A new federal audit of Oklahoma state agencies identified nearly $25 million in questioned costs and raised concerns about the management of several federally funded programs.
Oklahoma State Auditor and Inspector Cindy Byrd released the state’s fiscal year 2024 Federal Single Audit, which examined about $14 billion in expenditures involving federal grant money.
Questioned costs include spending that does not comply with requirements, cannot be adequately documented or may be considered unreasonable. Byrd said the past five federal single audits have identified more than $200 million in combined questioned costs.
“This is the fourth Single Audit in a row in which we have warned lawmakers and agency directors about the consequences of mishandling federal money,” Byrd said.
The latest audit identified problems involving the Oklahoma Department of Human Services, Office of Management and Enterprise Services and Oklahoma Department of Mental Health and Substance Abuse Services.
At DHS, auditors questioned $14.5 million involving child care programs, including $12.6 million connected to the Child Care Desert Grant Program. Auditors also cited inadequate oversight that allowed a former employee to allegedly misappropriate nearly $2 million from federal energy and water assistance programs.
The audit also raised concerns about Oklahoma’s Supplemental Nutrition Assistance Program error rate, which currently stands at 11%. Byrd’s office said Oklahoma could lose more than $236 million annually in federal funding beginning in October 2027 if the rate is not reduced.
OMES had another $3.8 million in questioned costs involving the Emergency Rental Assistance program.
Auditors also highlighted $6.2 million spent by the Oklahoma Department of Mental Health and Substance Abuse Services on design and planning for the proposed Donahue Behavioral Health Campus. The project was later abandoned.
“The federal government has the authority to demand all of that money back from the State of Oklahoma,” Byrd said.
