Every year the Audits Division of the Secretary of State’s Office audits the State of Oregon’s financial statements to determine whether the information reported is reliable and accurate. This annual audit provides the state with our professional opinion about the completeness, accuracy, and validity of the state’s accounting information. See the Financial Statement Audit section of this report for more discussion of Oregon’s financial status.

In addition, we annually perform compliance audits of programs funded by the federal government to determine if they meet federal requirements for tracking and using federal dollars. These programs provide billions of federal dollars to Oregon citizens for important social, economic, and environmental missions. See the Federal Compliance Audits section of this report for more discussion of Oregon’s compliance with the requirements of federal programs.

The division communicates errors identified in financial reporting, financial processes, and non-compliance to state agencies and provides recommendations for correction to assure the integrity of financial information provided to the public. This report, “Keeping the State of Oregon Accountable,” reflects the findings of those annual audits of publicly funded programs. Important conclusions in this report are:

Audit of the State of Oregon’s Financial Statements

  • We concluded that the state’s financial statements, as corrected, are fairly presented in conformance with Generally Accepted Accounting Principles.
  • We reported fewer internal control weaknesses this year and found that management corrected several of the prior year findings.
  • Three major changes impacted Oregon’s financial statements for fiscal year 2015:  a $1.6 billion increase in Medicaid expenditures, a change in the reporting of three major universities, and new reporting standards that changed how pension information is presented.

Federal Compliance Audits

  • Because of ongoing internal control and compliance weaknesses, auditors were required to audit an increased percentage of the state’s federal expenditures.
  • Our audit included 35 findings related to 14 audited federal programs at seven state agencies. We issued “qualified” opinions on five programs, which indicate a department’s internal controls are inadequate to prevent or detect significant noncompliance in a timely manner.

Read full report here

 

For more information about audit results, you can also see the official reports on our website:

Oregon’s Financial Statements:

http://sos.oregon.gov/audits/Documents/2016-03.pdf

Single Audit (including Federal Compliance) Results:

http://sos.oregon.gov/audits/Documents/2016-09post.pdf