Oklahoma City Non-Profit Addresses Alleged Misspending Highlighted in Auditor's Report

An Oklahoma City non-profit is responding after a federally mandated state audit called out millions in alleged "excessive management fees."

The Communities Foundation of Oklahoma was tasked with distributing federal COVID-19 relief funds during the pandemic.

This week, State Auditor and Inspector Cindy Byrd zeroed in on $10 million dollars in what she calls “excessive management fees” and more than $30,000 in “questionable expenses” for flowers, Top Golf, and cooking classes, among other line items.

“If the federal government decides to claw that back, Oklahoma will be on the hook to repay those funds,” Byrd said.

According to the State Auditor, The Communities Foundation of Oklahoma was tasked with distributing $241 Million dollars in federal COVID-19 relief funds as part of an Emergency Rental Assistance program designed to help those facing eviction due to the pandemic.

"During the first global public health emergency in over 100 years, we undertook this project staying in strict compliance with federal guidelines,” Communities Foundation of Oklahoma Executive Director Teresa Rose said in a statement, “We remain proud of the work we accomplished as an organization and the amount of people we were able to help in such a desperate time of need.” 

The non-profit claims when it comes to management salaries, there is "a discrepancy between the State Auditor and the State of Oklahoma." Saying of the nearly quarter billion dollars they administered, "no more than 10% is allocated for administrative purposes" in accordance with federal guidelines.

The audit highlights more than $30,000 the foundation spent on  gift cards ($12,303.47), flowers ($1,096.29), and entertainment/food ($18,285.57) like Top Golf, bowling, cooking classes, and Chicken N Pickle, which the report claims "are not necessary expenses for the distribution of (emergency) funds."

“Had that been used for Oklahoma’s neediest, we could have assisted 5,000 more people with housing stability payments or utility assistance,” Byrd said. “That’s a lot of people who may need help.”

Byrd said her office raised these concerns with the Office of Management and Enterprise Services, the state agency overseeing the non-profit's work. She said they ignored her recommendations.

News 9 has reached out to Gov. Kevin Stitt’s office and the Office of Management and Enterprise Services and has not heard back.