According to an audit from the Secretary of State, Oregon’s books show the state incorrectly counted billions of dollars in federal funding in 2020, a state government news organization the Center Square reported last week. A total of 14 federal programs incorrectly accounted for $6.4 billion in funds. While the audit doesn’t indicate that any money was stolen or lost, the accounting errors were significant. Auditors found a collective 121 errors made in 2020. That’s as many total errors as the state reported in 2018 and 2019 combined.
Oregon receives around $12 billion in federal grant money yearly to pay for programs such as agricultural research, public safety, and homeland security. In 2020, that number shot up to $17 billion due to pandemic-related funding. The additional federal grant money was allocated to personal protective equipment, Medicaid, and unemployment insurance payouts. The state is required to report to the federal government where its federal dollars are going on an annual basis.
Auditors questioned the actual costs of $5.1 million in federal money spent by state agencies. The majority of that money, or $4.2 million, was spent by the Child Care and Development Fund (CCDF). The audit report states that the CCDF questioned costs at the Department of Human Services were the result of calculation errors, multiple provider copays, and a lack of documentation to support payments. At the Oregon Department of Education, the questioned costs were mostly due to payments made past the allowed period of time and unallowable payroll charges.
The audit also uncovered 38 accounting errors made by many state agencies dating back to 2016, 12 of which stand uncorrected. According to the audit, agencies haven’t learned from previous mistakes.
“Some findings remain uncorrected from one year to the next because agencies do not correct the underlying issues that cause the noncompliance or control weaknesses,” the report states. “While some findings take time and resources to correct, others may remain simply because management does not make it a priority to address them.”
The Oregon Employment Department (OED) has come under fire for week-long delays in payouts and fraudulent claims, something that is not unique to Oregon. The OED began the modernization of its aging computer system last spring, and is expected to complete the project by 2024. The adoption of new technologies will hopefully assist in making these errors a thing of the past. 