Springfield City Council has received an unmodified opinion on its financial statement audit for the 2024 fiscal year from independent auditing firm RSM. The announcement was made during a Council Lunch Workshop on Tuesday.
The Annual Comprehensive Financial Report (ACFR) is prepared each year by the City’s Finance Department, 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 2024, Springfield’s equity, or net position, stood at $1.3 billion. This marks an increase of $106 million compared to last year. Governmental activities contributed $75.6 million to this growth in net position. Sales and use tax revenues remained the largest governmental revenue source at about $185 million, accounting for 52% of total governmental revenues. In total, revenues from governmental activities were $356 million, which is 73% of all city revenues.
Sales tax revenue increased by approximately $6.2 million over last year due to continued strong consumer spending, low unemployment rates, and inflation driving up the cost of taxable goods.
The majority of Springfield’s net position—$814.5 million or 62%—is tied up in capital assets such as land, buildings, infrastructure, and equipment after subtracting related debt still outstanding. These assets are used to provide services to residents and are not available for future spending.
RSM identified findings related to year-end financial reporting practices including an overstatement of cash and notes payable as well as issues with how bond premiums were amortized. According to officials, each issue was corrected before completion of the audit process.
Finance Director David Holtmann stated: “The important perspective to keep in mind is that the City met the audit requirements required by all the accounting standards and Generally Accepted Accounting Principles (GAAP), the financial statements present fairly, in all material respects, the financial position of the City, the City continues to grow in a fiscally positive manner, and the financial statements have received an ‘Unmodified Opinion’ (the highest opinion achievable) from RSM.”
City Manager Jason Gage added: “We are appreciative of the hard work of the finance staff working with the auditor and pleased with the unmodified opinion, which is the highest opinion you can get for an audit. We are committed to ensuring transparency and that citizens’ taxpayer dollars are accounted for properly.”
The Finance Department also received recognition from professional organizations this year. It earned its 47th consecutive Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its 2023 ACFR submission and received its 19th consecutive GFOA Distinguished Budget Award for budget presentation.
For further information regarding this report or Springfield’s finances, contact Finance Director David Holtmann at 417-864-1632 or Assistant Director Melissa Hart at 417-536-7648.
