Okla. Stat. tit. 11, § 11-17-105

procedures engagement.

A. The governing body of each municipality with Fifty Thousand

Dollars ($50,000.00) or more in total revenue to all funds,

including component units of which the municipality is a

beneficiary, during a fiscal year shall cause to be prepared, by an

independent licensed public accountant or a certified public

accountant, an annual financial statement audit to be conducted in

accordance with auditing standards generally accepted in the United

States of America and Government Auditing Standards as issued by the

Comptroller General of the United States. Such audit shall be

ordered within thirty (30) days of the close of each fiscal year.

Copies shall be filed with the State Auditor and Inspector within

six (6) months after the close of the fiscal year in accordance with

the provisions of the Municipal Audit Reform Act of 2022 and with

the governing body of the municipality.

B. The governing body of each municipality with Fifty Thousand

Dollars ($50,000.00) or more in total revenue to all funds,

including component units of which the municipality is a

beneficiary, and with a population of less than two thousand five

hundred (2,500) as of the most recent Federal Decennial Census, and

for whom an annual financial statement audit is not required by

another law, regulation or contract, shall cause to be prepared, by

an independent licensed public accountant or a certified public

accountant, a biennial financial statement audit in accordance with

auditing standards generally accepted in the United States and

Government Auditing Standards as issued by the Comptroller General

of the United States. Each biennial audit shall cover the two (2)

preceding years.

The governing body of each municipality may alternatively

request a biennial agreed-upon-procedures engagement. Agreed-upon

procedures required under the Municipal Audit Reform Act of 2022

shall be performed in accordance with the applicable attestation

standards of the American Institute of Certified Public Accountants.

The audit or agreed-upon-procedures engagement shall be ordered

within thirty (30) days of the close of the fiscal year that the

audit is due. Copies shall be filed with the State Auditor and

Inspector within nine (9) months after the close of the fiscal year

in accordance with the provisions of paragraph 2 of subsection A of

Section 212A of Title 74 of the Oklahoma Statutes and with the

governing body of the municipality, with the deadline to order and

file the audit or agreed-upon procedures eligible for extension by

Oklahoma Statutes - Title 11. Cities and Towns Page 111

the State Auditor and Inspector for special circumstances or

emergencies.

C. The municipal income requirements in subsections A and B of

this section shall not include any grant monies provided to a

municipality from any federal, state, or other governmental entity.

The municipal income requirements shall not include income of any

public trust established under Sections 176 through 180.4 of Title

60 of the Oklahoma Statutes with a municipality as the beneficiary

of the trust; provided, income from trusts established principally

for the purpose of operating electric, water, wastewater, and

sanitation utilities shall be included for purposes of the municipal

income requirements.

D. The governing body of each municipality that requests the

biennial agreed-upon-procedures engagement provided in subsection B

of this section shall:

1. Determine the establishment of policies related to

adjustments, write-downs, or write-offs for various receivables due

to the municipality or the utility-related trust and select a sample

of adjustments to test for adherence to policies and for appropriate

supporting documentation;

2. Obtain two (2) months of bank statements of the general fund

and utility fund and confirm that cash deposits were made in the

appropriate accounts and verify utility billing receipts or posting
-offs for various receivables due

to the municipality or the utility-related trust and select a sample

of adjustments to test for adherence to policies and for appropriate

supporting documentation;

2. Obtain two (2) months of bank statements of the general fund

and utility fund and confirm that cash deposits were made in the

appropriate accounts and verify utility billing receipts or posting

reports agree with the daily deposits;

3. Agree upon a pay rate for the city manager or town

administrator, city or town clerk, city or town treasurer, and

payroll clerk, to be authorized and documented in the personnel file

or in approved meeting minutes. If any employee received

compensation over and above his or her authorized salary or hourly

rate, the payroll clerk, upon request, shall provide appropriate

documentation of authorization for such pay. The requirements of

this paragraph shall not include expense reimbursements but shall

include any allowances considered taxable;

4. Determine the establishment of policies of use, proper

municipal purpose, and adherence to prescribed policies for entities

that use debit or credit cards;

5. Select a sample of transactions to test for supporting

documentation;

6. Prepare a cash basis schedule of changes in fund balances

for each fund and determine compliance with the statutory

prohibition of creating fund balance deficits;

7. Agree material fiscal year-end bank account balances to bank

statements and trace significant reconciling items to subsequent

clearance and determine if any bank accounts exist that are not

under city council purview;

8. Compare uninsured deposits at fiscal year-end to the fair

value of pledged collateral;

Oklahoma Statutes - Title 11. Cities and Towns Page 112

9. Inquire if any instances of known fraud, illegal acts, or

noncompliance with laws and regulations have occurred; and

10. Compare the use of material-restricted revenues and

resources to the restrictions of the governing body of the

municipality.

E. A public trust with a municipal government or governments as

the beneficiary that meet the same financial requirements

established in subsection B of this section may, as an alternative

to obtaining an audit as required in Section 180.1 of Title 60 of

the Oklahoma Statutes, follow the biennial agreed-upon-procedures

engagement outlined in subsection D of this section.