50,000 are amortized over the 

life of the project, starting when the loan has disbursed. DFC maintains fees for use in future years. Advances and 

deferred revenue also consist of unearned rent incentives that are amortized against rent expense, as well as 

advances from other Federal agencies for reimbursable agreements.

K. ACCOUNTS PAYABLE

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

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

received.

L. FEDERAL EMPLOYEE BENEFITS PAYABLE

LEAVE

Employee annual leave is accrued when 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. Funded and unfunded sick leave and other types of non-vested leave are expensed as taken. 

EMPLOYEE HEALTH AND LIFE INSURANCE BENEFITS

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

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

Such matching contributions are recognized as current operating expenses. 

EMPLOYEE PENSION BENEFITS

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

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

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

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. 

FEDERAL EMPLOYEES’ COMPENSATION ACT

The Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to covered Federal 

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

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

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

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

M. INSURANCE AND GUARANTY PROGRAM LIABILITIES

In accordance with SFFAS 51, Insurance Programs, the Insurance and Guaranty Program liability represents the 

liability for unearned premiums and fees, claims incurred but not reported, claims submitted but not yet paid, and 

estimated losses on remaining coverage. The losses on remaining coverage includes the estimated amounts to be 

paid to settle claims, including claim adjustment expenses for the remaining open arrangement period, net of 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

38

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. 

N. COMMITMENTS AND CONTINGENCIES

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

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

the Federal Government recognizes contingent liabilities in DFC’s Consolidated Balance Sheets and Consolidated 

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

adverse judgment against the Government, some of the liabilities may be payable from the Treasury. DFC evaluates 

all contingent liabilities based on three criteria: probable, reasonably possible, and remote. DFC recognizes that the 

estimated liability may be a specific amount or a range of amounts. If some amount within the range is a better 

estimate than any other amount within the range, that amount is recorded. If no amount within the range is a better 

estimate than any other amount, the minimum amount of the range is recorded and the range and a description of 

the nature of the contingency are disclosed. DFC records an accrual for contingent liabilities if the liability is probable 

and reasonably estimable and discloses those contingencies that are reasonably possible. DFC does not disclose or 

record contingent liabilities when the loss is considered remote. For matters where DFC’s Counsel is unable to 

express an opinion regarding the likely outcome of the case and an estimate of the potential liability cannot be made, 

the total amount claimed against the government is classified as “Reasonably Possible” and disclosed if available.

DFC is currently involved in certain legal claims and has received notifications of potential claims in the normal course 

of business. There are substantial factual and legal issues that might bar any recovery in these matters. It is not 

possible to evaluate the likelihood of any unfavorable outcome, nor is it possible to estimate the amount of 

compensation, if any, that may be determined to be owed in the context of a settlement as of and for the years 

ended September 30, 2023 and 2022. Management believes that the resolution of these claims will not have a 

material adverse impact on DFC. 

O. NET POSITION

Net position is the residual difference between assets and liabilities and consists of Unexpended Appropriations and 

Cumulative Results of Operations.

UNEXPENDED APPROPRIATIONS

DFC receives annual appropriations that are reduced and repaid to the Treasury during the fiscal year from DFC’s 

offsetting collections from programs other than the Insurance program, as well as negative subsidy. DFC also receives 

appropriations for subsidy to fund its direct loan and loan guaranty programs, as well as appropriations transferred 

in from other agencies for specific programs. Unexpended appropriations include the portion of DFC’s 

appropriations that have not been reduced and repaid to the Treasury that are represented by undelivered orders 

and unobligated balances. Delivered orders result in expended appropriations and reduce the total reported as 

Unexpended Appropriations. Undelivered orders are the value of orders of goods or services which have not been 

actually or constructively received. DFC does not have funds from dedicated collections.

CUMULATIVE RESULTS OF OPERATIONS

Cumulative results of operations consist of the net difference since inception between expenses and losses; revenue 

and gains; and other financing sources. DFC does not have funds from dedicated collections.

P. REVENUE AND OTHER FINANCING SOURCES AND USES

EXCHANGE AND NON-EXCHANGE REVENUE

DFC classifies revenue as either exchange revenue or non-exchange revenue. Exchange revenue arises when DFC 

provides goods or services to intragovernmental or with the public entities in exchange for inflows of resources. 

Exchange revenue is presented in the Consolidated Statements of Net Cost and serves to offset the cost of these 

goods and services. DFC activities recognize exchange revenue primarily from fees earned from its direct loan and 

loan guaranty programs, insurance premiums, earnings from investments and from the reimbursements for goods 

and services provided to other Federal Agencies. Non-exchange revenue are inflows of resources that the 

Government demands or receives by donation. Non-exchange revenue is considered to reduce the cost of operations 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

39

and is reported in the Consolidated Statements of Changes in Net Position as a financing source. DFC does not have 

any non-exchange revenue. 

OTHER FINANCING SOURCES AND USES

Other financing sources include additional inflows of resources that increase the results of operations during the 

reporting period. DFC’s other financing sources come from unexpended appropriation transfers-in and nonexpenditure transfers-in and are recognized as financing sources when used. Other financing sources and uses also 

include: (1) Offset to Non-Entity Collections; and (2) Imputed Financing with respect to costs subsidized by another 

Federal entity. Offset to Non-Entity Collections include capital transfers of excess funding for direct loan and loan 

programs made prior to FY 1992, as well as negative subsidy and downward reestimates of direct loans and loan 

guaranties that are transferred to general fund receipt accounts of the Treasury.

IMPUTED FINANCING AND IMPUTED COST

DFC recognizes the full cost of providing all employee benefits and future retirement benefits, including life and 

health insurance, at the time employee services are rendered. Eligible retired DFC employees, and retired OPIC 

employees, can continue to participate in health and life insurance plans. The cost of these benefits is funded 

through DFC contributions, employee compensation to the extent withheld from employee and retiree pay, from 

matching of employee withholding for Thrift Savings Plan and Federal Insurance Contributions Act, and by the Office 

of Personnel Management (OPM) which administers the retirement programs for DFC employees. OPM calculates 

imputed costs as the actuarial present value of future benefits attributed to services rendered by covered employees 

and eligible retired DFC employees during the accounting period, net of the amounts contributed by employees, 

retirees, and DFC. DFC recognizes these imputed costs in the Consolidated Statements of Net Cost and imputed 

financing in the Consolidated Statements of Changes in Net Position.

Q. EXPENSES

Expenses are recognized when there are outflows, usage of assets, or incurrences of liabilities (or a combination) 

from carrying out functions related to DFC’s activity and related programs, for which benefits do not extend beyond 

the present operating period. For financial reporting purposes, operating expenses are recognized in the period 

incurred. 

R. 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 

DFC’s Fund Balance with Treasury (FBwT) consists of the following: 

(dollars in thousands)

As of September 30, 2023 2022

Status of Fund Balance with Treasury

Unobligated Balance

Available $ 1,559,361 $ 1,554,950

Unavailable 26,160 32,157

Obligated Balance not yet Disbursed 1,456,363 1,043,896

Total Fund Balance with Treasury $ 3,041,884 $ 2,631,003

As of September 30, 2023, and 2022 there were no unreconciled differences between the 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 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

40

available for incurring new obligations. Obligated balances not yet disbursed include undelivered orders or delivered 

orders received but not yet paid. Obligated balances for loans and loan guaranties are supported by borrowing 

authority, and DFC borrows funds from the Treasury prior to making the disbursements.

NOTE 3: INVESTMENTS, NET

DFC’s intragovernmental investments, net are comprised of Treasury non-marketable, market-based securities, 

consisting of:

(dollars in thousands)

As of September 30, 2023

Acquisition 

Value

Amortized 

(Premium)/ 

Discount

Interest 

Receivable

Net 

Investments

Unrealized 

Gain/(Loss)

Market 

Value

Treasury Non-Marketable, 

 Market-based Intragovernmental

 Securities

Notes $ 5,308,880 $ (12) $ 29,374 $ 5,338,242 $ (474,170) $ 4,864,072

Bonds 888,225 4,276 6,267 898,768 (125,532) 773,236

Total Intragovernmental 

Investments, Net $ 6,197,105 $ 4,264 $ 35,641 $ 6,237,010 $ (599,702) $ 5,637,308

(dollars in thousands)

As of September 30, 2022

Acquisition 

Value

Amortized 

(Premium)/ 

Discount

Interest 

Receivable

Net 

Investments

Unrealized 

Gain/(Loss)

Market 

Value

Treasury Non-Marketable, 

 Market-based Intragovernmental

 Securities

Notes $ 5,838,033 $ 9,649 $ 26,539 $ 5,874,221 $ (461,854) $ 5,412,367

Bonds 329,984 356 1,481 331,821 (29,993) 301,828

Total Intragovernmental 

Investments, Net $ 6,168,017 $ 10,005 $ 28,020 $ 6,206,042 $ (491,847) $ 5,714,195

DFC’s investments, net with the public consist of:

(dollars in thousands)

As of September 30,

2023

Other

2022

Other

Equity Securities Valued at Net Asset Value $ 211,938 $ 128,934

Equity Securities Valued at Cost less Impairment 99,989 46,003

Total Securities and Investments, Net $ 311,927 $ 174,937

DFC’s equity investments with the public consisted of investments in: 

• Limited partnerships in private equity funds which are managed by a General Partner. As a limited partner, 

DFC has a limited liability to the extent of the investment no managerial authority, and invests into the fund 

to achieve returns from the fund’s portfolio of investments; and

• Direct investments into private companies that are not listed on a public exchange. Direct investments are 

generally illiquid and treated as long-term investments. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

41

DFC’s investments with the public activity is as follows:

(dollars in thousands) 2023 2022

Other Securities and Investments

Beginning Balance as of October 1 $ 174,937 $ 95,318

Valuation Adjustments 931 6,723

Loss on Investments (10,000) -

Return of Investments (780) (5,276)

Acquisitions of Investments 146,839 78,172

Ending Balance as of September 30 $ 311,927 $ 174,937

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

investments are accounted for under FCRA and are therefore not reported in the above schedules of investments.

NOTE 4: ACCOUNTS RECEIVABLE, NET

DFC’s accounts receivable, net consist of:

(dollars in thousands)

As of September 30, 2023 2022

Intragovernmental Accounts Receivable

 Defense Production Act Receivables $ 140 $ -

 Subsidy Receivable from the Treasury 21,487 609

Total Intragovernmental Accounts Receivable, Net 21,627 609

With the Public Accounts Receivable

 Fees Receivable 160,128 111,400

 Insurance Premiums Receivable 2,447 1,866

 Insurance Settlements Receivable 60,971 21,071

 Other Receivables 128 128

 Allowance for Uncollectible Amounts (55,867) (13,310)

Total With the Public Accounts Receivable, Net 167,807 121,155

Total Accounts Receivable, Net $ 189,434 $ 121,764

Intragovernmental accounts receivable consist of amounts due from the Department of Defense for activities related 

to the Defense Production Act and amounts due from the Treasury for subsidy on modified direct loans receivable 

in the Legacy loan program for loans made prior to FY 1992. With the public accounts receivable are primarily 

amounts due to DFC for fees for insurance policies, fees from loan and loan guaranty agreements, premiums from 

insurance policies, and assets acquired in insurance claims settlements. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

42

NOTE 5: LOANS RECEIVABLE, NET AND LOAN GUARANTY LIABILITIES

A. DIRECT LOAN AND LOAN GUARANTY PROGRAMS

DFC administers 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 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. All of the loans 

included in this program were made after FY 1991 and are accounted for under FCRA.

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

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

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

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. All of 

the loan guaranties included in this program were made after FY 1991 and are accounted 

for under FCRA.

VALUATION METHODOLOGY FOR DIRECT LOANS AND LOAN GUARANTIES

The valuation methodology of direct loans and loan guaranties made after FY 1991 is based on the net present value 

of their expected future cash flows. DFC estimates future cash flows for direct loans and loan guaranties using 

economic and financial credit subsidy models. 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 and the DFC’s subsidy models incorporate the exchange risk. Loans extended in foreign 

currencies that were originated by USAID and transferred into DFC were made with or without “Maintenance of 

Value” (MOV). Foreign currency exchange gain or loss is recognized upon receipt of loan repayments on loans 

extended without MOV and reflected in the net credit programs receivable balance. The net loans receivable or the 

value of assets related to direct loans is not the same as expected proceeds from selling the loans.

Historical data is used as the basis for program performance assumptions. The historical data undergoes quality 

review and analysis prior to its use in developing model assumptions. Key input to the subsidy models varies by 

program and includes items such as:

• Contractual terms of the loan or guaranty such as loan amount, interest rate, maturity, and grace period

• Borrower characteristics

• Estimated changes in foreign currency valuations

• Loan performance assumptions, such as default and recovery rates

• Loan fee rates

DFC’s rating methodology for its FCRA reestimates is based on industry best practices and the expert judgment of a 

core panel of officers from origination, monitoring, credit policy and risk management who worked in conjunction 

with Moody’s Analytics. The methodology rates the portfolio risk with a consistent and standardized approach.

DFC’s total net subsidy reestimates for direct loan and loan guaranties for FY 2023 is ($103) million, a net downward 

reestimate. Some of the key drivers of the reestimates include a higher interest rate environment as well as a 

decrease in the value of the dollar. These factors as well as individual project drivers resulted in a net downward 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

43

reestimate. Six projects had a significant downward reestimate due to increases in interest rates and changes to 

discount rates. These projects disbursed into higher interest rates than those assumed at the time of obligation. DFC 

has several loans denominated in foreign currencies. The decrease in value of the US dollar resulted in projected 

gains in value of the foreign currencies against the dollar, which decreased the reestimates. Additionally, one loan 

had a risk rating upgrade, and one loan had a substantial prepayment, both contributing to a net downward 

reestimate.

B. DIRECT LOANS, NET 

(dollars in thousands)

As of September 30, 2023

Loans 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of 

Assets Related 

to Direct 

Loans, Net

Direct Loans Obligated Prior to 

FY 1992 $ 319,788 $ 443,442 $ (537,414) $ - $ 225,816

Direct Loans Obligated After FY 1991 9,758,433 152,468 - (896,661) 9,014,240

Total Direct Loans Receivable 10,078,221 595,910 (537,414) (896,661) 9,240,056

Defaulted Loan Guaranties 

Receivable (Table F) 1,367,487 126,856 (54,376) (437,961) 1,002,006

Total Loans Receivable, Net $ 11,445,708 $ 722,766 $ (591,790) $ (1,334,622) $ 10,242,062

(dollars in thousands)

As of September 30, 2022

Loans 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of 

Assets Related 

to Direct 

Loans, Net

Direct Loans Obligated Prior to FY 

1992 $ 353,569 $ 421,356 $ (510,361) $ - $ 264,564

Direct Loans Obligated After FY 1991 7,850,317 125,816 - (1,036,643) 6,939,490

Total Direct Loans Receivable 8,203,886 547,172 (510,361) (1,036,643) 7,204,054

Defaulted Loan Guaranties 

Receivable (Table F) 1,265,125 112,991 (56,658) (1,001,741) 319,717

Total Loans Receivable, Net $ 9,469,011 $ 660,163 $ (567,019) $ (2,038,384) $ 7,523,771

C. TOTAL AMOUNT OF DIRECT LOANS DISBURSED

(dollars in thousands)

As of September 30, 2023 2022

Direct Loan Disbursements $ 2,432,096 $ 1,953,927
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

44

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

(dollars in thousands)

As of September 30 2023 2022

Subsidy Expense for New Direct Loans Disbursed

Interest Differential $ (15,978) $ (7,852)

Defaults, Net of Recoveries 194,587 156,636 

Fees and Other Collections (379,639) (275,013)

Other 20,821 13,639

Total Subsidy Expense for New Direct Loans Disbursed (180,209) (112,590)

Modifications and Reestimates

Total Modifications (1,011) 637

Net Interest Rate Reestimates 367 23,582

Net Technical Reestimates (141,076) 49,304

Total Net Reestimates (140,709) 72,886

Total Direct Loan Subsidy Expense $ (321,929) $ (39,067)

E. SCHEDULE FOR RECONCILING DIRECT LOAN SUBSIDY COST ALLOWANCE

(dollars in thousands)

As of September 30 2023 2022

Beginning Balance of the Subsidy Cost Allowance $ (1,036,643) $ (949,034)

Add: Subsidy Expense for Direct Loans Disbursed During the Year 180,209 112,590

Adjustments:

Loan Modifications 1,011 (637)

Fees Accrued (4,968) (5,090)

Loans Written Off 34,255 66,195

Subsidy Allowance Amortization (211,857) (187,759)

Other 623 (22)

Total Adjustments (180,936) (127,313)

Ending Balance of the Subsidy Cost Allowance Before Reestimates (1,037,370) (963,757)

Add or Subtract Subsidy Net Reestimates 140,709 (72,886)

Ending Balance of the Subsidy Cost Allowance $ (896,661) $ (1,036,643)

F. DEFAULTED LOAN GUARANTIES

(dollars in thousands)

As of September 30, 2023

Defaulted 

Loan 

Guaranties 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of Assets 

Related to 

Defaulted Loan 

Guaranties 

Receivable, Net

Loans Obligated Prior to FY 1992

Loan Guaranties $ 86,425 $ 14,016 $ (54,376) $ - $ 46,065

Loans Obligated After FY 1991

Loan Guaranties 1,281,062 112,840 - (437,961) 955,941

Total $ 1,367,487 $ 126,856 $ (54,376) $ (437,961) $ 1,002,006
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

45

(dollars in thousands)

As of September 30, 2022

Defaulted 

Loan 

Guaranties 

Receivable, 

Gross

Interest 

Receivable

Allowance for 

Loan Loss

Allowance for 

Subsidy Cost 

(Present 

Value)

Value of Assets 

Related to 

Defaulted Loan 

Guaranties 

Receivable, Net

Loans Obligated Prior to FY 1992

Loan Guaranties $ 90,490 $ 13,344 $ (56,658) $ - $ 47,176

Loans Obligated After FY 1991

Loan Guaranties 1,174,635 99,647 - (1,001,741) 272,541

Total $ 1,265,125 $ 112,991 $ (56,658) $ (1,001,741) $ 319,717

G. GUARANTIED LOANS OUTSTANDING 

GUARANTIED LOANS OUTSTANDING

(dollars in thousands)

As of September 30, 2023

Outstanding Principal of 

Guarantied Loans, Face Value

Amount of Outstanding 

Principal Guarantied

Loan Guaranties $ 10,090,783 $ 9,715,403

Total $ 10,090,783 $ 9,715,403

(dollars in thousands)

As of September 30, 2022

Outstanding Principal of 

Guarantied Loans, Face Value

Amount of Outstanding 

Principal Guarantied

Loan Guaranties $ 9,871,489 $ 9,557,922

Total $ 9,871,489 $ 9,557,922

NEW LOAN GUARANTIES DISBURSED 

(dollars in thousands)

As of September 30, 2023

Principal of Guarantied 

Loans, Face Value

Amount of Principal 

Guarantied

Loan Guaranties $ 1,807,040 $ 1,604,024

Total $ 1,807,040 $ 1,604,024

(dollars in thousands)

As of September 30, 2022

Principal of Guarantied 

Loans, Face Value

Amount of Principal 

Guarantied

Loan Guaranties $ 1,561,172 $ 1,401,109

Total $ 1,561,172 $ 1,401,109

H. LIABILITY FOR LOAN GUARANTIES

(dollars in thousands)

As of September 30 2023 2022

Loans Obligated After FY 1991

 Loan Guaranties $ 710,092 $ (91,366)

Total Liability for Loan Guaranties $ 710,092 $ (91,366)

As of September 30, 2023 and 2022, DFC had no balances for liabilities for losses on pre-1992 guaranties.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

46

I. SUBSIDY EXPENSE FOR LOAN GUARANTIES BY PROGRAM AND COMPONENT

(dollars in thousands)

As of September 30, 2023 2022

Subsidy Expense for New Loan Guaranties Disbursed

Defaults, Net of Recoveries $ 45,534 $ 48,017

Fees and Other Collections (69,651) (99,704)

Other 10,115 6,505

Total Subsidy Expense for New Loan Guaranties Disbursed (14,002) (45,182)

Modifications and Reestimates

Total Modifications (85) (2,824)

Net Interest Rate Reestimates 6,614 33,999

Net Technical Reestimates 31,507 114,326

Total Net Reestimates 38,121 148,325

Total Loan Guaranty Subsidy Expense $ 24,034 $ 100,319

J. SCHEDULE FOR RECONCILING THE LOAN GUARANTY LIABILITY

(dollars in thousands)

As of September 30, 2023 2022

Beginning Balance of the Loan Guaranty Liabilities $ (91,366) $ 250,762

Less: Claims Paid to Lenders (407,698) (721,173)

Add: Fees Accrued 263,353 249,006

Add: Subsidy Expense for Guarantied Loans Disbursed During the Year 18,757 22,387

Less: Negative Subsidy Payments (32,759) (67,569)

Add: Upward Reestimates 244,777 344,533

Less: Downward Reestimates (206,657) (196,209)

Subsidy Allowance Amortized 921,795 29,745

Loan Guaranty Modifications (85) (2,824)

Other (25) (24)

Ending Balance of the Loan Guaranty Liability $ 710,092 $ (91,366)

K. SUBSIDY RATES BY PROGRAM AND COMPONENT

As of September 30, 2023

Defaults, 

Net of 

Recoveries Interest Fees Other Total

Direct Loans

Direct Loans 16.19% - (25.40)% - (9.21)%

Direct Loan Investment Funds 3.92% (9.91)% (3.14)% - (9.13)%

Direct Loans in Foreign Currencies 13.26% 16.09% (17.33)% (2.01)% 10.01%

Loan Guaranties

USAID Mission-led Guaranties 7.41% - (1.50)% - 5.91%

Loan Guaranties 13.57% - (21.77)% - (8.20)%

Limited Arbitral Award Coverage 5.30% - (8.99)% - (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 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

47

year could result from the disbursements of loans obligated in the current and prior fiscal years. Subsidy expense 

reported in the current year also includes the cost of modifications and subsidy reestimates.

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 $142,646 thousand and 

$108,597 thousand for the period ended September 30, 2023, and 2022, respectively.

M. LOANS RECEIVABLE

Loans Receivable, Net, reported on the Consolidated Balance Sheet for all direct loans and defaulted guaranteed 

loans receivable include the activity in the following table. In FY 2022, DFC presented $187,759 thousand for subsidy 

allowance amortization. In FY 2023, subsidy allowance amortization is broken out between interest received 

($395,686 thousand), interest earned on uninvested funds ($77,197 thousand), interest expense ($215,476 

thousand), and other increase/decrease to subsidy allowance ($72,205 thousand).

(dollars in thousands)

As of September 30, 2023 2022

Beginning Balance of the Loans Receivable, Net $ 7,523,771 $ 6,730,788

Add: Loan Disbursements 2,432,096 1,953,927

Less: Principal Payments Received (894,295) (1,109,368)

Less: Interest Received (395,686) -

Add: Loan Guaranty Claim Payments Converted to Loans Receivable 494,623 723,683

Add: Interest Accruals 58,330 61,576

Less: Fees Accrued (4,968) (5,090)

Add: Capitalized Fees to Loan Principal 35,391 20,966

Less Interest Revenue on Uninvested Funds (77,197) -

Add interest expense on entity borrowings 215,476 -

Less: Subsidy Expense (17,963) (14,784)

Add: Negative Subsidy Payments 198,172 127,374

Less: Upward Reestimates (233,163) (269,220)

Add: Downward Reestimates 373,872 196,334

Less: Subsidy allowance amortization - (187,759)

Other Increase/Decrease to Subsidy Allowance 72,205 -

Loan Modifications 1,011 (637)

Allowance for Loan and Interest Loss Adjustments 460,387 (704,019)

Ending Balance of Loans Receivable, Net $ 10,242,062 $ 7,523,771

NOTE 6: GENERAL PROPERTY, PLANT AND EQUIPMENT, NET

DFC’s general property, plant and equipment consist of the following:

(dollars in thousands)

As of September 30, 2023 Acquisition Cost 

Accumulated 

Depreciation Net Book Value 

Equipment $ 3,925 $ (3,904) $ 21

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

Total Property, Plant and Equipment, Net $ 13,509 $ (13,488) $ 21

(dollars in thousands)

As of September 30, 2022 Acquisition Cost 

Accumulated 

Depreciation Net Book Value 

Equipment $ 3,925 $ (3,770) $ 155

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

Total Property, Plant and Equipment, Net $ 13,509 $ (13,354) $ 155
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

48

Roll forward of General Property, Plant and Equipment, Net

(dollars in thousands) Acquisition Cost 

Accumulated 

Depreciation Net Book Value

Balance as of October 1, 2022 $ 13,509 $ (13,354) $ 155

Depreciation Expense - (134) (134)

Balance as of September 30, 2023 $ 13,509 $ (13,488) $ 21

(dollars in thousands) Acquisition Cost 

Accumulated 

Depreciation Net Book Value

Balance as of October 1, 2021 $ 13,509 $ (13,198) $ 311

Depreciation Expense - (156) (156)

Balance as of September 30, 2022 $ 13,509 $ (13,354) $ 155

NOTE 7: ADVANCES AND PREPAYMENTS

DFC’s advances and prepayments consist of the following:

(dollars in thousands)

As of September 30, 2023 2022

Advances for Claim Payments $ 183 $ 1,247

Total Advances and Prepayments $ 183 $ 1,247

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

paid to the bank that processes the claims for the Legacy Loan Guaranties. Because claims need to be paid timely, 

estimates for claims are requested from DFC by the bank, in advance of the claim payment. When a claim payment 

request is received from the bank, DFC pays the request and records the advance. When the bank pays the claims 

and provides the claim payment information to DFC, DFC reduces the advance and recognizes the decrease to the 

loan guaranty liability. 

NOTE 8: LIABILITIES COVERED AND NOT COVERED BY BUDGETARY RESOURCES

(dollars in thousands)

As of September 30, 2023 2022

Intragovernmental

Unfunded FECA Liability $ 27 $ 144

Total Intragovernmental 27 144

With the Public

Federal Employee Benefits Payable 7,221 6,149

Insurance and Guaranty Program Liabilities

Other

192

131

43,685

-

Total With the Public 7,544 49,834

Total Liabilities Not Covered by Budgetary Resources 7,571 49,978

Total Liabilities Covered by Budgetary Resources 11,796,325 9,369,303

Total Liabilities Not Requiring Budgetary Resources 156,782 157,581

Total Liabilities $ 11,960,678 $ 9,576,862

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 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

49

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. DFC’s liabilities covered by budgetary resources 

primarily consist of borrowings payable to the Treasury, loan guaranty liabilities and downward reestimates payable 

to the Treasury. 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, the Treasury will finance the liquidation in the same way that the Treasury 

finances all other disbursements, which is to borrow from the public if the Government has a budget deficit, and to 

use current receipts if the Government has a budget surplus. DFC’s liabilities not covered by budgetary resources 

primarily consist of accrued unfunded annual leave in FY 2023. In FY 2022, DFC’s liabilities not covered by budgetary 

resources consisted of insurance claims payable and accrued unfunded annual leave. DFC had liabilities for insurance 

in FY 2022 primarily due to the wartime activities in Ukraine impacting insured energy projects, that were paid in FY 

2023.

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

services by the passage of time.

NOTE 9: DEBT

In FY 2023 and 2022, DFC increased borrowings to finance the increased direct loans portfolio. DFC’s debt consists 

of: 

(dollars in thousands)

As of September 30,

Source of Debt

2022 Beginning 

Balance

2022 Net 

Borrowing

2022 Ending 

Balance

2023 Net 

Borrowing

2023 Ending 

Balance

Debt Owed to the Treasury 

other than FFB $ 7,723,761 $ 1,241,210 $ 8,964,971 $ 1,532,609 $ 10,497,580 

Total Debt $ 7,723,761 $ 1,241,210 $ 8,964,971 $ 1,532,609 $ 10,497,580 

NOTE 10: ADVANCES FROM OTHERS AND DEFERRED REVENUE

DFC’s advances from others and deferred revenue consists of:

(dollars in thousands)

As of September 30, 2023 2022

Intragovernmental Advances from Others and Deferred Revenue

Advances from Other Federal Agencies $ 1,267 $ 3,561

Total Intragovernmental Advances from Others and Deferred Revenue 1,267 3,561

With the Public Advances from Others and Deferred Revenue

Finance Retainer Fees and Deferred Facility Fees 126,153 127,320

Rent Incentives 18,371 14,194

Total With the Public Advances from Others and Deferred Revenue 144,524 141,514

Total Advances from Others and Deferred Revenue $ 145,791 $ 145,075

NOTE 11: NON-ENTITY REPORTING

Non-entity assets are assets held by DFC but not available to be used by DFC. These are funds that DFC will transfer 

to the Treasury general fund receipt accounts for downward reestimates, and negative subsidy amounts for DFC’s 

direct loan and loan guaranties made under FCRA, as well as excess funds related to direct loan and loan guarantees 

made prior to FY 1992. During the year, DFC transfers funds to the Treasury’s general fund receipt accounts, and at 

year-end the Treasury sweeps the funds, reducing the balance of FBwT in the general fund receipts accounts to zero. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

50

At year-end, DFC accrues current year reestimates. Direct loans and loan guaranties made after FY 1991 that are 

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

the amount of subsidy needed will be less than the prior year, or where the present value of the cash flows is positive, 

are downward reestimates, requiring funds to be transferred to the Treasury. DFC cannot transfer these funds until 

it receives authority from OMB, which will occur in the succeeding fiscal year. When recording downward reestimate 

accruals, DFC records a payable to the Treasury general fund receipt account for the downward reestimates payable 

from its financing funds. DFC also records an accounts receivable in the general fund receipt account for the 

receivable from DFC’s financing funds. For consolidated financial statements presentation, DFC eliminates the 

payables to the non-entity fund and the non-entity Treasury general fund receipt accounts receivable from the DFC 

entity funds, leaving a payable to the General Fund of the US Government for the downward reestimates. The 

downward reestimates payable is a current liability to be paid in the subsequent fiscal year. The table below shows 

the balance of the entity and non-entity assets and liabilities for the downward reestimates accrued as of September 

30, 2023, and 2022.

(dollars in thousands)

As of September 30, 2023 2022

Entity

Intragovernmental Liabilities

Financing Funds Payable to the General Fund Receipt Account $ (580,530) $ (392,542)

Non-Entity

Intragovernmental Assets

General Fund Receipt Accounts Receivable 580,530 392,542

Intragovernmental Liabilities

Liability to the General Fund of the US Government for Other 

Non-Entity Assets - Downward Re-estimate Payable to the Treasury (580,530) (392,542)

Liability to the General Fund of the U.S. Government for Other NonEntity Assets $ (580,530) $ (392,542)

NOTE 12: OTHER LIABILITIES

DFC’s other liabilities consists of the following current liabilities:

(dollars in thousands)

As of September 30, 2023 2022

Intragovernmental:

Other Liabilities

Employer Contributions & Payroll Taxes Payable $ 363 287

Unfunded FECA Liability 27 144

Total Intragovernmental 390 431

With the Public:

Accrued Funded Payroll and Benefits 5,248 4,359

Other 131 -

Total With the Public 5,379 4,359

Total Other Liabilities $ 5,769 $ 4,790
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

51

NOTE 13: ACCOUNTS PAYABLE

DFC’s accounts payable consist of other payables with the public for services as of September 30, 2023. In FY 2022 

accounts payable consisted of a direct loan disbursement in transit and other payables with the public for services. 

(dollars in thousands)

As of September 30, 2023 2022

Disbursements in transit $ - $ 6,771

Other 2,389 274

Total Accounts Payable $ 2,389 $ 7,045

NOTE 14: FEDERAL EMPLOYEE BENEFITS PAYABLE

Federal employee benefits payable consists of:

(dollars in thousands)

As of September 30, 2023 2022

Accrued Unfunded Annual Leave $ 7,221 $ 6,149

Employer Contributions and Payroll Taxes Payable 123 98

Total Federal Employee Benefits Payable $ 7,344 $ 6,247

NOTE 15: INSURANCE AND GUARANTY PROGRAM LIABILITIES 

DFC provides Political Risk Insurance for overseas investments against any or all political risks such as currency 

inconvertibility and transfer restrictions, expropriation, war, terrorism, civil disturbance, breach of contract, or nonhonoring of financial obligations. The initial term is typically 3 to 20 years. Policies are generally renewable yearly at 

the option of the insured. Insurance premiums received are amortized over the coverage period. Insurance coverage 

includes:

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

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

against devaluation of a country’s currency. 

2) Expropriation coverage provides compensation for losses due to confiscation, nationalization, or other 

governmental actions that deprive investors of their fundamental rights in the investment. 

3) Guaranties issued on behalf of a U.S. exporter of goods or services, or a U.S. contractor in favor of a foreign 

government buyer can be covered against the risk of a wrongful calling. The guaranties usually are in the 

form of irrevocable, on-demand, standby letters of credit. A wrongful calling is one that is not justified by 

the terms of the underlying contract, or the invitation for bids.

4) Insurance against political violence insures investors against losses caused by politically motivated acts of 

violence (war, revolution, insurrection, or civil strife, including terrorism and sabotage).

5) Reinsurance can increase underwriting capacity and support development in countries where investors 

have difficulty obtaining political risk insurance, DFC can reinsure licensed U.S. and international insurance 

companies.

6) DFC political risk insurance supports U.S. capital market financing structures that catalyze private capital in 

emerging markets.

In general, pricing is determined based on the individual coverage issues and the unique risk profile of the investment 

project. DFC’s cost of the Insurance program are $16,086 thousand and $54,989 thousand for the fiscal years ended 

September 30, 2023, and 2022, respectively. DFC collected $13,841 thousand and $21,901 thousand in insurance 

premiums for the fiscal years ended September 30, 2023, and 2022, respectively. DFC’s Insurance program is selffunded, uses no appropriated funds in the administration of the program, and did not borrow any funds from the 

Treasury for the fiscal years ended September 30, 2023, and 2022.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

52

DFC is able to invest proceeds from its insurance program in Treasury non-marketable, market-based securities. See 

Note 1 for additional information.

Under most DFC insurance contracts, investors may obtain all coverages, but claim payments may not exceed the 

single highest coverage amount. Claim payments are limited by the value of the investment and the amount of 

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 or payments from reinsurance policies obtained by DFC 

from commercial entities. Payments made under insurance contracts that result in recoverable assets are included 

in Accounts Receivable, net of an allowance for uncollectible amounts.

(dollars in thousands)

As of September 30, 2023 2022

Unearned Insurance Premiums $ 10,991 $ 12,507

Unpaid Insurance Claims 192 43,685

Total Insurance Program Liabilities $ 11,183 $ 56,192

DFC has unpaid insurance claims that are recorded as unfunded liabilities. DFC’s liability for unpaid insurance claims 

and activity for FY 2023 and 2022 consists of: 

(dollars in thousands) 2023 2022

Unpaid Insurance Claims as of October 1 $ 43,685 $ 133

Claims Expense 5,793 43,837

Less: Claims Paid (49,032) (285)

Less: Claims Withdrawn (254) -

Unpaid Insurance Claims as of September 30 $ 192 $ 43,685

The increase in claims paid in FY 2023 is primarily related to a claim for political violence in the Ukraine due to the 

current war in Ukraine. The claim expense in FY 2022 for the Ukraine policy included the gross claim amount of $45 

million less $4.5 million in estimated recoveries. The amount paid was the full $45 million. In FY 2023, the claims 

paid related to projects started under OPIC. In FY 2022 the claims paid were related to contracts started under DFC.

The liability for losses on remaining coverage as of September 30, 2023, and 2022, 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’s analysis of estimated losses on remaining coverage incorporated a review 

of maximum contingent liabilities, current exposure to claims, historic claims, anticipated recoveries, and anticipated 

premiums. The analysis includes the past 14 years of historic coverages and claims, and assumes historic experience 

is analogous to current conditions. Anticipated claims were discounted using the 1-year Treasury rates. DFC assumes 

that recovery payments will begin four years after the claim is paid and the recovery payment period will last 2 years. 

DFC is not anticipating recoveries on claims paid prior to 2019. The estimated discounted claims on the portfolio are 

$159,677 thousand and $68,916 thousand for FY 2023 and 2022, respectively. The estimated discounted unearned 

premiums on the portfolio are $8,169 thousand and $10,634 thousand for FY 2023 and 2022, respectively, and the 

estimated discounted recoveries are $105,311 thousand and $61,882 thousand for FY 2023 and 2022, respectively. 

As of September 30, 2023, and 2022, DFC had no liability for losses on remaining coverage.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

53

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 for the elected coverage periods, or Current Exposure to Claims as of 

September 30, 2023, was $3.6 billion, of which $1.0 billion is shared by third parties as a result of reinsurance 

arrangements. The current exposure to claims as of September 30, 2022, was $3.5 billion, of which $415 million was 

shared by third parties as a result of reinsurance arrangements.

NOTE 16: LEASES

OPERATING LEASES

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

February 2035. Under the terms of the lease, DFC receives a tenant improvement allowance for space refurbishment 

as well as other incentives. The value of these incentives is deferred in the Consolidated Balance Sheets and are 

amortized to recognize rent expense on a straight-line basis over the life of the lease. Rental expense was 

approximately $14.3 million and $8.3 million for the fiscal years ended September 30, 2023, and 2022, respectively. 

The following table presents future non-cancelable rental payments.

(dollars in thousands)

For the Years Ending:

Non-Federal Lease 

Payments

2024 $ 10,726

2025 11,540

2026 16,260

2027 18,497

2028 18,959

After 2028 125,963

Total Future Lease Payments $ 201,945
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

54

NOTE 17: BUDGETARY RESOURCES

A. NET ADJUSTMENTS TO UNOBLIGATED BALANCE, BROUGHT FORWARD

(dollars in thousands)

For the Periods Ended September 30, 2023 2022

Budgetary

Non-Budgetary 

Credit Reform 

Financing 

Accounts Budgetary

Non-Budgetary 

Credit Reform 

Financing 

Accounts

Unobligated Balance, Prior Year $ 6,469,761 $ 1,297,219 $ 6,521,648 $ 1,316,876 

Borrowing Authority Withdrawn - (223,273) - (644,589) 

Repayments of Borrowings to the

Treasury - (648,696) - (505,860) 

Capital Transfers to the General Fund of

the Treasury (6,882) - (8,077) - 

Recoveries of Prior Year Obligations 11,423 224,263 24,351 649,653 

Transfers in of Prior Year Authority 12,388 - 9,322 - 

Cancelled Authority (349) - - - 

Unobligated Balance from Prior Year

Budget Authority, Net $ 6,486,341 $ 649,513 $ 6,547,244 $ 816,080

Differences between the Unobligated Balance, end of year, and the Unobligated Balance from Prior Year Budget 

Authority, as presented on the FY 2023 Combined Statement of Budgetary Resources are primarily due to the 

following:

• Recoveries of Prior Year Obligations: These include reductions of obligations made in previous years, mostly 

in the direct loan program.

• Borrowing Authority Withdrawn: At the end of each year, borrowing authority from the prior year is 

withdrawn, and new borrowing authority is received at the beginning of the next year.

• Repayments of Borrowings to the Treasury: DFC repays borrowings from the Treasury for its direct loan and 

loan guaranty programs, reducing budget authority. 

• Capital Transfers to the General Fund of the Treasury: The excess funds held by liquidating funds for direct 

loan and loan guaranty programs made before FY 1992, are transferred to the Treasury each year, reducing 

the budget authority. 

• Transfers-in of Prior Year Authority: DFC received funds from USAID transferred in to support direct loans 

and loan guaranties initially made in prior years. 

• Cancelled Authority is authority that no longer available to DFC. 

B. PERMANENT INDEFINITE APPROPRIATIONS

FCRA authorizes permanent, indefinite appropriations from the 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 the 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 the Treasury should funds in DFC’s reserves be insufficient to discharge obligations arising 

under its insurance program. 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

55

C. ANNUAL APPROPRIATIONS

DFC receives an annual appropriation for operations and programs. DFC’s offsetting collections derived from 

investment earnings, non-insurance fees, and negative subsidy are to be used to reduce DFC’s annual appropriation. 

D. BORROWING AUTHORITY

DFC is required to borrow from the 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 exceeding the 

amount of subsidy and collections maintained in the financing funds. As of September 30, 2023, and 2022, DFC had 

$9,705 million and $8,545 million, respectively, in borrowing authority carried over to fund direct loans and pay 

future claims.

E. USE OF UNOBLIGATED BALANCES

Unobligated balances on the Combined Statements of Budgetary Resources includes both expired and unexpired 

authority. Unexpired authority includes both apportioned and unapportioned funds. DFC’s administrative spending 

authority is available for five additional fiscal years after the year of expiration for recording and adjusting previously 

recorded obligations but cannot be used to fund new obligations. As specified in DFC’s annual appropriation, DFC’s 

equity authority is available for the term of the underlying equity investment, and DFC’s disbursement authority for 

program funds supporting the credit programs is available for eight additional fiscal years after the year of expiration. 

Under DFC’s appropriation law (Public Law 117-103, Section 7011), funds that were originally obligated during the 

period of availability, and deobligated in a subsequent fiscal year, are available for obligation for an additional four 

years. Funds remaining after the period of availability become cancelled authority and are returned to the Treasury.

F. 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, 2023 Intragovernmental With the Public Total

Unpaid $ 1,082,155 $ 10,390,842 $ 11,472,997

Paid - 183 183 

Total Obligations $ 1,082,155 $ 10,391,025 $ 11,473,180

(dollars in thousands)

As of September 30, 2022 Intragovernmental With the Public Total

Unpaid $ 797,106 $ 7,189,338 $ 7,986,444

Paid - 1,247 1,247 

Total Obligations $ 797,106 $ 7,190,585 $ 7,987,691
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

56

G. EXPLANATION OF DIFFERENCES BETWEEN THE COMBINED STATEMENT OF BUDGETARY 

RESOURCES AND THE BUDGET OF THE U.S. GOVERNMENT

(dollars in millions)

For the Year Ended September 30, 2022

Budgetary 

Resources

New 

Obligations 

and Upward 

Adjustments

Distributed 

Offsetting 

Receipts Net Outlays 

Combined Statement of Budgetary 

Resources $ 15,215 $ 7,448 $ (426) $ 1,605

Expired Funds not reported in 2023 

President's Budget (32) - - -

Variances as a Result of OPIC funds 

transferred to DFC - - - (2)

Differences from OMB Distributed Offsetting 

Receipts Report 11 -

Budget of the U.S. Government $ 15,183 $ 7,448 $ (415) $ 1,603

Agencies are required to explain material differences between their Combined 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 2023 SBR will be reconciled to the actual balances per the 2025 Budget of the U.S. Government 

which will be released in FY 2024. The Budget with the actual amounts for this current year will be available later at 

whitehouse.gov/omb/budget. 

Balances reported in the FY 2022 Combined 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. Differences in 

Distributed Offsetting Receipts include differences in funds that OMB uses to calculate the amount on a quarterly 

report. OMB includes clearing accounts and does not include negative subsidy amounts. Other minor differences are 

the result of rounding variances.

H. DISTRIBUTED OFFSETTING RECEIPTS

Distributed Offsetting Receipts are amounts transferred to the Treasury and credited to a General Fund Receipt 

Account that offset DFC budget outlays. Agency outlays are measured on both a gross and net basis, with net outlays 

being reduced by offsetting receipts. DFC’s Distributed Offsetting Receipts consist of negative subsidies from the 

direct loan and loan guaranty programs and downward reestimates from the prior fiscal year, both of which are 

transferred to the Treasury General Fund Receipt Accounts. The Treasury publishes a report each month of each 

agencies’ Distributed Offsetting Receipts (fiscal.treasury.gov/reports-statements/mts/quarterly). The report 

excludes DFC’s negative subsidies for direct and loan guaranty programs, which have been reported on the 

Statement of Budgetary Resources.

NOTE 18: RECONCILIATION OF NET COST OF OPERATIONS TO NET OUTLAYS

The Net Cost to Net Outlays Reconciliation schedule reconciles the Net Cost (reported in the Consolidated 

Statements of Net Cost) to the Net Outlays (reported in the Combined Statements of Budgetary Resources). The 

reconciliation clarifies the relationship between budgetary and proprietary accounting information. Reconciliation 

items included: (1) Transactions which did not result in an outlay but did result in a cost; and (2) Unpaid expenses 

included in the net cost in this reporting period but not yet included in outlays. Components of net cost that are not 

part of net outlays are most commonly (1) the result of allocating assets to expenses over more than one reporting 

period (e.g., depreciation); (2) the temporary timing differences between outlays/receipts and the operating 

expense/revenue during the period; and (3) cost financed by other Federal entities (imputed inter-entity cost). The 
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

57

analysis below illustrates this reconciliation by listing the key differences between net cost and net outlays. In 

accordance with A-136 guidance, the presentation of the Reconciliation of Net Cost of Operations to Net Outlays 

excludes financing funds activity for programs subject to FCRA. Line items presented below, such as the Net Cost as 

well as the increases and decreases in assets and liabilities do not include financing funds and cannot be compared 

to the Consolidated Statements of Net Cost and the Consolidated Balance Sheets. Loans Receivable, Net and Loan 

Guaranty Liability activity is reported below for the liquidating funds for direct loans and loan guaranties made prior 

to FY 1992.

In FY 2023 and 2022, the key reconciling differences between the net cost and net outlays for DFC included: (1) the 

accrual of the reestimates in the program funds. The accruals impact the current year net cost but have an impact 

on the net outlays in the succeeding year; (2) collections of pre-1992 loans receivable that are recorded as offsets to 

net outlays but have no impact on the net cost; (3) a decrease in the prior year subsidy payable from the DFC credit 

program funds to the DFC financing funds. The subsidy was recorded as a payable in the prior year and paid in the 

current year, which impacts the net outlays, but has no current year impact on the net cost; (4) acquisition of 

investments, which are investments in non-intragovernmental projects that are recorded on the balance sheet. The 

investments impact net outlays but have no impact on the net cost; (5) transfers in without reimbursement 

represent DFC transfers of funds into the operating funds that do not have an impact on the net cost of operations, 

but are included in net outlays; and (6) distributed offsetting receipts which are funds that DFC has sent to the 

General Fund of the Treasury for its credit programs under FCRA. These amounts reduce the net outlays on the 

Combined Statements of Budgetary Resources but have no impact on the net cost to DFC.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

58

(dollars in thousands)

For the Period Ended September 30, 2023

Intragovernmental With the Public Total

Net Cost $ (117,745) $ 79,532 $ (38,213)

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

Property and Equipment Depreciation - (134) (134)

Year-end Credit Reform Subsidy Accrual Reestimates 102,589 - 102,589

Net Gains/(Losses) on Investments - (9,069) (9,069)

Increase/(decrease) in assets:

Accounts Receivable, Net 140 803 943

Loans Receivable, Net - (39,941) (39,941)

Investments, Net 1,922 - 1,922

Advances and Prepayments - (417) (417)

(Increase)/decrease in liabilities:

Accounts Payable - (2,115) (2,115)

Subsidy Payable to the Financing Account 613,753 - 613,753

Federal Employee Benefits Payable - (1,073) (1,073)

Insurance and Guaranty Program Liabilities - 45,008 45,008

Advances from Others and Deferred Revenue 2,295 1,734 4,029

Other Liabilities 17 (888) (871)

Other Financing Sources:

Imputed Costs (6,189) - (6,189)

Total Components of Net Cost That Are Not Part of Net 

Outlays 714,527 (6,092) 708,435

Components of Net Outlays That Are Not Part of Net 

Cost:

Acquisition of Investments - 146,839 146,839

Return of Investments - (780) (780)

Effect of Prior Year Credit Reform Subsidy Re-estimates (8) - (8)

Total Components of Net Outlays That Are Not Part of 

Net Cost (8) 146,059 146,051

Financing Sources:

Transfers in Without Reimbursement (225,600) - (225,600)

Total Financing Sources (225,600) - (225,600)

Miscellaneous Items:

Distributed Offsetting Receipts (398,962) - (398,962)

Total Miscellaneous Items (398,962) - (398,962)

Net Outlays $ (27,788) $ 219,499 $ 191,711

Agency Outlays, Net $ 191,711
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

59

(dollars in thousands)

For the Period Ended September 30, 2022

Intragovernmental With the Public Total

Net Cost $ (115,898) $ 334,924 $ 219,026 

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

Property and Equipment Depreciation - (156) (156)

Year-end Credit Reform Subsidy Accrual Re-estimates (221,211) - (221,211)

Net Gains/(Losses) on Investments - 6,723 6,723 

Increase/(decrease) in assets:

Accounts Receivable, Net - 1,422 1,422 

Loans Receivable, Net - (5,828) (5,828)

Investments, Net 1,529 - 1,529 

Advances and Prepayments - (822) (822)

Negative Loan Guaranty Liability - (4,681) (4,681)

(Increase)/decrease in liabilities:

Accounts Payable - (273) (273)

Subsidy Payable to the Financing Account 581,968 - 581,968 

Federal Employee Benefits Payable - 1,239 1,239 

Insurance and Guaranty Program Liabilities - (42,465) (42,465)

Advances from Others and Deferred Revenue 1,492 (1,170) 322 

Other Liabilities 593 1,704 2,297 

Other Financing Sources:

Imputed Costs (3,520) - (3,520)

Total Components of Net Cost That Are Not Part of Net 

Outlays 360,851 (44,307) 316,544 

Components of Net Outlays That Are Not Part of Net 

Cost:

Acquisition of Investments - 78,172 78,172 

Return of Investments - (5,276) (5,276)

Total Components of Net Outlays That Are Not Part of 

Net Cost - 72,896 72,896 

Financing Sources

Transfers in Without Reimbursement (198,340) - (198,340)

Total Financing Sources (198,340) - (198,340)

Miscellaneous Items

Distributed Offsetting Receipts (426,222) (426,222)

Total Miscellaneous Items (426,222) - (426,222)

Net Outlays $ (379,609) $ 363,513 $ (16,096)

Agency Outlays, Net $ (16,096)
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

60

NOTE 19: RECLASSIFICATION OF FINANCIAL STATEMENT LINE ITEMS FOR 

FINANCIAL REPORT COMPILATION PROCESS

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

agencies to submit an adjusted trial balance, which is a listing of amounts by U.S. Standard General Ledger account 

that appear in the financial statements. The Treasury uses the trial balance information reported in the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) to develop a Reclassified Statement of Net 

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

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

same title to develop the Financial Report 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 

Financial Report line items. A copy of the 2022 Financial Report (FR) can be found here: fiscal.treasury.gov/reportsstatements and a copy of the 2023 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. Amounts shown in the DFC Statement of Net Cost column are totals from the FY 

2023 Consolidated Statement of Net Cost by program. Unrealized gains and losses are reported as a net number on 

the FY 2023 Consolidated Statement of Net Cost.

FY 2023 DFC Statement of Net Cost Line Items Used to Prepare FY2023 Government-wide Statement of Net Cost

Financial Statement 

Line

Amounts

(dollars in 

thousands)

Other Than Dedicated 

Collections

(dollars in thousands) Reclassified Financial Statement Line

Gross Costs Non-Federal Costs

Operating Costs $ 538,674 $ (29,551) Non-Federal Gross Costs

Subsidy Costs (195,307) (29,551) Total Non-Federal Costs

Re-estimates (102,589)

Unrealized Losses 12,650

Intragovernmental Costs

17,370 Benefit Program Costs

6,189 Imputed Costs

4,627 Buy/Sell Costs

254,793 Borrowing and Other Interest Expense

282,979 Total Intragovernmental Costs

Total Gross Costs 253,428 253,428 Total Reclassified Gross Costs

Earned Revenue (571,607) (339,781) Non-Federal Earned Revenue 

Investment Revenue (9,134) Intragovernmental Revenue

Unrealized Gains (13,581) (7,490) Buy/Sell Revenue

(138,442) Federal Securities Interest Revenue Including 

Associated Gains/Losses (Exchange)

(108,609) Borrowing and Other Interest Revenue

(254,541) Total Intragovernmental Earned Revenue

Total Earned Revenue (594,322) (594,322) Total Reclassified Earned Revenue

Net Cost $ (340,894) $ (340,894) Net Cost
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

61

FY 2023 DFC Statement of Changes in Net Position

Line Items Used to Prepare FY 2023 Government-wide Statement of 

Changes in Net Position

Financial Statement Line

Amounts

(dollars in 

thousands)

Other Than 

Dedicated 

Collections

(dollars in 

thousands) Reclassified Financial Statement Line

Unexpended Appropriations Unexpended Appropriations

Unexpended Appropriations, 

Beginning Balance $ 400,785 $ 400,785 Unexpended Appropriations, Beginning Balance

- (1,011) Total Reclassified Corrections of Errors

Appropriations Received 1,236,707 1,236,707 Appropriations Received

Appropriations Transferred in/Out 12,388 12,388 Appropriations Transferred in/Out

Appropriations Used (974,137) (974,137) Appropriations Used 

Other Adjustments (1,361) (350) Adjustment of Appropriation Received

Total Unexpended Appropriations 674,382 674,382 Total Unexpended Appropriations

Cumulative Results of Operations Cumulative Results of Operations

Cumulative Results, Beginning 

Balance 6,772,638 6,772,638 Cumulative Results, Beginning Balance

- 1,011 Total Reclassified Corrections of Errors

Appropriations Used 974,137 974,137 Appropriations Used

Imputed Financing Sources 6,189 6,189 Imputed Financing Sources

Offset to Non-entity Collections (728,286) (728,286) Offset to Non-entity Collections 

Other 21,889 20,878 Other

Net Cost of Operations 340,894 340,894 Net Cost of Operations

Cumulative Results of Operations 7,387,461 7,387,461 Cumulative Results of Operations

Total Net Position $ 8,061,843 $ 8,061,843 Net Position
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

62

COMBINING STATEMENT OF BUDGETARY RESOURCES BY MAJOR BUDGET 

ACCOUNT

Budgetary

(dollars in thousands)

For the Year Ended September 30, 2023

Insurance 

Budgetary

Debt 

Financing

Budgetary

Equity 

Budgetary

Inspector 

General 

Budgetary

Non-Budgetary

Credit Reform 

Accounts

Budgetary Resources

Unobligated Balance from Prior Year

 Budget Authority, Net $ 6,287,152 $ 90,188 $ 107,589 $ 1,412 $ 649,513

Appropriations - 617,745 613,379 5,583 -

Borrowing Authority - - - - 6,424,983

Spending Authority from Offsetting

 Collections 253,243 265,593 166,621 - 984,898

Total Budgetary Resources $ 6,540,395 $ 973,526 $ 887,589 $ 6,995 $ 8,059,394

Status of Budgetary Resources

New obligations and upward adjustments

 (total)

$ 220,064 $ 764,229 $ 742,500 $ 5,218 $ 7,021,506

Unobligated Balance, End of Year

Apportioned, unexpired accounts 203,036 58,906 589 1,369 -

Unapportioned, unexpired accounts 6,116,140 125,386 144,500 408 1,037,888

Unexpired unobligated balance, end of year $ 6,319,176 $ 184,292 $ 145,089 $ 1,777 $ 1,037,888

Expired unobligated balance, end of year 1,155 25,005 - - -

Unobligated Balance, end of year (total) 6,320,331 209,297 145,089 1,777 1,037,888

Total Budgetary Resources $ 6,540,395 $ 973,526 $ 887,589 $ 6,995 $ 8,059,394

Outlays, net $ (143,262) $ 353,497 $ 375,957 $ 4,481

Distributed Offsetting Receipts - (398,962) - -

Agency Outlays, Net $ (143,262) $ (45,465) $ 375,957 $ 4,481

Disbursements, Net $ 1,609,419
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

63

Budgetary

(dollars in thousands)

For the Year Ended September 30, 2022

Insurance 

Budgetary

Debt 

Financing

Budgetary

Equity 

Budgetary

Inspector 

General 

Budgetary

Non-Budgetary

Credit Reform 

Accounts

Budgetary Resources

Unobligated Balance from Prior Year

 Budget Authority, Net $ 6,246,361 $ 103,007 $ 195,839 $ 2,037 $ 816,078

Appropriations - 585,393 340,691 2,800 -

Borrowing Authority - - - - 5,521,406

Spending Authority from Offsetting

 Collections 238,320 68,120 159,309 - 935,253

Total Budgetary Resources $ 6,484,681 $ 756,520 $ 695,839 $ 4,837 $ 7,272,737

Status of Budgetary Resources

New obligations and upward adjustments

 (total) $ 209,656 $ 670,748 $ 588,250 $ 3,462 $ 5,975,518 

Unobligated Balance, End of Year

Apportioned, unexpired accounts 104,208 18,026 107,589 687 6,608

Unapportioned, unexpired accounts 6,169,409 36,997 - 688 1,290,611

Unexpired unobligated balance, end of year $ 6,273,617 $ 55,023 $ 107,589 $ 1,375 $ 1,297,219

Expired unobligated balance, end of year 1,408 30,749 - - -

Unobligated Balance, end of year (total) 6,275,025 85,772 107,589 1,375 1,297,219

Total Budgetary Resources $ 6,484,681 $ 756,520 $ 695,839 $ 4,837 $ 7,272,737

Outlays, net $ (85,861) $ 518,808 $ (26,413) $ 3,592

Distributed Offsetting Receipts - (426,222) - -

Agency Outlays, Net $ (85,861) $ 92,586 $ (26,413) $ 3,592

Disbursements, Net $ 1,195,213
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

OTHER INFORMATION (UNAUDTED) 

64

REPORT ON THE PAYMENT INTEGRITY INFORMATION ACT

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

DFC performed a risk assessment on payment integrity and determined that its programs present a low risk and not 

susceptible to significant improper payments. In addition, DFC’s Office of the Inspector General found in its audit 

that DFC’s payment integrity program complied with PIIA but identified one control deficiency that management has 

since resolved. For additional information on payment integrity see PaymentAccuracy.gov.
U.S. INTERNATIONAL DEVELOPMENT FINANCE CORPORATION

APPENDIX (UNAUDITED) 

65

ACRONYM LISTING 

ACRONYM DEFINITION

ASC Financial Accounting Standards Codification

BUILD Better Utilization of Investments Leading to Development

CSC Credit Subsidy Calculator

DCA Development Credit Authority

DFC U.S. International Development Finance Corporation

DOL Department of Labor

FASAB Financial Accounting Standards Advisory Board

FBwT Fund Balance with Treasury

FCRA Federal Credit Reform Act of 1990

FECA Federal Employees’ Compensation Act

FERS Federal Employees Retirement System

FMFIA Federal Managers’ Financial Integrity Act of 1982

FR Financial Report

FY Fiscal year

GHG Green House Gas

GTAS Government-wide Treasury Account Symbol Adjusted Trial Balance System

MOV Maintenance of Value

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

Treasury U.S. Department of Treasury

U.S. United States

U.S. GAAP Generally Accepted Accounting Principles

USAID United States Agency for International Development