City prepares for annual audit
Governmental accounting can be difficult. While Robin Haggard and her finance department for the city of Sallisaw know their way around a balance sheet and are well-versed in debits, credits, accruals, depreciation, encumbrances, payables and receivables, equity and cost-benefit analysis, it doesn’t hurt to have someone else check your work.
Governmental accounting can be difficult. While Robin Haggard and her finance department for the city of Sallisaw know their way around a balance sheet and are well-versed in debits, credits, accruals, depreciation, encumbrances, payables and receivables, equity and cost-benefit analysis, it doesn’t hurt to have someone else check your work.
Actually, financial statements for municipalities are examined by an independent auditor.
Therefore, the Sallisaw City Commissioners at their monthly meeting on Monday approved audit engagement letters with RS Meacham CPAs & Advisors of Clinton to provide consulting services related to city financial matters.
“Changes to the Government Accountability Office (GAO) Yellow Book Standards require the city to prepare end-of-year financial statements, or contract with a consultant to prepare statements, for review by an independent auditor,” Haggard told the commissioners. “It is recommended we contract with RS Meacham CPAs & Advisors of Clinton to assist city staff in preparing end-of-year financial statements for our independent auditor. In addition, they will provide consulting services related to accounting and how we account for the various transactions of the city.”
Fees for services for the year ending June 30 will not exceed $25,000. Other services, or supplemental projects not included in the scope of services listed, will be provided at standard hourly rates ranging from $50 to $200 per hour. Any additional fees will be pre-approved by the city.
Services provided RS Meacham under the agreement include:
• General accounting and work-paper preparation
• Annual financial statement preparation
• Annual financial statement audit coordination
• General advisory assistance and technical support The commissioners also approved audit engagement letters with Foresight Advisory & Consulting of Oklahoma City for fiscal year 2023 audit services and landfill calculations.
Oklahoma State Statutes require the city and its related entities to complete a yearly audit of its financial statements, Haggard told the commissioners. An audit for the prior fiscal year must be completed and filed with the Oklahoma State Auditor’s office within six months of the close of the fiscal year. The objective of the audit is for the auditor to express an opinion on whether the city’s financial statements are fairly presented and that they conform to generally accepted accounting procedures and regulations. The auditor will look at items such as customer accounts, revenues received, cash disbursements, check reconciliations, debt reconciliations, general ledger journal entries and fixed asset inventory. The auditor will also review agendas, minutes and policies, as well as inspect any bid documents issued during the fiscal year.
The city is subject to a single audit again this year, due to the amount of federal grant funds it has received. That audit will be conducted in accordance with generally accepted auditing standards.
The auditor will report on internal control related to the financial statements and compliance with provisions of applicable laws, regulations, contracts and grants.
Per the engagement letters, proposed professional fees are:
• not to exceed $29,500 for audit • $6,500 to $6,750 for single audit
• $1,000 for landfill calculations
