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OSAE Overview

In 1927, the Legislature established the State Department of Finance (Finance) and assigned to it general responsibility for supervising matters concerning the state’s financial and business policies.  This responsibility included all Executive Branch audit functions.  In 1941, the Director established a separate audit function, which initially conducted only financial audits.  In 1954, the audit responsibilities expanded to include performance audits. 

While the organization and scope of the Executive Branch audit function has continually evolved, Finance’s responsibility as the Executive Branch auditor has remained unchanged.  The Office of State Audits and Evaluations’ (OSAE) current name and functions were established in July 1992 when Finance merged the Financial and Performance Audits Unit and the Program Evaluation Unit.  This merger increased effectiveness by assigning staff with varied experiences and expertise in one organizational office.

Finance’s broad oversight responsibilities result in a wide variety of activities, including financial audits, financial related audits, performance audits, information technology audits, compliance audits, quality assurance reviews, and budgetary reviews. Additionally, numerous statutes require Finance to perform audits of various state funds and/or programs. 

Finance is charged with monitoring and coordinating the Financial Integrity and State Manager's Accountability Act, and issues Audit Memos to provide instruction to internal audit organizations. Finally, the Department performs special program reviews as requested by the Governor’s Office, the Director, or other state entities.  Many of these activities are reimbursed through interagency agreements.

OSAE supports Finance in supervising the state’s financial and business policies and in conserving the state’s rights, interests, and resources.  OSAE accomplishes this through independent audits, objective evaluations, and other related services.  OSAE’s scope of work includes reviewing the following items:

  • Reliability and integrity of financial and operating information, and the means used to identify, measure, classify, and report such information.
  • Systems established to ensure compliance with those policies, plans, procedures, laws and regulations that could significantly affect operations and output.
  • Means of safeguarding assets.
  • Economy and efficiency with which resources are acquired, protected and employed. 
  • Operations and programs to determine whether results are consistent with established goals and objectives.
  • Corrective actions taken by agency officials on previous audit findings.

OSAE accomplishes these multifaceted objectives using staff with diverse backgrounds, professional certifications, and technological expertise.  OSAE is committed to adherence to professional standards and to maintaining the credibility of the organization.