State Auditor and Inspector Cindy Byrd has hammered two large state government agencies she said combined to mismanage more than $85 million in pandemic-era federal funds.
In the mandated Federal Single Audit of expenditures made in fiscal year 2023 – which covered July 1, 2022, through June 30, 2023 – Byrd said throughout state government, her auditors found a record $93.4 million in questioned costs, which are defined as any expenditures that do not comply with the law, cannot be documented or appear unreasonable or unethical.
Of that total, the vast amount of questioned costs came from either the Oklahoma Department of Human Services or the Office of Management and Enterprise Services, Byrd said.
The combined total of questioned costs from the last three Federal Single Audits stands at more than $186 million, she said during a news conference at the state Capitol on Wednesday, Aug. 27. That’s money Oklahoma likely will have to eventually pay back to the federal government, she said.
“Our nation is $37 trillion in debt,” Byrd said. “It's easy to lay blame for this on legislators in Washington, D.C., but America is in a debt spiral and we will never pull out of this from the top down. Only the states can clean up their own wasteful spending. It's past time for Oklahoma to put its financial house in order. And if you take away anything from this, take this – if mismanagement of your tax dollars continues, then state taxes will go up, federal taxes will go up and government services will plummet.”
Thousands of Oklahomans could have received rental assistance, auditor says
Byrd said OMES mismanaged more than $21.8 million in grant money earmarked to provide rental assistance to Oklahomans during the pandemic, with much of it going to management fees charged by a nonprofit contracted by the state agency. As a result, she said, an estimated 7,659 Oklahomans could have received rental assistance but were denied.
Bonnie Campo, director of strategy and outreach for OMES, said the agency is working with the auditor’s office to address the report’s findings, something Byrd confirmed.
Campo said during the COVID-19 pandemic, “the state moved quickly to launch the Emergency Rental Assistance Program, helping thousands of Oklahomans stay in their homes during a time of uncertainty. To implement this, the state partnered with various groups to responsibly carry out the mission of the program to provide critical support when families needed it the most.
“We remain committed to transparency, accountability and finding the best path forward to ensure Oklahoma continues to deliver programs that serve our citizens effectively while holding those entrusted tax dollars to the high standard expected by Oklahomans,” Campo said.
Department of Human Services did not maintain proper records on federal grant money
As for the Department of Human Services, Byrd said the agency failed to put proper guardrails on expenditures for more than $63.6 million in federal grant money. The money was supposed to be spent on programs intended to expand childcare access, as well as on welfare benefits.
“One of the primary purposes of the grant was to help childcare facilities cover normal operating expenses, like payroll and grants during the pandemic, ensuring that mandated lockdowns did not result in the permanent club closure of daycares in Oklahoma,” Byrd said.
The agency failed to maintain proper records, she said, making it difficult to determine what might be a legitimate expense and what would not be.
Jeffrey Cartmell, the agency’s director, said the agency’s “commitment to serving communities is rooted in continuous growth and improvement.”
He said the agency valued the review, saying it “informs strategic planning and drives program improvements, allowing us to provide top-tier services to Oklahomans.”
Byrd said leaders of both the Department of Human Services and OMES – who were not in place during the period of time covered under the audit – are cooperating with her office.
“The new directors at both agencies are taking proactive steps to clean up the mess that they were left with, and I believe that things are headed in the right direction,” Byrd said. “However, that doesn't change the fact that the decisions of former leadership at DHS and OMES have let the state in an uncertain position.”
A spokesperson for Gov. Kevin Stitt, who appoints the leaders of both agencies, did not immediately respond to a request for comment on the audit.
Byrd, a Republican who is term-limited as state auditor, has announced plans to run in 2026 to become lieutenant governor.
This article originally appeared on Oklahoman: Oklahoma mismanaged federal rent, day care funding, state auditor says
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