Audit Services

Source: PDF pp. 589-590 ↗ · raw: 589 · 590

Breadcrumb: Service Area Summaries > Office of the City Auditor > Office of the City Auditor. > Audit Services

City of Portland Fiscal Year 2026-27 Proposed Budget Office of the City Auditor > Office of the City Auditor > Audit Services Audit Services Budget Revenues by Fund 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Revenues $6,368 $0 $0 $0 General Fund $6,368 $0 $0 $0 Internal Revenues $499,692 $2,385,791 $2,650,031 $2,570,431 General Fund $499,692 $2,385,791 $2,650,031 $2,570,431 Grand Total $506,060 $2,385,791 $2,650,031 $2,570,431 Program Expenses by Major Object Program expenses only include personnel, internal materials and services, external materials and services, and capital. 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Materials and $328,330 $575,236 $562,052 $542,700 Services Internal Materials and $45,929 $38,545 $71,575 $63,962 Services Personnel $1,717,070 $1,816,113 $2,005,802 $1,963,769 Grand Total $2,091,330 $2,429,894 $2,639,429 $2,570,431 Program Description and Goals The mission of the Audit Services Division is to promote equitable, efficient, effective, and fully accountable City government. To accomplish this mission, we analyze the performance and management of City operations, recommending changes to improve services. We also coordinate the City's external financial audit and operate the City's fraud hotline. Our reports enhance accountability of City spending and decision-making. We follow Government Auditing Standards and have strict internal quality control procedures to ensure accuracy. We are revising our performance measures related to productivity and effectiveness for comparison with our peers. To measure productivity, we track the number of reports issued. In 2025, we issued two performance audit reports, one report on the status of audit recommendations from the last five years and two fraud hotline reports. We use the percent of audit recommendations implemented to measure effectiveness. In 2024, the most recent year that we have data for, the 589

City of Portland Fiscal Year 2026-27 Proposed Budget Citywide implementation rate was 49%, below the average implementation rate of other cities (64%). We are continuing to collect relevant data to identify trends and related goals. Services The Audit Services Division conducts performance audits, follows up on past audit recommendations, manages the contract for the City's financial audit and manages and staffs the City's Fraud Hotline which takes and investigates tips of fraud, waste, and abuse. Equity Impacts Audit Services takes steps in the audit process to evaluate the effect of City services on all residents and any disparate outcomes for Portland's diverse communities. We begin by soliciting audit topic ideas online and directly through outreach to community groups. We prioritize audit topics that matter to the community when developing our annual audit schedule and use community focus groups to identify interest in suggested topics. During an audit, we brainstorm potential equity impacts to determine whether the program could be adversely affecting vulnerable communities, whether those disparities are being tracked or addressed, and who in the community we should consult during fieldwork. In many cases, data are not readily available to identify disparate impacts. In that case, auditors consider whether additional fieldwork is needed to assess potential disparities. Finally, in each audit, the Division reaches out to community members impacted by the program to share results. Changes to Program The FY 2026-27 Budget eliminates one Performance Auditor II position within the Division. This will result in fewer audits completed from the Office's annual schedule that follow government auditing standards, provide objective information to the public, and make the programs and services that Portlanders care about more efficient, effective, and equitable. In 2025, we updated our practices and our division's manual to align with revisions to Government Auditing Standards. We have supplemented our quality control processes with a system of quality management designed to ensure we produce reliable, objective, and high-quality audits. 590

Parent: Office of the City Auditor. · PDF: pp. 589-590 ↗