YUKON, Okla. - While the state is in the midst of a major budget crisis, the city of Yukon is also facing a shortfall.
Yukon's City Council announced it discovered several financial issues related to mishandled funds.
In 2015, officials said $1.3 million was taken from bond funds without the City Council's approval.
Bond funds are meant to pay general expenses for capital improvement projects around town.
Also, purchases over $25,000 are required to go out for a competitive bid, but city employees were supposedly directed to go against that city ordinance.
Officials said there may also be inaccuracies from past audits for the city of Yukon, adding the 2015 audit will have to be redone and the 2015-2016 budget is inaccurate.
A forensic accountant said the city has been using its reserves to pay expenses for several years.
Now, it does not have enough money to pay its bills for the rest of this fiscal year.
As a result, the city of Yukon is facing layoffs, may have to liquidate assets and borrow money to meet its obligations.
The city's former accounting firm said it is too early to assess the extent of Yukon's budget gaps.
"We have been working with the new municipal consultant as the former municipal accounting consultant to provide information that would clarify the situation," said Derrel White with the accounting firm F.S.W.B C.P.A.'s.
Yukon city officials declined to comment, citing an ongoing investigation into the case.