During a recent government meeting, discussions centered on the integration of artificial intelligence (AI) in municipal operations and a review of the fiscal year 2024 budget closeout.

A representative from the Oklahoma Municipal League highlighted the growing presence of AI technologies in auditing processes, noting that while their firm is not aggressively pursuing AI, they have implemented machine learning systems capable of analyzing contracts for anomalies. This advancement raises questions about how to audit AI systems, as they lack human oversight. The American Institute of CPAs (AICPA) is reportedly working on guidelines to address these challenges as clients increasingly adopt sophisticated AI tools.

The meeting also included a detailed examination of the fiscal year 2024 budget closeout presented by Mr. Francisco. He provided a summary comparing projected expenditures to actual spending, revealing a $3 million overspend in salary and benefits, which includes overtime and healthcare costs. Conversely, the city underspent on supplies and maintenance, resulting in an overall expenditure that was $2 million below expectations.

Francisco noted that the city had anticipated a $1 million subsidy to the Public Safety Sales Tax Fund but did not provide one, and the expected $3 million subsidy to the Public Transit Fund was reduced to $800,000. Despite these discrepancies, the city ended the fiscal year with a better-than-expected fund balance, approximately $5 million higher than projected. However, he cautioned that this figure includes $5.3 million in encumbrances—obligated funds for purchases not yet completed, such as a $2 million fire truck.

The meeting concluded with a commitment to finalize the budget details in the upcoming November meeting, emphasizing the importance of transparency and accountability in municipal financial management.