Oklahomans should be troubled by the findings uncovered by State Auditor Cindy Byrd showing state officials likely misspent at least $29 million in pandemic aid and ignored federal grant guidelines.
The consequences could be taxpayers returning money that officials did not properly oversee. If those in charge had been following the rules and doing their due diligence, this would not be necessary. It is poor governance and oversight.
Auditors looked at $14 billion in expenditures in several agencies including those handing out rental assistance, unemployment benefits and education-related funds. In a 256-page report, auditors stated some agencies took steps to remedy the issues while others have not.
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Of particular concern is the mismanagement within the nearly $40 million Governor’s Emergency Education Relief Fund, called GEER, that came through the Coronavirus Aid, Relief and Economic Security Act. The state findings back up a critical federal audit released a year ago that suggested the U.S. Department of Education seek the return of $6 million.
It states that a GEER program — administered by State Superintendent Ryan Walters, who was then a private citizen because he had not yet been named the governor’s secretary of education — gave preferential treatment to five private schools and wealthier individuals.
Byrd, a Republican in her second term of office, has repeatedly shown professionalism and impartiality. She has a history of taking on powerful players, including the founders of Epic Charter School who now face state racketeering charges.
Her investigations have stood up to challenges time and again. That track record gives us confidence in this audit.
GEER funds were divided into different programs with Walters in charge of Bridge the Gap and Stay in School.
Bridge the Gap provided $8 million for low-income families to buy school materials and tutoring. Both audits found purchases for noneducational items such as televisions, Christmas trees and power tools. The state audit estimates about 20% of the total was spent on unauthorized items.
Gov. Kevin Stitt and Walters have blamed the Florida-based contractor, ClassWallet. The state audit found that Walters gave “blanket approval” to all vendors — and, therefore, all items — with ClassWallet.
Stay in School was to provide $10 million to low-income families to pay for private school.
Byrd’s audit questions 65% of the expenditures and found a deliberate plan that allowed early access to five schools, including Tulsa’s Crossover Preparatory Academy, and certain residents before the general public.
The audit states that $1.8 million in excess payments were improperly given directly to those schools. Also, 1,073 students who received aid came from families not suffering from pandemic-related financial losses. Some 657 eligible students were denied because funds ran out.
To date, no one has been held accountable for misallocations in these programs. That is unacceptable.
Read More: Hold accountable anyone who misappropriated pandemic relief funds