Routine Audit Reveals Numerous Discrepancies In State Spending On Personal Protective Equipment

A new state audit released shows over $20 million spent on Personal Protective Equipment (PPE) equipment can’t be accounted for.

The discovery was made during a routine audit done by the Oklahoma State Auditor & Inspector's Office.

During the COVID-19 pandemic, Gov. Stitt signed an executive order changing the state’s purchasing process.

The order gave the Oklahoma State Department of Health authority to make purchases of PPE in a time of need.

A 14-page audit, released Tuesday, reveals several problems.

First, the state paid $20.4 million dollars on PPE, however, there is no documentation or evidence to show those supplies were even received. 

Then, 18 different wire transfers totaling $18,875,846 were not properly entered into the statewide accounting system for the last fiscal year.

The audit also revealed duplicate payments of $32,232 to a vendor. That vendor, according to records, has yet to return the second payment which was sent by mistake.

Several other payments in the millions have also been found to have been recorded after the fiscal year ended. Some payments found not to be even recorded at all.

State health officials refused an on-camera interview Wednesday but sent this statement to News 9 from State Commissioner of Health, Dr. Lance Fry.

“From the very beginning of the COVID-19 pandemic, the Oklahoma State Department of Health (OSDH) addressed an extraordinary situation with decisions driven by protecting the health and safety of Oklahomans. This included investing in PPE to protect our frontline healthcare workers, nursing home residents and staff, and others at high risk from COVID-19.

We are committed to addressing any findings in the audit related to OSDH. This audit spans decisions made under a prior administration, but its findings are key as we continue reviewing all of our agency’s processes to ensure that our financial transactions are secure, properly documented and transparent — now and in the future.

OSDH is conducting a thorough review of the audit internally, as well as a forensic analysis of our PPE supply and financial records. We will be able to respond to any inquiries on specific aspects of the audit as soon as the review is complete.

We look forward to working with the Attorney General’s office to reconcile any outstanding issues and will continue to be transparent with how funds were spent throughout the COVID-19 pandemic.”

It is important to note that the current health commissioner, Dr. Frye, was not in charge during the entire duration of this audit.

The former commissioner, Gary Cox, stepped aside after lawmakers chose not to hold a hearing to confirm his nomination.