Audit Shows McAlester Missing Millions

Analysis: Oklahoma State Auditor & Inspector [SA&I] Cindy Byrd Monday, June 23, released her special audit report for the City of McAlester. Auditor Byrd launched the investigation after residents submitted a citizen-petition request. Once again in Oklahoma, it is not elected leaders, but citizens calling attention to waste, fraud, and abuse.

The SA&I examined eight areas of concern regarding statute compliance and proper administration of public funds. Teachers, students and neighbors are missing significant money. Key findings include:

1. The McAlester Public School District was unable to provide documentation verifying the proper expenditure for $1,036,949.53 worth of McAlester’s sales tax revenue.

2. The “Share with a Neighbor” program did not have policies, procedures, or guidelines in place for financial transactions.

3. 6 of 44 Open Record Requests were not fulfilled in a timely manner.

“We did not determine that the school district misused any tax money, as we have in other districts,” Auditor Byrd said. “The district simply failed to maintain proper documentation. While that is problematic, it is also fixable by implementing some basic accounting procedures and safeguards. On the spectrum of government mismanagement, these violations are relatively minor.”

Over a million missing from the school district and an entire program without “policies, procedures or guidelines for financial transactions.” What bank gives money like that? Is it “minor” because it’s tax money or because Oklahoma is corrupt?

The full City of McAlester audit is available online here. While Byrd’s office has completed her audit, McAlester citizens may not see recovery of missing funds or prosecution of the guilty anytime soon. This is the 337^th audit released by SA&I this fiscal year.

Malfeasance and misfeasance can apparently be identified without consequences in Oklahoma.

Oklahoma State Auditor & Inspector Cindy Byrd

In Tulsa, the largest school district in Oklahoma, a Tulsa Public Schools (TPS) Special Audit conducted by SA&I was completed in February 26, and residents continue to demand that the Attorney General of Oklahoma Gentner Drummond bring the criminals (employees, board members, and consultants) to trial.

Claiming his office is still “investigating” many citizens believe AG Drumond, now actively campaigning for the office of governor, will not file charges to avoid irritating the powerful state education establishment. Question, how long does it take the largest law firm in Oklahoma (AG Office) to finish “investigating” after an audit report clearly detailing both crimes and criminals has been released?

SA&I conducted a review of over $37.7 million in TPS expenditures from 2015 to 2023. The assessment included an evaluation of TPS’ internal controls, oversight of public funds, and adherence to Board policies and statutory requirements. It involved examining more than 90 vendors and 900 transactions, uncovering over 1,400 discrepancies. TPS issued payments where invoices were paid without proper support or proof of services, and invoices lacked sufficient itemized details, the audit report noted.

Not to give too many examples of arrogance in the failure of fiduciary duty, but TPS Board Member John Croisant is now running as the Democrat Candidate for US House District 1. Croisant failed to provide competent oversight on the TPS Board and now campaigns to provide oversight in Washington. That takes a special kind of evil character.

To read the City of McAlester audit click here. To read the final audit report of TPS, click here.

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