Oklahoma City – The Oklahoma State Auditor and Inspector, Cindy Byrd, released the 2024 Federal Single Audit (FSA) covering roughly $14 billion in federal grant spending. The audit, required by federal law, identified “questioned costs” – expenditures that either violate regulations, lack proper documentation, or appear unreasonable – totaling almost $25 million for the fiscal year.

Scope of the findings

Byrd said the cumulative questioned costs from the past five audits exceed $200 million. While the total amount fell slightly from the previous year, the auditor warned that Oklahoma still has significant work to do to protect taxpayer dollars and maintain compliance with federal requirements.

Agency‑specific problems

The audit singled out three state agencies for particular concerns:

• Department of Human Services (DHS) – Oversight failures were found in the Child Care Desert Grant Program, the Low‑Income Heat and Energy Assistance Program (LIHEAP), the Low‑Income Household Water Assistance Program (LIHWAP) and the Supplemental Nutrition Assistance Program (SNAP). For the child‑care grant, DHS did not verify attendance records, allowing 23 % of sampled facilities to claim attendance well above licensed capacity. Approximately $12.6 million, or 95 % of the child‑care grant funds examined, were classified as questioned costs.
• DHS also allowed a former employee to misappropriate nearly $2 million from LIHEAP and LIHWAP by approving payments on expired applications and altering banking information.
• The audit warned that SNAP error rates in Oklahoma stand at 11 %, above the 6 % threshold that will trigger a federal reduction in SNAP funding, potentially costing the state more than $236 million each year.
• Office of Management and Enterprise Services (OMES) – The agency reported $3.8 million in questioned costs for the Emergency Rental Assistance (ERA) program, adding to $15.8 million previously identified in the same program.
• Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) – The department spent $6.2 million on design and planning for the proposed Donahue Behavioral Health Campus without evaluating feasibility or long‑term funding. The project was later abandoned, leaving taxpayers with no return on the investment.

Potential consequences

Byrd emphasized that the federal government has the authority to demand repayment of any misused funds. She called the issue “non‑partisan” and urged state leaders to strengthen internal controls, noting that mismanagement not only harms Oklahoma residents but also deters outside investment and jeopardizes future federal aid.

Next steps

The full FY 2024 Federal Single Audit is available on the Oklahoma State Auditor & Inspector’s website. State officials and agency directors are expected to review the findings and implement corrective actions to reduce waste, fraud and abuse in future grant programs.

Original reporting: Broken Arrow Sentinel — read the source article.