Comptroller Stringer Releases Fiscal Year 2019 Comprehensive Annual Financial Report

(New York, NY) — Today, New York City Comptroller Scott M. Stringer released the City’s Comprehensive Annual Financial Report (Annual Report) for Fiscal Year (FY) 2019, which includes the City’s audited financial statements for the year, outlines important economic and financial data about New York City, and highlights the work of the Comptroller’s Office during the fiscal year. This year’s Annual Report highlights the City’s strong economic growth and record low unemployment rate.

“The Annual Report is a testament to our commitment to continuous accountability, transparency, and sound fiscal management that maintain our City’s status as a great place to live, work, and raise a family,” said New York City Comptroller Scott M. Stringer. “The critical work of building a fair city for everyone is performed every day by our dedicated municipal workforce. The numbers in this report indicate the continued strength of our City’s economy and fiscal position. I’m proud that this year’s Annual Report shows solid growth in the city’ economy and in employment across multiple sectors. I thank the dedicated professionals who serve in the five pension systems, the Mayor’s Office of Management and Budget, the Office of the Actuary, and the staff of our Bureau of Accountancy, led by Deputy Comptroller Jacqueline Warburton-Thompson, for their diligent work to compile this important report.”

In accordance with the City Charter, the Annual Report is released annually no later than October 31. In addition to the financial statements of the City as a whole and for each of the City’s accounting funds, explanatory notes to the financial statements, and supplemental financial and statistical information about the City, the Annual Report contains the basic financial statements of the City’s five pension systems and closely-related entities such as NYC Health + Hospitals, the NYC Water and Sewer System, and the New York City Economic Development Corporation (EDC).

For the 39th consecutive year, the Fiscal Year 2018 Annual Report was awarded the prestigious Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association.

Highlights from the FY 2019 Annual Report include:

New York City’s Finances and Economy

New York City’s economy, measured as real gross city product, grew 3.0 percent, outperforming US GDP growth for the seventh consecutive year, but slightly below the 3.1 percent growth rate in Fiscal Year 2018.

• New York City added 79,700 private-sector jobs, an increase of 2.0%, while average hourly wage in the private sector rose a robust 4.1%.
• The citywide unemployment rate fell to 4.2 percent, the lowest level on record.
• The largest job increases were in education and health and social services.
• For the 39th year in a row, New York City ended the fiscal year with a budget balanced according to generally accepted accounting principles.
• After certain prepayments and transfers for Fiscal Year 2019, the General Fund surplus for Fiscal Year 2019 was $5 million.

The Comptroller’s Office

Bureau of Asset Management — The Comptroller’s Bureau of Asset Management is the investment advisor to the City’s five retirement systems.

• As of June 30, 2019, the Bureau of Asset Management had $207.9 billion in assets under management for the five New York City retirement systems.
• The pension trust fund assets increased by $12.1 billion in FY19, for a return of 7.2 percent.

Bureau of Public Finance — The Bureau of Public Finance works with the Mayor’s Office of Management and Budget to issue bonds to finance the City’s extensive capital program and to refund outstanding bonds for savings.

• The City and the New York City Transitional Finance Authority (TFA) issued a total of $6.18 billion of long-term bonds to finance the City’s capital needs.
• The New York City Municipal Water Finance Authority (the Water Authority) issued a total of $1.47 billion of bonds to finance the capital needs of the City’s Water and Sewer systems.
• Refundings of bonds of the City and the TFA generated $612.18 million in budgetary savings and refundings of Water Authority bonds generated $323.81 million of savings over the lifetime of those bonds.
• As of June 30, 2019, the City’s outstanding General Obligation debt, the TFA’s Future Tax Secured debt, and the Water Authority’s debt together totaled $106.05 billion.

Bureau of Labor Law — The Comptroller’s Office sets and enforces prevailing wage rates for construction work on New York City public work projects and building service work on City funded work sites. In FY19, the office:

• Assessed over $2.4 million in underpayments and interest against City contractors that violated New York’s prevailing wage laws.
• Imposed penalties totaling $20,000 against those City contractors.
• Opened 60 new cases, resolved 89 cases, and debarred 3 contractors for egregious conduct.

Bureau of Economic Development — Since 1981, the City Pension Funds have invested in Economically Targeted Investments (ETIs). As of June 30, 2019:

• The ETI program, including real assets and future commitments, constituted $3.12 billion in total assets.
• The ETI program ten year overall performance, at 4.98 percent net of fees as of June 30, 2019, has continued to exceed its benchmark.
• Since inception, this program has financed the construction or preservation of over 126,030 units of affordable and workforce housing and 593,297 square feet of commercial space in low- and moderate-income neighborhoods.

Bureau of Audit and Investigation — The City Charter requires the Comptroller’s Office to audit some aspect of every City agency at least once every four years. In Fiscal Year 2019, the Comptroller’s Office:

• Issued 61 audits and special reports on the effectiveness and service quality of City programs and financial issues.
• These audits and investigations identified approximately $12 million in actual and potential revenue, savings and cost avoidance.

Office of Diversity Initiatives — The Comptroller’s Office of Diversity Initiatives works to develop innovative solutions that expand economic opportunities for all, serving as a watchdog for the inclusion of women and people of color in City business. In Fiscal Year 2019, the Comptroller’s Office:

• More than tripled its spending with minority- and women-owned business enterprises (M/WBEs) achieving 37 percent spending in Fiscal Year 2019, up from 12 percent in Fiscal Year 2014.
• Allocated $13.2 billion in New York City assets under management to diverse businesses, up from $8.8 billion in Calendar Year 2013.
• Expanded capital commitments to emerging managers by allocating an additional $600 million to its direct private equity Emerging Manager Program.
• Established a goal to allocate 12 percent to emerging managers across each asset class.
• Engaged 1,000 diverse businesses in Fiscal Year 2019 as part of the Comptroller’s M/WBE University, which offered a series of live and virtual workshops to increase access to the Comptroller’s Office and citywide procurement opportunities for M/WBEs.
• Continued tracking the number of M/WBEs on the prequalified list of certified public accountants — a list of firms that can provide audit services to the City’s agencies. As of August 2019, there were 18 M/WBEs prequalified to provide the City with audit services.
• Released its fifth annual Making the Grade report, which evaluates each City agency’s spending with M/WBEs.
• Launched the Boardroom Accountability Project 3.0, a new first-of-its-kind initiative calling on companies to adopt a policy requiring the consideration of both women and people of color for every open board seat and for CEO appointments.

To view the full report, click here.

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