Cottrell found no documentation that AGPRI had filed for non-profit organization (NPO) status with the State, which would have given them an exemption from paying income and sales taxes. AGPRI has not been paying taxes, nor collecting taxes as part of the proceeds as if they already had the NPO status. The correct status for AGPRI to apply for would have been a 501(C)(3) designation covering educational and sports competition programs. In addition to this, the audit includes a laundry list of infractions to standard business practices. Some of these items include:
No insurance coverage for employees or facilities; lack of documentation to the city; co-mingling of monies and accounts; subcontracting work to city employees, which is a violation of City of Altus ordinances; lack of security for collections; and improper or undocumented reconciliation of receipts and funds.
Assuming that the city does business with AGPRI again, many suggestions were made by Cottrell including: annual audits with close monitoring through monthly statements to the city; clear separation between the City of Altus and the contractor; proper use of city employees; and documentation of donations to the city. Indeed these practices would be appropriate with hiring other contractors.
According to Altus Public Relations Director, Matt Coppock, regarding the auditor's information, "To be clear, the audit is not complete, this is just a ‘statement’ from the auditors." The complete audit will be included with the City's annual audit to be examined and discussed at an Altus City Council meeting in March, according to City Finance Director, Joe Don Dunham.


