The Springfield City Council has received an unmodified opinion on its financial statement audit for fiscal year 2018 from the independent auditing firm RSM. This is the highest level of assurance that can be given by auditors. According to RSM, the audit revealed no material weaknesses, significant deficiencies, or compliance issues.
RSM also conducted an audit of the City’s grant programs. In fiscal year 2018, Springfield received $14.5 million in federal grant funds. The auditors reported no significant deficiencies or material weaknesses related to compliance with major federal grant programs. The City remains classified as a “low-risk” auditee regarding federal funds, having avoided any identified material weaknesses for more than three consecutive years.
Each year, Springfield’s Finance Department prepares a Comprehensive Annual Financial Report (CAFR) as required by the City Charter. This report provides an annual update to the City Council on Springfield’s financial condition.
At the end of fiscal year 2018, Springfield’s equity stood at $910 million, marking a $50 million increase from the previous year. Governmental activities contributed $40.3 million to this net position growth. Sales and use tax revenues accounted for $131 million—55 percent of total revenues—while governmental activities overall brought in $238 million, representing 74 percent of all city revenues. Sales tax revenue increased by about $4.6 million over last year due to improved economic conditions.
Of the city’s net position, $657.3 million (72 percent) is invested in capital assets such as land, construction projects, buildings, machinery and equipment, and infrastructure—minus any outstanding debt used to acquire these assets. These capital assets are used to provide services and are not available for future spending.
Another portion of net position—$31.7 million (4 percent)—is subject to external restrictions on its use. The remaining balance of $221 million (24 percent) is unrestricted and can be used for ongoing obligations to citizens and creditors.
Springfield’s investment in capital assets like buildings, roads, and sewer systems rose by $4 million over last year to exceed $657 million.
The General Fund’s balance reached $27.4 million—a rise of $1.5 million compared with last year.
City Manager Jason Gage said: “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.”
Springfield’s Finance Department was awarded the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its CAFR for the 41st straight year and also received GFOA’s Distinguished Budget Award for its budget presentation for the 13th consecutive year.
