An audit accepted June 3 by the Tahlequah City Council is being scrutinized by officials aiming to make adjustments to operations.
Michael Green presented the board with the 57-page auditor's report and recommended that the city adopt a policy or agreement that will require the audit to be completed by its due date. This is the second time the audit has been late, and excuses offered by the auditors has been a source of frustration for city officials.
Green, a certified public accountant, was hired in January and found the city was in violation of deadline requirements. The state of Oklahoma requires an annual audit report to be filed within six months of the year's end. Green said getting the audit completed late creates a compliance issue with the state.
"It's an internal control issue because we need to be getting that out there. There should be systems in place to help us do that," he said.
An audit involves procedures to obtain evidence about the numbers cited in financial statements. Accepted procedures are determined by the auditor's judgment.
"When an auditor issues a report, they are giving an opinion as to whether the financials have any material misstatements," said Green.
From his findings, Green did not see any discrepancies that would make him believe the numbers were not presented fairly.
"This is a clean audited opinion, so there were no material misstatements in here," he said.
The report details financial statements. The statement of net position and the statement of activities provide information about the city as a whole and present a long-term view of the city's finances.
The management's discussion and analysis provides an overview of the city's financial activities for the fiscal year, which is basically a run-down on what happened during that period.
On the whole, the reports consist of all activities for which the Tahlequah City Council is financially responsible.
"These activities are operated separate legal entities that make up the primary government and another separate legal entity that is included as a component entity," the report said.
As for the statement of net position, Green said the improved layout now shows what is spent and what is recovered in expenditures.
Expenditures are classified in five categories: general government, public safety, cultural and recreation, public services and capital outlay.
Green's professional opinion is that there is not a lot of debt on the city's plate, other than lease purchases - something he said should not be a source of great concern.