State Auditor and Inspector Cindy Byrd has released the findings of a forensic audit of financial accounts of former District Attorney Allan Grubb who resigned in September of 2022.
While the audit doesn’t specify that any money was discovered missing, it appears to show mismanagement of public funds the District Attorney’s office received and distributed.
Current District Attorney Adam Panter said that he thinks it was more of a mismanagement issue than anything else.
“We’ve had to make a lot of smart decisions and be frugal,” he stated. “We’ve have to sacrifice quite a bit. I think we’re getting back on solid footing with a lot of hard work and huge help from both the Lincoln County commissioners and Pottawatomie County commissioners,” he noted.
“We take it quite seriously. As a policy, we don’t do Deferred Prosecution Agreements as I believe we should be transparent on our decision making,” he added.
The audit was requested in February of 2022 by then Oklahoma County District Attorney David Prater who was a board member of the Oklahoma District Attorney’s Council.
The allegations presented to the State Auditor and Inspector’s Office were that Grubb had failed to remit appropriate funds from the district to the DAC. Although an agreement had been put in place on Sep. 7, 2021, to repay the owed funds, the balance had not been satisfied as of the date of the request.
Prater’s letter stated that beginning in 2019 Grubb failed to remit appropriate funds to the DAC. The balance owned exceeded $467,807 the letter claimed, and with unpaid IT user fees the total amount owed by Grubb’s office exceeded $679,198.
Secondly, that Grubb allegedly utilized $275,791 from the District’s Drug Asset Forfeiture Account to repay the owed funds; a fund normally restricted in use.
Byrd said in a letter dated Aug. 27, 2024, addressed to current Oklahoma County DA Vicki Behenna, the audit was requested to determine if funds were remitted to the DAC and properly accounted for and used for authorized purposes.
When asked for a statement concerning the audit through her spokesman Andrew Speno, Speno said, “She is not able to comment on the audit.”
In the audit report, it states there were two objectives of the audit. One was to determine if the District remitted the required funds to the DAC and if all funds were properly accounted for.
The audit shows that when Grubb took office in January of 2019, payroll in the previous six months under the previous administration amounted to $864,438.20. In the first six months of Grubb’s administration that amount jumped to $950,271.59 and the average number of employees had jumped from 26 to 34.
Between July 2019 and June of 2020 the payroll increased to $2,155,019.40 with the average of employees numbering 38.
While the number of employees dropped to 34 between July 2020 and June 2021, the payroll amount jumped to $2,274,440.81.
The report states that the District did not remit sufficient funds to cover their financial obligations and per DAC records, the District had a deficit balance of $679,198.21 as of September 2021.
The audit relates that numerous inquiries were made by the DAC Executive Coordinator to the District requesting payment to satisfy the District’s request, but they reportedly were ignored by Grubb as were several recommendations on how to correct the budgetary issues.
Another objective was to determine if $275,791 of Drug Asset Forfeiture funds, normally restricted in use were applied to the District’s deficit improperly.
It’s pointed out the funds are restricted in use as defined by state statute that requires funds to be used solely for the enforcement of Controlled Dangerous Drugs, drug abuse prevention and drug abuse education.
The DAC and Grubb had signed an agreement Sep. 7, 2021 to correct the financial problems and in the agreement the former DA had promised to pay $275,000 from his Drug Asset Forfeiture fund as soon as a voucher could be approved and submitted.
Among the items in that agreement which included Grubb’s plan of improvement to correct the situation by no later than June 30, 2022 were: A reduction in staff of at least three full time employees.
Reduction in three salaries. One staff member would be transferred to his Child Support Enforcement Office.
A promise to pay $275,000 from his Drug Asset Forfeiture Fund.
No DAC distribution of funds to District 23 from Prosecution Assessments and the Uninsured Vehicle Enforcement Diversion program would occur until the negative balance were satisfied in full.
The audit states the DAC had agreed the Drug Asset Forfeiture fund would be utilize for previously incurred payroll costs.
It notes the DAC accepted the $275,791 and applied it to the District’s deficit payroll costs.
However, the audit report says no itemized time sheets were maintained and it could not be determined if the funds submitted were properly expended for statutorily restricted purposes.
Among other issues investigated were deferred prosecution agreements and a child support contract.
The audit showed from Fiscal Year 2019 through FY 2022, there were 194 DPAs documented in Lincoln County and 58 in Pottawatomie County.
A finding on the DPA issue as stated in the audit was “The District did not adopt official DPA guidelines regarding what factors to consider when deciding whether to offer DPA.s and the appropriateness of related assessed fees.”
Concerning the Child Support Contract, the audit found, “The District improperly charged the Department of Human Services $32,492.98 for the salary of a District employee who performed no work under the Child Support Contract.”
The Lincoln County News asked Grubb for comment on the audit, but he didn’t respond.