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District of Columbia: Information on the District's Debt

AIMD-95-19 Published: Nov 22, 1994. Publicly Released: Nov 22, 1994.
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Highlights

Pursuant to a congressional request, GAO provided information on the District of Columbia's debt, focusing on: (1) the types of debt that are available to the District and the limitations on that debt; (2) the total District debt and its estimated future borrowings; and (3) how the District's debt compares with other jurisdictions' debt.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
District of Columbia The Mayor of the District of Columbia should direct that the multiyear plans contain debt service percentage information in the manner required by the Home Rule Act.
Closed – Implemented
According to the District's CFO, the multiyear plan does contain debt information, but not in the same manner as required in the Home Rule Act. The CFO believes that the multiyear plan is not required to follow the methodology prescribed in the act. The CFO stated that debt information using the methodology prescribed would be reported in the 1996 Comprehensive Annual Financial Report. GAO's review of the 1996 report showed that debt service information was not presented in accordance with the method prescribed. Similarly, GAO's review of the 1997 report showed that debt service information was not presented in accordance with the method prescribed. GAO's discussions with the District's Manager of the Reporting Division revealed that the recommendation Is resolved. GAO's review of the 1998 CAFR showed that the debt service information was presented in accordance with the method prescribed under the Home Rule Act.
District of Columbia The Mayor of the District of Columbia should direct that the financial statements contain information on the debt service percentage that is calculated using the Home Rule Act methodology by dividing the maximum estimated annual debt service by the actual revenues.
Closed – Implemented
According to the District's CFO, the fiscal year 1995 financial statement does not contain the debt information in the manner required in the Home Rule Act. The CFO stated that this information would be reported in the 1996 Comprehensive Annual Financial Report. GAO's review of the 1996 Comprehensive Annual Financial Report showed that debt service information was not presented in accordance with the method prescribed by the Home Rule Act. Similarly, GAO's review of the 1997 Comprehensive Annual Financial Report (CAFR) showed that debt service information was not presented in accordance with the method prescribed by the Home Rule Act. GAO's review of the 1998 CAFR showed that the debt service information was presented in accordance with the method prescribed by the Home Rule Act.

Full Report

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Topics

Authority to borrow from TreasuryBudget administrationComparative analysisDebt subject to statutory limitationFinancial analysisFinancial managementFuture budget projectionsMunicipal bondsMunicipal governmentsPublic debt