Statement: Secretary Griffin-Valade Responds to Review of OLCC Audit
The following is a statement from Secretary of State LaVonne Griffin-Valade in response to the DOJ’s third-party review of the agency’s audit of the Oregon Liquor and Cannabis Commission:
I’d like to thank Governor Kotek and the Oregon Department of Justice for promptly reviewing the Oregon Audits Division’s report on the Oregon Liquor and Cannabis Commission, conducted under the former Secretary of State Shemia Fagan.
The report shows that the independence of the Oregon Audits Division was not compromised and the OLCC audit report complied with government auditing standards during the planning, fieldwork, and reporting processes. I thank the Division for voluntarily complying with the DOJ in this review.
However, the report reaffirms what we all know to be true: former Secretary Shemia Fagan’s actions compromised public trust in the audit. In auditing we call this a “threat to independence in appearance.” As a result, the report concludes that auditors should have gone further to reduce that risk by pausing their work and seeking stronger evidence for their conclusions. I agree with the risk that the DOJ report identifies.
In response, I will personally oversee a reevaluation of the evidence presented in the OLCC audit. With 16 years of experience as a government auditor, including serving on the Association of Local Government Auditors’ peer review team, I am well equipped to ensure that every action is taken to restore the public trust in this report. Depending on the results of that examination, I may take additional action and will inform the public as appropriate.
I’d like to thank Governor Kotek and the Oregon Department of Justice for promptly reviewing the Oregon Audits Division’s report on the Oregon Liquor and Cannabis Commission, conducted under the former Secretary of State Shemia Fagan.
The report shows that the independence of the Oregon Audits Division was not compromised and the OLCC audit report complied with government auditing standards during the planning, fieldwork, and reporting processes. I thank the Division for voluntarily complying with the DOJ in this review.
However, the report reaffirms what we all know to be true: former Secretary Shemia Fagan’s actions compromised public trust in the audit. In auditing we call this a “threat to independence in appearance.” As a result, the report concludes that auditors should have gone further to reduce that risk by pausing their work and seeking stronger evidence for their conclusions. I agree with the risk that the DOJ report identifies.
In response, I will personally oversee a reevaluation of the evidence presented in the OLCC audit. With 16 years of experience as a government auditor, including serving on the Association of Local Government Auditors’ peer review team, I am well equipped to ensure that every action is taken to restore the public trust in this report. Depending on the results of that examination, I may take additional action and will inform the public as appropriate.
