(Washington, DC) Mayor Adrian M. Fenty and Chief Financial Officer Natwar M. Gandhi today released the District of Columbia government’s fiscal year 2007 Comprehensive Annual Financial Report (CAFR), which shows the District delivered its eleventh consecutive balanced budget. BDO Seidman, the outside auditor for the District, delivered an unqualified, "clean" opinion.

BDO Seidman had requested additional time to complete the audit of the District’s fiscal year 2007 financial statements due to the November 2007 revelation of fraud at the Office of Tax and Revenue.

The District recently issued $300.0 million in revenue anticipation notes and $334.8 million in general obligation bonds that both received "A" category bond ratings, further evidence that the bond markets continue their very strong assessment of the District’s financial strength and stability. As a result, the District continues to enjoy lower borrowing costs on its debt.

The year ended with General Fund revenues exceeding expenditures by $281 million on a budgetary basis. During FY2007, total general fund revenues and other sources were $52 million higher than initially forecast, whereas general fund expenditures and other uses were lower in every category; as a result, spending was $228.5 million less than budgeted. The cumulative fund balance was $1.5 billion at September 30, 2007.  Attached is a 15-year history of the District’s surpluses, fund balance and bond ratings.

The District has accumulated an emergency and contingency cash reserve of approximately $309.4 million. Combined with $81.2 million in unreserved and undesignated fund balance, the District’s reserves represent approximately one month’s expenditures, a minimally prudent level.

The fiscal year 2007 CAFR and audit opinion for the District of Columbia were produced under the auspices of BDO Seidman, LLP.