Report: Oklahoma Mental Health Agency Facing Nearly $30 Million Budget Hole
- The agency responsible for mental health and substance abuse programs in Oklahoma is facing a budget gap of nearly $29 million for the fiscal year ending June 30, 2025.
- This financial crisis arises from longstanding challenges such as previous questionable expenditures, increased Medicaid expenses, and the shift from a state-run to a privately operated Medicaid program.
- The audit by CPA David Greenwell and State Auditor Cindy Byrd highlights tripled professional services costs from 2014 to 2024 and a 50% payroll increase to over $150 million, noting 38 new six-figure positions since Ally Friesen became commissioner in January 2024.
- The audit advises the prompt hiring of a qualified chief financial officer, enhancing budget transparency, and implementing 52 recommended changes over an 18-month period to reinforce internal controls and improve patient care, while emphasizing that the mental health department is fundamentally sound and can recover through deliberate procedural adjustments, according to Greenwell.
- Governor Kevin Stitt and department officials acknowledge the issues but emphasize a new beginning and commitment to resolving problems amid concerns about $8 million owed to substance abuse providers and ongoing investigations.
11 Articles
11 Articles
Mental health department has ‘glaring’ issues, Oklahoma state auditor reports
OKLAHOMA CITY — A growing number of high-dollar executive hires and “questionable spending” on a Super Bowl commercial and Narcan machines have contributed to the financial disarray at the state’s mental health department, the state auditor reported Tuesday.
Report: Mental Health Department employees were 'discouraged' from cooperating with audit
Inexperienced administrators, unexpected Medicaid costs and sharply higher personnel expenses are among the reasons cited Tuesday by the Oklahoma Auditor and Inspector's Office for the financial quagmire at the Department
Audit reveals mismanagement in Oklahoma Department of Mental Health and Substance Abuse Services
The Oklahoma Department of Mental Health and Substance Abuse Services is under investigation following a state audit revealing financial mismanagement and leadership concerns.


Oklahoma mental health agency must mitigate risks to patients as deficit grows to $30M
OKLAHOMA CITY — The state’s mental health agency faces billing errors, fraud and information technology vulnerabilities in delivering services, an initial financial examination found.
State Auditor releases part of audit into Oklahoma Mental Health Department
State Auditor Cindy Byrd released the first part of her audit into the Oklahoma Department of Mental Health and Substance Abuse (ODMHSAS). The audit was done at the request of Governor Kevin Stitt after concerns arose surrounding funding at the department. This report is a financial analysis to estimate the short-term needs of ODMHSAS. It is not the final investigative audit report, said Auditor Byrd. However, even this abbreviated version revea…
Report: Oklahoma mental health agency facing nearly $30 million budget hole
OKLAHOMA CITY (KFOR) – An initial financial report called for by Oklahoma's governor says the state's mental health agency faces numerous errors and a nearly $30 million budget shortfall. In early May, Governor Kevin Stitt announced a series of steps to stabilize the Oklahoma Department of Mental Health and Substance Abuse Services amid ongoing issues with public confidence, transparency and financial and operational mismanagement. Governor Stit…
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