Springfield City Council receives independent audit report

(From the City of Springfield)

The Springfield City Council received an unmodified opinion, the highest level given, on the City’s financial statement audit from the City’s independent auditing firm, RSM. The firm indicated that the audit showed no material weaknesses, significant deficiencies or compliance issues. The City is qualified as a “low-risk” auditee as related to federal funds, having no identified deficiencies more than three years in a row.

RSM also audited compliance of the City's grant programs. In FY 2017, the City received $15.4 million in federal grant funds. The audit of the grant funds also received an unmodified opinion, the highest level given. The auditors found no significant deficiencies or material weaknesses when reviewing the City's compliance with the major federal grant programs.

The audit is required under the City Charter.

The City’s Finance Department prepares the Comprehensive Annual Financial Report (CAFR) each year, in compliance with the City Charter, which requires an annual report to the City Council on the financial condition of the City.

The equity of the City at the close of the most recent fiscal year was $860 million, an increase of $30.7 million over last year. This is also referred to as net position. The largest portion of the City’s net position, $653.5 million (76%), reflects its investments in capital asset, e.g., land, construction in progress, buildings, improvements, machinery and equipment and infrastructure, less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City’s net position, $33 million (4%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position, $174 million (20%) represents unrestricted net position that may be used to meet the City’s ongoing obligations to citizens and creditors.

The City's net investment in capital assets, such as buildings, roads and sewer systems, increased $24 million over the last year to more than $653 million.

The fund balance of the General Fund is $25.9 million – a decrease of $743,000 from last year as a result of slowing economic conditions and a decrease in sales tax payments compared to what was budgeted.

The auditors also provided some comparisons to Springfield’s benchmark cities.

“We are paying down our debt. We are dealing with volatile revenue sources such as sales tax. After reviewing our federal grants, the auditors have designated the City of Springfield as a low-risk auditee. All are indicators of the City’s strong financial health. We hope this news gives our citizens a high level of comfort that we continue to live within our means,” City Manager Greg Burris said.

The Finance Department received the Certificate of Achievement for Excellence on Financial Reporting from the Government Finance Officers Association (GFOA) for its Comprehensive Annual Financial Report for the 40th consecutive year.

The department also received the GFOA Distinguished Budget Award for its budget presentation for a 10thconsecutive year.