Audit could test longtime concerns

Details

Published on Tuesday, 31 January 2012 19:48

Dale Denwalt
Daily Elk Citian

If a small group of Elk City community members have their way, the state auditor could be knocking on the city's door soon.

A handful of the group's members met Monday night to discuss how to proceed with gathering signatures. If they collect 613 from registered Elk City voters, the state would then conduct a special forensic audit of the city's finances and practices.

"The Oklahoma State Auditor and Inspector has been given information by individuals over a long period of time about different things which have caused questions to arise about possible irregularities in the way in which Elk City conducts business," Elk City business-owner Dora Martindale said, reading from a prepared statement. "This information, in conduction with the disclosure that the Elk City charter had not been handled correctly in order to become law, prompted the auditor and inspector to agree with the citizens' committee petition request for a special audit."

LOCAL AUDIT

Each year, Elk City conducts an audit with a local firm, but Martindale said they only look at purchase orders and transactions. In previous audits, "flags were raised over areas of concern."

"Some of these areas were addressed immediately, some were never addressed," she said. "We are seeking an objective, third-party opinion to ensure the City of Elk City has operated within the boundaries of the city charter, state and federal law to ensure taxpayer money has been spent legally and that no other irregularities in day-to-day transactions exist."

'SANDSTORM'

Lane Henry is one of the members of the committee pushing for the audit. The city shouldn't hire a new city manager without first clearing the air, he said.

"What good is the headhunter service that they paid all the money for to hire somebody to come in here if they're going to coming into something with all of this hanging over his head?" he said.

Martindale brought up former city manager Gary Dumas, who was fired in August.

"He came into a sandstorm. He came in with all this stuff riding over his head," she said. "The new city manager needs to come into someplace with a clean slate."

She did not elaborate on what allegations or complaints the city faces. That information is currently not public, she said. There would be 36 categories that the auditors look at, but even Martindale doesn't know what those categories are.

"The state auditor's been researching this a whole lot longer than we've been thinking about it. They have tons of information hat we are not privy to," she said. "Elk City has been on the auditor's radar."

SCOPE

The petition states that an audit would examine transactions and procedures from July 1, 2007 to June 30, 2011

"They're going to look at every single thing during this time period. If they need to go back, they're going to go back farther. If not, they won't," said Martindale. "Once we get this petition turned into the state auditor, it's their thing."

The push for an audit is not an attack, she said.

"This is putting everything behind us so the city can move forward. We're not attacking any city officials. We're not attacking any entity, per se, except that we want a thorough audit. We don't want diffused answers when a question is asked. They can't do that with the state auditor," she said Martindale. "The city charter says we have to advertise and bid for every piece of equipment and land that's sold. Are they doing that? No. Are they getting estimates of the value? We don't know. There's a lot of things people don't realize that are going on and it's day-to-day transactions."

COMMISSION SUPPORT

The commission could preempt a citizen petition drive by formally requesting an audit from the state. Martindale said she approached the commissioners but only one out of the four she spoke to agreed.

When reached by The Daily Elk Citian, Ward 3 Commissioner Tom Davis said he supports an audit.

"I would 100-percent support that," he said. "I'm here to represent the people, and it's clear some of our people are dissatisfied."

Another commissioner reached, the representative for Ward 1, Allen Robinson, said he would not support requesting the state to conduct an audit unless he had a reason to.

"If we're going to try to have one done, I need to know why. I see no reason. If somebody has some information hat I'm not privy to, I'd like to see it," he said. "Why do things for no reason. If there's a reason to, you bet, I'd be all for it. I'd be all for voting for it. But without any reason or any information, why would you even consider it?"

Ward 4 Commissioner Dan Gambill said that unless someone could bring him evidence of impropriety, he would not vote to request an audit.

"People say there's a lot of things they have problems with, but they haven't brought me anything," he said.

Gambill said he believes the committee has an honest intent, but questions the timing of the petition.

"How far is Captain Ahab going to chase that whale? At some point you have to put it to rest," he said.

The commissioner is also concerned that the city could lose money from investments or non-profit support if those supposed red flags turn out to be true. Despite what the auditors might find, the intent behind the action was important, Gambill said. In some cases, a procedural error could have been made completing an action that was done for the betterment of the city, he said.

"Red flags don't necessarily mean that people were out to gain personally from it," he said.

Mayor Teresa Mullican said in a response that the city is audited every year, and that report is presented to the commission in detail.

"Although this is not a 'state' audit, it is a professionally performed, executed and presented audit," she wrote.

The other members of the commission could not be reached by press time. 

PRIVACY

The petitioners are adamant about the privacy rules in place to protect the identities of those who sign the petition. The only person who would know who signed the petition would be a petition circulator, and the signers' identities are protected by law. The only way the information could be released is by an order from a "court of competent jurisdiction."

Despite the secrecy of the signers' identities, the committee says they are operating in an open light.

"Everything that's on this petition is what we know, what the state auditor has told us. We are not hiding anything," Henry said. "We're open to any question. If anybody feels like they have a question and don't understand something, we will tell them everything we know."