During the weekly Springfield City Council lunch, the City has been given an “unmodified opinion”, the highest level given, for the city’s financial statement audit.
The report from independent auditing firm RSM stated there were no material weaknesses, significant deficiencies or compliance issues in the audit of financial statements.
The only instance of non-compliance found by the audit in any part of the process came in the area of federal funding for a Home Investment Partnerships Program (HOME). One of the city’s requirements under the plan was for on-site inspections to be performed for properties in the program by a contractor. When the city’s contract with the previous contractor ran out in February 2018, it took seven months until a new contractor with proper insurance took over the position. The inspections have been caught up according to the auditor’s verbal report to council, but the gap in inspections is legally required to be noted.
The city was noted as “low risk” for federal grant funds in the audit meaning no material weaknesses were found more than three years in a row. This designation means the city only needs to have 20% of financial grants audited although this year the city had 38% audited because of the programs chosen for audit.
The three programs, WIC Local Agency Nutrition Services, Community Development Block Grant and HOME Investment Partnerships, were chosen because it had been three years since they had last been audited and law requires an audit at least every three years.
City equity at the close of the last fiscal year was $910 million, up $50 million over the previous year. Sales and use tax revenues were the largest governmental category with 55 percent of total revenues for the city.
The fund balance of the general fund is $27.4 million. That marks an increase of $1.5 million from the previous year.
“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,” City Manager Jason Gage said in a press statement.
The city’s Finance Department received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the 41st consecutive year and the GFOA Distinguished Budget Award for their budget presentation for the 13th consecutive year.