Auditor: Slush Fund Run By Former Workers At Oklahoma Education Department

State Auditor Gary Jones released a report Thursday on what he calls a secret slush fund run by former employees of the Oklahoma Department of Education.

Jones released the supplemental investigative report at the request of the Oklahoma State Department of Education.

Read the State Auditor And Inspector's Office Supplemental Investigative Report.

The receipts spell it out in black and white: $2,600 for bottles of wine and beer kegs. $5,700 for decadent food, a chocolate fountain, smoked salmon, Maryland crab cakes.

"All of this money being spent on lavish productions on liquor and those kinds of things. Clearly we are troubled by that," said Damon Gardenhire, OK State Dept of Education Communications and Policy Director.

More than $2.3 million was spent over a 10-year-period. Money that should have been deposited into official state funds.

Instead, an investigation found former employees with the State Department of Education diverted the cash to other funds, which had no oversight.

"They were indeed free to spend it as they chose to," said Oklahoma State Auditor Gary Jones.

Those employees told auditors the money came through a non-profit, the Oklahoma Curriculum Improvement Commission.

But State Auditor Gary Jones says the non-profit wasn't aware of the other accounts opened under the OCIC name.

The audit found the OCIC's treasurer reported a total income of almost $23,000 in an account during the 2004 fiscal year. However, that money was only from membership dues. The actual total was more than $360,000

"When you read this and stop and think about that there are school districts out there that don't have enough money to pay teachers," Jones remarked.

Later, the accounts were separated. The audit says employees funneled nearly $15,000 dollars from one account to another. Accounts not disclosed to the Oklahoma State Auditor and Inspector.

Former State Superintendent Sandy Garrett did not respond to the state auditor's requests for interviews. The Oklahoma State Department of Education responded to the audit with this statement:

"We are troubled and concerned by the State Auditor's findings about past practices under the previous administration. These things can't be condoned or tolerated. Last year, we brought our concerns about irregular travel claims by an employee to the State Auditor, which ultimately led to the findings in today's report. While the issues raised by the State Auditor in today's report are not within our purview, we urge the appropriate authorities to take action to address any possible wrongdoing from past years."