Secretary of State report shows that problem spots remain
SALEM – While the Oregon Department of Geology and Mineral Industries is making a turnaround in managing its federal funds after facing serious financial reporting and cash flow issues in 2015, state auditors still found deficiencies in the agency’s management of federal grants. Their findings were released today by the Secretary of State’s office.
“I am encouraged to see agency management proactively addressing weaknesses at DOGAMI,” said Secretary of State Jeanne P. Atkins. “Still, the agency must continue its efforts to ensure its federal funds are managed properly.”
Auditors recommend that the agency continue to improve controls over financial processes, including developing formal procedures for recording and reporting federal funds and ensuring records are organized and readily available.
The majority of the Department of Geology and Mineral Industries’ revenue over the prior six years was derived from fees for goods and services and federal funds. In recent years, significant turnover of leadership and fiscal staff led to critical financial and administrative challenges. To help address these issues, the agency’s director requested an audit.
The audit found the lack of adequate controls contributed to inappropriate grant management practices including:
- Drawing down federal monies prior to incurring expenditures;
- Inaccurately reporting federal expenditures;
- Untimely reporting indirect costs; and
- Inadequate supporting documentation.
At the time of the audit, the agency had begun implementing a number of changes to strengthen controls, including improving accounting and reporting processes.
“I am optimistic that the renewed motivation of the department to correct course will continue to improve its stewardship of federal funds,” Atkins said.
Read the full audit report on the Secretary of State website.
The post New management improves financial challenges at Department of Geology and Mineral Industries, audit finds appeared first on The Oregon Secretary of State Newsroom.
