Oregon’s new fiscal year officially began with the release of an ambitious statewide audit plan that will guide independent reviews of some of the state’s largest agencies and highest-profile public programs over the next 12 months. The Fiscal Year 2027 Audit Plan, announced by the Oregon Secretary of State’s Office, outlines a series of performance audits designed to evaluate how effectively state government is carrying out critical responsibilities, managing taxpayer resources and delivering public services.
The annual audit plan serves as one of the state’s primary accountability tools, providing Oregonians with advance notice of which government agencies and programs will undergo detailed examination. The reviews are intended to identify strengths in state operations while also uncovering weaknesses, inefficiencies and opportunities for improvement.
Secretary of State Tobias Read said the coming year will focus on several significant and complex issues affecting communities across Oregon.
“Our team of professional auditors will be digging into some high profile, complex, and important topics over the next 12 months. Our goal is to deliver Oregonians an accurate assessment of how the state is performing some of its most vital duties, what is going well, and where there is room for improvement,” Read said. “My hope with these audits is that we can continue to close the gap between good intentions and great outcomes for the people of Oregon.”
The most notable change accompanying this year’s audit plan is the introduction of a new risk-based selection process. Rather than relying solely on traditional planning methods, the Secretary of State’s Office said Fiscal Year 2027 audits were chosen using a data-driven system that evaluates where the greatest operational and financial risks may exist within state government. Officials believe the new methodology will strengthen the independence of the auditing process while directing resources toward programs with the greatest potential public impact.
Performance audits differ from financial audits by examining whether government programs are operating efficiently, effectively and in accordance with legislative intent. Auditors evaluate management practices, internal controls, spending decisions, compliance with applicable laws and whether agencies are achieving the objectives established by lawmakers.
Among the agencies scheduled for review is the Oregon Youth Authority, where auditors will examine community-based parole and probation programs that supervise youth transitioning back into local communities. The review is expected to evaluate oversight practices and the effectiveness of rehabilitation and supervision efforts.
The Oregon Department of Corrections will also undergo an audit focused on institutional security, specifically threat detection, threat mitigation and inmate mail processing. The examination comes as correctional systems nationwide continue balancing institutional security with evolving communication policies and operational demands.
Another criminal justice review will examine the Oregon State Police Criminal Justice Information Services Division, including the agency’s sex offender registration section. Auditors are expected to evaluate administrative processes, record management and operational effectiveness within programs relied upon by law enforcement agencies throughout the state.
The Oregon Health Authority is scheduled for an extensive review of pass-through funding along with grant and contract administration. Because the agency distributes substantial public funding through grants and agreements with outside organizations, the audit will examine oversight procedures and accountability measures governing those expenditures.
Legislative Administration will receive a performance audit centered on the Capitol Accessibility, Maintenance and Safety Project, one of the state’s largest ongoing public infrastructure investments. The review will examine project administration and oversight as work continues on modernizing and preserving Oregon’s historic Capitol complex.
Education funding will receive considerable attention during the coming fiscal year. The Oregon Department of Education will undergo an audit of school district funding allocations to evaluate how education dollars are distributed throughout the state. A second review, required under Oregon law, will examine the High School Graduation and College and Career Readiness Fund, which supports programs intended to improve graduation rates and better prepare students for higher education, technical training and workforce opportunities.
The Oregon Department of Human Services will also be audited through a review of its Intellectual and Developmental Disabilities Program Area. The examination will assess program operations that provide services and support for thousands of Oregonians and their families.
The Oregon Liquor and Cannabis Commission is scheduled for a review of its Distilled Spirits Program Administration, including liquor sales and statewide distribution operations. Because the commission oversees a significant source of state revenue, auditors will examine how those responsibilities are being administered.
Transportation spending will also come under scrutiny through a mandated audit of the Oregon Department of Transportation’s State Highway Fund and capital projects. Required by legislation approved during the 2025 special legislative session, the review is expected to evaluate how transportation dollars are managed and invested in highway infrastructure projects across Oregon.
Several of the announced audits have already begun, while others will commence throughout the fiscal year. As each review is completed, findings and recommendations will be released publicly, allowing lawmakers, agency leaders and residents to evaluate the performance of state government and consider changes where improvements are warranted.
The Fiscal Year 2027 Audit Plan reflects one of Oregon’s broadest annual oversight efforts, spanning public safety, education, transportation, health care, corrections, infrastructure and financial administration. By publicly identifying the agencies selected for review before the audits are completed, state officials aim to promote transparency while reinforcing public confidence that government programs receiving taxpayer funding remain subject to independent examination and accountability.