FY 2025 Annual Comprehensive Financial Report: Balanced Budget, 29th Consecutive Clean Opinion
Summary
DC CFO Glen Lee released the FY 2025 Annual Comprehensive Financial Report for the year ended September 30, 2025. The District achieved a balanced budget with a $4.8 billion general fund balance and $257.3 million in excess revenues over budget. Independent auditors CliftonLarsonAllen issued a clean (unmodified) opinion for the 29th consecutive year, indicating no material misstatements. Mandated reserves of $2.2 billion are near full funding.
The 29th consecutive clean audit opinion signals robust financial management and transparency practices within the DC government. Strong bond ratings for General Obligation and Income Tax Bonds indicate continued investor confidence in DC's fiscal stability. The $257.3 million revenue surplus from non-withholding and corporate taxes suggests resilient tax collection despite noted federal workforce reductions. While no immediate compliance obligations arise from this report, DC government agencies should monitor federal job reduction impacts on local tax revenues and economic conditions.
What changed
The District of Columbia released its FY 2025 Annual Comprehensive Financial Report, marking the 29th consecutive year receiving an unmodified clean audit opinion from independent auditors. Revenues exceeded budget by $257.3 million due to strong non-withholding and corporate tax collections, contributing to a $4.8 billion general fund balance with $2.2 billion in mandated reserves near full funding.
Affected parties including DC government agencies, bondholders, and taxpayers can rely on the District's strong financial position. The clean audit provides assurance of financial transparency and proper stewardship of public funds. However, the CFO noted challenges from federal job reductions and commercial office vacancies that may affect future revenues.
Archived snapshot
Apr 20, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Friday, January 30, 2026 Chief Financial Officer Glen Lee today released the Government of the District of Columbia’s Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR) for the year ended Sept. 30, 2025. The District finished FY 2025 with a balanced budget and a $4.8 billion general fund balance.
“Due to prudent financial management and sound decision-making, the District ended fiscal year 2025 in a strong position,” said CFO Lee. “These results were achieved in the face of unprecedented challenges, including thousands of federal job reductions and high commercial office vacancies. Going forward, the District government has a solid foundation for navigating the continuing changes in our economy.”
Independent certified public accountants CliftonLarsonAllen, LLP, audited the FY 2025 ACFR, with the assistance of F.S. Taylor & Associates, PC.
Takeaways from the District’s FY 2025 Annual Comprehensive Financial Report:
- The District’s financial statements received a clean audit opinion for the 29th consecutive year – indicating no material misstatements or errors.
- Actual FY2025 revenues exceeded the budget by $257.3 million, mainly due to strong non-withholding and corporate tax collections.
- The General Fund balance (which includes prior year surpluses, dedicated funds and mandated reserves) totals $4.8 billion.
- Federally and locally mandated reserves total $2.2 billion. The reserves are near full funding in order to operate the government and respond to unplanned events.
- Trusts for Retirement and Other Post-Employment Benefits are fully funded.
- The District’s ratings for General Obligation Bonds and Income Tax Bonds remain strong. NOTE: CFO Lee will present additional information on the FY 2025 ACFR at a DC Council public hearing at 2 p.m. Tuesday, February 10, 2026.
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