Secretary of State Report Flags $2.9 Million in Potentially Improper Spending

SALEM, Ore. (Feb. 18, 2026) — Tobias Read on Tuesday released the annual report on the State Government Waste Hotline, revealing that reports submitted in 2025 led auditors to identify nearly $3 million in questioned costs.

The hotline, administered by the Oregon Secretary of State’s Audits Division, allows state employees and members of the public to anonymously report suspected misuse of taxpayer funds or government resources.

“Oregonians deserve a government that’s working efficiently and effectively for them,” said Oregon Secretary of State Tobias Read. “The State Government Waste Hotline is one of the tools we use to help make sure agencies are using every dollar wisely.”

According to the report, hotline complaints in 2025 resulted in the identification of $2,900,856 in questioned costs. “Questioned costs” is an auditing term referring to expenses that may be inappropriate under statutes, regulations or the terms of a grant agreement. All reports filed during the year were closed by the end of 2025.

The hotline received 219 reports in 2025, a slight increase from the previous year. Still, that figure remains below the 10-year average of 253 reports annually.

Last year, Read implemented an enhanced review process for hotline complaints, establishing a panel of subject matter experts from across the agency to evaluate reports. The move was intended to strengthen oversight and improve decision-making related to investigations.

“I created this new review process to put us in a stronger position to meet our obligation to the legislature and effectively respond to hotline reports,” said Secretary Read. “This panel means we have more expertise and greater capacity to ensure we’re providing high quality service to Oregonians.”

The Audits Division has managed the toll-free hotline since 1995, reviewing each complaint and determining, based on statutory guidelines, which reports warrant further investigation.

Under Oregon law, the Secretary of State’s office must submit the annual summary report to the Legislature. The report outlines the number, nature and resolution of hotline complaints received during the year.

You can read the full audit report here.