Springfield Standard

Springfield City Council recently received an unmodified opinion on the city's financial statement audit for fiscal year 2024. The independent auditing firm RSM presented the findings at a council workshop.

The city's Finance Department annually prepares the Annual Comprehensive Financial Report (ACFR) in accordance with the City Charter, which mandates an annual report to the City Council on Springfield's financial condition.

At the end of fiscal year 2024, Springfield's equity stood at $1.3 billion, marking a $106 million increase from the previous year. This net position growth was largely driven by governmental activities, which contributed $75.6 million. Sales and use tax revenues were significant contributors, accounting for about $185 million or 52% of total governmental revenues. Overall, revenues from governmental activities made up 73% of total city revenues.

Sales tax revenue saw a rise of approximately $6.2 million compared to last year due to strong consumer spending, low unemployment rates, and inflation impacting taxable goods prices.

A substantial portion of Springfield's net position—$814.5 million or 62%—is tied up in capital assets such as land and infrastructure. These assets are used to provide services to citizens and are not available for future spending.

RSM identified issues related to year-end financial reporting, including an overstatement of cash and notes payable and the amortization method for bond premiums. These issues were resolved before completing the audit process.

Finance Director David Holtmann commented on the audit results: “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."

City Manager Jason Gage expressed satisfaction with receiving an unmodified opinion: “We are appreciative of the hard work of the finance staff working with the auditor and pleased with the unmodified opinion... We are committed to ensuring transparency and that citizens’ taxpayer dollars are accounted for properly.”

The Finance Department has been recognized by receiving two awards from Government Finance Officers Association (GFOA): The Certificate of Achievement for Excellence in Financial Reporting for 47 consecutive years and The Distinguished Budget Award for its budget presentation for 19 consecutive years.