The Springfield City Council received its 2005 Comprehensive Annual Financial Report at its weekly lunch meeting today.
The Annual Financial Report included the Independent Auditor’s Report from the Kansas City accounting firm of KPMG LLP.
KPMG Independent Auditors’ Report said the Financial Report issued an “unqualified opinion” that the financial statements fairly represent the financial position of the city. Their opinion means that the firm found no discrepancies with internal controls, no reportable conditions and no disagreements with management on the City’s financial reporting.
• The City’s total net assets increased more than $34.7 million to $502 million for both government-type activities and business-type activities. Examples of the City’s net assets from government-type activities include: city-owned land; construction in progress; buildings; improvements; machinery and equipment; and infrastructure. Examples of business-type activities are the Enterprise Funds such as the Springfield-Branson Regional Airport, the sewer system and the Springfield-Greene County Municipal Golf Courses.
• The City’s General Fund Balance increased by about $163,000 to $9.2 million at the end of fiscal year 2005. The City’s budget policy calls for maintaining an operating reserve of 8 percent to 10 percent of expenditures and the current General Fund balance puts the operating reserve at 10 percent.
• The City of Springfield’s commitment to its financial accountability is exemplified by the Government Finance Officers Association honoring the City with a Certificate of Achievement for Excellence in Financial Reporting for the 26th year. Auditors for KPMG said very few cities have ever received the Certificate of Achievement that many times.
The Financial Report noted that Springfield’s economy is experiencing moderate growth of 2.2 percent and the city’s economic diversification is contributing to an average unemployment rate of 4.7 percent for 2005, which is below the state average of 5.7 percent.