Sallisaw City Officials Respond to Results of Lucas Investigative Audit

The findings of "an investigative audit conducted in response to a request from the Office of District Attorney Jack Thorp, District 27", to "address concerns encompassing the use of the City of Sallisaw's (City) credit card by former City Manager Clayton Lucas" were released Wednesday prompting a response from current city officials.

In light of the findings of the audit involving Lucas city officials stated that they are taking steps to avoid similar situations in the future.

In a statement, current City Manager Keith Skelton said, “The City of Sallisaw would like to thank Oklahoma State Auditor Cindy Byrd and her staff for their thorough review of city records. Although we regret a State Audit was needed, we welcomed the review and city staff fully cooperated with state auditors. 

“Beginning in early 2018, the Board of City Commissioners, current City Manager and senior city staff began reviewing and implementing policies and procedures; re-strengthening internal financial controls and city operation. These reviews continue." 

According to the Executive Summary portion of the audit Lucas incurred $55,052.73 worth of expenditures on his city-issued credit card. Of these purchases, $11,861.67 were deemed unallowable transactions that appeared to be for personal benefit and were not a proper use of public funds. In addition, expenditures totaling $6,589.97 were deemed questionable and were not supported by itemized receipts or invoices.

The audit also concluded that Lucas consistently ignored, changed, or eliminated purchasing and travel policies.

District Attorney Jack Thorp stated earlier Thursday morning that it was still unclear whether or not criminal charges would be filed against Lucas and an OSBI investigation is still pending against him.

Current Sallisaw Mayor Ernie Martens also responded to the audit findings, stating, “Even before the state audit began, the City Council and current City Manager began looking at policies and making necessary changes to ensure we are good stewards of taxpayer funds.”

“We want the public to have full confidence that we are working hard for the benefit of our community," he added. “We are proud of our city employees. Throughout this time, we had many employees who recognized what was right and what was wrong.”

“They continued to do right, no matter what they were told,” the mayor said.

Current City Manager Keith Skelton served as assistant city manager during Lucas' tenure and was hired to replace Lucas. 

After taking office, Skelton issued a memo on behalf of the city on Feb. 14, 2018, which forbade the unauthorized use of city property other than public-accessed park facilities. 

According to current city management the following processes have also been implemented to increase internal controls surrounding expenditures, such as:

*Total expenses claimed will be compared and reconciled to estimated travel expenses

*Travel costs will be compared to, and regulated by, defined policy limits

*The purpose of an expense, such as travel, fuel, food, etc., will be documented on the receipt before payment

*For any food costs incurred, receipts will be required to document the department and the name of all employees present

*Any expense made for multiple employees, like hotel charges or conference costs, shall name each employee’s relative costs

*All travel forms, including final reconciliation, shall be scanned into the Laserfiche system and maintain as required of other accounts payable expenses.

Lucas was the only city employee or official investigated in the audit.

Laura Brown, KXMX Staff Writer

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