SD state finances get a “clean” bill of health again in 2019

Governor Kristi Noem and the Bureau of Finance and Management Friday released the State’s Comprehensive Annual Financial Report for fiscal year 2019. The annual report includes the state government’s complete financial statements.

“A culture of financial stability is the cornerstone of South Dakota – we don’t spend what we don’t have. This consistency allows us to invest in our future and strengthen our families,” said Noem. “I am committed to maintaining this fiscal integrity. My administration has made it a priority to retain our AAA public credit rating, maintain a strong level of reserve funds to address emergencies, and continue structurally balancing the budget.”

The Department of Legislative Audit audits the basic financial statements and, for the 33rd consecutive year, has issued an unmodified “clean” opinion on the CAFR. Also contained in the report is information about the State’s economic conditions and outlook, the profile of the government, major initiatives, and a financial analysis of the State’s funds. A discussion of those topics can be found in the “Letter of Transmittal” and “Management’s Discussion and Analysis.”

“The employees of BFM, DLA, and the accounting offices of all state departments have once again succeeded in issuing the CAFR before December 31, and I thank the hardworking employees of the State for this accomplishment,” Noem concluded.

Highlights from the fiscal year 2019 CAFR include:

• The State’s total net position (net worth) is $7.0 billion – an increase of $188.6 million.
• The combined ending balance of the Budget Reserve and the General Revenue Replacement Fund was $189.1 million, an increase of $12.7 million.
• The State has maintained its AAA public issuer rating from Standard & Poor’s, Fitch Ratings, and Moody’s for the past three fiscal years. This represents the highest rating possible from all three bond rating agencies.

The CAFR can be viewed online at bfm.sd.gov/cafr, or for printed copies, contact the Bureau of Finance and Management at 605-773-3411.