OTTUMWA — The state auditor’s office has determined the city’s transit system overstated ridership “by an estimated 50 percent,” and that the inflated numbers were increased by office staff on the instructions of Director Pam Ward.

The state audit, released Wednesday morning, also indicated documents showing rider numbers prior to July 2009 were destroyed by the Ottumwa Transit Authority. Auditors found “significant variances” between daily counts and OTA summary reports.

The ridership numbers are critical to the Ottumwa Transit Authority because they help determine how much money OTA receives from state and federal sources.

Ward flatly denied intentionally violation laws on ridership reporting and alterations to drivers’ timesheets. But she acknowleged the impact to OTA could be significant, saying the transit authority could be crippled if the state and federal governments seek reimbursement or withhold funds due to the ridership numbers.

City Administrator Joe Helfenberger said the city could not discuss the audit until it was released, but is now carefully reviewing what actions may need to be taken.

The story is still developing and the Courier will have additional updates over the course of the day.