Seminole audit: independent auditor issues clean opinion; city reports $2.0M carryover and $25.7M debt

Bob Dylan of Dylan & Associates PC told the Seminole City Council on Monday that the city's fiscal 2024/25 financial statements received an unmodified audit opinion, meaning the auditor did not find material misstatements in the statements presented.

Dylan said the city reported about $4.0 million in federal expenditures during the year, roughly $2.5 million of which related to airport activity and the remainder to various grants. He told the council the statutory debt-service coverage requirement is 1.25 times debt service and that the city's actual coverage was 3.02, above the requirement. Dylan said the general fund carryover at June 30 was about $2.0 million, or roughly 19% of annual revenues. He also noted long-term debt increased by about $12.7 million during the year, driven by loan draws related to sewer-plant construction of approximately $14.0 million; total outstanding debt was reported near $25.7 million.

Council members asked whether auditors had seen anything alarming. Dylan said the engagement went smoothly, reporting consistent staffing in finance and no significant deficiencies discovered in the tests he described. He explained the office uses the ENCODE accounting system common among similarly sized Oklahoma cities and described audit procedures including selective testing of utility billings, payroll and accounts payable.

Dana Miller and other council members thanked city staff for their work producing a clean audit. Dylan cautioned that budgeted amounts are not immediately available cash and recommended monthly reconciliations and budget reviews to avoid in-year deficits.

The audit presentation was informational; Dylan noted audit opinions are not formally 'approved' in the same way ordinances are, but the council accepted the auditor's report and thanked the audit team and city staff.