[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6310323,"mediaKeyId","2403091-cef49475e159d6e0158bc98342895dd9","parentId",2403091,"title","House hearing on House Bill 2454 proposes legislative audit officer to staff JLAC, separate performance audits from constitutional financial audits","audioSeconds",613,"startMs",3818000,"endMs",4431000,"viewUrl","/Search/View?dp=1&key=2403091-cef49475e159d6e0158bc98342895dd9&start=3818&end=4431","thumbnailUrl","https://assets.pipeline.soar.com/2403091-cef49475e159d6e0158bc98342895dd9/thumbnail_3818000.jpg","articleUrl","/articles/6310323/Oregon/House-hearing-on-House-Bill-2454-proposes-legislative-audit-officer-to-staff-JLAC-separate-performance-audits-from-constitutional-financial-audits","mediaUrl","https://secure.pipeline.soar.com/6310323-4da9259e83f18bd8a09a48094f1cc280/orig.mp4?Expires=1770951947&Signature=F6ZTXxg5U7R4AwrF56Wn10CdnI5Bi6l0R8sfTinoZQ-5v6JxgLM9Ba8Xt1LhJaROLDG5r7a-SnqgnLzm3PxKmvy48y42VjLNDcopbgTy~ed8UbZsMpcVqSBXClZCNYuAMU~wrMcWGgt4INA1HlmOpYdMJTeahYTziYdX8ptNhxLAJbgGa86ZuJyWPhkzOiP9iYV5TrfVMq5JC1hmu9y0tKwYje-XzliTA4D7Oyezpb3sziqY~Ne75M6iO05MDFocM7hIaGHI2P53bRJfXLYC8ZOVIumAMXpKKTSttFZjaMLspqbvGQrGyGXWLuEC33yCuHsre9CNedOoRg4ZL6fWdw__&Key-Pair-Id=KUT5TJCACFTXG","author","Oregon State Legislature","date","2025-02-26T00:00:00Z","article","House Rules Committee members opened a public hearing Feb. 26 on House Bill 2454, a bill that would create the office of a legislative audit officer to be selected by the Joint Legislative Audit Committee (JLAC) to investigate, review or conduct performance audits and evaluations of executive branch agencies, programs and functions.

Representative Ben Bowman, sponsor of the committee discussion, said the proposed officer would “investigate, review and conduct oversight of executive branch agencies, programs and functions to identify opportunities and areas of improvement” and would report to JLAC and appropriate policy committees. He and other sponsors emphasized the office would not replace constitutional financial audits performed by the Secretary of State.

Representative Kim Wallin (Medford) and Representative Bowman framed the proposal as a means for the legislative branch to exercise an explicit, formalized oversight role — for example, to check that agencies implement legislative intent and to follow up on program outcomes and complaints from constituents. The bill text circulated at the hearing clarified that the legislative audit officer would not be responsible for financial statement audits constitutionally assigned to the Secretary of State.

Committee members asked about operational details: who would hire the officer (the bill text directs selection by JLAC), the composition and partisan balance of JLAC, and whether the office would have enforcement power if an agency rejected a legislative counsel finding that a rule exceeded statutory authority. Sponsors and committee members acknowledged some disputes could require litigation and that the proposed office would primarily report and recommend rather than impose legal remedies.

Paloma Sparks of Oregon Business and Industry testified in support, saying the bill would strengthen the feedback loop between the Legislature and agencies and improve transparency around rulemaking and implementation. Sparks suggested annual reporting and said businesses face challenges when agency expectations are communicated through directives or memos rather than statute or rule.

Committee members discussed JLAC’s current workload and staffing (the sponsor said the new officer and staff would staff JLAC and the LFO function would no longer staff that committee). Members also debated committee composition; one member noted JLAC is not statutorily evenly split between parties and the bill’s governance details will be relevant to how the office operates. A few members noted other states place the performance-audit function inside the legislative branch, sometimes under minority-party control; committee discussion acknowledged there are different state models.

No formal vote on HB 2454 occurred in the Feb. 26 meeting; the measure was the subject of the public hearing and discussion.","mediaType","Video","parentTitle","House Committee On Rules 02/26/2025 8:00 AM","oneSentenceSummary","House Rules Committee held a public hearing Feb. 26 on HB 2454, which would create a legislative audit officer to staff the Joint Legislative Audit Committee and conduct performance audits of executive branch agencies.","taxTitle","Rules, House of Representatives, Committees, Legislative, Oregon","taxId",18187,"location","Oregon","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6310328,"Department of Administrative Services outlines internal-audit standards, three-lines model and recent agency compliance gains",1176,2204000,3380000,"/Search/View?dp=1&key=2403091-cef49475e159d6e0158bc98342895dd9&start=2204&end=3380","https://assets.pipeline.soar.com/2403091-cef49475e159d6e0158bc98342895dd9/thumbnail_2204000.jpg","/articles/6310328/Oregon/Department-of-Administrative-Services-outlines-internal-audit-standards-three-lines-model-and-recent-agency-compliance-gains","https://secure.pipeline.soar.com/6310328-9ff89bf3fa6e885d1f2be9defab70ecc/orig.mp4?Expires=1770951947&Signature=Z--OvmOaE8fj2tlzixceh7cwqNkvRdP-0GEgfPUii0m6REDA9AWwL5I5V4VuKcTANdGDYnIy-IaOrSmx12ukdG0VG8eVMOv9Hg05KmCFwlErXSECIcOynVxyFsprLkXd857ZvEQhyqb6BSylIIJr~pyxnv8ILlZ0CqgTor5-KPzJSw5rOLR0PKSsYdcIePVEzgjQBF0k0xjNqat7DqkEZCw-y~28v-y1EubF~rETlhgdXU4xOkU3Kxv5pk0CegNL0txvz2YgxHliEzXZvwqn7vuMugHmf7TIlEM4Y0VTqSf9PY2NY8Xx~kOp3K2TNtl~Bk~c9B3pKIYp8Fi215Vthg__&Key-Pair-Id=KUT5TJCACFTXG","Eli Ritchie, chief audit executive for the Department of Administrative Services and the statewide internal audit coordinator, briefed the House Rules Committee Feb. 26 on the role of internal audit in state agencies, how it differs from external audits, and how the functions can work together.

Ritchie described internal audit as governed by the Institute of Internal Auditors standards (the “Red Book” for internal audit) and contrasted that with the Secretary of State’s use of GAO Yellow Book standards for external audit work. He emphasized three quality elements: independence, objectivity and documented standards for work and peer review.

Ritchie explained that Oregon statute and administrative rules require a dual reporting structure for internal auditors — administrative reporting to agency leadership at a sufficiently senior level and functional reporting to an audit committee that must include external members. He said internal auditors must maintain “operational separation” so they do not audit their own operational work and that auditors are granted “full access” to agency systems and records to perform required work.

Ritchie described differences in flexibility: internal auditors, embedded in agencies, can more nimbly address emerging risks and provide advisory work than an external constitutional auditor who must plan multi-month engagements. He said internal auditors perform annual enterprise risk assessments, develop audit plans, produce governance and risk audits at least every five years, and undergo an external assessment every five years.

Ritchie also discussed history and compliance: Oregon adopted optional guidance in 1991, made aspects mandatory in 1993, strengthened statute in 2005 and rules in 2006. He said his team’s most recent annual report finds agencies at the “highest level of compliance and performance for their internal audit functions in the history that we have for state government.”

Representative Bossard Davis and others questioned how independence is preserved in public-sector employment (hiring, discipline and compensation). Ritchie said statutory dual reporting, audit committees with external members, documented standards and periodic external assessment together create independence safeguards, but he acknowledged practical challenges and said DAS is reviewing whether additional policy guidance is needed.

Ritchie noted that ODOT’s internal audit function is a special statutory case and can sometimes produce audits that resemble external work, and that internal audit findings often inform external audit risk assessments. He described the three-lines-of-defense model (management, quality/compliance functions, and internal/external audit) as a useful framework for assigning oversight roles.

Ritchie closed by offering to provide follow-up about specific agency hiring/termination practices for chief audit executives and said DAS is positioned to provide guidance and statewide coordination rather than operational oversight of agency internal auditors.","Eli Ritchie, DAS chief internal auditor and statewide internal audit coordinator, told the House Rules Committee that internal audit functions in Oregon now show higher compliance, described statutory requirements for agency internal audits and explained how internal and external audits collaborate under different standards.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6310333,"Secretary of State auditors outline FY26 plan, push for data-driven risk model and greater transparency",0,3025000,"/Search/View?dp=1&key=2403091-cef49475e159d6e0158bc98342895dd9&start=3025&end=3025","https://assets.pipeline.soar.com/2403091-cef49475e159d6e0158bc98342895dd9/thumbnail_3025000.jpg","/articles/6310333/Oregon/Secretary-of-State-auditors-outline-FY26-plan-push-for-data-driven-risk-model-and-greater-transparency","https://secure.pipeline.soar.com/6310333-3031d881d329ce538d57b4862595f124/orig.mp4?Expires=1770951947&Signature=iEOUikV767WsryayYx9YKK0PpVpleSwmR4NH0vlg5cRF9vcI67aDI4rtGyymGnyeQlYPpg6xYzRIAIBV3hYr6RptkK~I4KBTxPIH4FPCana7Vu2ClqngP6jodOW2dN7h7~G3~rPB0QO7x7DWnoGz43ZhQLQMts9XoAvVRMdKNFcP-gINCqvw7f1e7BfTL9Ko5ea0akvu2wXLOvCRzqasjwvp8wbMY-iW4YyJ4kZcjG2fOTdSLLIMZCIknx~ZIN~Dg0UZktGs8Gh908upr~9UId4FYQYjLwbhEILgQL56N1jz0zw-n2XqiAlaR5zsXvGLw9-6c6LbDstzJsKALRiPpA__&Key-Pair-Id=KUT5TJCACFTXG","Deputy Secretary of State Michael Kaplan and Steve Bergman, the audits division director, briefed the House Rules Committee on Feb. 26 on the division’s mission, staffing, planned FY26 work and a new risk-model effort intended to steer future audits.

Kaplan said the division is operating under “three pillars” set by Secretary Reed: “integrity, accountability, and competence.” He described audits as a nonpartisan function “laser focused on identifying risks, finding solutions, and making actionable recommendations to state government, to the legislature, to the governor, to state agencies.”

Steve Bergman described the audits division’s twin mission: “to protect the public interest and the next is to improve Oregon government.” He told the committee the office performs financial statement and compliance audits (including the state’s annual financial statement audit, known as the annual comprehensive financial report), federal single-audit compliance work, performance audits, IT audits and municipal audit oversight for more than 1,800 municipalities.

The division reported a budget “just under $29,000,000” and roughly 702 employees. Bergman emphasized the financial-audit work supports the state’s bond rating and federal funding eligibility, saying compliance audits help preserve the roughly $20,000,000,000 in federal funds the state receives each year.

Several FY26 performance audits were listed as planned, including adult protective services at the Department of Human Services, state cloud-security practices, an assessment of the Medicaid program for cost and fraud risks, and a review of the Workday payroll system. The division also highlighted administration of the government waste hotline and said it will publish an annual report about that work.

Kaplan and Bergman said they will develop a new, transparent, data-driven risk model during FY26 to inform the FY27 audit plan, with the goal of submitting that plan to the Legislature in February 2026. Bergman said the model aims to identify “leading indicators of risk” so the division can act earlier rather than reacting after problems reach the news cycle.

On responsiveness, the division told the committee audits are planned through a multi-month process and that scope and objectives are set during an audit’s planning phase. Representative Drazen asked whether external reports or sudden events (for example, news-driven investigations at state hospitals or corrections facilities) could “shift” the division’s work in real time. Bergman and Kaplan said that while planning is where scope is finalized and adjustments can be made, audits in fieldwork and reporting are harder to pivot because of the resources and planning required. They said a risk model with better leading indicators is intended to address that gap.

Committee members also asked how the division engages with the Legislature. Kaplan said the primary mechanism of engagement is the Joint Legislative Audit Committee (JLAC) and that the division is seeking to improve how audit findings and follow-up are shared with policy committees and Ways and Means to ensure recommendations are implemented.

The presentation noted the audits division undergoes external peer review (the office cited having passed peer review with “exceptional results” in recent history) and affirmed the division will conform with applicable professional auditing standards. Bergman and Kaplan highlighted recent leadership changes in the Reed administration, including Bergman’s appointment, and said the division is focused on culture change, refining risk methodology and maximizing the return-on-investment of audit work.

The briefing closed with an offer to take committee questions and an acknowledgement from the division that there is “a lot of work ahead.”","Deputy Secretary of State Michael Kaplan and Audits Director Steve Bergman told the House Rules Committee the audits division will prioritize impact-focused work in FY26, develop a new data-driven risk model for FY27 and increase transparency on why and how audits are selected.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6310317,"House Rules Committee moves resolutions and bills; roll calls advance two resolutions and multiple measures",185,4990000,5175000,"/Search/View?dp=1&key=2403091-cef49475e159d6e0158bc98342895dd9&start=4990&end=5175","https://assets.pipeline.soar.com/2403091-cef49475e159d6e0158bc98342895dd9/thumbnail_4990000.jpg","/articles/6310317/Oregon/House-Rules-Committee-moves-resolutions-and-bills-roll-calls-advance-two-resolutions-and-multiple-measures","https://secure.pipeline.soar.com/6310317-4bd54549551e487b966ea86e81c96ee6/orig.mp4?Expires=1770951947&Signature=PEeV~cvTGa2PW~YH0DpO8bOVDaCjcNQEOYnGZG5AV884yfQ5sjPiOCkghPsSOOcyRIMqckvP~dSVhNjkouzWbYmaQ4JdQ69X7BoKDZHZnUd6yBHue3Y~0xbTyRiGkHAyyaWZBDzO4VaBkNksTCPlfsdG47EYAWhFOLfaRt3mE1jIMf-h4XmSS6oTPIWLMdir1MYWz9W27gv50upz4kHAqRzm5PczU8S6OXrabMd3FtcLPffVCwdmMKYSXsKY1P-a~-5azD1~UeopxGGSOj3w2YxmyzxJkiuW1IVc2f2zvPGbPDN6K0SGB0qEpzYmnmrdv46BmOH0bmvhYJNAuSzwpw__&Key-Pair-Id=KUT5TJCACFTXG","The House Rules Committee concluded its Feb. 26 meeting by taking a series of procedural actions and roll-call votes.

Votes and formal actions at the meeting (summary):

- HR 1 (recognizing Lewis Southworth): Vice Chair Pham moved HR 1 to the floor with a “be adopted” recommendation. The committee recorded affirmative votes and the Chair announced the resolution had passed. Representative Gomberg was assigned as the carrier to the floor. (Roll-call names read on the record; Chair announced HR 1 passed.)

- HR 2 (recognizing Ruben Shipley): Vice Chair Pham moved HR 2 to the floor with a “be adopted” recommendation. The committee recorded affirmative votes and the Chair announced the resolution had passed. Representative Gombrigg was assigned as the carrier.

- HB 2069 (task force on tribal consultation): The committee adopted the -1 amendment (increasing the appropriation from $50,000 to $70,000) by roll call. Vice Chair Pham moved HB 2069 as amended to the floor with a “do pass” recommendation and referral to the Joint Committee on Ways and Means by prior reference. The chair called the roll and announced the motion passed; the committee recorded the required affirmative votes and referred the bill.

- HB 3328 (use of federal forest reserve road funds in Grant County): Vice Chair Pham moved HB 3328 without recommendation and to refer the bill to the Committee on Emergency Management, General Government and Veterans. The committee voted in the affirmative and the motion passed; the bill was referred.

- Introduction of committee measures: The committee introduced two legislative concepts as committee bills: LC 3294 (special election timeline after a U.S. Senate vacancy) and LC 4595 (increase party registration threshold to qualify as a major party). The committee approved introduction as committee bills after a procedural discussion and a roll-call vote; the Chair announced the motion passed.

The committee adjourned at 9:35 a.m.","On Feb. 26 the House Rules Committee advanced HR 1 and HR 2 to the floor with adopted recommendations, adopted an amendment and referred HB 2069 to Ways and Means, referred HB 3328 to Emergency Management, General Government & Veterans, and introduced two legislative concepts as committee bills.","actionData","errors"]

Article not found

House hearing on House Bill 2454 proposes legislative audit officer to staff JLAC, separate performance audits from constitutional financial audits

Department of Administrative Services outlines internal-audit standards, three-lines model and recent agency compliance gains

Secretary of State auditors outline FY26 plan, push for data-driven risk model and greater transparency

House Rules Committee moves resolutions and bills; roll calls advance two resolutions and multiple measures