SOUTHPORT, Ind. -- There was another heated exchange Monday night involving the mayor of Southport and City Council members after a 6News Watchdog investigation.

Last week, a 6News report uncovered an audit that indicated several instances of mismanagement of taxpayer funds. Council members referred to the audit, putting Mayor Rob Thoman on the defensive, 6News' Ericka Flye reported.

The audit indicated that the city hadn't properly kept bank records, paid for things out of the wrong funds and passed a budget without properly advertising it to the public.

While the audit revealed some issues concerning the current clerk treasurer, Thoman blamed most of the issues on a former treasurer.

"Ninety percent of the things that are on that state audit report were from the time of the previous treasurer," Thoman said. "I think it was a good report. It showed exactly what our problems were."

Council members and some citizens clearly disagreed with Thoman's assessment.

"Mayor Thoman indicated the audit was a good one. The council believes that the mayor needs to review the report to determine whether the issues referenced are a good reflection on the city of Southport," said council member Jim Cooney.

"Enough is enough, and the name calling -- I cannot stand that," said one resident. "I cannot stand to see the TV, turn it on and hear you calling our council members ignorant."

That comment drew a retort from Thoman, "Then why are you standing in front of it now?"

Cooney said on Tuesday that he's concerned the city's financial issues could put a $1.2 million road project on Anniston Drive at risk. Southport will need to borrow $300,000 to complete the project.

"The city's inability to provide financial documents will affect people's willingness to lend us money," he said. "If our financials are not appropriate, that will affect the interest rate on the amount of money we need to borrow."

Thoman disputed Cooney's claim and said he is doing everything he can now to get the city and its finances back on track.

More Information: Southport Audit