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Posted on: December 19, 2023

City Council receives FY 2023 independent audit report

FOR IMMEDIATE RELEASE

Springfield City Council received an unmodified opinion, the highest level given, on the City’s financial statement audit from the City’s independent auditing firm, RSM, at a Council Lunch Workshop on Tuesday. The firm indicated that the audit showed no material weaknesses, significant deficiencies, or compliance issues. A peer benchmarking report offered supplemental information. 

The City’s Finance Department prepares the Annual Comprehensive Financial Report (ACFR) each year in compliance with the City Charter, which requires an annual report to the City Council on the financial condition of the City.  

The equity of the City at the close of the 2023 fiscal year was $1.2 billion, an increase of $107 million over last year. This is also referred to as net position. Governmental activities increased the City’s net position by $75.2 million. Sales and use tax revenues, the largest governmental category, were about $179 million, or 54%, of total governmental revenues. Revenues from governmental activities totaled $330 million, or 72%, of the total City revenues. 

Sales tax increased approximately $7.8 million from last year due to strong consumer spending, low unemployment, inflation increasing the cost of taxable goods, and the remaining federal dollars related to the COVID-19 pandemic response working their way through the economy.

The largest portion of the City’s net position, $755.4 million (63%), reflects its investments in capital assets, e.g., land, construction in progress, buildings, improvements, machinery and equipment, right-to-use lease assets, right-to-use subscription assets, and infrastructure, less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. 

An additional portion of the City’s net position, $211 million (18%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position, $229.5 million (19%), represents unrestricted net position that may be used to meet the City’s ongoing obligations to citizens and creditors.

The City was awarded $40.3 million in coronavirus state and local fiscal recovery funds. The first payment of $20.15 million was received in June 2021, and the second payment of $20.15 million was received in June 2022. In 2022, $1.9 million was spent for public safety-related retention payments. In 2023, an additional $1.9 million was spent for public safety-related retention payments, $416,000 for The Connecting Grounds’ respite facility, $323,000 for the Ozarks Greenways Chadwick Flyer Trail development, $306,000 for Cooper/Killian Parks projects, and $250,000 for the OzarkS Empire Fair arena project. 

Additional monies were spent for the Burrell Behavioral Health crisis line, grant compliance services, and the renovation of Historic City Hall. The remaining amount of ARPA monies is reflected as unearned revenue. A complete list of approved ARPA-funded projects can be found in the audit report’s letter of transmittal or on the City’s website.

The Finance Department received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the 46th consecutive year for the 2022 ACFR. The department also received the GFOA Distinguished Budget Award for the 18th consecutive year for its budget presentation.  

“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.

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For more information, please call Finance Director David Holtmann at 417-864-1632, or Assistant Director of Public Information and Civic Engagement Melissa Haase at 417-536-7648 or [email protected].

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