Interim administrator flags audit deficiencies and missing plan of action; staff to file corrective plan with state

The interim city administrator told the council that the Oregon Secretary of State’s office had identified continued significant deficiencies and material weaknesses in the city's audit and that the city must prepare a plan of action to address the issues.

Brandon said the secretary of state's division sent a letter dated July 7 (received by the city July 11) noting significant deficiencies and that the governing body is required to file a plan of action within 30 days. The city missed the 30‑day deadline because staff were unaware of the letter; Brandon said he will contact the state to discuss and submit a corrective action plan. He noted that past audits repeatedly identified segregation‑of‑duties issues due to the city’s small staffing levels and that the plan of action can document the city’s constraints and measures to mitigate risk.

Council and staff discussed the need to obtain a final approved budget document (staff said they do not yet have a posted final approved budget) and to provide a balance sheet and other financial documentation. Brandon said staff will work with auditors and the Secretary of State contact to file the required report and return to council with a proposed plan for addressing audit findings and any staffing or procedural changes.

No council action was taken at the work session; staff said they will prepare the plan and coordinate with the auditor and the Secretary of State’s office.