KOIN.com

Oregon Audit Division clarifies Fagan’s role in OLCC audit amid controversy

FILE - Oregon Secretary of State Shemia Fagan attends the summer conference of the National Association of Secretaries of State in Baton Rouge, La., July 8, 2022. Oregon Secretary of State Shemia Fagan is in hot water, with Republican lawmakers calling for her resignation and the Democratic governor wanting investigations, because Fagan took a consulting job with a marijuana firm. The matter came to a head Friday, April 28, 2023 after Fagan's office released an audit of the state's marijuana regulators, the Oregon Liquor and Cannabis Commission.(AP Photo/Matthew Hinton, File)

PORTLAND, Ore. (KOIN) — After Secretary of State Shemia Fagan submitted her resignation due to ethics concerns amid consulting controversy, the Oregon Audits Division stepped in to clear the air and assure the validity of their cannabis industry audit.

In a press release Friday, Oregon Audit Division director Kip Memmott addressed the concerns around the audit, saying that Fagan’s cannabis contract put their division into a “difficult situation.”

He added that the audit is currently undergoing a third-party review which he hopes will validate its integrity and help to rebuild trust with Oregonians.

Memmott, who has served as Audits Division director since 2017, said that he wants to be transparent and share what goes into the audits to show that Fagan’s influence didn’t impact the outcome.

“The Secretary of State is Oregon’s chief auditor,” said Memmott. “The Secretary sets the direction for the Audits Division in an annually published plan and provides high-level input into the work of the team. Secretaries do not, however, direct what findings or conclusions go into an audit.”

The audit plan that Fagan published, Memmott stressed, is not the audit. He said that the actual audit was handled independently by his team.

During the auditing process, Memmott shared that his team produced over 800 pages that documented the entire process, showing conclusions and citing the evidence to back them up.

“Secretary Fagan’s involvement in the audit was limited to preliminary input into the scoping phase of the audit and reviewing the final report,” Memmott said. “She had no input on the findings, conclusions or recommendations that appear in the final audit report.”

Continuing, he shared that he understands why people are concerned about the results of the audit, saying “Trust isn’t owed to us. It’s something we must earn.”

In conclusion, Memmott stated that he hopes the clarification about Fagan’s role and how audits work will help rebuild trust in the Audits Division.

“Our hope is that by doing more to highlight and clarify how we do our audit work, the people of Oregon will see the professionalism, independence and integrity their auditors bring to this work every single day,” he said.