An auditor for the city of Haileyville has suggested the city council request the Oklahoma State Auditor and Inspector conduct an investigative audit after finding significant deficiencies in the city’s internal control including a number of past due accounts owed by current and former city officials through August, large monthly bank deposits that do not comply with Oklahoma state law, missing receipts books , improperly prepared daily logs and improperly categorized revenue.
In the audit, unanimously approved by the Haileyville City Council on Thursday, auditor Ralph Osborne CPA of Bristow recommended the City of Haileyville consider requesting the Office of the Oklahoma State Auditor and Inspector conduct an investigative audit.
The yearly audit found material weaknesses and significant deficiencies in the city’s internal control over financial reporting.
“A deficiency in internal control exists when the design or operation of a control does not allow management or employees...to prevent or detect and correct misstatements on a timely basis,” according to the audit.
The material weakness finds included the Haileyville Public Works Authority records, accounts receivable and bank deposits, according to the audit.
According to the audit, a material weakness is “A deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis.”
The audit found accounts receivable (money due the city) for the PWA are reported as $73,189. The average monthly revenue for the PWA shown in the financial statements is $28,328. The PWA has 2.58 months revenue in accounts receivable.
In the audit, Osborne said that he examined the accounts receivable records for the PWA and found a number of past due accounts including large amounts in accounts receivable owed by current and former city officials through August 15.