PORTLAND, Ore. (KOIN) – State funds used by Oregon Governor Tina Kotek's office for parking, concert tickets, and an event at the governor's official residence, may have violated state policies, according to the Oregon Secretary of State's Audits Division.

The Audits Division sent a letter to Governor Kotek on January 3, informing the governor about the potential violations, as first reported by Willamette Week.

The investigation into the expenditures stemmed from anonymous reports made to the State Government Accountability Hotline in March of 2024. The reports outlined concerns about the misuse of state resources after Governor Kotek proposed creating the Office of the First Spouse.

In the letter, Deputy Secretary of State Cheryl Myers said those complaints were "unfounded." However, auditors identified some "minor" expenditures within the governor’s office that appear to violate state policy and state ethics law, Myers said.

“We believe the potential violations are minor, and these instances were unintentional, in that the public officials involved may not have been aware of the technical requirements of state ethics law. Furthermore, we recognize there may be valid business reasons for the transactions even if they potentially violate ORS 244. As we recommend to your office, updating policies and documentation would alleviate the risk of future potential ethics violations,” Myers wrote in the letter -- noting the “full cooperation” of Kotek’s staff during the investigation.

The investigation began with the division reviewing expenses from the Governor’s Office between January 2023 and April 2024. Auditors reviewed expenses based on invoice descriptions and accounting categories that state funding does not typically cover, including transactions categorized as “Prizes and awards,” “Catering Services,” and “Parking,” the division explained.

Overall, the letter highlighted three types of spending that might have violated state policy.

Parking

The investigation identified two public officials who received parking paid by the governor’s office. This included the state paying $65 per month for parking in Salem for the First Lady and $315 per month for parking in Washington, D.C. for another official, according to accounting records included in the Audits Division letter.

ORS 276.591, which outlines state parking policy, requires state agencies to impose equitable charges for parking whether or not someone is a state employee. The division also highlighted another parking law, ORS 244, which bans public officials from receiving a benefit or avoiding a financial detriment as a result of their status as a public official.

Myers noted, "ORS 244.040(2) provides various exemptions to the prohibition; one important exemption is that a public official may receive a financial benefit that is included in official compensation. To be considered official compensation, the benefit must be formally documented — for instance, in an official policy."

To remedy this, Myers recommended the Governor’s Office “follow state policy by not paying monthly parking charges for public officials.”

Entertainment

The Oregon Accounting Manual bans personal expenses to be paid by the state. Myers highlighted an administrative rule requiring public officials to perform an official act -- such as a speech -- to qualify for the gift exemption under Oregon law.

After reviewing expenses, auditors found two instances with no evidence that the governor or other public officials performed an official act during the event, the letter states.

In two other instances, it is unclear who attended events that the governor’s office paid for, Myers said, noting these four events totaled $615.

"In these instances, these public officials appear to have avoided a financial expense they would
otherwise have been responsible for paying, but for their status as public officials," Myers said.

The Audits Division letter including invoices for tickets to a Queen tribute concert in Portland, the World Famous Glenn Miller Orchestra, along with tickets to a performance by the Portland Gay Men's Chorus.

In the letter, Myers recommended the governor's office to follow state policy by not paying entertainment expenses unless a public official is performing an official duty. However, the Governor’s Office could work with the Department of Administrative Services to update state policy to define specific cases where the state covers entertainment costs for public officials in certain cases.

Mahonia Hall reception

Myers noted that the state is allowed to buy refreshments such as chips, fruit, and cookies for employee recognition events, per the Oregon Accounting Manual; however, an event at the governor's official residence at Mahonia Hall might have violated policy, according to the Audits Division.

In the letter, Myers noted an event in August 2023, when the governor hosted a catered dinner to recognize staff from the Department of Administrative Services, the Governor’s Office, and the Oregon State Police Dignitary Protection Unit. The event was attended by 180 people, including public officials and their families.

According to accounting records included in the letter, the governor's office paid over $9,000 in catering from a Salem brewery, and it is unclear which public officials may have accepted the dinner, Myers said, noting this event is a longstanding tradition spanning multiple administrations.

Moving forward, the division recommends the Governor’s Office follows state policy by only buying refreshments for employee recognition events. Alternatively, the governor’s office could update policy to define cases in which the state can cover meal costs for official events.

Following this investigation, the Audits Division reported the potential violations to the Oregon Government Ethics Commission, as required by state law. According to the Audits Division, OGEC is the "final arbiter of all potential ethics violations.”

On Wednesday, OGEC Executive Director Susan Myers told KOIN 6 News that the commission received materials from the Audits Division investigation.

“The letter and documents are being reviewed to determine if there is sufficient information to bring any of the matters within the letter to the Commission for consideration of whether there are grounds to open a case on the Commission’s own motion,” Susan Myers said.

Governor Tina Kotek’s office did not respond to KOIN 6 News' request for comment.