Woods County Industrial Development Committee approves audit
March 13, 2020
Rick Cunningham, Randy McMurphy, Stan Kline, and later, Richard Ryerson, met bright and early this past Tuesday morning for their monthly Woods County Industrial Development Authority (WCIDA) meeting. (Connor Martin was absent due to illness.)
Also in attendance was Woods County Economic Development Committee (WCEDC) Executive Director Sonja Williams, though she was serving in that capacity during a WCIDA meeting for the last time.
The first item on the agenda – last month's meeting minutes – garnered fast approval, leading the board right into the finance report. Cunningham told the others that, at the moment, they are kind of in a status quo situation. The balance sheet reflected total assets to be $1,661,564.23 and total liabilities of $573,568.10. The finance report was approved as written.
FY '18-19 Audit
Next up was action on the audit for FY '18-19, prepared by Kimberlye R. Mayer, CPA, P.C. out of Blackwell. Williams said the only thing that came up, as it always does simply due to WCIDA's small size, is a material weakness in internal control over financial reporting: inadequate segregation of duties. The report stated that, presently, the same individual is responsible for receiving all revenues, making and recording deposits, and maintaining notes receivable schedules. Potential effects of that, say Mayer's report, is the increase in the risk of error and/or fraud that could occur and not be detected within a timely basis.
The accounting firm recommends the board evaluate risks associated with the lack of segregation of duties and consider implementing controls that could mitigate those risks. The board's response was that due to the limited number of personnel (due to its small size), adequate segregation of duties is not achievable and the cost of correcting the weakness would exceed the benefits that would be derived from it.
Mayer's report also said cash flows for the year (FY '18-19) "ended in conformity with accounting principals generally accepted in the United States." Before approving the audit, Williams mentioned that per the accountant, there would be some new regulations coming down sometime in the future. McMurphy made a motion to approve the audit and it was so moved.
The next agenda item was to take action on the contract with Kimberlye R. Mayer, CPA, P.C., to perform the FY '19-20 audit and the motion to approve also carried. The fee will be $3,130 for that service. There were no outstanding bills to address on the next agenda item, and the group moved on to talk about the Waynoka Incubator. Its occupant, Bell Supply, is not operating out of the facility but is still paying out their contract which expires later this year. There are no prospective tenants at this time to replace them.
Williams was up next to give her report and started with a reminder on a couple of upcoming events: The Northwest Oklahoma Alliance legislative event is scheduled for Mar. 23 at the Oklahoma History Center from 5-7 p.m. and the Lieutenant Governor's Turkey Hunt is still on for Apr. 8-10.
She mentioned her work (along with the help of the Avard Regional Rail Park Authority) with Rural Water District 3, stating an income survey was sent out to all account holders to glean information for the pursuit of funding. Those surveys came in this week, she said.
In other news, Okie will be coming to mark utility lines on the property leased at the airport (the property that was swapped with the City of Alva when the City built their hangars). Williams said she talked to Rural Development about applying for funding to build an aviation incubator and that there is already a business to fill it.
"We've been talking to the technology center [Northwest Technology Center], and maybe working in a partnership with aviation or the kids coming out of the program at the school for the Will Rogers World Airport and working with them here and help get them started. This business [the one to occupy the aviation incubator] is looking to help do that. So, it would be in mechanics. We may even work something with our collision repair on painting and stuff; we're trying to make this a one-stop-shop."
Williams announced she would soon be departing WCEDC to take a position with Northwest Tech, serving the Alva and Fairview campuses. Acknowledging the many irons in the fire, she mentioned the downtown building project she's been collaborating on with Freedom West, saying she has applied for Rural Development funding on that too.
"Whoever comes in next … there's a lot of things started that I think now is a good time. It's not in the energy sector and we're trying to diversify our income, so it'll be a spot-on, great time. They're just going to have to come in running," she said.
Cunningham was the first to offer his accolades to Williams, "I think it's needless to say that we'll miss your smiling face and all your guidance ... you've worked very diligently and hard," he said, recognizing her 20 years of service. The board extended their appreciation and said they were glad she would be close by.
Williams said she would like to stay involved as much as possible and even suggested that she maybe she could do the bookwork on the side for WCIDA, which would help diversify internal controls and prevent it as a future material weakness.