SAPULPA — While Creek County’s overall finances remained steady from fiscal years 2023 through 2025, state audits reveal a growing pattern of concerns involving internal controls, financial reporting accuracy and compliance with federal funding requirements.
The audits, issued April 15, 2026, by State Auditor Cindy Byrd, show a progression from relatively minor compliance issues in 2023 to repeat findings and material weaknesses in the following two years.
In fiscal year 2023, state auditors did not identify any material weaknesses or significant deficiencies in internal controls, indicating the county’s basic financial processes were functioning as expected. However, the report did flag compliance issues tied to the Coronavirus State and Local Fiscal Recovery Funds, a major federal program created during the pandemic.
Byrd found the county lacked written standards of conduct addressing conflicts of interest in procurement and had deficiencies in required federal reporting. Those requirements are designed to ensure fair contracting practices, prevent conflicts of interest and provide transparency in how federal dollars are spent. Without them, state auditors cannot fully verify whether purchasing decisions were made appropriately or whether funds were tracked and reported correctly. County officials acknowledged the issue and indicated they were working to implement updated policies, including adding conflict-of-interest language and improving oversight procedures.
By fiscal year 2024, the audit findings became more serious. Byrd identified a material weakness in internal control over financial reporting, meaning there was a reasonable likelihood that errors in financial statements could occur and not be detected in a timely manner. The issue centered on how resale property fund transactions were recorded.
According to the audit, apportionments were overstated by approximately $629,000 and disbursements were overstated by more than $1.6 million because transactions were recorded incorrectly. Funds that should have been classified as transfers between accounts were instead recorded as apportionments. This distinction is important because apportionments reflect distributions of revenue, while transfers simply move money between funds. Misclassifying those transactions can distort how revenue and expenditures appear in financial reports, potentially overstating both.
Byrd noted that while there was no indication of fraud, the misstatements reduced the accuracy and clarity of financial reporting. County officials told state auditors that they planned to correct the issue by properly recording those transactions in future reports.
In fiscal year 2025, Byrd again reported a material weakness, this time tied to disbursement procedures. The audit found that several expenditures were not properly encumbered before being made, which is required under Oklahoma law. Specifically, five of 74 sampled disbursements, totaling $360,665, were not encumbered in advance.
Encumbrance is a key control that ensures funds are set aside before a purchase is made, helping prevent overspending and ensuring proper authorization. When this step is skipped, it increases the risk of spending without approval, incomplete records and inaccurate financial reporting. Byrd attributed the issue to a lack of formal policies and procedures governing the disbursement process and recommended the county strengthen its internal controls to ensure purchase orders and obligations are recorded before expenses are incurred.
Federal compliance issues also persisted and expanded over time. In both 2024 and 2025, state auditors issued qualified opinions on the county’s major federal program, again tied to Coronavirus State and Local Fiscal Recovery Funds. A qualified opinion indicates the county did not fully comply with certain federal requirements, though the issues were not widespread enough to warrant a full adverse opinion.
By 2025, the findings had grown more detailed and pointed to broader compliance gaps. Byrd reported problems related to procurement standards, including whether proper bidding and vendor selection procedures were followed. They also found issues with suspension and debarment requirements, which are meant to ensure vendors receiving federal funds are eligible to do so. Additional concerns involved reporting deficiencies and questions about whether certain costs met federal eligibility guidelines.
Federal grant rules require strict documentation and oversight, and failure to meet those standards can lead to increased scrutiny, potential repayment of funds or limits on future funding eligibility.
Taken together, the three audits show a clear shift. The county moved from relatively clean internal controls in 2023 to material weaknesses in financial reporting in 2024 and continued control issues tied to spending practices in 2025, alongside ongoing federal compliance problems.
Despite those concerns, Byrd consistently found that the county’s financial statements were fairly presented under Oklahoma’s regulatory accounting system. The issues identified were tied less to the county’s overall financial condition and more to how funds were tracked, reported and managed within required guidelines.