An annual audit of McClain County by the Oklahoma State Auditor & Inspector’s (OSAI) office on business ending June 30, 2024, concluded that the county was mostly in compliance over financial reporting, however there remains some issues which need to be addressed.
State Auditor Cindy Byrd, CPA, writes, “In our opinion, McClain County complied in all material respects, with the specified requirements referenced above during the year ended June 30, 2024.
The audit did come back with findings on a lack of the County’s internal control structure on Risk Assessment and Monitoring. The audit said these controls have been designed, but have not been implemented.
The audit states that without an adequate system of county-wide controls, there is greater risk of a breakdown in control activities which could result in unrecorded transactions, undetected errors, or misappropriation of funds.
Byrd’s office recommends the County implement the procedures that have been designed to identify and address risks related to financial reporting and to monitor and assess the quality of performance over time.
The County is supposed to be having quarterly meetings to address financial reporting, but has not been doing so. The County Treasurer’s office states that past meetings were supposed to be scheduled by the County Clerk’s office but have not been done because of family sickness, death and health issues. The County Clerk’s office states that as a newly appointed Clerk, she will work closely with the other officials to see that the quarterly meetings are held as recommended.
The OSAI auditors found repeat findings from previous years on inadequate segregation of duties in the Court Clerk’s office for collection and disbursement, and the lack of internal controls and noncompliance over the Inmate Trust Fund Checking Account and the Sheriff Commissary Fund.
Both were noted because only one employee in each of the offices is assigned both the recording function and the processing of transactions function. The auditor notes that this places one person at each of the office in charge of handling transactions and could result in unrecorded transactions, misstated financial reports, undetected errors, or misappropriation of funds.
Because the offices have limited personnel, OSAI recommends separating key processes and/or functions, and having management review and approve accounting functions.
The Court Clerk has placed processes in place, according to a statement on the audit. As well, the Sheriff’s Office states it will take steps to correct the audit points.
In a special part of the audit, Bryd’s office checks for compliance of federal programs. The audit selects a federal program to study. They looked at the U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds Program. Their finding was that all was in compliance.
