Salem, OR—The Secretary of State's Audits Division released, “Keeping the State of Oregon Accountable.” This report summarizes the results of the Division's two largest annual financial audits 1) the State of Oregon's financial statements and 2) the compliance audit of state agencies' administration of federal monies. http://sos.oregon.gov/audits/Documents/2017-10.pdf
These audits provide an independent, professional opinion by Certified Public Accountants regarding the accuracy of the state's financial statements and compliance with federal funding rules. The state receives over $11 billion annually in federal monies for social, economic, and environmental programs.
“These audits provide assurance on the fair presentation of the state's financial statements as well as its compliance with federal funding rules,” said Secretary of State Dennis Richardson. “This information helps legislators in their deliberations, analysis, and decision-making, as well as identifying areas for improving state accounting and financial reporting practices.”
These audits facilitated the correction of $690 million in identified accounting errors and includes 39 recommendations for improvements.
Medicaid is by far the largest public assistance program run by the State of Oregon and accounted for 62 percent of the federal money spent by the state in 2016. Medicaid costs, paid primarily with federal funds, increased by $700 million in fiscal year 2016 alone, and the program now provides coverage for over one million low income Oregonians. In keeping with the directives of the Affordable Care Act, 409,000 of those individuals now covered have been added since the fall of 2013.
“While the state has made some progress on resolving past issues of non-compliance with federal Medicaid requirements, there is still more work to be done,” said Richardson. “Even more concerning are the issues identified by the audit of Foster Care and the Child Care and Development program, which the auditors found to be seriously non-compliant with the federal rules for these important programs.”
The Oregon Constitution provides that the Secretary of State shall be, by virtue of his office, Auditor of Public Accounts. The Audits Division exists to carry out this duty, reporting directly to the elected Secretary of State. The Secretary of State is independent of other state agencies within the Executive, Legislative, and Judicial branches of Oregon government. The Secretary of State is authorized to audit all state officers, agencies, boards and commissions, and oversees audits and financial reporting for local governments.