Audit: Springfield financials in excellent shape

Springfield City Council this afternoon received the 2005 Comprehensive Annual Financial Report, including an independent auditor’s report from KPMG LLP, a Kansas City accounting firm.

KPMG issued an “unqualified opinion” of the financial report, stating the firm found no discrepancies with internal controls, no reportable conditions and no disagreements with management on the city’s financial reporting.

For its excellence in financial reporting, Springfield was awarded a Certificate of Achievement for the 26th year – a feat not many other cities have accomplished, according to KPMG auditors.

“It’s a challenge to meet all the requirements of the certificate program, and the city feels very strongly (that it wants) to continue that tradition,” said David Holtmann, accounting manager for the city.

The report shows total net assets for the city in fiscal year 2005 increased by $34.7 million to $502 million.

Net assets from government-type activities include city-owned land, construction in progress, buildings, improvements, machinery and equipment and infrastructure. Assets from business-type activities include Springfield-Branson Regional Airport, the sewer system and the Springfield Greene-County Municipal golf courses.

The general fund balance for Springfield also increased by about $163,000 to $9.2 million.

“(That’s) compared to where we were in 2002 when there was very little growth – we had used some of the general fund balance to continue our efforts in all of our programs,” Holtmann said. “This year, we’re actually able to show an increase in our fund balance.”

Budget policy calls for maintaining an operating reserve of 8 percent to 10 percent of expenditures, and Springfield’s general fund balance puts the operating reserve at 10 percent.

The report also shows the city’s economy is experiencing moderate growth of 2.2 percent, while its economic diversification is contributing to its unemployment rate of 4.7 percent. The state average unemployment rate is 5.7 percent.