City Council accepts financial audit for FY 2022-2023

An accounting firm said the City of McAlester again improved its financial position from the previous year in the annual Audited Financial Statements and Independent Auditor’s Report for Fiscal Year Ending June 30, 2023.

Arledge & Associates, one of Oklahoma’s most respected accounting firms, in the 122-page annual audit reported no material weaknesses, no significant deficiencies, and that the City improved its financial position from the prior year.

“We’re very proud of the work of our Finance Department,” Mayor John Browne said. “It's because of the work that they do that they make us look good and bring great transparency to the city.”

Arlege & Associates reported the City’s net position for governmental and business-type activities totaled $56,195,881 — which accounted for an increase of $10,515,893.

The purpose of a financial audit is to assure the accuracy of financial statements. This is different from a forensic audit, which is an investigation into financial information to be used in court. Oklahoma law requires municipalities to undergo an annual financial audit that is prepared by an independent licensed public accountant or a certified public accountant.

The City was also required to undergo a single audit after surpassing the $750,000 threshold of federal expenditures. More than half of the City’s $8.2 million federal expenditures during the fiscal year came through the Drinking Water State Revolving Fund (DWSRF) as the City carries out the will of voters who overwhelmingly passed two propositions in 2021 to improve the water system.

Arlege & Associates reported no significant findings and no compliance issues in the single audit regarding federal expenditures.

The Finance Department recently received the highest recognition in governmental accounting and financial reporting from the Government Finance Officers Association of the United States and Canada (GFOA) for a ninth consecutive year.