Governor requests state audit after apparent financial gaps at mental health agency

The governor on Wednesday said the Department of Mental Health and Substance Abuse Services requested a state audit after the agency found internal financial problems, and he asked State Auditor Cindy Byrd to “do a deep dive” to determine whether there has been mismanagement and whether additional state funding will be required.

The governor told reporters that Ali Friesen, who “runs the mental health department,” informed him of financial issues and that the agency has replaced its chief financial officer. “So she came to me and requested that we really look into this,” the governor said. He said the audit should determine “if there has been any kind of financial mismanagement, why do we have a gap in funding, how much have the roles grown on the Medicaid spend, are there any contracts we need to look at?”

Why it matters: the governor said the agency’s budget had climbed about 14% over the last few years and that state officials have been told the agency “may need a supplemental” on the order of tens of millions of dollars. He described the possible supplemental as roughly “60,000,000 or whatever they’re telling me,” and said the auditor should clarify the scale and the causes of any shortfall.

The governor framed the audit as part of a broader push for fiscal oversight. “As soon as I find out there’s an issue, I want to immediately put eyes on it, put focus on it. I like to say shine a light,” he said, adding that he is a proponent of rotating leadership and fresh reviews of agencies.

Reporters asked whether the audit is related to a consent decree approved by the Legislature this week; the governor said it is “not at all” related. He also responded to questions about rumors of layoffs at Tinker and potential sale of a federal building, calling those reports “rumors” and saying the administration will respond if they materialize.

What happens next: the governor said he asked the state auditor to investigate and that Cindy Byrd “will do a great job of really digging in and looking.” He said the administration will provide more information as the audit proceeds but did not specify a timeline for the auditor’s work or for any supplemental request to reach the Legislature.

Clarifications and limits: the governor’s statements describe requests and allegations reported to his office; no formal audit report, supplemental appropriation, formal findings, or formal vote were recorded during the briefing. The governor identified Friesen as the agency leader and Byrd as the auditor he asked to investigate; reporters raised but the governor denied any link to a separate consent decree that had been recently approved.