Jack Roye with Michael W. Green, CPA, presented the 2023-2024 annual audit to Sulphur City Council members at the regular monthly meeting Monday night.
Roye told members the audit was filed with the Oklahoma State Auditor’s office before June 30, 2026, thus allowing the city to still receive their state fuel tax from the state. If an audit is two years past due, the city loses the tax funds. Oklahoma statutes require all audits to be filed with the Oklahoma State Auditor and Inspector’s Office within six-months of the year end or December 31 after the physical year end on June 30.
In the audit report, Roye told the board a qualified opinion had been issued in all areas which includes governmental activities, business-type activities, general fund, aggregate remaining fund information and enterprise fund which is the municipal authority.
A qualified opinion is typically issued when an independent auditor finds that the company’s financial statements are presented fairly except for specific localized areas.
Roye cited the city airport fund as one of the areas the city is not actually in compliance.
Another area in question was the internal control and supervision over the payroll/compensated absences accrual. Roye stated in the audit report that the recording of compensated absences in spreadsheets is inherently an internal control issue. The report also stated the calculation and recording of payroll are performed almost entirely with paper time sheets and spreadsheets and that particular process does not present an audit trail. Roye, in a previous audit, had recommended the city consider using a professional accounting service and implement technology for the payroll process.
Council members previously approved purchasing time clocks to record employees hours but later returned the clocks.
Another issue cited in the report was timely financial statements and audits. The report states the city is not in compliance with state statutes, citing financial statements were not available for the audit until after the audit deadline. The report said inadequate control over year-end closing and financial statement preparation appear to be the cause of the issue.
The final finding was inconsistent compliance with the city charter, mainly with the city bidding process.
Roye told members the company will begin the 2024-2025 audit (which is also past due) as soon as information is received from the city clerk.
After the audit report was approved, members also approved an audit engagement letter with Michael W. Green, CPA for the auditing services for the 2025-2026 fiscal year.
In other action, members approved a bid for the airport crack and seal project in the amount of $157,317.50. The city received four bids for the project and members accepted the lowest recommended bid.
The project is funded by a 95/5 match from a FAA Grant. The board approved a bid from Pavers, Inc. in the amount of $963,637.00 for the West 9th Street project. The area covered will be from Broadway north to Muskogee Street. The project includes relocating water and sewer lines, and replacing sidewalks, curbs and street paving.
Contracts for the West 9th Street Project as well as the contract with Treas Construction for the drainage box replacement project on Muskogee Street were approved. The bid on the drainage box project was approved at the last meeting.
A request to amend the fire department substation building from a Risk II to a Risk IV was approved with an additional cost of $7,873.00. This project is being funded by designated FEMA money received for the building after the tornado.
Members tabled the hay lease agreement with Larry Muck until clarification on insurance is resolved.
The annual lease purchase renewal agreement with BancFirst for the police units was approved bay the board.
Members also tabled payment #1 to CD Brown Construction for the east water well transmission lines in the amount of $215,228.29 until funds are received from OWRB.
Bids for 10-yard dumpsters and 208 poly carts were approved. The 10-yard dumpster bid was $7,220.00 and the bid for the poly carts was $$15,510.00.
No bids were received for a HE-400 turbo for the 2007 Peterbilt truck, but members approved a quote for the repairs in the amount of $4,265.00.
In the consent agenda, members approved the following:
•payment to FirstNet not to exceed $900.00 for cell phone service;
•payment not to exceed $25,000.00 to Finish Line for fuel for July;
•payment of $30.00 to R & R Trophies for council member nameplates; •payment of $1,050.00 to Lawton Communications, LLC for storm siren quarterly maintenance inspection;
•payment of $3,980.00 to Sutterfield Technologies for municipal court software and maintenance;
•payment of $1400.00 to Dusty’s Diesel for ECM re-programming on Ram truck; and
•payment of $3,450.00 to Jeff’s Glass Shop for replacement door at the Senior Citizens Center;
•payment of $2,979.98 to Pitmon Oil & Gas Company for on road diesel; and
•amendments on FY 2025-2026 budget. In correspondence and updates, City Manager Andy Freeman reported the city sales tax for this months report was down $33,000.00 from the same time last year.
Freeman also updated the board on various ongoing projects within the city.
All five council members were present at the meeting.
