Mayor Vincent Gray and Chief Financial Officer Natwar Gandhi announced on Jan. 30 that the District's financial health rebounded significantly in Fiscal Year 2011, with one of the largest surpluses in recent history. The surplus also provided a dramatic increase in the city's savings account after several years of losses.
In announcing the results of the District's Fiscal Year 2011 Comprehensive Annual Financial Report (CAFR), conducted by independent auditing firm KPMG, Gray said the city 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," 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 FY 2005. In the audit, KPMG gave the District an unqualified "clean" opinion for the 15th consecutive year. The independent auditors' study 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."