Comptroller Stringer Releases Fiscal Year 2021 Annual Comprehensive Financial Report

 

 New York City Comptroller Scott M. Stringer released the City’s  Annual Comprehensive Financial Report for Fiscal Year (FY) 2021, 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 that while New York City’s economy grew robustly through much of the fiscal year, it has yet to make a full recovery from the devastating economic impacts of the pandemic.

“As we work to rebuild our economy after the challenges of the pandemic, transparency, accountability and sound fiscal management are paramount,” said Comptroller Stringer. “This year’s Annual Report provides a comprehensive review of the City’s pandemic response and financial performance across municipal government during one of the most trying periods in our history. While we have a long road to recovery ahead of us, I am pleased to report steady growth—and I am confident that our city continues to be the best place to live, work, and raise a family. 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 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).

Highlights from the FY 2021 Annual Report include:

New York City’s Finances and Economy

• New York City entered the fiscal year with much of the economy closed, private employment at 3.36 million and record unemployment.
• New York City ended the fiscal year with steady economic growth. Employment rose to a seasonally adjusted 3.6 million in June 2021, up 226,000 from the start of the fiscal year, but still 505,000 below pre-pandemic highs. The bulk of these job losses were in lower paying sectors of the economy providing in-person goods and services, while higher income workers telecommuted and were largely spared the worst impacts of the pandemic.
• Final total revenues for FY 2021, including restricted fund revenues, were $99.587 billion. Net of restricted funds activities, which are not included in the calculation of the annual surplus or deficit for purposes of the Financial Emergency Act, revenues were $99.073 billion, up 13.2 percent from projections in the Adopted Budget, due to $6.9 billion in additional tax revenues and nearly $5.3 billion in additional categorical Federal aid.

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, 2021, the Bureau of Asset Management had responsibility for $266.1 billion of the City’s combined five Systems investment assets. This represented an increase of $52.5 billion from the June 30, 2020 value of $213.6 billion.
• During the Fiscal Year, the market value of the assets ranged from a low of $221.6 billion (July 2020) to a high of $266.1 billion (June 2021). The time-weighted return (net of manager fees) of the aggregate portfolio was 25.8% in Fiscal Year 2021 and 4.4% in Fiscal Year 2020.

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.

• In FY 2021, the City and the New York City Transitional Finance Authority (TFA) issued $5.37 billion of long-term debt to finance the City’s capital needs.
• The New York City Municipal Water Finance Authority (Water Authority), a discretely presented component unit, issued $981.30 million of long-term debt to finance the City’s water- and sewer-related capital needs.
• The City, TFA, and Water Authority issued a total of $7.41 billion of refunding bonds in FY 2021. This accounted for 54% of the total issuance for these credits and generated a total of $932.64 million in budgetary savings and $400.57 million of savings for ratepayers.
• In FY 2021, Moody’s Investors Service downgraded its rating of the City’s General Obligation (GO) bonds to Aa2 from Aa1 and later revised its outlook to stable from negative. Standard & Poor’s Global Ratings maintained its rating of the City’s GO bonds at AA, revising its outlook to negative and later back to stable. Fitch Ratings downgraded its rating of GO bonds to AA- from AA. In FY 2021, the City also engaged Kroll Bond Rating Agency to rate its GO bonds.

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 FY21, the office:

• Assessed over $5.6 million in underpayments and interest against employers covered by prevailing wage requirements.
• Assessed over $138,000 in civil penalties against City contractors. During the same fiscal year, BLL opened up 50 new cases and resolved 51 cases.
• Debarred three contractors from New York State and City public works for egregious conduct.

Bureau of Economic Development — Since 1981, the City Pension Funds have invested in Economically Targeted Investments (ETIs). As of June 30, 21:

• The one-year overall performance of core ETIs was 0.68% net of fees and the ten-year overall performance was 4.47% as compared to the benchmark performance of -0.33%.
• During Fiscal Year 2021, the ETI program made cumulative investments of $62.1 million in individual multifamily projects through its Public/Private Apartment Rehabilitation (PPAR) program. These investments financed the rehabilitation or new construction of 974 units of affordable housing.

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 2021, the Comptroller’s Office Bureau of Audit:

•  Issued 56 audits and special reports focused on the effectiveness and service quality of City programs and on financial issues.

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 2021, the Comptroller’s Office:

• Met its goal to allocate 12 percent ($18.3 billion) of actively managed assets under management to emerging managers across each asset class and set an additional goal to target $1 billion in new commitments to M/WBE fund managers.
• Spent over $9 million with M/WBEs, 49% of its Local Law 1-eligible dollars. This is a $6.7 million and   36 percentage point increase from 2014, the first year of the administration.
• Surveyed more than 500 M/WBEs on the impact of COVID-19 on their firms and highlighted that 85% of M/WBEs believed they could not survive for six more months due to limited access to COVID related contracts and financial aid. The Office of Diversity Initiatives conducted a follow up survey of 500 M/WBEs in Fiscal Year 2021 and found that 50% of them had to lay off and furlough employees, and more than 30% projected being unable to pay rent in the next three months.
• Released its eighth annual Making the Grade report, which evaluates each City agency’s spending with M/WBEs.
• The Office of Diversity Initiatives has advocated for a Chief Diversity Officer in City Hall and within every City agency to serve as executive level diversity and inclusion strategists driving the representation of people of color and women across government. In Fiscal Year 2021, the Mayor issued an Executive Order to appoint Chief Diversity Officers within every City agency.

To view the full report, click here.