OKLAHOMA CITY, OK (August 18, 2026)
Oklahoma State Auditor & Inspector (SA&I) Cindy Byrd today released the second part of her special audit report for Tulsa Public Schools (TPS). The Governor requested the initial investigation of TPS and approved the continuance of the investigation in response to the findings in the SA&I audit of TPS released last year.
“We found evidence that the TPS Executive Director of Bond and Energy Management, Chris Hudgins, used his position to divert millions of tax dollars to himself and direct contracts to preferred vendors,” Auditor Byrd said. “It appears that for more than ten years, he operated a personal business out of TPS offices on the public’s dime, undermined the bond department’s competitive bidding process, and orchestrated complex financial schemes in cooperation with certain vendors. During that time, he had direct access to and authority over tens of millions of taxpayer dollars.”
In June, charges were filed against Hudgins and two partners at the Tulsa engineering firm, Allied Engineering, for attempting to defraud TPS of $779,000. The findings of this audit reflect fraud, misappropriation, and improper payments totaling $3,730,790.
Breakdown
- Allied paid M&G Consulting, LLC, Hudgins’s personal company, a total of $2,625,390 for architectural services. The total amount includes roughly $1,000,000 for roofing, $1,000,000 for interior renovations, and more than $600,000 for HVAC work. These services were never delivered.
- The engineering firm took a 5% fee, more than $58,000, for processing the roofing contract’s false invoices.
- Hudgins improperly authorized GLD Consulting, LLC, a company formed by three Allied employees, to administer the district’s PSO rebate process without School Board approval. GLD profited by retaining 30% of the TPS rebate, amounting to $547,782.
- Allied used an improper billing method that substantially increased its compensation, resulting in Allied being overcompensated at least $499,573.
- Based upon Hudgins’s recommendations, the School Board authorized payments to the engineering firm without reviewing project contracts and amendments.
“It appears Hudgins had free reign over the bond department and the TPS School Board rubber-stamped almost every recommendation he made,” said Auditor Byrd. “Government employees should never be allowed to exercise unilateral control over public finances. Sadly, each dollar wasted was a dollar that never reached the classroom where it was really needed.”
SA&I sent its findings to the Attorney General and the Tulsa County District Attorney for further review.
The full audit is posted here on the Oklahoma State Auditor & Inspector’s official website.
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