RSM issues city highest audit opinion

The city of Springfield received the highest opinion of its latest financial statement audit by RSM US LLP, the independent auditing firm under contract with the city.

The city’s financials showed no material weaknesses, significant deficiencies or compliance issues, according to the audit statement provided to City Council. Springfield now is qualified as a “low-risk” auditee, having no identified deficiencies more than two years in a row, according to a city news release.

The city’s equity position finished fiscal 2016 at $830 million, which is up $31.4 million compared with the previous fiscal year. City officials cited an increase of $31 million in capital asset investments, which amounted to $629.5 million in buildings, roads, the sewer system and other capital assets.

Springfield’s general fund was up slightly to $26.6 million as of June 30. Auditors found the city was meeting council’s established reserve fund goal of 20 percent of operating revenue, the release said.

“One striking statistic is the breakdown of governmental revenue sources,” City Manager Greg Burris said in the release. “The majority of Springfield’s governmental activities revenue comes from sales tax, which is a volatile revenue source. Many other cities have higher percentages of their budgets coming from more stable sources of revenue, such as property tax. Considering that we rely so heavily on sales tax projections, I think it speaks volumes about how well our organization does at budget forecasting and managing our revenue and expenses.”

In a separate audit of the city’s grant programs, RSM also issued an unmodified opinion. While receiving $21.5 million in federal grant funds during fiscal 2016, the auditor found the city was in compliance with the major federal grant programs.

The audit is required under Springfield’s charter, following submission of the city’s Comprehensive Annual Financial Report.