Between July 2020 and June 2024, Washington's government expenditures totaled around $3.3 million. More than $1 million of those expenditures were unauthorized or fraudulent, according to the audit report released Wednesday.
"This is the worst example of board oversight I have seen in my 29 years of government auditing experience," State Auditor Cindy Byrd said in a statement.
Most of the misspent money was spent by former town clerk and treasurer Susan Noel, the audit found. Between 2020 and 2024, Noel allegedly funneled hundreds of thousands of dollars toward personal credit card payments, her mortgage and utilities, and other personal transactions. Those include nearly $26,000 of Amazon purchases, a $1500 puppy from a doodle breeder and about $30,000 in "dog-related expenditures" over Venmo.
The report also found Noel doctored bank statements shared with the State Auditor and Inspector's office to obscure the fraudulent purchases.
Noel's employment with the town was terminated in July 2024; she had served as Washington's clerk and treasurer since 2007.
The audit also found fraudulent expenditures from former Town Administrator Paul Aday, who worked for the town more than 30 years. He was terminated a few months after Noel in 2024.
Noel's daughter, Kasey Lesher, and son-in-law, T.R. Lesher, also worked for the city as a utility billing clerk and water operator, respectively. Although the audit found Noel used town funds to pay utility bills for the Leshers and order Amazon shipments to their home, the Leshers told state officials they were unaware she was using taxpayer money for those transactions. The Leshers resigned their positions with the town earlier this year.
Current Washington officials shared a statement on social media, saying the town's Board of Trustees requested this audit in 2024 after identifying concerns about town finances.
"We understand the impact this situation has had on our community," the statement said. "As public servants and residents of this town, we share in the frustration and disappointment. The misuse of public funds is unacceptable, and we take this matter personally."
The report calls for the Board of Trustees to exercise more oversight over town expenditures.
"Even though several of the questionable transactions appeared to have been purposefully hidden from the oversight of the Board, timely review of bank statements, check registers, or monthly expenditure reports would have revealed many of the questionable transactions," the report said.
Town officials said many of the corrective actions recommended in the report have already been implemented, and more are in the works.
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