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Department of Education (ED)

CITIZEN CENTRIC REPORT FY2021

1 WHO WE ARE

Number of Employees: 4,400 Budget: $68 Billion ED Mission ED's mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. The Department of Education was created in 1980 by combining multiple offices from several federal organizations. Currently ED is dedicated to the following: • Establishing policies on federal financial aid for education, and distributing as well as monitoring those funds. • Collecting data on America's schools and disseminating research. • Focusing national attention on key educational issues. • Prohibiting discrimination and ensuring equal access to education

Four Strategic Goals 1. Support state and local efforts to improve learning outcomes for all

prekindergarten-grade 12 students in every community 2. Expand postsecondary educational opportunities, improve outcomes to foster

economic opportunity and productive citizenry 3. Strengthen the quality, accessibility and use of education data through better

management, increase privacy protections and transparency 4. Reform the effectiveness, efficiency and accountability of the department.

Message from Miguel Cardona, United States Secretary of Education:

“With a great education, children can do and become

anything they choose. That is the American dream so many of us have experienced, and I am committed to making sure that all our students can achieve their dreams. I see this Department as a service agency, devoted to that goal.”

Page 2 Key Indicators Accomplishments FY2021 Noteworthy goals achieved in the US Education Department during the past year

Accountability Innovation Excellence

- The Department of Education completed 9 budget accountability reports for the FY 2021 federal appropriations. Budgetary resources rose by $216.2 from the previous year due to increased grants for direct and indirect adjustments due to COVID-19.

- 5 of the Department’s Agency Priority Goals were identified for federal funding appropriation through FY 2020-2021.

- 6000 discretionary grants awarded to colleges and universities to support innovation and enhance higher learning.

- The Department received a $31.9 billion appropriation in support of this objective.

- The Department was awarded its 17 th Certificate of Excellence in Accountability Reporting from the Association of Government Accountants and an honorary award for an Innovative Presentation on a Topic of Broad Public Interest.

Transparency Professional Development

- Debt owed to the treasury by HBCU institutions was reduced by 73%. The Direct Loan Program contributed 93.5% of debt as of September of the financial year.

- The Department offered mentorship and discussions with SFS (Scholarship for Service) about upcoming internships and employment opportunities. - The Department's total IT spending rose by $182.5 (million) from FY 2020 (Department of Education, 2021).

US Department of Education

The Department was established as a Cabinet-level agency in 1980. Today, the Department supports programs in every area and level of education from preschool through postdoctoral research. The Department makes funds and information available to individuals pursuing an education, colleges and universities, state education agencies, and school districts by engaging in four major categories of activities: • Establishing policies related to federal education funding, including distributing funds, collecting on student loans, and using data to monitor the use of funds. • Supporting data collection and research on America’s schools. • Identifying major issues in education and focusing national attention on them. • Enforcing federal laws promoting equal access and prohibiting discrimination in programs that receive federal funds.

 

Financial Highlights

The Department is primarily responsible for administering federal student loan and grant programs and provides technical assistance to loan and grant recipients and other state and local partners. The largest portions of the Department’s financial activities relate to the execution of loan and grant programs.

PAGE 3  FINANCIAL PROFILE

Most significant changes to the Department’s financial statements resulted from the impacts due to COVID 19 activities. - Significant increase in Fund Balance with Treasury is due to an increase in undisbursed COVID 19 funds. - Significant increase in Net Costs in Higher Ed is due to loan modification subsidy expense when student loan and interest was paused. -Significant increase in Appropriations is due to multiple COVID 19 relief bills to support educational institutions, students, parents and communities to improve education for all P-12 students, expand higher education opportunities, and life-long learning for career development. It includes funding for student loan borrowers by suspending all federal loan payments until January 31, 2022, interest free.

For 20 Consecutive Years, the Department has earned an unmodified (“Clean”) audit opinion. The Department consistently produces complete, accurate, and timely financial information. Learn more about the financial information at https://www2.ed.gov/about/reports /annual/2021report/index.html

The Department is primarily responsible for administering federal student loan and grant programs and provides technical assistance to loan and grant recipients and other state and local partners. The largest portions of the Department’s financial activities relate to the execution of loan and grant programs. The Department’s net costs of operations are primarily from three major components:

• Credit program revenue and interest • Credit program subsidy expense • Grant expenses

FY2021 Department of Education Earned Revenue & Gross Costs

Department of Education

1-800-USA-LEARN (1-

800-872-5327)

Lyndon Baines Johnson

(LBJ)

Department of Education

Building

400 Maryland Ave, SW

Washington, DC 20202

DIRECT LOAN PROGRAM

The Department’s largest program, the William D. Ford Federal Direct Loan (Direct Loan) Program, provides students and their families with funds to help pay for their postsecondary education costs. The following describes (1) the steps the Department has taken to help make student debt more manageable and (2) the risks inherent in estimating the cost of the program.

WHAT’S NEXT?

As the nation’s largest provider of financial aid for education beyond high school, FSA delivers more than $112 billion in aid each year to students and their families. Through programs authorized under the Higher Education Act of 1965, as amended, FSA provides grants, loans, and work-study funds for college or career school. FSA also oversees the approximately 5,600 postsecondary institutions that participate in the federal student aid programs. In every interaction with students and their families, FSA strives to be the most trusted and reliable source of student financial aid information and services in the nation

1. Establish Federal Student Aid (FSA’s) ability to request and receive certain Federal Tax Information from the Internal Revenue Service through the FUTURE Act Direct Data Exchange

2. Update FSA systems and processes to enable the provisions of the Fostering Undergraduate Talent by Unlocking Resources for Education ( FUTURE) Act

3. Work with FSA’s partners—schools, state agencies, and designated scholarship organizations—as they update their systems and processes to fully implement the FUTURE Act.

Further Helping

- Extension of Student Loan Payment Relief During the COVID- 19 Pandemic

- Income-Driven Repayment Plans - Public Service Loan Forgiveness