State Audits & Reviews
Types of Audits
Financial and compliance audits of all components of state government and state-aided institutions determine whether a state agency conducts its financial operations properly and presents its financial statements in accordance with generally accepted accounting principles. Financial and compliance audits of the state’s annual financial statements, the largest audit of public funds in the state and a major engagement of the division, comply with the Single Audit Act of 1984 (PL 92-502), which requires an annual audit as a condition of eligibility for federal funds.
Financial-related examinations focus on internal control structures and determine whether state agencies comply with finance-related legal requirements.
Information technology audits determine whether the state’s computer systems adequately protect public funds and electronic information, and whether they operate as intended. Recommendations are directed at improving electronic information security, practices and procedures.
Performance audits identify improvements an agency or program can apply to better achieve its objectives and mission. Recommendations are directed at improving management practices and procedures to increase efficiencies, generate savings, and produce better results.
Local financial audits are submitted to the division each year for review to help ensure that local governments are provided consistent, professional audit services from their contracted CPAs. Oversight is carried out by establishing requirements for municipal auditors and by reviews of the resulting audit reports and direct communication with the CPAs. The division’s oversight role is mandated by statute (ORS 297.405 - .555 and 297.990) and covers approximately 1,600 municipalities in Oregon. The work is conducted in cooperation with the State Board of Accountancy and the Oregon Society of Certified Public Accountants.
A few of our projects are brief analyses for information purposes that do not require the rigor of government auditing standards. Included in this category would be the annual report on our Government Waste Hotline activity, and letters to management on issues identified in the course of other work.