| About State Controller Operations |
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| What Does a Controller Do? |
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Strengthening Accountability & Credibility in Government through the State Controller
By John Radford, Oregon State Controller
I'm often asked “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 is a vital role as well as ensuring revenue collection is properly processed. Ensuring the state’s financial statement fully discloses results of financial operations and represents our financial position accurately and in compliance with accounting standards is also a major responsibility.
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.
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| Customers & Stakeholders |
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Putting Citizens First: The State Controller's Division first and primary responsibility is to ensure value added long term system and fiscal support services for the protection and delivery of state financial information resources.
The Governor: The State Controller's Division, on behalf of and at the direction of the Governor, manages the accounting, financial reporting, and payroll functions of Oregon state government.
State Program Agencies: The State Controller's Division supports and establishes fiscal standards, policies, procedures, and processes in cooperation with state agencies to provide centralized and uniform statewide administrative financial systems and statewide information.
State Employees: The State Controller's Division supports state fiscal employees with appropriate avenues for participating in decisions affecting their work life, education, training, and career choices. In addition, the Division provides all state employees with policies, procedures, and information related to transaction services such as payroll, payroll deductions and payments, tax withholding and reporting, travel claim reimbursement, and accrued leave.
The Legislature: The State Controller's Division supports the legislative process by providing financial state government information by linking and tracking revenue and cost information against approved legislative appropriations.
Central Control Agencies: The State Controller's Division provides management and fiscal support to, and exchanges information and fiscal services with, the Oregon Division of Audits, the Oregon State Treasury, the DAS Budget and Management Division, the Legislative Fiscal Office, the DAS Information Resource Management Division, the DAS Procurement, Fleet & Surplus Division, the DAS Office of Business Administration, and the DAS Human Resources Services Division.
External Entities: The State Controller's Division provides direct financial services, financial management support, financial information, or the exchange of information, to the federal government, Oregon local governments, citizens, vendors, investors, employee representation groups, and governmental or fiscal professional associations on a routine basis.
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| John Radford, State Controller |
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Professional Biography
January 2008
John has over 35 years of government financial management experience starting his career working for the City of Omaha, Nebraska in various financial management positions. In 1983, he moved to Oregon and began work as Budget Officer in the Oregon Judicial Department and was promoted to Management Services Director in 1985. In 1989, the Governor appointed John to the position of State Controller. He has served in this capacity under 5 Oregon governors.
John earned a bachelors degree in General Business from the University of Nebraska at Omaha, holds an MA in Public Administration from the University of Nebraska, and earned an MS in Applied Information Management from the University of Oregon in 1996. John is a Certified Internal Auditor (1974), a Certified Government Financial Manager (1996) and a Certified Fraud Examiner (2002).
He is a current member and served as the 2004 President of the National Association of State Auditors, Comptrollers, and Treasurers; and served as the 1999-2000 President of the National Association of State Comptrollers. John was appointed in 2007 to serve a three year term as a member of the Financial Accounting Foundation (FAF) Board of Trustees. In 2008, he was appointed to serve on the Appointments Panel for the Federal Accounting Standards Advisory Board.
He is a member of the Government Finance Officers Association (GFOA), Association of Certified Fraud Examiners (ACFE), the Institute of Internal Auditors (IIA) and the Association of Government Accountants (AGA). He was a founding officer and past board member of the National Electronic Commerce Coordinating Council (NECCC). He is a former trustee of the International Center for Governmental Financial Management. He currently is a Board of Trustee member of the Academy for Government Accountability and serves on the National Executive Committee of the AGA. He is Past President and member of the Oregon State Fiscal Officers Association and an associate member of the Oregon Society of CPA's.
John has made presentations and provided consulting services to various organizations and governments around the globe. These include Russia, China, Mexico, Bosnia, Malaysia, the Czech Republic, Kyrgyzstan, and Israel. John has authored articles for a variety of professional association newsletters; contributed chapters to Essays on Leadership, 21 Century Government published by the NECCC, and published Financial Trends in State Finance in the 2004 edition of “The Book of the States.” John is the current author of Government Financial Management and Reporting -- an industry reference guide.
State Controller’s Division
“Empowering Business Value”
John J. Radford
State Controller
http://egov.oregon.gov/DAS/SCD/index.shtml
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