At the April 22 meeting of Sturgis City Commission, Jordan Smith of accounting firm Maner Costerisan presented the audit report of the city’s financial performance for the period ending Sept. 30, 2025.
The city received a “clean” opinion, which is the highest level of assurance.
The general fund balance was $3.72 million.
Total revenue was slightly under $11.03 million. That’s about a 1% or decrease of $18,000. Intergovernmental revenue decreased largely due to HUD funding, Smith said. It was offset by investment earning.
Expenditure was about $10.3 million, an increase of about 6%, or $680,000 year over year, mainly from increase in wages and in expense for parks maintenance.
Used fund balance had a 7% decrease about $289,000.
Smith told commissioners that 49% of city revenue came from property tax and marijuana tax. Another 27% was from intergovernmental funds from state and federal government.
The purpose of an audit is to obtain opinions on financial statements, and to ensure the information is reliable.
It is not intended to detect fraud or determine problems with internal control.
