Springfield receives positive audit of finances

The city of Springfield received a positive report that found no deficiencies in its financial practices from its outside auditing firm, which presented its findings to City Council at its weekly luncheon meeting Feb. 3.

The report prepared by KPMG LLC of Kansas City reviewed the city's financial statements and financial position for the fiscal year beginning July 1, 2002 through June 30, 2003 and issued findings:

"Net assets are an important measure of the city's overall financial health. The increases and decreases in net assets can be monitored to determine whether the city's financial positions are improving or deteriorating." The city's total net assets increased over $34 million. The city's assets at the close of the 2002-2003 fiscal year exceeded its liabilities by $443,891,426; of that $118,190,200 were unrestricted net assets that may be used to meet the government's ongoing obligations to citizens and creditors.

The city's total debt increased approximately $69.6 million (34.4 percent) during the last fiscal year. The city issued sewer revenue bonds totaling $46 million and approximately $36 million in government bonds related to Jordan Valley Park projects.

The city reported positive balances in all three categories of net assets: capital assets, restricted assets and unrestricted assets.

The city met its budget policy by maintaining an operating reserve in excess of the 8 percent to 10 percent requirement. The overall fund balance decreased $2.6 million because the city designated the partial use of excess fund balance for one-time expenditures including a new accounting system and to smooth out budget needs during a year with no anticipated economic growth.