State audit finds no 'egregious wrongdoing' by Oklahoma Turnpike Authority

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While a long-awaited investigative audit of the Oklahoma Turnpike Authority released last week found no instances of "egregious wrongdoing or significant statutory non-compliance," the state auditor suggested the legislature could address continued concerns about the agency's practices in the wake of an $8.2 billion, bond-financed expansion program.

OTA acted within its broad legal powers for the most part, according to State Auditor and Inspector Cindy Byrd, who told reporters last week that the agency "has little incentive to negotiate contractor prices down or to avoid additional debt because OTA has the ability to raise toll rates to pay for that debt." 

Audit findings mainly targeted contracting practices, while a review of OTA's bond documents resulted in no findings.   

"Given the extensive number of concerns voiced by the public and echoed by the attorney general, the legislature may want to consider revisiting relevant statutes in creating additional guardrails for OTA," Byrd said.

Oklahoma Attorney General Gentner Drummond ordered the audit three years ago, citing concerns about "improper transfers between the OTA and the (state's) Department of Transportation; improper contracting and purchasing practices; and inadequate internal financial controls."

On Wednesday, he urged OTA to take the audit seriously and use its findings to make meaningful reforms, adding his office will continue to monitor turnpike operations. 

"While the audit did not uncover criminal misconduct, the findings should not be mistaken for an agency's clean bill of health," Drummond said in a statement. "The audit made clear the need for increased oversight, accountability and transparency at the OTA."

In a statement, OTA said it welcomed "this independent confirmation that the agency follows all state statutes and there is no evidence of non-compliance with Oklahoma law.

"OTA will review the audit in more detail, but it is committed to considering how and where we can strengthen our policies and improve the documentation of our procedures and internal controls," the statement added.

As for potential legislative action, Senate President Pro Tempore Lonnie Paxton criticized the audit's release in the middle of the 2026 session, saying it would have been nice to have the information last fall. 

"If there's actually things that the auditor thinks that we need to do as a legislature, then specifically tell us what that is," he told reporters last week. "Then we can have time in December, January, February, all the way through the process to run legislation if we need to and explain it to members."

OTA came under heightened scrutiny after announcing in February 2022 a 15-year ACCESS Oklahoma (Advancing and Connecting Communities and Economies Safely Statewide) program to widen existing toll roads and build new ones at a projected cost that has risen to $8.2 billion from an initial $5 billion.  

Property owners in the path of new toll roads unsuccessfully sued to stop the program, with lawsuits alleging open meeting violations by OTA's board and challenging the issuance of bonds for ACCESS projects.

 The audit did not uncover instances of non-compliance in its review of bond documents.
"We reviewed documentation of the bond issuances for the 2018, 2020, and 2023 bond series in detail and confirmed the required steps and approvals were completed," the audit said.

However, it pointed out the same consulting engineer firm represents the interest of bondholders under the bond indenture and also serves as a design and engineering project consultant. The audit recommended that the firm "submit an annual conflict-of-interest certification to OTA's board affirming segregation of duties and independence in bond-related decisions."

To begin financing the ACCESS program, OTA sold $500 million of second senior revenue bonds in 2023, followed by a $1.11 billion deal in January 2025.

Another round of bond financing is likely by the end of this year, according to an OTA spokeswoman. 

Official statements for the two deals disclosed the pending audit, with Series 2025 documents noting any adverse finding "would not be expected to have a material adverse impact on the financial condition of the authority."

Oklahomans for Responsible Transportation, which has been pushing for OTA reforms, said the audit did not fully examine OTA's bond program and its compliance with a provision in a 1989 Turnpike System Trust Agreement to ensure that each new toll road is financially viable operationally and not dependent on revenue from existing toll roads.  

The group also questioned OTA's use of premium bonds in recent debt sales. 

OTA spokesperson Lisa Shearer-Salim said OTA responded to the trust agreement allegation ahead of Oklahoma Council of Bond Oversight approval of its Series 2025 bonds. 

Oklahoma State Auditor and Inspector

"The allegation cited is based on their own interpretation and calculation of the covenant," she said in an email. "They calculated the covenant as they believe it should be calculated. Their calculations fail to follow the terms of the trust indenture."

As for the use of premium bonds, Shearer-Salim pointed to a state statute that says interest rates on OTA bonds "may vary as permitted pursuant to a par formula and for such period or periods of time all as may be determined by the authority."

Oklahomans for Responsible Transportation said the legislature has an opportunity and a responsibility to ensure OTA "operates with the transparency, accountability, and oversight appropriate for an authority that issues billions of dollars in revenue bond debt while exercising the state's sovereign power of eminent domain."

OTA has been the target of interim studies by state lawmakers, some of whom filed bills in recent years that sought to reform the agency's practices, including capping outstanding debt and requiring legislative approval for toll hikes.

Reform bills largely failed to advance in previous sessions. This session featured another bill barrage, although few survived a Thursday deadline to pass out of committee. Those bills deal with eminent domain matters or in the case of Senate Bill 80, requiring public comment periods and hearings for proposed turnpike projects.