OKLAHOMA CITY – An examination of financial records indicates Dewey County District 1 Commissioner Dillon Berry deliberately sidestepped purchasing procedures outlined in state law, State Auditor and Inspector Cindy Byrd reported.
After state auditors performed interviews and reviewed county documents, “it appears the District 1 County Commissioner contacted vendors for debris removal and instructed them to spread out payments to family members and to a vendor’s multiple businesses to keep the price for each family member and business under the $15,000 bid limit,” Byrd wrote in her audit report.
Thus, Berry “did not allow the purchasing agent to start the purchasing process in accordance with state statute.”
The vendors’ invoices totaled $200,215 paid with public tax dollars, records reflect.
The allegations are contained in a report on a state audit of the county’s financial ledgers for fiscal year 2019 (July 1, 2018, – June 30, 2019) and are a reference to the record-breaking Rhea fire in Dewey County.
That wildfire started April 12, 201,8 and was not extinguished until 10 days later after incinerating approximately 289,000 acres; if “back burn” is included, the land scorched was nearly 300,000 acres, Berry said.
Back burning involves starting small fires along a man-made or natural firebreak in front of a main fire front. Back burning reduces the amount of fuel that is available to the main fire by the time that it reaches the burnt area.
Flames destroyed at least 30 homes and “a lot of old, unoccupied homesteads, too;” caused the death of a woman who was trapped in her car when it caught fire; and consumed several fire trucks, said Berry, a volunteer firefighter. A Seiling water tanker struck a stalled semi-trailer truck that was concealed by the heavy smoke, he recalled.
Three air tankers, two helicopters, four single-engine air tankers, two CL-415 scooping air tankers, an air attack plane and two National Guard helicopters reportedly assisted an estimated 500 volunteer firefighters in battling the flames.
Extreme temperatures amplified by prolonged drought and highly flammable Eastern red cedar trees contributed to the wildfire. The fast-spreading conflagration was named for the now-defunct community of Rhea, approximately nine miles southeast of Leedey.
County used 2 vendors
who were paid $200K
Months after the Rhea fire, Commissioner Berry contacted two separate vendors – neither of whom was identified in the state auditor’s report – to assist Dewey County in the removal of debris.
One vendor told auditors that Berry contacted him to complete debris removal of the Rhea fire “and to spread the work out over his multiple businesses and to keep each business under the $15,000 bid limit,” State Auditor Byrd wrote. The vendor used six businesses as well as himself to invoice Dewey County for the work performed.
Berry’s office also requisitioned purchase orders for payees who were not capable of performing the work because they did not own or rent the equipment charged on the invoices, Byrd reported.
“A payee stated that she and her business did not perform the work invoiced but her parents did complete the work. Therefore, it appears the District 1 County Commissioner knowingly requisitioned purchase orders and paid individuals incapable of performing the debris removal.”
Apparently, Berry’s office also altered vendor invoices to include dates of service, Byrd wrote. Invoices that vendors submitted to the Federal Emergency Management Agency for reimbursement did not list dates of service. After FEMA asked for new invoices that included dates, updated invoices were submitted to FEMA.
“However, a vendor stated that he was never asked by Dewey County to include the dates of service on his or his businesses’ invoices,” Byrd wrote.
The following information reviews payments made for debris removal, the two vendors contacted to complete the debris removal and their relationships with family members, and other businesses that assisted in the debris removal process.
Vendor 1: $109,818;
address on invoice
was a vacant lot
Eight purchase orders can be linked to Vendor 1 and individual family members. Vendor 1 is a construction company, and additional purchase orders were made to the owner of the construction company, the wife of the owner and three daughters of the owner.
The invoiced amounts ranged from $11,131 to $14,998, records show.
One purchase order was to a daughter’s business, which is a clothing boutique and hair salon. That invoice bears the same number as one of Vendor 1’s invoices.
Furthermore, the office and mobile phone numbers listed on the clothing boutique and hair salon’s invoice do not match the phone numbers on the website of the daughter’s business. Instead, the phone and mobile phone numbers match the office and mobile phone numbers of Vendor 1 and the owner of Vendor 1.
Also, the address listed on the invoice was a vacant lot.
Vendor 2: $90,397;
different business names
but the same address
Seven purchase orders can be linked to Vendor 2 and the vendor’s businesses. Vendor 2 is an individual, and five of the six other purchase orders are to this person’s businesses.
The invoiced amounts ranged from $10,005 to $14,255 and totaled $90,397.
Vendor 2 “admitted that not all his businesses owned bulldozers and none owned backhoes,” Byrd reported. Vendor 2 said that at the time the work was performed “he had access to four trackhoes and at least four bulldozers,” and said he may have leased other bulldozers. Six of the seven purchase orders linked to Vendor 2 had different business names with the same address.
Conclusions
Purchasing procedures outlined in state statute “were not followed,” Byrd pointed out.
“This condition resulted in non-compliance with state statutes and individuals being paid for work they did not perform and could result in inaccurate records, incomplete information, or a misappropriation of assets.”
Commissioner Berry, of Leedey, declined to comment about the audit findings.
The state audit, dated Sept. 8, was delivered to District Attorney Chris Boring, chief prosecutor for Alfalfa, Dewey, Major, Woods and Woodward counties. Boring did not respond to the Southwest Ledger’s request for a comment.