New Swadley's audit claims state owes company millions

OKLAHOMA CITY (KFOR) – An independent audit was performed showing the State of Oklahoma owing Swadley’s Foggy Bottom Kitchen money for their work in remodeling and operating state park restaurants.

The accounting was paid for by Swadley’s. It was conducted by Jana Walker, CPA from Woodward.

Over a million dollars is owed to the company, according to the report.

“Tourism has a balance owed to Swadley’s of $1,176,541 on open and submitted invoices,” read the audit.

Bryan King is the attorney for Swadley’s. He said the company worked at a $3 million operating loss in fiscal year 2022, and it did that to help the state fix its parks.

“If they were trying to do some nefarious scheme or get rich quick or some sweetheart deal, no one would be sustaining and continuing to operate at plus $3 million of net operating loss and over $1,000,000 in unpaid invoices with more invoices to come,” said King.

The attorney said more charges have yet to be billed to the state regarding the company’s work on Robber’s Cave and Quartz Mountain.

The Oklahoma Tourism and Recreation Department responded to the audit saying, “The state stopped payment to the vendor when concerns arose regarding billing inconsistencies and in order to assure the protection of taxpayer dollars all payments were immediately stopped.”

The State Attorney General’s office said it would not comment because of an active investigation.

OSBI said there is currently a criminal investigation underway.

The legislative watchdog group known as LOFT, looked at expenditures and management from the state’s side in their report that was released earlier this year.

However, it did highlight questionable charges from Swadley’s such as overpriced smokers, cheese-melters, and tile.

King could not speak to those charges, but said the company is complying fully with the OSBI investigation.

“The state has asked for Swadley’s to produce any auditing or accounting information,” said King. “It has. We have done that.”

You can read the full audit below.