(WASHINGTON, D.C.) – Mayor Vincent C. Gray and D.C. Chief Financial Officer Natwar M. Gandhi today announced that the District’s financial health rebounded significantly in Fiscal Year 2011, with one of the largest surpluses in recent history and a dramatic increase in the city’s savings account after several years of losses.
Announcing the results of the District’s Fiscal Year 2011 Comprehensive Annual Financial Report (CAFR), conducted by independent auditing firm KPMG, Mayor Gray said the District ended the year with $240 million more in revenues and savings than expenditures and an increase in the city’s Fund Balance to $1.1 billion over the $890 million in the fund at the end of FY 2010.
“One of my top priorities in office has been to stabilize and rebuild the District’s financial health after years of spending down our crucial savings account,” Mayor Gray said. “I’m proud that, despite a very challenging economic climate and difficult budgetary choices we were forced to make, the District government saved well, spent wisely and put ourselves in excellent shape for the future.”
The report marks the first annual increase in the District’s Fund Balance since Fiscal Year 2005.
In the audit, KPMG gave the District an unqualified “clean” opinion for the 15th consecutive year. The Independent Auditors’ Report on Internal Control Over Financial Reporting (known as the Yellow Book report) which accompanies the CAFR, shows no material weaknesses and two significant deficiencies, down from five last year.
Gandhi praised the District’s leadership for wise management of the city’s finances. “We were able to increase the Fund Balance to $1.1 billion because of the careful spending and diligent oversight of the Mayor and City Council,” he said. “They are to be commended for keeping the city in such a strong financial condition while other states and municipalities are struggling.”
Gandhi noted that the absence of material weaknesses and reduction of significant deficiencies demonstrate the continuing sound management of the District’s finances.
“In these very uncertain times, this record of fiscal responsibility should be very reassuring to the city’s residents, businesses and Wall Street,” Gandhi said.
The CAFR will be available shortly on the Office of the Chief Financial Officer’s website, cfo.dc.gov.