City of Springfield receives fiscal year 2018 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.

RSM also audited compliance of the City's grant programs. In FY 2018, the City received $14.5 million in federal grant funds. The auditors found no significant deficiencies or material weaknesses when reviewing the City's compliance with the major federal grant programs. The City is qualified as a “low-risk” auditee as related to federal funds, having no identified material weaknesses more than three years in a row.

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 $910 million, an increase of $50 million over last year. This is also referred to as net position. Governmental activities increased the City’s net position by $40.3 million. Sales and use tax revenues, the largest governmental category, were $131 million, or 55 percent, of total revenues. Revenues from governmental activities totaled $238 million, or 74 percent, of the total City revenues. Sales tax increased approximately $4.6 million from last year due to improved economic conditions.

The largest portion of the City’s net position, $657.3 million (72 percent), 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, $31.7 million (4 percent), represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position, $221 million (24 percent) 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 $4 million over the last year to more than $657 million.

The fund balance of the General Fund is $27.4 million – an increase of $1.5 million from last year.

“The City of Springfield continues to provide financial stability to our citizens by living within our means, providing award winning services, and meeting the financial challenges of a changing economy,” City Manager Jason Gage said.

The Finance Department received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its Comprehensive Annual Financial Report for the 41st consecutive year.

The department also received the GFOA Distinguished Budget Award for its budget presentation for the 13th consecutive year.