Finding Text
Criteria: In order to comply with filing of reports with the Oklahoma State Auditor and Inspector (State Auditor), management needs to appropriately monitor the timing of the submission of the filing of the audit report within six months after the end of the fiscal year. Additionally, the Federal Audit Clearinghouse (FAC) submission should occur the earlier of nine months subsequent to year end or 30 days from report issuance. Condition: The City did not submit its audit report to the State Auditor prior to the deadline of six months after the end of the fiscal year ending December 31, 2024. Additionally, the City did not submit its audit report to the FAC within nine months from year ending December 31, 2024. Cause and Effect: A change in key personnel over the City’s financial reporting and a natural disaster which occurred after year end resulted in a delayed financial reporting closeout of fiscal year 2024. As a result, the City was not in compliance with its required deadline to provide the State Auditor and the FAC with its issued audit report within the established deadlines. Recommendation: We recommend the internal controls for reporting with the State Auditor and FAC be reviewed to ensure that future filings are completed within the established deadlines. Management response: Management acknowledges the finding regarding the delayed submission of the City’s audit report to both the Oklahoma State Auditor and Inspector and the Federal Audit Clearinghouse. We agree that the combination of turnover in key financial reporting positions and the impact of a natural disaster contributed to delays in completing the fiscal year 2024 financial close and subsequent filings. The City recognizes the importance of timely reporting to maintain compliance with state and federal requirements. Management is committed to strengthening internal controls, improving communication among departments, and ensuring that future audit submissions are completed within the required deadlines.