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The Oklahoma Department of Mental Health and Substance Abuse Services faces significant financial and systemic challenges, according to a state audit released Tuesday (May 20). The audit, led by State Auditor Cindy Byrd, highlights financial disarray, including a nearly $30 million budget shortfall, questionable spending, and systemic issues within the department.
The audit revealed that some employees were required to sign non-disclosure agreements and discouraged from cooperating with investigators. Byrd's report criticized the department's leadership, noting that employees faced pressure and threats, and some were kept in the dark about internal matters. The audit also pointed out that the department's payroll costs increased by 49% between 2018 and 2024, with 38 new hires earning over $100,000 annually since January 2024.
Governor Kevin Stitt, who requested the audit, received a separate report from CPA David Greenwell, which outlined 52 recommendations to improve financial accountability and service delivery. Stitt expressed support for Commissioner Allie Friesen, who he believes is addressing the agency's challenges. Friesen acknowledged the department's issues and is working with external experts to resolve them.
The audit also criticized spending on a Super Bowl commercial promoting a suicide hotline and Narcan vending machines. The department's transition to a Medicaid managed care system has further complicated its financial situation, causing billing and payment delays. The agency needs $28.7 million in emergency funding to continue operations through the fiscal year.
The Oklahoma Legislature is considering a supplemental payment of about $31.4 million to stabilize the department. The general appropriations bill, House Bill 2766, proposes $27.4 million for payroll and redesignates $4.1 million from last year's funds.