Office of the Comptroller files Fiscal Year 2025 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 2025, the period that ended June 30, 2025. Among the major highlights published in the ACFR:
- The total governmental funds balance sheet reflected, from a “fund perspective”, a total fund balance of $22.170 billion as of June 30, 2025. This is a net decrease of $1.377 billion from the beginning of the fiscal year.
- The General Fund, inclusive of the Commonwealth Stabilization (“Rainy Day”) Fund and the Transitional Escrow Fund, had a fund balance of $12.842 billion at the end of Fiscal Year 2025 from a “fund perspective”. This reflects a decrease of $2.609 billion, or 16.9% from the end of Fiscal Year 2024 due primarily to an increase in Medicaid expenditures, a decline in miscellaneous revenues, and a decline in General Fund interest as a result of lower cash balances.
- Lottery revenues were $5.992 billion, from a “fund perspective”. This reflects a decrease of approximately $202 million, or 3.3%, from Fiscal Year 2024.
- Total revenues of the primary government increased by $2.192 billion, or 2.3%, to $96.705 billion, from a “government-wide perspective”. This revenue increase is due largely to tax revenue increases including a $3.414 billion, or 14.3%, increase in income tax revenue (including the 4% surtax on personal incomes greater than $1 million).
- Total expenses of the primary government increased by $6.540 billion, or 7.2%, to $97.618 billion, from a “government-wide perspective”. Factors leading to this increase include an 11.5% increase in Medicaid spending due to general medical inflation, an increase of 10.0% in Health and Human Services spending, and an increase of 29.4% in transportation and public works spending.
- The number of Commonwealth of Massachusetts employees increased by a net of 1,626 full-time equivalent employees, to a total of 92,384.
The full report can be found online at https://www.macomptroller.org/annual-comprehensive-financial-reports/.
The ACFR includes an auditor’s report prepared by the Commonwealth’s independent auditor, CLA (CliftonLarsonAllen, LLP).
Said Comptroller William McNamara, “The Annual Comprehensive Financial Report is the single most important financial statement that the Commonwealth of Massachusetts is required to produce annually. I am fortunate to serve with Assistant Comptroller & Chief Financial Reporting Officer Pauline Lieu and the Statewide Financial Reporting Team, Assistant Comptroller & Chief Accounting Officer Kristin Lacroix and the Statewide General Accounting Team, and Senior Advisor Howard Merkowitz. Together with the devoted financial staff at organizations throughout the Commonwealth, their collaboration has resulted in an accurate and detailed look at state finance that is of immeasurable value to the people of the Commonwealth.”
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 entity, in a format that makes the report easily comparable to other states. The ACFR incorporates activity from nearly 200 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 40 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 can meet its short-term obligations through “currently available resources”.
- The government-wide perspective combines all governmental funds 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 oversees the financial systems and processes of the Commonwealth, including vendor payments, spending on government programs, and the state payroll. We are responsible for statewide accounting and for financial reporting under both GASB (Government Accounting Standards Board) and federal requirements, and for providing transparency to the citizens, taxpayers, and residents of the Commonwealth. As an independent executive-level agency, we work to ensure that financial operations are compliant with state finance law and to maintain secure, controlled, and effective financial systems. We combine oversight with collaboration to partner with financial staff at more than 150 departments across state government, with state employees, and with contractors, payees, and vendors.
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.
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