State Auditor Susan Montee found several concerns related to economic development building projects in Lebanon.

Montee says a member of the city council voted to hire a firm to provide architectural and management services for a building project with apparent knowledge he would work for the firm on the project.

The audit states the council member was the project manager and construction company owner.

That means the councilman was responsible for approving the work done by his own company.

The audit goes on to say the councilman approved additional construction costs of $250,000 to meet the specific needs of the manufacturing company.

The councilman’s construction company was paid $180,341 of that money.

Montee’s office says no bidding was performed for the additional improvements.

Montee says the audit also found bids were not solicited for some amounts paid to other contractors related to the same project.

The state auditor says if the council member’s construction company was the best choice the city should have posted competitive bids or advertised to avoid the appearance of conflict of interest.

Montee says the city could also be circumventing prevailing wage laws.

She says the city is paying workers less than what they would make in the private sector.

The 45 page audit also brought up issues regarding utility customers possibly paying too much.

The issue of lack of competitive bidding was brought up on several occasions for purchases ranging from envelopes to ammunition.

The auditor’s office also noted controls and procedures involving city expenditures needs improvement.

The city does not have a formal food, credit card or cell phone policy.

Lebanon Mayor C.P. Craig pushed for the audit before he took office.

Craig says the city has already completed 90% of the auditor’s recommendations.

“We have problems with inefficiency and ineffective government.” Craig said, “We’ve lost the public confidence and now we are working hard to regain it.”

The chief petitioner for the audit Greg Sullivan says the auditor’s office found more improper bidding conduct than he was expecting.

Sullivan says, “I hope the city can continue to move forward to make sure these types of things don’t happen in the future.”

Some members of the audience on Wednesday night questioned the timing of the audit.

They spoke out calling the audit politically motivated and questioned the findings.