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FOR IMMEDIATE RELEASE
The Springfield City Council received an “unmodified” (the highest level given) opinion 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 now qualified as a “low-risk” auditee, having no identified deficiencies more than two years in a row.
RSM also audited compliance of the City's grant programs. In FY 2016, the City received $21.5 million in federal grant funds. The audit of the Grant Funds also received an unmodified opinion. The auditor's 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 $830 million. This is also referred to as net position.
There was a positive change in that net position, increasing $31.4 million over last year. The primary reason for the positive change is an increase of $31 million in investment in capital assets. The City's net investment in capital assets, such as buildings, roads and sewer system is $629.5 million.
The fund balance of the General Fund is $26.6 million – a slight increase from last year. Some of these funds are restricted; the remaining constitutes the City’s “rainy day” fund. This is within the Council-established reserve goal - a “solid 20% of the operating revenue”, according to auditors.
One striking statistic is the breakdown of governmental revenue sources,” said City Manager Greg Burris. “The majority of Springfield’s governmental activities revenue comes from sales tax, which is a volatile revenue source. Many other cities have higher percentages of their budgets coming from more stable sources of revenue, such as property tax. Considering that we rely so heavily on sales tax projections, I think it speaks volumes about how well our organization does at budget forecasting and managing our revenue and expenses.”
The Finance Department received the Certificate of Achievement for Excellence on Financial Reporting from the Government Finance Officers' Association for its Comprehensive Annual Financial Report for the 39th consecutive year.
The department also received the GFOA Distinguished Budget Award for its budget presentation for a ninth consecutive year. Three judges evaluate 35 separate elements of the budget document to assess its presentation.
Peer Benchmarking Report
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For more information, contact: Cora Scott, Director of Public Information & Civic Engagement, 417-864-1009 (office) | 417-380-3352 (cell), [email protected] or David Holtmann, Interim Finance Director | 417-864-1632 or [email protected].