The results of an independent, third-party audit of Dexter’s Fiscal Year (FY) 2023 financials were reported during the city’s February 12, 2024, city council meeting. The city contracts with an independent accounting firm to conduct annual audits of its financial activities. This year’s report was delivered by Rana Emmons of auditing firm PSLZ, LLC, who conducted the audit.

According to Emmons’ report, Dexter’s financial statements for FY2023 “present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate of all remaining fund information of the City of Dexter, Michigan, as of June 30, 2023, and the respective changes in its financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”

In very simplified terms, the audit shows that the city’s financial statements accurately reflect Dexter’s 2023 financial activities based on generally accepted accounting practices set by the Government Accounting Standards Board and by state and federal law.

The full report can be found in the meeting packet, but Emmons covered several highlights during the council presentation. She noted that Dexter’s property tax revenue increased by about $60,000, which represents an approximate increase of 5% over the previous fiscal year. However, she cautioned that this increase cannot be counted on in future years because property taxes and values can vary from year to year.

“Also, income interest is up significantly,” said Emmons, “you’ve done a really nice job with investments, and it really moves the needle this year.” The report shows about $52,000 in income generated from interest.

Additionally, outside of an increase in fire department expenditures, the operating expenses reported in the general fund are very similar to those reported in the previous fiscal year. “I love to see the consistency,” said Emmons, “that means you’re keeping a lid on operating expenditures.” That control of expenditures, in part, also allowed the city to come in nearly $230,000 under budget in terms of expenses paid from the general fund.

While an audit shows whether or not a municipality is properly accounting for its financial activities, it does not make any determinations about the value or soundness of any financial decisions made by a city. During the period designated for council questions or comments following the presentation, Councilmember Griffin stated, “Just to reiterate, the primary function of an audit is to make an assessment of how well we document what we did with our money, not necessarily how well we allocated the money.”

“Correct,” said Emmons.