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Chickasha council accepts FY2023 audit after auditor warns of controls gaps and negative EMS balance
Summary
The Chickasha City Council accepted a clean audit for the year ended June 30, 2023, while the auditor flagged internal-control weaknesses, a negative EMS fund balance of about $650,000 and timing issues in grant reporting.
Chickasha’s City Council voted to accept the fiscal year 2023 financial audit on a motion the body approved at its September meeting. Andy Cromer, CPA with Oklahoma firm HSPG, told the council the audit opinion was clean but highlighted four areas of concern, including “a negative $650,000 fund balance” in the city’s EMS fund that, he said, is in violation of state statute.
Cromer said the auditors issued a clean opinion on the financial statements but pointed to repeated control weaknesses and compliance timing: “We issued our ’22 report and ’23 had already been dead and gone by the time you all received 2022’s report,” he said, noting the audit itself was late. He also told council members the city had “over 50 bank accounts,” an observable reconciliation error, and that one bank used out-of-state securities that did not meet statutory collateral requirements.
The auditor described weaknesses in segregation of duties and oversight, citing an instance where an employee could request a cashier’s check at a bank with only one internal signature. “That needs to be stopped,” he said. Cromer recommended improved review procedures and consolidation of accounts to reduce reconciliation errors.
Council members asked for clarification about the EMS deficit and learned the general fund subsidized EMS operations during 2023 to prevent a year-of-loss position while the underlying EMS fund remained roughly $650,000 negative. Cromer explained the general fund essentially covered EMS operations for the year and the structural deficit remains. He also described difficulties reconciling water meter readings to billed volume and recommended staff follow up.
The council accepted the audit and received copies for filing with the state auditor; Cromer warned the city must address the negative balances and control issues to remain in compliance with state reporting and cash-custody requirements. The council did not adopt immediate remedial measures during the meeting but discussed bringing back follow-up items for finance and internal-control remediation at a later date.
