Keeping the State of Oregon Accountable, Fiscal Year 2014

  • As the state’s independent auditors, we propose adjustments to correct errors and we report findings with recommendations to strengthen controls.
  • Overall,this year showed improvement addressing errors identified last year.
  • We found multiple federally-funded state programs are not administered in accordance with federal requirements, and our recommendations are slow to be implemented.

Executive Summary

Our annual financial audit provides the state with our professional opinion about the completeness, accuracy and validity of the state’s accounting information. Accurate and reliable accounting data is crucial to ensuring state dollars are properly spent and provides a starting point for the next budget cycle. State agencies use financial data to create budget requests for the Oregon Legislature to allocate the state’s resources. Without an accurate accounting of the revenues, expenditures, assets and liabilities of the state, the Legislature doesn’t have correct information to budget for the future.As the state’s independent auditors, every year we audit the State of Oregon’s financial statements.

Among the billions of dollars of transactions, we often find errors amounting to millions of dollars due to incorrect coding of financial transactions or misinterpretation of Generally Accepted Accounting Principles (GAAP). We propose adjustments to correct errors and we report findings with recommendations to strengthen controls.

The Departments of Education, Administrative Services, and Human Services/Oregon Health Authority reduced the dollar amount of errors requiring audit adjustments this year, while some other agencies showed increases in the amount of errors. Overall, this year’s audit results showed improvement over last year. While the improvements shown may reflect increased efforts by some agency management to implement better controls over accuracy, we have found that diligence is required to ensure accuracy of accounting records continues to improve.

Our services also include audits of the state’s administration of major federal programs that provide billions of dollars in federal revenue to the State of Oregon. Every year, our audit results show state agencies are out of compliance with federal requirements because the agencies’ controls are not adequate to administer federal programs in accordance with federal requirements. The common errors we find in federal program compliance often continue from year to year and are slow to be resolved.

For more information about audit results, see the reports listed on our website:Oregon’s Financial Statements:

Single Audit (including Federal Compliance) Results: