Auditors call party expenditures `improper'

HALLETT — The town of Hallett improperly used money from its general fund to pay for Hallett Public Works Authority ( PWA) Christmas parties, according to an audit released Wednesday by State Auditor & Inspector Cindy Byrd.

“According to a town official, the annual Christmas party invitations were sent out in the utility bills,” auditors said. “Since all town residents do not have PWA accounts, all residents were not invited to the Christmas party. Therefore, using general fund monies to pay for the PWA Christmas party would be considered improper.”

Hallett is a small Pawnee County town of approximately 125 people midway between Stillwater and Tulsa.

The town spent $1,692 for the Christmas party in 2016 and $946 for the party in 2017, auditors said. The money was used to purchase food, party supplies, small gifts, gift cards and other miscellaneous items.

Independent auditors initially called the problem to the attention of town officials in December 2018, prompting officials to transfer $940 from the PWA bank account to the general fund to cover the cost of the 2018 party, the state audit report said.

State auditors said it might be permissible to use public works authority funds to pay for the party, but said “the town should evaluate whether a Christmas party is the best use of PWA resources.”

Auditors also criticized Hallett town officials for having a pay arrangement with its water operator that was open to interpretation and did not include a contract. The arrangement called for the PWA to pay the person $1,000 per month in salary and $12.50 an hour for extra PWA-related job duties.

“Since there was no contract in place, it could not be determined what job duties were to be considered part of the $1,000 monthly salary versus what job duties should be paid as 'extra' at the $12.50 hourly rate,” auditors said.

The operator also was given a $40 per month cellphone allowance by the PWA. Beginning May 8, 2017, the town board also authorized general fund monies to be used to pay the worker $10 an hour, for up to 40 hours per month, for maintenance work done on behalf of the town.

The worker received $5,629 for “extra” work duties and mileage and $1,381 for general fund maintenance work during the two-year audit period, auditors said.

“The quality of records submitted by the water operator in support of work performed was of such poor quality that it was not possible to ascertain whether mileage and hourly payments were appropriate,” auditors said.

Auditors also reported:

• The town has been paying its clerk/treasurer $1,000 a month, although an out-of-date ordinance listed the pay as $750 a month. Officials told auditors the ordinance would be updated.

• Town elections were held in accordance with state law, but election results and changes to the board due to resignations were not consistently reported to the Pawnee County Election Board as required.

• Town expenditures were for appropriate purposes, but were not encumbered in a timely manner.

In the interest of transparency, auditors suggested that town officials include complete bank statements in their monthly board packets and release utility billing records as required by the state Open Records Act.