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Audit Firm Asks for More Time to Complete the District's Comprehensive Annual Financial Report

Friday, December 21, 2007
Today the Inspector General of the District of Columbia issued a letter stating that BDO Seidman, the outside auditor for the District, has requested an additional 60 days to complete the audit of the District’s FY 2007 financial statements.

Washington, DC – Today the Inspector General of the District of Columbia issued a letter stating that BDO Seidman, the outside auditor for the District, has requested  an additional 60 days to complete the audit of the District’s fiscal year 2007 financial statements.

“I believe this is a reasonable request, consistent with auditing standards that provide guidance when there is detection of fraud,” said Natwar M. Gandhi, chief financial officer. “It is therefore in the best interests of the audit and the citizens of the District to ensure the FY 2007 CAFR fairly reflects our financial condition.”

The Office of the Chief Financial Officer’s preparation of the District’s fiscal year 2007 Comprehensive Annual Financial Report (CAFR) is completely on schedule as in past years. Fully auditable financial statements will be ready by mid-January as in the past. It is important to note that the additional time requested by BDO Seidman is not a condition that would trigger the return of a Control Period under the Home Rule Act.

These financial statements will contain final numbers that are not likely to change because of BDO Seidman’s request for additional audit time. These numbers will also be good for the fiscal 2009 budget preparation.
 
Most states and municipalities take six months to prepare a Comprehensive Annual Financial Report. In spite of BDO Seidman’s request for the additional auditing time, the District’s fiscal year 2007 Comprehensive Annual Financial Report will still be ready well within this customary six-month timeframe.

The District’s investments continue to be supported by strong ratings from the bond rating agencies, “A-plus” by Standard and Poor’s, “A-plus” by Fitch Ratings, and “A1” by Moody’s Investors Service. As in past years, the District enjoys a budget surplus for fiscal 2007.

BDO Seidman’s request for additional audit time will not affect the District’s Wall Street standing or credit ratings. The Office of the Chief Financial Officer has issued $300 million in short-term borrowings and $330 million in general obligation bonds – at better rates than last year. In fact, Wall Street and the bond rating agencies continue to show strong respect for the District’s fiscal stewardship.