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OPERATIONAL AUDIT Okmulgee County For the fiscal year ended June 30, 2014 Oklahoma State Auditor & Inspector Gary A. Jones, CPA, CFE OKMULGEE COUNTY OPERATIONAL AUDIT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 This publication, issued by the Oklahoma State Auditor and Inspector’s Office as authorized by 19 O.S. § 171, has not been printed, but is available on the agency’s website (www.sai.ok.gov) and in the Oklahoma Department of Libraries Publications Clearinghouse Digital Collection, pursuant to 74 O.S. § 3105.B. January 29, 2016 TO THE CITIZENS OF OKMULGEE COUNTY, OKLAHOMA Transmitted herewith is the audit report of Okmulgee County for the fiscal year ended June 30, 2014. The goal of the State Auditor and Inspector is to promote accountability and fiscal integrity in state and local government. Maintaining our independence as we provide this service to the taxpayers of Oklahoma is of utmost importance. We wish to take this opportunity to express our appreciation for the assistance and cooperation extended to our office during our engagement. Sincerely, GARY A. JONES, CPA, CFE OKLAHOMA STATE AUDITOR & INSPECTOR OKMULGEE COUNTY, OKLAHOMA FOR THE FISCAL YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS OPERATIONAL AUDIT REPORT Introductory Section (Unaudited) Statistical Information .............................................................................................................................. ii County Officials ...................................................................................................................................... iii Ad Valorem Tax Distribution ................................................................................................................. iv Sales Tax Distribution .............................................................................................................................. v Assessed Value of Property Trend Analysis ........................................................................................... vi County Payroll Expenditures Analysis ................................................................................................. vii County General Fund Analysis ............................................................................................................ viii County Highway Fund Analysis ............................................................................................................ ix Presentation of Apportionments, Disbursements, and Cash Balances of County Funds for Fiscal Year Ending June 30, 2014 ...................................................................... 1 Description of County Funds ................................................................................................................... 2 Comparative Schedule of Receipts, Expenditures, and Changes in Cash Balances—Budget and Actual—Budgetary Basis—General Fund ................................................ 5 Comparative Schedule of Receipts, Expenditures, and Changes in Cash Balances—Budget and Actual—Budgetary Basis—County Health Department Fund .................. 6 Purpose, Scope, and Sample Methodology ................................................................................................... 7 Objectives and Results of Operational Audit ................................................................................................ 8 REPORT ON STATUTORY COMPLIANCE - OTHER MATTERS Statutory Report .......................................................................................................................................... 11 Schedule of Findings and Responses .......................................................................................................... 12 i INTRODUCTORY SECTION UNAUDITED INFORMATION ON PAGES ii - ix PRESENTED FOR INFORMATIONAL PURPOSES ONL OKMULGEE COUNTY, OKLAHOMA FOR THE FISCAL YEAR ENDED JUNE 30, 2014 The name Okmulgee comes from a Creek word meaning "boiling water". Created at statehood from lands in the Creek Nation, Indian Territory. The county seat, Okmulgee, has been the capital of the Creek Nation since the Civil War. The Indians chose the site in the belief that tornadoes would not strike the area. Two local lakes furnish most of the water for the county. Major highways are I-40, east-west, and S.H. 75, north-south. Burlington Northern Santa Fe Railroad maintains a station for shipping. Points of interest are: the Creek Council House Museum (former meeting place of the Intertribal Council of the Five Civilized Tribes), the Creek Tribal Complex, Samuel Checote grave site, Oklahoma State University – Okmulgee, Nuyaka Mission, and Okmulgee State Park. A Pecan Festival is held mid-June annually in Okmulgee and a Labor Day celebration is observed in Henryetta each year. Both cities support public libraries. The City of Okmulgee is a participant in the Oklahoma Department of Commerce’s Main Street project. History of Okmulgee County offers information about the area. For additional information, call the County Clerk’s office at (918) 756-0788. County Seat – Okmulgee Area – 702.32 Square Miles County Population – 39,625 (2012 est.) Farms – 1,449 Land in Farms – 294,324 Acres Primary Source: Oklahoma Almanac 2013-2014 ii OKMULGEE COUNTY OFFICIALS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Board of County Commissioners District 1 – J.W. Hill District 2 – Robert Hardridge District 3 – James Connors County Assessor Lisa Smart County Clerk Becky Thomas County Sheriff Eddy Rice County Treasurer Vonna Lampkins Court Clerk Linda Beaver District Attorney O.R. Barris III iii OKMULGEE COUNTY, OKLAHOMA AD VALOREM TAX DISTRIBUTION SHARE OF THE AVERAGE MILLAGE FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Property taxes are calculated by applying a millage rate to the assessed valuation of property. Millage rates are established by the Oklahoma Constitution. One mill equals one-thousandth of a dollar. For example, if the assessed value of a property is $1,000.00 and the millage rate is 1.00, then the tax on that property is $1.00. This chart shows the different entities of the County and their share of the various millages as authorized by the Constitution. School Dist. Avg. 86.18% County Health 2.30% County General 11.52% County-Wide Millages School District Millages Career Tech County General 10.20 Gen. Bldg. Skg. Career Tech Building Common Total County Health 2.04 Okmulgee I-1 35.35 5.05 17.71 10.20 2.04 4.08 74.43 Henryetta I-2 35.70 5.10 10.94 10.20 2.04 4.08 68.06 Morris I-3 36.40 5.20 17.02 10.20 2.04 4.08 74.94 Beggs I-4 36.05 5.15 23.40 10.20 2.04 4.08 80.92 Preston I-5 35.70 5.10 26.55 10.20 2.04 4.08 83.67 Schulter I-6 36.05 5.15 26.59 10.20 2.04 4.08 84.11 Wilson I-7 36.40 5.20 16.23 10.20 2.04 4.08 74.15 Dewar I-8 36.05 5.15 14.90 10.20 2.04 4.08 72.42 Twin Hills C-11 36.05 5.15 23.56 10.20 2.04 4.08 81.08 Tulsa T-14 36.05 5.15 22.01 8.24 5.15 4.08 80.68 Creek I-5 35.70 5.10 27.30 10.20 3.06 4.08 85.44 Muskogee I-2 36.40 5.20 20.98 8.16 2.04 4.08 76.86 McIntosh I-19 36.05 5.15 24.05 8.16 2.04 4.08 79.53 McIntosh I-27 35.70 5.10 10.18 8.16 2.04 4.08 65.26 Okfuskee I-31 36.05 5.15 27.91 5.15 - 4.08 78.34 Okfuskee I-32 36.05 5.15 4.07 5.15 - 4.08 54.50 iv OKMULGEE COUNTY, OKLAHOMA SALES TAX DISTRIBUTION FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Sales Tax Sales Tax of December 14, 2010 The voters of Okmulgee County approved a new 1/2 percent (0.50%) sales tax on December 14, 2010. This sales tax was established to provide revenue for the benefit of the Okmulgee County Road System. The funds are accounted for in a cash fund as reported on the County’s financial statements as Half Cent Road Tax. Sales Tax of December 14, 2010 The voters of Okmulgee County also approved a new 1/4 percent (0.25%) sales tax on December 14, 2010. This sales tax was established to provide revenue for the lawful duties and responsibilities of the Sheriff’s Office. These funds are accounted for in cash funds as reported on the County’s financial statements as Sheriff’s ¼ Cent Sales Tax. During the fiscal year the County collected $1,993,091 in total sales tax. Half Cent Road Tax $1,340,244 Sheriff 1/4 Cent Sales Tax $652,847 v OKMULGEE COUNTY, OKLAHOMA ASSESSED VALUE OF PROPERTY TREND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Estimated Valuation Public Real Homestead Fair Market Date Personal Service Estate Exemption Net Value Value 1/1/2013 $33,248,528 $23,947,339 $117,012,074 $9,752,927 $164,455,014 $1,370,458,450 1/1/2012 $33,633,369 $23,906,485 $113,117,417 $9,871,420 $160,785,851 $1,339,882,092 1/1/2011 $31,376,644 $24,742,831 $110,368,303 $9,919,936 $156,567,842 $1,304,732,017 1/1/2010 $31,585,071 $22,030,198 $107,885,510 $9,745,823 $151,754,956 $1,264,624,633 1/1/2009 $31,141,237 $21,849,210 $105,665,713 $9,765,640 $148,890,520 $1,240,754,333 Estimated $1,400,000,000 Fair Market Value $1,370,458,450 $1,350,000,000 $1,339,882,092 $1,304,732,017 $1,300,000,000 $1,264,624,633 $1,250,000,000 $1,240,754,333 $1,200,000,000 $1,150,000,000 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 vi OKMULGEE COUNTY, OKLAHOMA COUNTY PAYROLL EXPENDITURES ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 County officers’ salaries are based upon the assessed valuation and population of the counties. State statutes provide guidelines for establishing elected officers’ salaries. The Board of County Commissioners sets the salaries for all elected county officials within the limits set by the statutes. The designated deputy or assistant’s salary cannot exceed the principal officer’s salary. Salaries for other deputies or assistants
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