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City audit finds no findings, highlights $68M water/sewer construction-in-progress
Summary
An independent audit of the City of Oxford’s FY2025 financial statements delivered an unmodified opinion and no internal-control findings, while auditors flagged large construction-in-progress balances tied to water and sewer capital work.
An independent auditor told the City of Oxford Board of Commissioners on Feb. 2 that the city’s financial statements for the year ended June 30, 2025, received an unmodified opinion and showed strong fund balances and liquidity.
Lee Grissom of S. Preston Douglas, the auditor, said the firm issued "an unmodified opinion," the highest level of assurance an independent CPA firm can give, and reported no material weaknesses or significant deficiencies in internal control. Grissom credited city staff for thorough records and timely responses that met the December 31 audit deadline.
The presentation highlighted positive 10‑year trends: cash all funds rose to roughly $20 million, general fund balance increased to about $14.8 million with an unassigned balance near $12.4 million, and the water and sewer fund posted a strong operating gain. Grissom said the city’s current ratio is near 7 and that the general fund’s available balance exceeds the commonly used 25% threshold.
Auditors focused on the utility capital program: construction in progress (CIP) in the water and sewer fund was reported at about $68–69 million, part of an approximately $90 million capital project. Grissom warned that when that CIP is placed into service it will increase annual depreciation and appreciation expense and could affect future utility operating results.
Grissom also noted the audit includes estimates sensitive to actuarial assumptions (pensions and OPEB) and receivables; auditors found no reportable adjustments or disagreements with management.
Commissioners asked clarifying questions about the 10‑year trend and the complexity of water/sewer debt (auditor cited about 17 separate pieces of debt within fund accounting). Grissom recommended monitoring when large CIP amounts are capitalized, but said the FY2025 audit results reflect "very strong" stewardship.
The presentation closed with staff and the board thanking finance staff for their work; the commission then moved on to public comment and other agenda items.
