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 Stitt shared the first step would be bringing in an independent financial expert to "take temporary control of the department's finances." A news release said that individual would assess the agency's financial shortfall to give the legislature an accurate and credible supplemental budget request.

The Governor's office shared Monday that he has received a report pertaining to that step. Stitt appointed accountant David Greenwell to prepare the report. It first starts off by recognizing at $29.9 million dollar supplemental funding need for the agency, an amount that has been up in the air the past few weeks amid tense hearings at the state capitol.

In the report, Greenwell says there is a reasonable margin of error and that needs may vary due to changes in service levels or "unforeseen costs." The report doesn't say how the agency ended up in the budget hole, adding no audit or review services were done.

The review goes on to recommend a little over four dozen changes Greenwell says the agency should implement over the next year and a half to protect its billing patients and integrity. Key recommendations include hiring a new Chief Financial Officer and Internal Auditor, upgrading outdated accounting systems and expanding training.

Greenwell said in a statement he didn't believe anything about the department was "permanently broken." He said that adjustments should help the agency be able to "get back to the business of caring for the most vulnerable Oklahomans."

Agency Commissioner Allie Friesen has not sat down for an interview with News 4 but shared her own statement on the audit:

“Since joining ODMHSAS, I’ve been clear that I want to ensure this department is in the best position possible to care for those who need our services most. I’m grateful to Governor Sitt, David Greenwell, and the team at OMES for their assistance in this matter. We are going to come out stronger on the other side."

Allie Friesen, Oklahoma Department of Mental Health & Substance Abuse Services Commissioner

Governor Stitt stood by Friesen's leadership in a statement of his own Monday, despite calls for her resignation:

“No one signs up for a job like this thinking they’ll have to take on decades of financial mismanagement. Commissioner Friesen has navigated this challenge admirably and has kept me and my team informed every step of the way. Oklahomans will be better off now that we have a handle on this department.”

Governor Kevin Stitt

You can read the full report here.