~ Springfield City Council Receives Unmodified Opinion on Financial Audit

At the recent Council Lunch Workshop on Tuesday, the Springfield City Council received an unmodified opinion from the independent auditing firm RSM on the City's financial statement audit. This is the highest level of opinion that can be given and reflects positively on the City's financial condition.

According to the City Charter, the Finance Department is responsible for preparing the Annual Comprehensive Financial Report (ACFR) each year. This report provides an overview of the City's financial condition and is required to be presented to the City Council.

The ACFR for 2024 showed that the equity of the City had increased by $106 million from last year, reaching a total of $1.3 billion. This increase in net position was primarily due to governmental activities, which contributed $75.6 million. The largest source of governmental revenues was sales and use tax, which accounted for 52% of total revenues at approximately $185 million. Overall, governmental activities made up 73% of total City revenues at $356 million.

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One factor contributing to this increase in sales tax revenue was strong consumer spending, low unemployment rates, and inflation leading to higher costs for taxable goods. As a result, sales tax revenue increased by approximately $6.2 million from last year.

The majority of the City's net position, 62%, is invested in capital assets such as land, buildings, and infrastructure. These assets are not available for future spending as they are used to provide services to citizens.

During their audit process, RSM reported some findings related to year-end financial reporting, an overstatement of cash and notes payable, and an incorrect amortization method used for bond premiums. However, these findings were promptly addressed and corrected by the Finance Department before completing the audit.

Finance Director David Holtmann emphasized that despite these minor findings, all accounting standards and Generally Accepted Accounting Principles (GAAP) were met, and the financial statements accurately reflect the City's financial position. He also noted that the City continues to grow in a fiscally positive manner, which is reflected in the unmodified opinion from RSM.

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City Manager Jason Gage expressed his appreciation for the hard work of the finance staff and their commitment to ensuring transparency and proper accounting of taxpayer dollars. He also highlighted that this is the 47th consecutive year that the Finance Department has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) and the 19th consecutive year for their budget presentation.

In conclusion, Springfield City Council can be proud of their city's financial standing as evidenced by the unmodified opinion from RSM and recognition from GFOA. With continued responsible management of finances, Springfield can look forward to a positive fiscal future.

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