Office of the Comptroller files Fiscal Year 2023 Annual Comprehensive Financial Report
Today, Comptroller of the Commonwealth William McNamara announced the filing of the Commonwealth’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2023, the period that ended June 30, 2023. Among the major highlights published in the ACFR:
- The total governmental funds balance sheet reflected a total fund balance of $19.010 billion as of June 30, 2023, reflecting a net increase of $1.085 billion from the beginning of the fiscal year. This reflects $93.889 billion in revenues and other financing sources compared to $92.803 billion in expenditures and other financing uses.
- The total “government-wide” or “primary government” net position (which includes business-type activities of unemployment insurance, paid family and medical leave, and higher education) stood at a deficit of $63.645 billion as of June 30, 2023; this is a decrease in the amount of deficit of $3.875 billion. Major reasons for this deficit include debt issued by the Commonwealth for road/bridge assets owned by the Massachusetts Department of Transportation (MassDOT), capital grants and expenditures for state authorities and municipalities, Massachusetts School Building Authority debt/grants payable, and unfunded pension and retiree health benefits.
- The Commonwealth’s governmental activities current assets decreased by $3.438 billion during Fiscal Year 2023, primarily as a result of decreased cash on hand due to the Commonwealth’s payment of $2.879 billion in refunds due to the Chapter 62F statutory limit on tax revenues in Fiscal Year 2022.
- The Commonwealth’s governmental activities net pension liability (net of deferrals) decreased by $398 million and net OPEB liability decreased by $1.061 billion,
- Total revenues of the primary government decreased by $702 million, or 0.8%, to $91.029 billion. This decrease is largely due to a decline in federal unemployment insurance pandemic relief revenue, partially offset by an increase in investment earnings.
- Primary government spending totaled $87.153 billion, a 4.6% increase from the previous fiscal year. Factors contributing to increased spending include a $2.650 billion or 12.0% increase in Medicaid expenses, a $850 million or 12.2% increase in early and secondary education spending, and a $3.478 billion or 11.2% increase in public safety and security spending.
The full report can be found online at https://www.macomptroller.org/annual-comprehensive-financial-reports/.
The ACFR includes an auditors’ report prepared by the Commonwealth’s independent auditors, CLA (CliftonLarsonAllen, LLP).
Said Comptroller William McNamara, “The Annual Comprehensive Financial Report shows that the Commonwealth of Massachusetts ended Fiscal Year 2023 in a sound financial condition. This report also shows that all required transactions and transfers for the Fiscal Year have been faithfully executed and accurately reported. I thank Assistant Comptroller & Chief Financial Reporting Officer Pauline Lieu, Deputy Chief Financial Reporting Officer Tamia Buckingham, Senior Advisor Howard Merkowitz, and the staff of the Statewide Financial Reporting Team. Their peerless commitment to factual, accurate, and detailed reporting of the state’s financial condition is a testament to their professionalism and skill. I also wish to commend our partners at the finance and administrative offices of departments throughout the Commonwealth of Massachusetts, who collaborate with our office throughout the year to securely and accurately conduct the Commonwealth’s business.”
About the Annual Comprehensive Financial Report
The ACFR is prepared in accordance with Generally Accepted Accounting Principles in the United States of America, as defined for governments by the Government Accounting Standards Board.
The objective of the ACFR is to provide a clear financial picture of the government of the Commonwealth of Massachusetts as a single, unified entry, in a format that makes the report easily compared to other states. The ACFR incorporates activity from over 150 departments, including the various agencies, boards, and commissions, the 25 institutions of higher education, the judicial and legislative branches of government, constitutional offices, as well as 41 separate, independent public authorities.
This report presents the Commonwealth’s financial information on two bases of accounting, each serving a different purpose:
- The fund perspective statements present governmental operations on a modified accrual basis of accounting, or “fund perspective”, which shows how the Commonwealth is able to meet its short-term obligations through “currently available resources”.
- The government-wide perspective combines all government and business-type activities in a statement of net position and a statement of activities, presenting all functions on a full accrual basis of accounting, including long-term assets such as capital assets and long-term liabilities such as debt and retiree pensions and health insurance benefits.
About the Office of the Comptroller
The Office of the Comptroller of the Commonwealth of Massachusetts (CTR) is an independent and apolitical agency charged with overseeing the Commonwealth’s financial systems, preparing the annual financial reporting, and managing the external single audit process. In addition, CTR oversees the Commonwealth’s general ledger, payroll and vendor management, trains state employees on risk mitigation, and operates the Commonwealth’s financial system.
As stewards of the public trust, we aspire to inspire confidence by maintaining our core principles: clarity, integrity, and accountability.
The powers and obligations of the Office of the Comptroller are generally dictated by M.G.L. c. 7A.
The Comptroller of the Commonwealth is William McNamara, who has served as the 20th Comptroller since February 2020.