A blistering state forensic audit has rocked the tiny Town of Washington, Oklahoma, alleging that more than $1 million was misappropriated from municipal accounts and effectively drained out of public view. Investigators say a long-time town clerk quietly funneled hundreds of thousands of dollars into personal accounts and processed payments that never received board approval, while town trustees largely failed to provide basic financial oversight. The result, auditors say, is a mess of unpaid taxes, vendor charges and a community now left to clean up the financial wreckage.
What auditors found
According to KOKH, the State Auditor and Inspector's Office identified former clerk Susan Noel as responsible for $676,368 in personal misappropriations and flagged more than $1 million overall in missing or unauthorized transactions. Auditors itemized $267,160 on Bank of America cards tied to Noel and her spouse, $191,777 in PayPal transactions, $63,059 on a Citi card, and $30,681 sent through Venmo for the purchase, grooming, transportation and delivery of dogs, along with thousands more in Amazon purchases, ATM withdrawals and other charges. State Auditor Cindy Byrd did not mince words, saying, “This is the worst example of board oversight I have seen in my 29 years of government auditing experience.”
Town response and timeline
The Town of Washington acknowledged the audit and said “the individuals identified in the audit are no longer employed by the town,” in a statement quoted by KOKH. The board voluntarily requested the forensic review in 2024, and meeting minutes show the State Auditor's Office began requesting records as the audit got underway. Town leaders say they had already begun making several corrective changes, including moving financial tasks to new software and tightening internal procedures, in an effort to regain control of the books.
Payroll, vendors and budget impact
The audit also found more than $40,000 in unauthorized General Fund payments to employees, along with duplicate payroll checks issued in December 2023. On top of that, auditors reported unpaid payroll tax withholdings from 2012 through 2019 that racked up $176,887 in unpaid taxes, interest and penalties. According to the report, Noel entered into an agreement with 20/20 Tax Resolution without board approval, resulting in $210,400 in unauthorized payments, and two General Fund checks were written to the IRS to “reduce her personal liability.” All of this leaves Washington trying to plug budget holes while officials scramble to rebuild basic financial controls.
Legal implications
The report alleges that vendor and payee information on bank statements was altered to conceal the fraud, a detail that could support criminal charges or civil recovery efforts if prosecutors decide to move forward. Town officials have said they cannot comment on any ongoing criminal investigations, but auditors and local leaders have signaled they will pursue repayment where possible and adopt stricter policies to keep a similar scheme from taking root again.
Next steps
Trustees are expected to review the audit's recommendations in upcoming meetings, tighten authorization and payroll procedures, and continue cooperating with state auditors and any investigators who request records. For now, officials say the immediate priority is stabilizing Washington's finances so basic services are not interrupted while the town works toward recovery, repayment and some measure of accountability.
