Washington Audit Finds More Than $1 Million Misappropriated From Small Oklahoma Town

Washington Audit Finds More Than $1 Million Misappropriated From Small Oklahoma Town

A Washington audit released Wednesday found more than $1 million was misappropriated or improperly spent in the Town of Washington between 2020 and 2024, totaling nearly one-third of the small McClain County community's overall expenditures during that period.

The Washington audit, released by Oklahoma State Auditor and Inspector Cindy Byrd, identified former Town Clerk and Treasurer Susan Noel as the primary person responsible for more than $1,022,412 in fraudulent expenditures, unauthorized payroll and benefits, and an unauthorized tax resolution contract. The investigation was launched after the Washington Board of Trustees requested a forensic audit into the town's finances.

Washington Audit Details Years Of Alleged Misconduct

According to the Washington audit, Noel personally misappropriated $676,368 through checks, debit card purchases and digital payment platforms over several years.

Auditors found approximately $267,160 was used to pay Bank of America credit card accounts belonging to Noel and her spouse. Another $25,979 was spent on Amazon purchases delivered primarily to Noel and her family, while $30,681 was transferred through Venmo, much of it for dog-related expenses.

The audit also concluded Noel falsified financial reports presented to town trustees. During one reporting period in 2020, auditors found Noel reported only $26,380 in town expenditures when the actual amount exceeded $83,000. A similar discrepancy was identified in 2023, when reported spending totaled $38,080, while actual expenditures exceeded $73,000.

State Auditor Cindy Byrd described the findings in unusually strong terms.

"This is the worst example of board oversight I have seen in my 29 years of government auditing experience," Byrd said. "The responsibility for the financial welfare of the town ultimately rests with the board, which failed to exercise oversight of town finances as required by law."

The findings were released as part of a forensic investigation conducted by the Oklahoma State Auditor & Inspector's Office, which published the complete audit detailing the financial irregularities and supporting documentation through its official website at https://www.sai.ok.gov.

Audit Finds Oversight Failures Throughout Town Government

Beyond the alleged misappropriation of funds, the Washington audit found widespread failures in the town's financial oversight.

Auditors determined Noel and former Town Administrator Paul Aday served as the only authorized signers on Washington's bank accounts for 16 years, leaving elected trustees without direct financial oversight. The audit states several current and former board members told investigators they were unaware of the misconduct, while others said repeated requests for financial records were resisted.

The investigation also identified $70,607 in unauthorized payroll payments, $72,656 in utility revenue that was never deposited and $22,200 in cemetery plot sales that could not be accounted for.

From 2012 through 2019, Noel also failed to remit payroll taxes to the Internal Revenue Service, leaving the town responsible for $176,887 in taxes, penalties and interest. Auditors found an additional $210,400 was later spent on a tax resolution company without approval from the Board of Trustees, yet none of those payments reduced the outstanding IRS debt. Federal payroll tax requirements for local governments are administered by the Internal Revenue Service, which outlines employer tax obligations at https://www.irs.gov.

The audit further alleges Noel altered bank statements before providing them to investigators to conceal the true recipients of town funds. Auditors noted some additional records had been destroyed following a water leak, limiting the scope of the investigation.

Town Officials Say Changes Are Already Underway

Current Town Administrator Brandon Wansick said Washington officials are continuing to cooperate with investigators while implementing changes designed to prevent similar problems from happening again.

"We have read the report. We are deeply disturbed by the level of embezzlement and fraud that was going on within the town," Wansick said. "We are taking further steps to make sure that this never happens again, and we'd like people to know that we have new personnel at town hall and we are moving forward."

The audit also found former Town Administrator Paul Aday improperly spent $705 on unauthorized debit card purchases, including a pair of shoes he acknowledged he never reimbursed to the town.

The Town of Washington has about 700 residents, and officials say they will continue working with authorities as legal proceedings move forward. The findings remain part of an ongoing investigation, and any criminal proceedings would be handled through Oklahoma's court system as additional evidence is reviewed.

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