Report details compliance with financial reporting standards and reporting requirements for over $11 billion of federal funds
SALEM – The Audits Division of the Secretary of State’s office released a report today called “Keeping the State of Oregon Accountable,” which summarizes the results of the division’s two largest annual audits: the financial audit of the State of Oregon’s financial statements and the federal audit of state agencies’ administration of federal monies. These annual audits provide independent professional opinions on the accuracy of the state’s financial statements and are required for the state to receive over $11 billion in federal funding for important social, economic and environmental programs.
“Over the past year our auditors found fewer instances of financial reporting problems during their audit of the state’s financial statements,” said Secretary of State Jeanne P. Atkins. “However, continuing efforts are needed for state agencies to successfully address weaknesses in federally-funded programs. Some weaknesses span multiple years and affect Oregon’s largest programs.”
Medicaid, with expenditures of $6.6 billion, is by far the largest public assistance program run by the State of Oregon, and accounted for 59 percent of the state’s federal expenditures in 2015. In fiscal year 2015 alone, Medicaid expenditures increased by $1.6 billion. Also, since the Affordable Care Act expansion began in January 2014, over 400,000 additional Oregonians have health care coverage through the Oregon Health Plan. In measuring the state’s fiscal status, this increase in federal expenditures was somewhat offset by three of Oregon’s major public universities changing to governance by independent boards.
“This report highlights how important it is for state agencies to pay close attention to the reporting requirements of federal programs. We know that state agencies are heeding the advice of our auditors and taking corrective action in many areas of financial reporting, but we must remain attentive. I hope that lawmakers will take note of these annual reports and incorporate their findings in discussions with agencies about the resources needed for compliance,” said Atkins.
The Oregon Constitution provides that the Secretary of State shall be, by virtue of her office, Auditor of Public Accounts. The Audits Division exists to carry out this duty. The division reports to the elected Secretary of State and is independent of other state agencies within the Executive, Legislative, and Judicial branches of Oregon government. The division audits all state officers, agencies, boards, and commissions and oversees audits and financial reporting for local governments.
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