DFC’s Consolidated Financial Statements for

Fiscal Years 2023 and 2022

November 15, 2023 

Audit Report DFC-24-003-C

1100 New York Avenue NW

Washington, D.C. 20527 

https://www.dfc.gov/oig 

OFFICE OF INSPECTOR GENERAL

U.S. International Development Finance Corporation
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.
1005 N. Glebe Road, Suite 610

Arlington, VA 22201

Phone: (571) 429-6600

www.rmafed.com

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

Page 1 of 5 

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,

changesin 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. 
1005 N. Glebe Road, Suite 610

Arlington, VA 22201

Phone: (571) 429-6600

www.rmafed.com

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

Page 2 of 5 

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.

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 
1005 N. Glebe Road, Suite 610

Arlington, VA 22201

Phone: (571) 429-6600

www.rmafed.com

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

Page 3 of 5 

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 

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. 
1005 N. Glebe Road, Suite 610

Arlington, VA 22201

Phone: (571) 429-6600

www.rmafed.com

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

Page 4 of 5 

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

www.rmafed.com

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

Page 5 of 5 

Exhibit 1: DFC Response

RMA I Associates 

Auditors. Consultants. Advisors. 

U. . In ternallon I 

Deve]opment 

Fl nanc Co roti on 

~IEMORAl IDU~I 

IO: .Aufu.OlllJ Zakel 

~-pect« Gentta] 

DFC - Office offue Ins-pector Ge,nernl 

fil.dred Calleai- 111&.am 

CILl1'M - - - · ·1ce PFe.sid.euit and Chief financiail Officer 

November U 2023 

SUBJE T:. DFC's M:mag.em:euit Comments t.o "DFC's Co11001idated Fwanc:ial Statements for 

F i.oca] Yeai- 2023 (Reyort 'umbel'" DfC-) 

DFC wishes to thank the Office of the Inspect« Genera] (OIG) for the deep leve] of col1aboratio11 

and cooperation that W.1.'l f"e.alized throughout this audit yet ag:aw fol.Iris. yeru:·_ .i<\s sitewanis of federal 

funds DFC takes very se.riol!ISly ds responsibility to nphold high standards of inte,rml co!lltro] ovet" 

furanci.a] reportwg. \\~e greatly appreciate the recogwtion from ru..1A &sroc.iates that DFC' 

furanci.a] stateme,ll/ts. faidy present the firumcia] posi.tcio111 o.fDFC fm FY 2023. 

1100 New York Averiue Northwest 

Washington, DC 20527 

Office +1 2D2_336.8400 

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