Audit and Control Releases FY 2024-2025 ACFR

Buffalo, NY — The City of Buffalo Department of Audit and Control released their Annual Comprehensive Financial Report (ACFR), outlining the City’s year-end financial results from Fiscal Year (FY) July 2024 - June 2025. On October 31, 2025, the City of Buffalo’s independent auditors, Drescher & Malecki LLP, Certified Public Accountants, issued an unmodified or clean opinion on the City’s financial statements for the FY ending June 30, 2025.

Preliminary audit findings indicated that revenues underperformed and expenditures exceeded projections in several key areas. The detailed analysis provided in the ACFR confirms these preliminary findings. The City’s FY 2024–2025 ended with an operational deficit of approximately $14,768,426, therefore, reducing the Total Fund Balance from $117,796,706 to $103,028,280. The Administration and Members of the Buffalo Common Council approved the use of Committed Fund Balance (Rainy-Day Fund) to close out the remaining operational variance of $6,862,734.

Both the Assigned and Unassigned Fund Balances were fully depleted, as a result, the City has no available Fund Balance to cover prior year encumbrances and judgement and claims. Based on our financial analysis, excluding one-time revenues, such as the American Rescue Plan Act (ARPA) of $39,509,071, the true Operational Deficit for FY 2024-2025 is $54,277,497. This deficit is primarily due to increased public safety costs, unbudgeted legal settlements and health insurance costs. In addition, budgeted revenues did not meet expectations with occupancy tax, charges for services, licenses & permits and fines.

“As City of Buffalo Comptroller, I remain committed to protecting our City’s finances,” stated Comptroller Miller Williams. “The Annual ACFR provides transparency to the citizen and taxpayers and ensures that the Administration and Members of the Buffalo Common Council are informed of the City’s current financial state. This ACFR report is crucial for identifying prior year budget to actual revenues, expenses, and fiscal year end fund balances. With an Operational Deficit of $54,277,497, the Administration and Members of the Buffalo Common Council can no longer ignore the damage perpetuated by inaction. I encourage the citizens and taxpayers of the City of Buffalo to visit the Comptrollers Website and read the ACFR for detailed information on the current state of City finances.”