Anadarko Audit Uncovers Mismanagement By City, Other Agencies

Saturday, May 27th 2006, 7:11 am

By: News On 6

OKLAHOMA CITY (AP) _ A state audit has turned up mismanagement and misappropriation of funds by the City of Anadarko and other local agencies, Auditor and Inspector Jeff McMahan said Friday.

The current mayor of the town in southwestern Oklahoma said the problems were caused by former officials and had been corrected.

McMahan said the audit has been turned over to the Caddo County district attorney, who has requested that the former Anadarko city manager repay an improper $3,100 bonus.

``I don't know if there is anything in the audit that can be construed as criminal,'' McMahan said. ``However, I do know that misappropriation of funds is a crime.''

He said the audit detected mismanagement by the city, the Anadarko Public Works Authority and the Anadarko Economic Development Authority.

Among other things, he said auditors were able to account for only $400,000 of $1 million in sales taxes raised to build a hospital. He said the other $600,000 was apparently used for general fund expenses.

Also, he said taxpayers had to pick up $399,000 in late fees for their electric bills because of the failure of Anadarko Public Works Authority to pay its bills.

He said the authority bought its electric wholesale from Western Farmers Electric Co. and was $1 million in arrears to the company.

Anadarko Mayor J.T. McCasland said the audit findings do not come as a surprise.

Six of seven City Council members were recalled in 2004 after a citizens group complained of financial mismanagement in city government. There has also been turnover among top city staff members, he said.

``A group of people got together and started looking into what was happening and they were not very impressed with it,'' he said.

The city is now on a sound financial footing, he said.

``We're tickled to death with the direction it's moving and the way things are going,'' he said. ``I think all of us are happy it's being taken care of professionally.''

He said city officials will meet to discuss the audit.