Audit finds workplace problems in Oregon Revenue Department, low morale

The Oregon Department of Revenue needs to take steps to improve its culture and boost overall employee morale and help workers have clarity about the agency and their jobs.  

That's the finding of an audit that Oregon Secretary of State Dennis Richardson's office completed that examined the culture of the state's revenue department, which has about 933 full-time staff and a budget of $313 million for the 2017-2019 biennium. The audit was released Wednesday. 

Employees cited concerns about unclear agency communications and a lack of clarity about the agency's direction. Employees also voiced a frustration about an "increased emphasis on outcome metrics as opposed to quality customer service."

Employees said they felt undervalued, the audit said. Staff also reported episodes between management and coworkers that included "demeaning comments and yelling," the audit said. 

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Auditors recommended that the agency take steps that include improved internal communications, an accountability framework with clear expectations and feedback about employee performance. 

“As the agency responsible for handling our tax dollars, it is crucial that DOR be able to perform to the best of its ability,” Richardson said in a statement. “This audit provides a roadmap for DOR to bring its culture into better alignment, which in turn will optimize the agency’s performance." 

The audit relied on employee surveys and focus groups with workers. In its response to state auditors, Oregon Department of Revenue Director Nia Ray agreed with the recommendations and outlined plans for improvement. 

Satish Upadhyay, the agency's deputy director, said they appreciate the audit team's work. 

"We strive to be the best organization we can be; this audit’s recommendations are valuable information for us to use in improving the agency, especially regarding customer service and staff morale," he wrote to the Statesman Journal. "We agree with all of the audit’s recommendations and will continue looking for the best ways to communicate with staff and appropriately involve them in decisions that impact their work."

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In a separate audit released Wednesday, the Secretary of State's office found that the Revenue Department needs to improve its cyber-security measures to safeguard its information technology system.

For example, the audit said the department doesn't have adequate safeguards to keep unauthorized devices from connecting to its network, such as keeping an up-to-date inventory of authorized hardware.

The department also needs a better process for monitoring login activity.

The audit recommended steps that include written policies for tracking hardware and software systems, identifying systemic vulnerabilities and keeping audit logs to track activity.

In its response, the department agreed with the recommendations, which should be in place by June 30. 

Contact reporter Ben Botkin at bbotkin@StatesmanJournal.com, 503-399-6687 or follow him on Twitter @BenBotkin1