Forensic Audit Finds Major Financial Problems in Spencer City Government

Audit Uncovers “Systemic Problem” in Spencer

The Oklahoma State Auditor & Inspector’s Office released a forensic audit of the City of Spencer, Oklahoma this week, revealing severe financial mismanagement. The report cites more than $1.2 million in unpaid utility bills, including several city-council members whose services were never cut off despite non-payment. Additionally, auditors found hundreds of thousands of dollars in undocumented expenditures, missing documentation for a 2020 revenue bond, and more than $800,000 owed to the IRS for unpaid employee withholding taxes.

Scope & Implications of Findings

The investigation covers activities from 2016–2021, according to the auditor’s office. Auditor Cindy Byrd described the situation as “a systemic problem” and the findings have been referred to the Oklahoma County District Attorney’s Office for potential criminal investigation. The audit also highlighted municipal governance issues — sales tax reallocations made without public vote and lack of proper oversight of financial controls.

What’s Ahead for Spencer Residents

For residents of Spencer, these findings raise serious questions about how public funds were handled and the accountability of city leadership. Officials say corrective actions are required, including firmer internal controls, transparent accounting practices, and full restitution of any misused public funds. The auditor’s office will oversee the tracking of remediation efforts and expects progress reports from city management in the coming months.

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