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Tuesday, September 17, 2024

State audit critical of COVID spending buried for months

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State Auditor & Inspector Cynthia Byrd and Gov. Kevin Stitt | State of Oklahoma

State Auditor & Inspector Cynthia Byrd and Gov. Kevin Stitt | State of Oklahoma

A state audit critical of Governor Kevin Stitt’s management and spending in response to COVID-19 was buried for months before being independently released by Oklahoma’s State Auditor and Inspector Cindy Byrd.

The audit and the delayed circumstances under which it was released underscore previous and ongoing transparency and accountability concerns over Stitt’s handling of pandemic related funds.

"I believe all public records should be open and easily accessible to the taxpayers," Auditor Cindy Byrd said. "After receiving an Open Records Request, and consulting with outside legal counsel, I have concluded there is no Oklahoma statute that gives any state official the authority to withhold this information. This audit is an inspection of existing public records. Consequently, my final audit report is neither confidential nor exempt from the Open Records Act. I feel compelled, both legally and ethically, to release the full audit report to the public. Oklahoma taxpayers paid for it – they should get to see it."

According to the Oklahoma State Auditor’s report, the state’s existing procedures and lack of an emergency procurement policy greatly increased "the state’s risk for fraud, waste, and loss of funds." 

The report stated, "OSDH did not have adequate inventory controls in place that would provide reasonable assurance that goods received are accurately recorded in the system." This lack organized policy and process at the time resulted in irregular pandemic spending "made in violation of the Oklahoma Constitution" according to the state audit.

Additionally, the audit found that the Stitt Administration’s documentation was in "disarray" noting "inconsistency in how the purchasing documentation was maintained" and a "disconnect between the purchasing and finance process."

According to reporting from State Impact Oklahoma, auditors were also concerned about significant salary increases of over $335,000 for the Commissioner of Health.

The audit drew attention to the fact that the OSDH director makes significantly more than comparable positions.

According to the release from the State Auditor’s office, the department’s audit of the Oklahoma State Department of Health was not approved for release for over 9 months.

Originally requested by former Attorney General Mike Hunter in April of 2020, Byrd delivered her department’s final report to the Attorney General’s office in May of 2021.

Byrd then met with the newly appointed Attorney General John O’Connor to advise him on the audit’s status with his office, the release stated.

Attorney General O’Connor has since withheld its release.

State Auditor Byrd finally released the audit independently without approval from the AG’s office in February 2022 saying, "I have concluded there is no Oklahoma statute that gives any state official the authority to withhold this information." 

Byrd continued, "[t]his audit is an inspection of existing public records. Consequently, my final audit report is neither confidential nor exempt from the Open Records Act. I feel compelled, both legally and ethically, to release the full audit report to the public."

The State Auditor’s report underscores previously reported concerns from watchdogs about lack of transparency and mismanagement related to Governor Stitt’s administration’s handling of pandemic funds.

A February 2021 evaluation from the Legislative Office of Fiscal Transparency (LOFT) likewise determined that the entity established by Governor Stitt to administer and manage pandemic related federal funds, CARES FORWARD, "did not facilitate transparency" and struggled with a "lack of consistent application of processes for data management, incomplete documentation, and a general lack of accessibility and transparency regarding expenditures and decision- making."

In a written response at the time, representatives of Governor Stitt’s administration referred to LOFT’s "evaluation" in quotes and decried the report as "agenda driven."

Cindy Byrd, CPA is the first woman elected as State Auditor & Inspector in Oklahoma and is the only candidate to receive over 800,000 votes in an election for state office in Oklahoma history. She previously served as Director of the County Audit Division and as Deputy State Auditor & Inspector for Local Government Services before becoming Oklahoma’s 13th State Auditor & Inspector.

The Oklahoma State Auditor & Inspector’s role is to safeguard public assets by, among other things, identifying wasteful spending.

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