Oklahoma Auditor Flags $24.8 Million in Questioned Federal Spending

Oklahoma State Auditor Cindy Byrd revealed that the Federal Single Audit for Fiscal Year 2024 identified $24.8 million in questioned costs, which are expenditures that lack documentation, appear unreasonable, or violate federal guidelines. While this figure is a decrease from the $93 million reported in 2023, Byrd warned that the federal government can demand refunds for any unverified expenditures.

The Oklahoma Department of Human Services accounted for the largest share at $14.8 million. This total includes $14.5 million in childcare funds and the Child Care Desert grant program, which Byrd noted were plagued by fraudulent enrollment forms, a lack of overnight inspections, and inadequate verification. Additionally, a DHS employee faces a felony indictment for misappropriating nearly $2 million from the Low-Income Home Energy Assistance Program.

Other significant costs include $6.2 million from the Department of Mental Health and Substance Abuse Services, primarily for the design of the Donahue Behavioral Health campus, a project that was ultimately abandoned without feasibility documentation. The Office of Management and Enterprise Services accounted for $3.8 million in questioned costs related to a COVID-era emergency rental assistance program.

Byrd also warned that Oklahoma risks losing $236 million in SNAP benefits due to an 11% payment error rate, which exceeds the federal 6% threshold. She called for a special investigative audit of DHS childcare services to address systemic waste. In response, DHS public information officer Sylvia Corkill stated that the agency leadership will conduct a methodical review of the findings.