Springfield City Council has received an unmodified opinion on its financial statement audit for fiscal year 2021 from independent auditor RSM. This represents the highest level of assurance and indicates that the auditors found no material weaknesses, significant deficiencies, or compliance issues in the City’s financial reporting.
The audit also included a review of the City’s federal grant programs. In fiscal year 2021, Springfield spent $38.5 million in federal grant funds. According to RSM, there were no significant deficiencies or material weaknesses identified in how the City complied with major federal grant requirements.
Each year, Springfield’s Finance Department prepares the Annual Comprehensive Financial Report (ACFR) as required by the City Charter. The report provides an overview of the City’s financial condition and is presented to City Council annually.
At the end of fiscal year 2021, Springfield’s net position was just over $1 billion, which is an increase of $74 million compared to last year. Of this total, governmental activities contributed $47.4 million to the increase. Sales and use tax revenues amounted to about $148 million—59% of all governmental revenues—and overall governmental activity revenue totaled $250 million, representing 71% of total city revenues. The sales tax increased by approximately $12 million from last year due in part to federal economic relief related to COVID-19.
A majority of Springfield’s net position—$696.1 million or 67%—is invested in capital assets such as land, buildings, equipment, and infrastructure after accounting for related debt obligations. These assets are used to provide services but are not available for spending on other needs.
Another portion of net position—$57.2 million or 6%—is subject to external restrictions regarding its use. The remaining balance—$285 million or 27%—is unrestricted and can be used for ongoing obligations.
For fiscal year 2021, a new Coronavirus Fiscal Recovery Fund was established following passage of the American Rescue Plan Act (ARPA) on March 11, 2021. The fund aims to help local governments support public health responses and invest in infrastructure like water, sewer, and broadband services. Springfield was awarded $40.3 million through this program; it received an initial payment of $20.1 million in June but had not yet incurred any ARPA-related expenditures as of June 30.
The Finance Department received two recognitions from the Government Finance Officers Association: the Certificate of Achievement for Excellence in Financial Reporting for its 2020 ACFR—the forty-fourth consecutive year—and the Distinguished Budget Award for its presentation of the 2022 budget—the sixteenth consecutive year.
“In addition to providing the highest quality of services possible, the City of Springfield must always be accountable for the collection and use of the public’s dollars. Ensuring stability of the City’s financial position is also essential. We take these responsibilities seriously and continue to live by these values,” said City Manager Jason Gage.
