Independent auditors gave Muskogee good marks on its internal control systems and the city’s financial outlook.

The audit, presented this past week to finance committee members, reveals steps have been taken to cure a couple of problems found in 2006.

Chuck Crooks of CBEW Professional Group said the audit report for the fiscal year that ended June 30, 2007, contains ”no current findings of any problem areas.”

“Overall, they do a really good job,” Crooks said of the city’s financial oversight. “You have a great internal control system — checks and balances throughout to prevent any type of problems — and they manage very well.”

There were two problem areas reported for fiscal year 2006. The first included improper reporting of sales tax revenue restricted to employee benefits. The other was grant revenue held in an escrow fund and record keeping regarding federal grant expenditures. The summary schedule of prior audit findings notes steps have been taken to remedy both concerns.

Crooks said a significant change included in the fiscal year 2007 audit is the addition of streets and bridges to the city’s asset inventory. As a result, Muskogee’s net assets increased more than $2.28 million. Net assets, Crooks said, total about $176 million.

Crooks commended the efforts of Public Works Director Mike Stewart and his staff for the thorough assessment of the city’s infrastructure. The month-long process, Crook said, included measuring the width of streets, the depth and type of surface material, and surface quality.

City Manager Greg Buckley said the evaluation will help guide decisions regarding future capital improvements projects with regard to its streets program.

“This was a good start toward evaluating street conditions,” Buckley said. “This will help us prioritize projects with respect to street conditions then we can evaluate the political aspects of our capital improvements plans.”

The audit addresses Muskogee’s net assets and any changes in those assets. In the statement of net assets and statement of activities, the assessments are broken down into two types of activities:

• Governmental and business-type activities — Basic services such as police and fire protection, public works, parks and recreation, and general administration. Those services typically are funded by sales and franchise taxes and revenue from fees for utilities.

• Business-type activities: Those for which the city assesses a user fee, such as the use of the airport, sports complex, or the Muskogee Civic Center. Revenue from the municipal and parking authorities are included in this category.

The audit stated the cost of all city programs totaled $48.79 million. The city spent $42.07 million on governmental activities, $5.1 million more — or 13.8 percent — than the $36.97 million it received in revenue. Its business-type activities increased net assets by more than $9.78 million.