Oxford City Government Audit Reveals Growth in Assets and Liabilities, Calls for Improved Financial Controls

Oxford Aldermen Approve Annual City Government Audit

Oxford is seeing growth not just in its population but in its city government services and facilities as well. According to the latest audit approved by the city’s board, Oxford’s governmental and public assets amounted to $331 million as of September 30, 2023, marking an increase from $313 million in the previous year. The city’s fiscal year runs from October 1 to September 30.

Audit Overview

The audit was carried out by the accounting firm Franks, Franks, Wilemon, Hagood, P.A., who have been handling Oxford’s audits since 2013. Accountant Bryon Wilemon presented the findings to the Board of Aldermen on Tuesday.

The audit revealed that the city’s liabilities also rose, going from $144 million in 2022 to $163 million in 2023. This means that the city’s assets exceeded its liabilities by $185 million. Notably, 74% of Oxford’s net position represents its investment in capital assets, which include land, buildings, machinery, equipment, and various infrastructure, minus any associated outstanding debt.

City Revenue Breakdown

When it comes to funding, Oxford generates approximately 13% of its revenue from property taxes and 12% from sales tax. In total, around 36% of all revenue is derived from different types of taxes, with less than half, approximately 46%, coming from fees for services. The remaining revenue comes from operating and capital grants, contributions, intergovernmental revenue, investment earnings, and miscellaneous sources.

Specifically, the city collected $15 million in property tax and $14 million in sales tax. The largest portion of the city’s expenses came from public safety, which includes fire and police protection, totaling around $25 million. Following that, general government expenses accounted for about $11 million, and Public Works expenses were roughly $9.5 million.

Challenges Identified

The audit did highlight one significant concern: there is a material weakness in the city’s system for tracking the activities related to fixed assets. Wilemon reassured the board that the city has made “strides” in addressing this issue, stating, “The city has continued to make improvements here, it’s just not 100% yet.”

Furthermore, there was one notable deficiency involving expenditures that exceeded budgeted amounts in four categories for the year, primarily due to revenue that was posted incorrectly as an expenditure. Fortunately, the audit revealed no deficiencies or weaknesses in how the city handles federal awards, indicating a level of compliance in this area.

Conclusion

The recent audit paints a detailed picture of Oxford’s financial health, emphasizing both the city’s growth and the ongoing challenge of maintaining proper financial controls. As the city continues to progress, officials remain focused on addressing identified weaknesses while managing a growing budget.

This situation remains a critical area of focus for the Board of Aldermen as they work to ensure the proper tracking and management of the city’s valuable assets and services.

Author: HERE Oxford