The City of Ozark engaged in "questionable bidding practices and agreements" involving $4 million spent on the Finley River Neighborhood Development District project, the state auditor said Tuesday night.

The practices "did not adequately protect the financial interests of the city," Susan Montee said in making public a citizen-demanded audit of Ozark.

Montee said she found "potential conflicts of interest and an ineligible ... board member" of the Land Clearance for Redevelopment Authority (LCRA). "The LCRA has not filed an annual report of its activities as required by law," Montee added.

Other findings contained in the audit:

-Ozark's parks and recreation board paid $1.5 million for 58 acres to build a sports complex. The board did not get the land appraised before purchase.

-The city's parks department isn't keeping track of proceeds from the annual Rubber Duck and Kinetic Kontraption Race. "Approximately $20,000 in race proceeds were being held by a non-profit organization in Springfield," Montee said. "Neither the board of aldermen nor the parks and recreation Board monitor these funds."

-The city doesn't keep solid control over its fleet of 72 cars and trucks. "Vehicle mileage and fuel logs are not maintained for most city vehicles," Montee said. "The city allows 13 employees to take city vehicles home at night, but does not track or report the value of personal automobile use as compensation. Of these 13 employees, eight live between six and 40 miles from the city limits. The city has not documented the benefit of allowing these individuals to commute in city-owned vehicles."

-Ozark "failed to retain adequate documentation for the calculation of a substantial increase in water rates," Montee said. "The city has not increased water rates for approximately seven years prior to the increase. Additionally, the city's procedures for contracting with other political subdivisions could be improved, and the city's 2008 budget did not include all information required by law."

Click on our video report to hear more from the audit report meeting.