OKLAHOMA CITY – The Oklahoma Horse Racing Commission (OHRC) recently released a long-awaited forensic audit of its OKBred account. The audit, which Rep. Erick Harris, R-Edmond, received and reviewed after an Open Records Request, found inadequate internal controls, noncompliance with statutory purpose and deficient documentation and record-keeping. It also revealed a lack of formal policies and procedures, lack of transparency to relevant stakeholders and inadequate reconciliation and independent review of finances.
A comprehensive reconciliation of the Oklahoma Breeding and Development Fund Special Account (OKBred) began in May 2025. The objective of the audit was to determine the accurate balance of the OKBred fund as of June 30, 2025, and to evaluate the internal controls and processes associated with the management of the account. The account consists of restricted funds established by statute for the specific purpose of supporting and promoting Oklahoma breeders and the state’s breeding industry.
“As fiduciaries of these public funds, the OHRC has a legal, moral and ethical obligation to ensure proper governance, transparency and compliance,” Harris said. “The independent audit demonstrates that the Commission has failed to meet these obligations.”
The audit noted that OKBred’s operational structure lacked sufficient financial controls, system support and interdepartmental oversight. These weaknesses directly contributed to reporting inconsistencies and increased the opportunity for error and potential fraud. “This audit uncovers a serious lack of financial controls of the OKBred account, which calls into question past and ongoing funds that have been and are being distributed by the OHRC to horse breeders across our state,” Harris said. “I urge the State Auditor and the Attorney General to immediately get involved to determine if these public funds have been misspent, whether any crimes were committed and what new procedures must be put in place immediately to ensure accountability and transparency with these funds.”
