About Oregon Audits Division
The Oregon Audits Division, or OAD, is one of six divisions under Oregon’s independently elected Secretary of State. Oregon is the only state where the state auditing function falls under the Secretary of State. Our approximately 70 professional auditors conduct financial, performance, and information technology audits with the support of two operations staff. In addition, we investigate allegations we receive on our Government Waste Hotline, and monitor the financial audits of Oregon municipalities.
In addition to Audits, the Secretary of State also oversees the state Archives, Elections, and Corporations Divisions. These four divisions are supported internally by our Information Services and Business Services Divisions. Each division is headed by its own director, appointed by the Secretary of State.
Welcome to OAD! What are you most excited about as OAD’s new director?
Our impact potential.
Over the next couple of years, I think we have the ability to increase the impact of our audits and value to Oregonians, including educating citizens about what we do as auditors.
I truly believe that governmental auditing is one of the last bastions of objective analysis, free of partisan bias. That’s especially important in the political reality of the national landscape today. Within this context, I take my responsibilities very seriously and am honored to serve in this role.
How you see the Audits Division’s role in state government and your role within OAD?
I see OAD as the external auditor for the state, here to add value, enhance transparency and provide assurance. Through the state constitution, the Secretary has independence and broad authority to conduct audits of state agencies. Our primary stakeholders are the citizens of Oregon and it is our responsibility to report our findings to decision-makers and elected bodies to help guide their decisions. As such, citizen-centric reporting is a cornerstone of our audit strategy. The agencies we audit are of course key stakeholders, but the distinction is that we are do not serve as their internal auditors and do not report to them.
I see two primary roles for myself as director. One is to knit together our culture—our professional auditor staff and the elected Secretary’s Executive Team. In doing this, I need to ensure there is a strong communication approach and implement change management strategies to increase our impact and visibility. I think we can do this internally by focusing on process improvement, reporting enhancements, and staff development and externally (at least in part), by reaching a wider audience with our audit work and products. Second, it is my job to help build trustful and collaborative relationships with the agencies we audit. I have been holding very successful meetings with state agency directors and have been attending department internal audit committee meetings as an initial step.
Any surprises so far at OAD?
Well, there are a couple. First, I knew coming in that the staff at OAD were good, but in the past couple of months I’ve learned that they are not just good, they are elite. The variety of their academic backgrounds, their passion for the work, and their credentials combine to create incredibly high quality teams in all our sections— financial, performance, and information technology auditors
I was less pleasantly surprised by the governmental environment in Oregon. Honestly, there appears to be less transparency than I would have hoped in the state, and less inclination towards accountability than I expected. I have also been disappointed at the strong political reaction to our audit work. OAD is completely non-partisan yet it appears that our work is often viewed from a partisan perspective. This is not surprising but disappointing. I will be working hard to change this dynamic as the citizens are not well served with in this paradigm.
What was your first job?
I’ve been working since I was 11 years old. My very first job was as a paperboy in Salt Lake City, Utah. I’ve also worked in fast food, at a movie theater, ski resort, and managed an auto parts store.
Newspaper delivery, food service, movie theater, ski resort, auto parts… Auditing? How’d you get here?
I was interested in accounting and business in high school, and participated in the Future Business Leaders of America program. I started out as an accounting major in college, but it never felt like a good fit, so I switched to U.S. history. I went on to study U.S. History and Public Administration in graduate school at Arizona State University (Go Devils).
It was in grad school that I was first exposed to performance auditing, through an internship with the GAO in Washington, D.C. Did you know federal agencies have historians? They do! My internship with the GAO was in this capacity. I researched and wrote a paper on the history of GAO’s audit team staffing approaches. As part of the internship, I participated in a two week training for GAO performance auditors.
My next internship was with the Arizona State Legislature. I served as an analyst for the House of Representatives Minority Caucus and staffed two committees during the session, Economic Development and Agriculture. It was a great experience and I was offered a full time position after my internship, but I did not take it.
The ASU Grad School Dean, an important mentor to me, suggested I look into the Arizona Auditor General’s office— not because I’d ever want to have a career as an auditor, but because it would enable me to have a bird’s eye view of the different agencies in the state and determine which ones I may be interested in pursuing a career as an administrator. .
I took his initial advice, and a job with the Arizona Auditor General. However, I never looked back.
What other audit shops have you worked at?
I spent seven years with the Arizona Auditor General, working my way up into management. I left Arizona in 2000 and spent some time in the private sector with a consulting firm in California before taking the internal audit manager position with the County of San Diego. I was there until 2007, when I accepted the Audit Director position with the City and County of Denver, Colorado’s Auditor’s Office. In 2016, I relocated to Oregon and briefly served as the Chief Audit Executive of the Oregon State Treasury before becoming Director of the Audits Division just a couple of months ago.
All the audit shops I’ve worked in had teams of dedicated audit professionals. Auditors seem to be wired the same way— driven, curious, big thinkers who want to change the world.
The shops I’ve worked in have all had different reporting structures. I have worked as both internal and external audit capacities and reported to elected officials, legislative bodies, and operational management (e.g. Chief Financial Officer). I have also reported to audit committees. Audit function governance structures impact audit strategy and risk appetites. Arizona tended more towards risk aversion, which can be the nature of a legislative audit shop. In Denver, unique challenges and culture due to having an elected auditor meant we operated in a very politicized environment. I had to manage political pressure around our findings and reports if and when they conflicted with political agendas.
Kip is quoted in a recent Internal Auditor Magazine article about public sector auditors facing such challenges, including retaliation.
Most memorable audits?
I have two, and for different reasons. The first one was with the State of Arizona Office of the Auditor General, a performance audit of the state’s Department of Gaming in 1999. This audit epitomized everything performance audits can be.
It was a challenging audit. There’s no criteria on what tribal relations “should be” like and the issues between the American Indian tribes in Arizona and the state government were deep and concerning. As a historian, I brought my knowledge of American history to the audit, which is essential to understanding tribal relations in our country. The audit was controversial from the get-go and looked at governance of the agency within the context of a state that had a history of poor tribal relations. Tribal gaming started in Arizona, and federal laws allow gaming but require a compact between the tribe and state, which allows some state oversight of casinos.
However, the audit found the Department of Gaming was “leaning” heavily on the tribes in ways that were not within their compact, did not add value, and without real cause— as there were good controls in place and no evidence of organized crime. Yet they were strong-arming tribes, showing up to casinos with their badges and guns.
We recommended that the state adhere to their compact with the tribes and essentially back-off. The recommendations we advocated for were based on evidence, but our stance was not politically popular. I presented the findings and recommendations to the legislature and while they were initially not well received, recommendations were implemented that overall, helped tribal relations in the state.
Another memorable audit is the one at the City and County of Denver in 2008 under my leadership, a performance audit of the Emergency Medical Response System. It was heavy on data analytics— a million calls over 5-6 years. We looked at response times and as a result of the audit, the EMR System underwent a Lean process and now the response time is two minutes faster. Two minutes are huge when it comes to life and death situations.
What audits are you most looking forward to?
The two big areas of my audit strategy, or focus, as director are public health and safety, and human services and vulnerable populations. Aside from being interesting areas, these are places I think audits can have more immediate and definitive impacts.
I also plan to conduct audits of legal marijuana, an exciting and high risk emergent public policy. In Denver, my office released the two first municipal performance audits examining aspects of legal marijuana in the nation and they had tremendous, positive impact.
What’s your biggest challenge on the horizon?
There’s two challenges for me. Internally, it’s executive effective change management and continuous improvement within OAD— to align our current processes and reporting approaches with what I see as our impact potential. Externally, it’s building relationships that foster trust and collaboration with the agencies we audit and ensuring we effectively interact and communicate with a wide range of stakeholders, including, perhaps most importantly, the citizens and residents of this great state.
Favorite part about living in Oregon?
The people. I think most transplants would agree with me on that one. It is also a beautiful place to live, (and I have lived in some beautiful places) with a little bit of everything. There are mountains to ski on, trails to hike, the ocean…. And everything is so green!
Think Big. Go bold. Think big and take on the big issues, don’t shy away from them. And go bold with strategy and direction. Government auditing is a noble profession. I am honored to work for the elected Secretary of State and to lead such a talented and committed group of audit professionals.