State Auditor: audit shows town of Red Rock misappropriated 39% of expenditures

FORENSIC AUDIT SHOWS TOWN OF RED ROCK MISAPPROPRIATED 39% OF EXPENDITURES

OKLAHOMA CITY, OK (October 1, 2024) -- Oklahoma State Auditor & Inspector [SA&I] Cindy Byrd today released her forensic audit report for the Town of Red Rock in Noble County. Auditor Byrd launched the investigation after receiving a request from District Attorney Brian Hermanson.

The SA&I investigation covered a five-year period between January 1, 2019 and December 31, 2023. The audit exposed a significant number of questionable expenditures among the Town Clerk/Treasurer and Town Board members. 

Jolavon Childs, the former Town Clerk/Treasurer, misappropriated $241,752.37 involving 368 transactions. These transactions included checks written to herself, checks made out to Cash, checks issued to Town of Red Rock, and cash withdrawals. This total includes undeposited utility revenue. During this period, Roy Childs, Jolavon’s spouse, also received $42,595.00 in unlawful payments.

Another former Town Clerk/Treasurer, Michelle Cline-Cameron, received $5,700.00 in excess of her allowable pay. Additionally, Town Board members received $46,121.98 more than their allowable salaries. 

“Cline-Cameron took the job and immediately started misappropriating funds,” Auditor Cindy Byrd said. “She was able to do this because the Board members signed blank checks in advance. She then wrote checks to herself and cashed them.”

In total, $336,169.35 was misappropriated from the Town and the Public Works Authority.

“Red Rock has a population of fewer than 300 people so it operates on a small budget,” Auditor Byrd said. “In the five years of expenditures we reviewed, the town spent $1,289,109. That means 39% of the town’s expenditures, a total of $496,934, went into the pockets of Jolavon Childs, Roy Childs, Cline-Cameron, and the Board members.”

Although many of the questionable transactions were seemingly concealed from Board oversight, an elementary review of Red Rock’s monthly bank statements could have detected many of these issues. No audits had been conducted by the Town since at least 2016.

“Review and approval of all spending should have been a matter of routine business for the Town Board,” said Auditor Byrd. “Sadly, none of the Board members participated in oversight training during their tenures in office. As always, it’s the honest tax-paying citizens of the town who will suffer.”

The full audit is posted here on the Oklahoma State Auditor & Inspector’s official website.