

October 11, 2023 – State of Oregon Newsroom: Governor Kotek Issues Statement on External Review of OLCC Audit
Today, Governor Tina Kotek issued the following statement in response to the Oregon Department of Justice (DOJ) releasing an external review of the Secretary of State’s (SOS) 2023 performance audit entitled “Oregon Liquor and Cannabis Commission (OLCC): Oregon Needs to Modernize Cannabis Laws to Help Grow the State’s Economy and to Ensure Equitable Opportunities and Benefits for all Communities.”
“Oregon’s public servants look to performance audits conducted by the Secretary of State’s Office to understand how best to do the people’s business. Audits ensure that public resources are being well managed and that our government is held accountable for providing the best possible customer service. I called for an independent, external review of the OLCC audit because Oregonians needed to have a fuller understanding of the troubling events that shook the public’s trust in that office. Secretary Griffin-Valade has years of experience as a widely respected auditor, and I expect that this report will inform her ongoing efforts to make certain that Oregon’s audits are objective, independent, and meet professional standards.”
The Governor on April 28 requested this external review from the DOJ in response to reporting of possible conflicts of interest based on a private contract held by former Secretary of State, Shemia Fagan. Governor Kotek also requested an investigation by the Oregon Government Ethics Commission, which is ongoing.
More information about the external audit can be found here.
October 11, 2023 – State of Oregon Newsroom: 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.
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