In a decisive move to ensure fiscal responsibility and transparency, Oklahoma Governor Kevin Stitt has called for a special audit of the Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS).
This initiative aims to scrutinize the agency’s financial activities over the past five years, following concerns raised by Commissioner Allie Friesen regarding potential budgetary discrepancies.
Background of the Audit Request
On March 5, 2025, Governor Stitt formally requested the Oklahoma State Auditor and Inspector’s Office to conduct a comprehensive audit of ODMHSAS.
This action was prompted by Commissioner Friesen’s revelations about a possible structural budget deficiency within the agency, allegedly stemming from practices of the previous administration.
In her correspondence with the Governor, Friesen expressed concerns about the utilization of taxpayer funds in relation to the state Medicaid program, highlighting the need for a thorough financial review.
Commissioner Friesen’s Initiatives
Since her appointment in January 2024, Commissioner Friesen has undertaken significant reforms within ODMHSAS to enhance operational efficiency and financial integrity.
Her efforts include restructuring personnel, notably accepting the resignation of the former Chief Financial Officer in December 2024, and implementing measures to address systemic issues within the agency.
Friesen’s proactive approach underscores her commitment to accountability and the prudent management of public resources.
Legislative Response and Additional Oversight
In response to Governor Stitt’s audit request, legislative leaders have also taken steps to ensure comprehensive oversight of ODMHSAS’s financial practices.
House Speaker Kyle Hilbert and Senate President Pro Tem Lonnie Paxton have directed the Legislative Office of Fiscal Transparency (LOFT) to conduct an independent review of the department’s expenditures.
LOFT, established to promote fiscal transparency in state government, is expected to provide timely insights to assist legislators in fulfilling their oversight responsibilities.
Recent Challenges and Legal Scrutiny
ODMHSAS has faced multiple challenges in recent years, including legal scrutiny over its handling of mental health services.
In January 2025, the U.S. Department of Justice released a report alleging that the agency had unnecessarily institutionalized individuals with mental health disabilities, prompting discussions about federal overreach and the need for systemic reforms.
Attorney General Gentner Drummond expressed caution regarding the report, emphasizing the importance of state-led solutions over federally imposed mandates.
Financial Oversight and Medicaid Services
Effective oversight of Medicaid services has been a focal point for ODMHSAS. A 2021 audit by the Office of Inspector General evaluated Oklahoma’s oversight of Medicaid outpatient services for opioid use disorder, concluding that while oversight was generally effective, there were areas needing improvement.
The current audit seeks to build upon such evaluations to ensure that Medicaid funds are utilized appropriately and that any historical budgetary deficiencies are identified and rectified.
Key Developments in ODMHSAS Oversight
| Date | Event |
|---|---|
| January 2024 | Allie Friesen appointed as Commissioner of ODMHSAS. |
| December 2024 | Resignation of ODMHSAS Chief Financial Officer amid internal restructuring. |
| January 2025 | U.S. Department of Justice releases report alleging unnecessary institutionalization by ODMHSAS. |
| March 5, 2025 | Governor Stitt requests special audit of ODMHSAS’s financial activities over the past five years. |
| March 5, 2025 | Legislative leaders direct the Legislative Office of Fiscal Transparency to conduct an independent review of ODMHSAS’s expenditures. |
Governor Stitt’s call for a special audit of the Oklahoma Department of Mental Health and Substance Abuse Services reflects a commitment to fiscal accountability and the effective use of taxpayer dollars.
By addressing potential budgetary deficiencies and enhancing oversight, the state aims to strengthen its mental health services and ensure that public funds are managed with the utmost integrity.
The outcomes of the audit and subsequent reviews will be pivotal in guiding future reforms and maintaining public trust in Oklahoma’s mental health system.