Oklahoma State Auditor Steve Burrage visited the Jackson County Commissioners and county officers regarding the recent engagement letter that was sent by the Auditors' office to Jackson County.
Burrage gave an introduction to explaining a change in that engagement letter. He said that in September 2008, the state legislature projected a shortfall and cut the state agencies by 7%, with the exception of those in education, healthcare and transportation. His department learned to live within those constraints. Since this January, however, his department has lost over a million dollars, in two 5% drastic cuts.
Along with the budget shortfalls, a perfect storm has been brewing regarding a conglomeration of regulations spawned by the illegal and poor business practices during the Enron debacle. This has generated the Governmental Accounting Standards Board (GASB) whose requirements are now trickling down to local government.
Burrage said that some counties routinely require supplemental funds for their auditing costs. In the case of Jackson County, the amount of funds that should be encumbered, or set aside by the county for the audit will be $11,980.94. The cost reflected on the engagement letter was listed as $40,599. That amount is the cost for the Auditors' office, not the amount the county must pay, based on their 1/10 of 1 mil annual ad valorem levy of the net total assessed value of the county. Burrage made it clear to the attendees that the Auditors' office can only charge Jackson County their current amount of $11,980.94. He said that this is the only change in the engagement letter.
Burrage explained that the effort to rid the state of the 1/10 of 1 mil levy has been eliminated. He also said that the state will continue to prepare county financial statements. Burrage said he would not stop preparing financial statements for a county until that county has someone who is responsible and capable of doing that function.
Burrage did not blame Field Auditor, Rick Riffe for the misunderstanding, nor did Jackson County officers or commissioners. Though Riffe tried to take responsibility for a misunderstanding on the total the county would have to pay, no one else was blaming him. Commissioner Dale Dunn said it was good that Burrage came to Altus to get this point straightened out. He explained that the big counties wanted to eliminate the 1/10 of 1 mil levy since they don't need the help, but the small counties certainly do.
County Assessor Gerald Sherrill asked a question regarding budget board counties. Budget board counties don't fall under the GASB practices. Burrage said there was a misunderstanding in Cleveland County over accounting practices and that will be straightened out through current legislation.
County Treasurer Janet Wright thanked Burrage for coming and said the field auditors from the Weatherford office are very helpful to Jackson County.
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