CAFR FY2020 - Washington, D.C.

1 COMPREHENSIVE ANNUAL FINANCIAL REPORT2020 MURIEL BOWSER MAYO RJEFFREY S. DEWITT CHIEF FINANCIAL OFFICERGOVERNMENT OF THE DISTRICT OF COLUMBIA OFFICE OF THE CHIEF FINANCIAL OFFICERYEAR ENDED SEPTEMBER 30, 11/20/21 3:13 PM1/20/21 3:13 PM1 Sincerely,Muriel BowserMayorSiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiinnncnnnnnnnnnnerelelelllelellel lelllllellllelllellellelllelllely,yyyyyy yyyyyyyyyyyyyyyyyyyyyyMuMMMMMMMMMMMMMMMM MMMMMMMMMMMMMMMMMMMMMMM rielllllllllllllllllllllllllllllllllllll ll Bowwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww serMaMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM MMMyor085,(/ %2.)

2 6(5 0$<25 -DQXDU\ Dear Washingtonians:It is my pleasure to present the District of Columbia's (District's) fiscal Year 2020 Comprehensive Annual Financial Report (CAFR). For the twenty-fourth consecutive year, the audit opinion is unqualified (unmodified). And, for the sixth year in a row, the auditors found no significant deficiencies or material weaknesses, demonstrating our continued financial discipline and strong financial management the unprecedented challenges of FY 2020, the District's finances continue to be amongst the strongest of any jurisdiction in the nation.)

3 As of September 30, 2020, the District has 60 days of operating cash in its reserve funds, providing greater financial flexibility and protection during the public health emergency. This allows us to provide continued essential support to residents and businesses during the global health pandemic. Our strong financial position allowed us to make critical public health investments that include free, robust COVID-19 testing; contact tracing; and personal protective equipment. It has also allowed us to make needed investments in our residents and businesses hardest hit by the pandemic through grants, meal distribution, rental assistance, and more.

4 The economic impacts of the pandemic have been challenging as well, yet we continue our significant investments in public education, homeless services, affordable housing, and public safety. We also continued ensuring the strength of our neighborhoods through the revitalization of our schools, recreation facilities, and libraries that enhance the overall quality of life of all District residents. In addition, our population continues to grow; as of September 2020, it stands at approximately 71 000 have said throughout this pandemic that we are all in this together and we will all get through it together.

5 In 2021, we will recover together, and the financial strength demonstrated in this CAFR will help us recover equitably. And, with your continued support, we will keep working to give all Washingtonians a fair shot and lift communities in all eight wards to build a safer, stronger, more prosperous, equitable, and resilient Washington, 3 John A. Wilson Building, 1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 Telephone: (202) 727-2476 * Fax: (202) 727-1643 * Website: GOVERNMENT OF THE DISTRICT OF COLUMBIA OFFICE OF THE CHIEF FINANCIAL OFFICER Jeffrey S.

6 DeWitt Chief Financial Officer January 28, 2021 The Honorable Muriel Bowser Mayor of the District of Columbia 1350 Pennsylvania Avenue, NW Washington, DC 20004 Dear Mayor Bowser: It is with great pride that I present the District of Columbia s Comprehensive Annual Financial Report (CAFR) for the fiscal year (FY) ended September 30, 2020. As you know, FY 2020 was filled with unprecedented changes and challenges due to the coronavirus (COVID-19) global pandemic. I am happy to report that despite the many hurdles faced, through the hard work and dedication of many across the city, we were able to successfully close the city s books, timely complete the financial audit, and produce a top-quality CAFR.

7 The FY 2020 CAFR audit was conducted by a new team of independent certified public accountants, McConnell & Jones, LLP, assisted by Regis & Associates, PC and UHY LLP. Based on the results of the audit procedures performed, the auditors issued an unmodified (clean) opinion on the District s FY 2020 financial statements. This opinion indicates that no material misstatements or errors were identified during the audit. This marks the 24th consecutive year in which the District has received such an opinion on its annual financial statements.

8 In addition, for the sixth consecutive year, no findings categorized as material weaknesses or significant deficiencies were reported as a result of the audit. Receiving an unmodified opinion with no material weaknesses or significant deficiencies, especially during a year that presented so many obstacles, is no small accomplishment. District residents, government officials, and other stakeholders should be assured that the caliber of the city s financial operations has not declined during the pandemic and that the financial information presented in the CAFR is accurate and in compliance with required standards.

9 As the FY 2020 CAFR indicates, despite the severe impact the pandemic has had on the economy, the District has been able to weather the storm due to several factors. The District s economy received a significant boost from the federal relief payments provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the monetary policy actions implemented by the Federal Reserve. These programs provided support to businesses and individuals, lessening the impact of unemployment and increasing District income tax receipts.

10 Federal Emergency Management Agency (FEMA) public assistance grants were also instrumental in supporting COVID-related operating costs in FY 2020. These additional resources, coupled with the District s prudent fiscal management practices over the years, including the build-up of strong reserves, allowed the city to provide much-needed assistance and services to District residents and businesses during this time of crisis. 4 John A. Wilson Building, 1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 Telephone: (202) 727-2476 * Fax: (202) 727-1643 * Website: Key economic data indicate that challenges will likely continue at least through the second and third quarters of FY 2021.