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Audit of Broken Arrow Economic Development Corporation finds misuse of funds

Posted: 1:57 PM, Jan 25, 2019
Updated: 2019-01-25 23:33:46-05
Cash

BROKEN ARROW, Okla. — An audit of the Broken Arrow Economic Development Corporation (EDC) has found a misuse of funds, according to City of Broken Arrow officials.

Authorities said in early 2018, City Manager Michael Spurgeon received several complaints regarding questionable business practices and possible inappropriate use of Broken Arrow Chamber of Commerce and EDC funds by the former president and CEO.

The audit into the EDC found a lack of financial documentation. Hundreds of reviewed transactions did not have receipts. There were transactions that appeared personal in nature and were not reimbursed by Chamber employees. 48 transactions totaling $20,276 had the appearance of being personal expenses.

Examples include:

  • $899 – American Airlines Elite Status Boost
  • $723 – Airline ticket purchased for an employee’s spouse
  • $1,958 – Cash advances in which no documentation for the purpose of the cash advances was provided.

Officials said some funds contracted for downtown redevelopment were not spent for their intended purpose.

An audit of the BA Chamber of Commerce was also conducted, but information about that audit wasn't immediately available.

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