Oxford Aldermen Approve Annual City Government Audit
Oxford is seeing significant growth, and with that growth comes increased value in city government services and facilities. According to the city’s annual audit, which was recently approved, Oxford’s governmental and public assets have jumped to a remarkable $331 million as of September 30, 2023. This marks an increase from $313 million in 2022. The fiscal year for the city runs from October 1 to September 30, making these assessments crucial for planning and budgeting.
Details of the Audit
The audit was conducted by the accounting firm Franks, Franks, Wilemon, Hagood, P.A., who have been responsible for Oxford’s audits since 2013. During the Board of Aldermen meeting held this Tuesday, Accountant Bryon Wilemon presented the findings. Alongside the rise in assets, the city’s liabilities also saw growth, increasing from $144 million in 2022 to $163 million in 2023. Despite this increase, the city’s assets still exceed its liabilities by a healthy margin of $185 million.
Breakdown of Revenue Sources
A closer look at the city’s finances reveals that a significant portion of its net position, about 74%, is tied up in capital assets. These assets include land, buildings, machinery, equipment, and infrastructure, minus any outstanding debt related to these assets. When looking at revenue sources, approximately 13% of funds come from property taxes, while 12% is generated from sales tax. Collectively, 36% of all revenue is derived from various types of taxes.
For the fiscal year, the city reported $15 million from property tax revenue and $14 million from sales tax. The bulk of the city’s expenses was directed towards public safety, which includes both fire and police services, totaling around $25 million. Other expenses included $11 million for general government operations and about $9.5 million for Public Works.
Concerns Raised in the Audit
The audit did note one material weakness: Oxford has not fully established an adequate system to track fixed assets properly. Wilemon acknowledged that the city is making progress in addressing this issue, stating, “The city has continued to make improvements here, it’s just not 100% yet.” This proactive stance suggests that the city is aware of the areas that need improvement and is working towards better financial management.
Additionally, the audit identified a significant deficiency, revealing that the city had expenditures that exceeded budgeted amounts in four expense categories. This overage occurred because some revenue was mistakenly recorded as an expenditure. Fortunately, the audit found no deficiencies or weaknesses in the city’s handling of federal awards, which is a positive note for the city moving forward.
Conclusion
As Oxford continues to grow and develop, its government is focused on maintaining sound financial practices. The recent audit not only highlights the city’s increasing worth but also sheds light on areas requiring attention. With a commitment to improving its asset tracking and budgeting practices, Oxford is positioned to take further strides in managing its resources efficiently.
