State Auditor: Skiatook School Case Is Example Of Waste, Fraud and Abuse

NewsOn6.com

SKIATOOK, OK -- The Oklahoma's state auditor and inspector, Steve Burrage, says between 2004 and 2009, Skiatook Public Schools paid double, triple or quadruple the open market price for custodial supplies through a supplier, instead of buying direct.

In his investigative audit report released Tuesday afternoon, Burrage says the district spent over $800,000 from E & E Sales, Inc. instead of buying direct from retailer and is a case of waste, fraud and abuse.

State Auditor Steve Burrage held a news conference Tuesday afternoon in Oklahoma City regarding the release of an investigative audit.

2/22/2010 Related story: State Auditor To Release Investigative Audit Of Skiatook Schools

Burrage gave several examples, including $179.50 for a $5 mop head and nearly $60 for an $8 trash can.

Burrage says his office found Skiatook Public Schools paid $612,005 for supplies costing $229,286 between May 1, 2004 and January 31, 2009.  He says the district paid E & E Sales a $382,719 markup over market prices for these supplies.

During an interview with an E & E Sales subcontractor Rick Enos, who operates E & E Sales, Burrage says Enos expressed concern over losing the school as a client because it was his "cash cow."

The audit also showed Skiatook Public Schools paid as much as $6,600.00 for a security system from Austin Security that it could have bought direct for $1,312.99.

Austin Security operated from the same Oklahoma City storefront as E & E Sales, Inc. at 1333 Southwest 89th Street.   

Burrage says if Skiatook Public Schools had implemented policy and procedures concerning purchasing and receiving, it is likely they would have discovered years ago that they were paying markup amounts of 100% to 500%.

The audit has shaken some parents' confidence in their school district to the core.

"You just always support the school, support the school in their decisions. And you just try to always go with that. So something like this is out of left field really," said Tiffany Brummett, a Skiatook parent.

Brummett says Skiatook parents and teachers deserve answers.

"They provide things for their room, for their students. It's not fair to them. It's not fair to our kids. Somebody needs to be held responsible," said Brummett.

The News On 6 called several Skiatook board members, but none of them returned our calls by deadline. The school district released a statement saying it no longer works with E & E Sales and the district has changed its purchasing procedures.

Read a statement from the Skiatook School District.

Charlie Price in the Attorney General's office issued the following response about the situation:

We will be reviewing the audit to determine what, if any, steps we take next.

Charlie Price