Garden City ? Financial irregularities involving more than $1 million were found during an audit of an independent living center in Garden City and two related offices in Liberal and Dodge City, according to state records.

Garden City’s Center for Independent Living for Southwest Kansas and the two other offices were closed Monday shortly after an emergency meeting with the center’s employees. The center serves about 500 clients in 35 counties, helping disabled people to live independently, The Garden City Telegram reported.

Bill Miskell, spokesman for the Kansas Department of Social and Rehabilitation Services, said the state ended contracts with the organization last week. But he said it was the center’s board of directors’ decision to announce the emergency closing.

Eleven SRS workers arrived in Garden City on Tuesday to help the center’s clients find services, Miskell said. He said home visits would be completed within four days, if the weather cooperates.

In a letter to the center dated March 2, Christopher Johnson, assistant audit director, said auditors found $340,093 in undocumented state grant monies spent by the center, and $790,420 in Medicaid claims that were not billed correctly or did not have supporting documentation.

The Kansas Rehabilitation Services is seeking reimbursement of the $340,093.

Victor Otero, who had been interim director of the center, said employees were told during Monday’s meeting that the center was closing “for mismanagement of funds.” He became the interim CEO on Dec. 30 after the departure of Dea Kent, who was the chief financial officer before becoming CEO in February 2010.

After the audit, which covered Oct. 1, 2007 to June 10, 2010, auditors recommended that findings be forwarded to the Kansas Health Policy Authority for possible investigation and recoupment, Johnson wrote.

Michael Donnelly, director of SRS Rehabilitation Services, said in a letter to the center that Roberta Lackey, president of the center’s board of directors, had not responded to a request for a letter outlining the center’s plans to ensure delivery of services and steps to stabilize the organization.