Oregon - State Controller

John Radford

I’m often asked, as I’m sure you are, “what does a controller do?” What does the job of a controller have to do with good government? How does the controllership function add value to our organization? These are vital questions that citizens and elected officials have every right to ask, especially in difficult economic times.

Ironically, it’s these economic times when citizens and elected officials turn to the controllership function to ensure accountability and seek ways to improve government credibility. Over the past two years we have seen a crisis of confidence engulf financial management in the private sector. The public sector has not been infected with these shenanigans in large measure to the strong controllership function found in government.

Traditionally, controllership in government focuses on accounting, financial controls, systems, and reporting. Maintaining systems, standards, and business processes to ensure that spending is within approved levels and for authorized purposes. That revenue collection is properly processed. That financial statement’s fully disclose results of financial operations and represent financial position accurately and in compliance with accounting standards. 


MANAGEMENT RESPONSIBILITY

Controllership is at the heart of executive and managerial responsibilities. It’s a guiding philosophy addressing how management will carry out its stewardship responsibilities. Good management consists of planning, organizing, directing, controlling, integrating, and measuring. 

These activities are supported through the controllership function by addressing the following objectives.

Managing accounting and payroll systems that deliver cost effective services at minimum investment and maximum value

Delivering timely, trusted financial information both internally and externally that meet national accounting standards and in compliance with state and federal laws

Support management decision making with business controls and policies that balance cost, risk, and ethical values
Effective Controllership brings together relevant information that supports results-oriented performance. It brings a measure of value in supporting the interests and responsibilities of members of the governing body and it’s citizenry. 

VALUE OF CONTROLLERSHIP

Modern controllership delivers key benefits to government. The elements of these benefits include:

Financial information – historical and results of current operations and financial position

Cost effective financial management systems

Management of financial and accounting risk

Managerial control systems

Legal compliance

Ethics, ethical practices and values

These elements work together to help state executives and employees fulfill their mission and meet their objectives. Executives and employees are:

Focused – concentrating on mission and objectives

Mindful of resources – thinking like an owner

Decision oriented – policy analysis - using historical facts and independent projections – bringing appropriate information

Risk aware – identifying and managing financial risks

Ethical – principal based behavior with integrity

These Controllership benefits and elements lead to improved financial management.

Uniform excellence in fiscal policy development and administration across state government

Consolidated investments in accounting and payroll systems

Better administrative capacity to serve the public

Improved support for the governance responsibilities of elected officials

Enhanced legal compliance and ability to deter fraud


PERFORMANCE LEADERSHIP

Citizens, elected officials, and executive management should expect their State Controller to strive to meet results-oriented benchmarks. These benchmarks can be used to hold State Controller’s accountable to deliver consistent performance.

Rigorously prepared financial reports are useful, support decision making and are consistently viewed as credible

Comprehensive Annual Financial Report (CAFR) delivered timely and with a clean audit opinion

Standards for financial discipline and control exist which are adaptable and flexible to the needs of state agencies and departments based on their business and unique operating conditions

State executives and managers have access to central and corporate controllership resources to develop and maintain their capacity to implement key policies and procedures

Systems and system investments are cost effectively maintained protecting state assets and meeting standard control objectives.

SUMMARY

The staff and office of the State Controller is part of the governance structure providing balance and independence with the office of State Treasurer and the office of the State Auditor. In addition, the staff and office of the Controller serves the key accounting information requirements of the Governor and State Legislature. 

The State Controller is a critical policy leader in developing and managing systems, information, and business processes that enhance government accountability and credibility. The Controller supplies government-wide financial information useful to decision makers and other interested stakeholders. The Controller is vital in establishing key standards-based frameworks for financial information and reporting. The Controller evaluates the extent to which standards are adhered to government-wide and acts to defend those standards when necessary. The Controller gives effective counsel to state agencies to help them meet standards and achieve their business objectives. 

A strong, effective, and efficient corporate Controllership function supported by the Governor, Legislature, and citizens will help ensure that state financial information is accurate, credible, and supports openness and transparency. A democracy for the common wealth should expect nothing less. 

Biography

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