What Was Not Said About the Audit
- Jun 6
- 2 min read
In a recent letter, city residents were informed that the current city audit is being conducted "as the result of a citizen petition filed with the Oregon Secretary of State's Office."
What the City did not disclose is that the Oregon Secretary of State Audit Division has been raising concerns about Rivergrove's in-lieu-of-audit financial statements for several years. The Secretary of State public records show repeated communications from the State to the City of Rivergrove dating back to at least 2019 regarding deficiencies in the City's budget reporting and the need to comply with State law.
As for the actual audit, the Secretary of State formally notified the City in October 2025 that it needed to either hire an independent auditor or request a State-led audit. The State subsequently granted multiple extensions and worked with the City for more than four months. Per a February 11, 2026 letter from Oregon Audits Director Steve Bergmann (read here), the City missed multiple deadlines. The letter states:
"… On February 2nd, we provided a final request for a signed contract from the City of Rivergrove. In that final request, we stated that if the City failed to submit a signed contract (with an independent accountant) to us by February 4th, the Secretary of State would contract with a firm to audit the City. We restated our expectation that we would receive a signed contract by February 4th in an email from Ms. John to you on February 3rd. The City failed to comply with the request.
Over the past 4+ months, we have granted the City of Rivergrove significant flexibility. The City of Rivergrove has missed our 11/10/25, 11/17/25, 1/30/26, and 2/4/26 deadlines. Oregonians entrust our office to uphold Oregon Municipal Audit Law. ORS 297.445 requires that the Secretary of State take action in the event a City does not fulfill its requirements under the law. We have been clear of our intention to contract with a firm to audit the City in the event the City was unable to submit a signed contract to us by our deadline, which had already been extended several times. …"
Only after Rivergrove's missed deadlines did the Secretary of State exercise legal authority and take charge of the audit process. Had the City expedited the process, secured a contract, and avoided the lengthy extension period provided by the State, the cost would have been significantly less and the results would have been available for the current ongoing 2025/2026 budget approval process.
Effective city management requires transparency with open and accurate communication. When residents receive official communications from the City, they deserve full and accountable disclosure. Rivergrove residents should have access to all relevant records, events and facts, and be provided the opportunity to make informed decisions about the City's finances.