(2) Inspections of the premises of a child-caring agency shall occur no less frequently than once per year and shall be made at unexpected times, with irregular intervals between inspections and without previous notice to the agency. Inspections under this subsection shall be limited to premises where children reside and receive care or services from employees or staff who do not reside on the premises.
(3)(a) Except as provided in paragraph (c) of this subsection, a child-caring agency subject to ORS 418.205 to 418.327, 418.470, 418.475 or 418.950 to 418.970 that has annual revenues in excess of $1 million shall provide the Department of Human Services, at such times as the department specifies by rule, with annual financial statements that have been audited by an independent certified public accountant and a tax compliance certificate issued by the Department of Revenue.
(b) Except as provided in paragraph (c) of this subsection, a child-caring agency subject to ORS 418.205 to 418.327, 418.470, 418.475 or 418.950 to 418.970 that has annual revenues of $1 million or less shall provide the Department of Human Services, upon request or at such times as the department specifies by rule, with financial statements that have been reviewed by an independent certified public accountant and a tax compliance certificate issued by the Department of Revenue.
(c) A child-caring agency subject to ORS 418.205 to 418.327, 418.470, 418.475 or 418.950 to 418.970 that provides adoption placement services but does not provide care to a child and does not receive public funds shall provide the Department of Human Services, upon request or at such times as the department specifies by rule, with a tax compliance certificate issued by the Department of Revenue.
(d) Information in financial statements and tax compliance certificates submitted to the Department of Human Services under this subsection is a public record and open for inspection by any person without order of a court.
(e) The Department of Revenue shall adopt rules to implement the provisions of this subsection pertaining to tax compliance certificates.
(4) The Department of Human Services may conduct an audit, including a forensic audit, of any child-caring agency subject to ORS 418.205 to 418.327, 418.470, 418.475 or 418.950 to 418.970 to determine compliance with ORS 418.205 to 418.327, 418.470, 418.475 or 418.950 to 418.970. The department may, upon request at any time, inspect and audit the books and records, including but not limited to financial records, of the agency. An audit or inspection under this subsection shall be at the expense of the department.
(5) Failure to permit an inspection, whether of the premises or of the books and records of the child-caring agency, or failure to provide the financial statements, as required by this section is grounds for the immediate suspension or revocation of a license, certificate or authorization under ORS 418.240 and for the denial of issuance of a license, certificate or other authorization by the Department of Human Services.
(6) The Department of Human Services may advise the operators, owners and employees of child-caring agencies subject to ORS 418.205 to 418.327, 418.470, 418.475 or 418.950 to 418.970 in regard to approved methods of child care, recommended housing and equipment and appropriate methods to maintain adequate records of operations.
(7) In addition to advice provided under subsection (6) of this section, the Department of Human Services shall provide training regarding appropriate ethnic hair and skin care for children of African-American, Hispanic, Native American, Asian-American or multiracial descent to:
(a) Child-caring agencies;
(b) Persons providing treatment, care or services under the supervision of a child-caring agency; and
(c) Prospective adoptive parents of a child in foster care.
(8) The Department of Human Services shall adopt rules to implement the provisions of this section. [Formerly 419.122; 1971 c.401 §19; 1983 c.510 §8; 2011 c.692 §1; 2016 c.106 §10; 2018 c.40 §2]