The Oklahoma Department of Health shifted some federal funds into programs the money was never intended to fund and now faces a $30 million shortfall that could grow if the agency has to repay the federal government.
The Oklahoman reports that state audits dating back to 2015 pointed out problems with the Health Department's handling of federal money.
An audit of federal funds that year found the agency was not reconciling expenditures with the Office of Management and Enterprise Services in a timely manner, with as much as six months lag time on monthly reports.
The audit also found problems with the agency's handling of federal funds from the U.S. Department of Agriculture for nutritional programs.
Oklahoma's health commissioner, Dr. Terry Cline, resigned last month over accusations of financial mismanagement.