Okla. Stat. tit. 74, § 74-212

subdivisions of state - Cost of examination.

A. STATE TREASURER AND OKLAHOMA TAX COMMISSION

1. The State Treasurer shall prepare annual financial

statements in accordance with the reporting requirements set forth

by the Governmental Accounting Standards Board (GASB). The State

Treasurer shall prescribe and implement sound internal control,

accounting and recordkeeping practices consistent with and to

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facilitate compliance with all reporting requirements as set forth

by law.

2. The annual financial statements of the State Treasurer shall

be delivered by the State Treasurer to the State Auditor and

Inspector within ninety (90) calendar days after the close of the

state fiscal year.

3. The State Auditor and Inspector shall perform an audit of

the annual financial statements of the State Treasurer for each

state fiscal year. Such audits shall be conducted in accordance

with auditing standards generally accepted in the United States and

the standards applicable to financial audits contained in Government

Auditing Standards, latest revised edition, issued by the

Comptroller General of the United States. The State Auditor and

Inspector shall complete the audits not later than ninety (90)

calendar days after the financial statements are delivered to the

State Auditor and Inspector. The annual audit reports and related

financial statements shall be delivered by the State Auditor and

Inspector to the Governor, President Pro Tempore of the Senate, and

Speaker of the House of Representatives. The annual audit report

and related financial statements of the State Treasurer shall also

be delivered to the Attorney General and the members of the Cash

Management and Investment Oversight Commission created by Section

71.1 of Title 62 of the Oklahoma Statutes. The State Auditor and

Inspector shall conduct unannounced cash audits of the State

Treasury at least once each quarter.

4. The audit of the Tax Commission shall be an operational

audit performed annually. To the extent of the amount included in

the Tax Commission's appropriation, the Tax Commission shall pay the

expenses of the audit including personal services, equipment and

supplies, from the appropriation.

B. STATE AGENCIES

1. Except as otherwise provided by law, the State Auditor and

Inspector shall audit at least once every two (2) fiscal years the

books and accounts of all state agencies whose duty it is to

collect, disburse or manage funds of the state. The State Auditor

and Inspector shall audit a state agency each fiscal year if that

state agency is required to be audited on an annual basis pursuant

to the federal Single Audit Act of 1984, as amended, 31 U.S.C.,

Section 7501 et seq. If the state agency is audited only once every

two (2) fiscal years, the audit shall cover both fiscal years.

2. Except as otherwise provided by law, the scope of audits

performed by the State Auditor and Inspector shall include all funds

collected, disbursed, or managed by a state agency including, but

not limited to, all special, revolving, depository, canteen, or

other nonstate funds.

3. As used in this section, "state agency" means every agency,

board, or commission included in the primary government of the State

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of Oklahoma. For purposes of this paragraph, the primary government

of the State of Oklahoma includes all agencies, boards, and

commissions included in the primary government in the State of

Oklahoma Comprehensive Annual Financial Report. The agencies,

boards, and commissions included in the primary government of the

State of Oklahoma shall be determined using criteria set by the

Governmental Accounting Standards Board.

4. As used in this subsection, "audit" means any of the

following:

a. "financial audit", which means an audit of financial

statements in order to express an opinion on the
mprehensive Annual Financial Report. The agencies,

boards, and commissions included in the primary government of the

State of Oklahoma shall be determined using criteria set by the

Governmental Accounting Standards Board.

4. As used in this subsection, "audit" means any of the

following:

a. "financial audit", which means an audit of financial

statements in order to express an opinion on the

fairness with which they are presented in conformity

with generally accepted accounting principles or any

other comprehensive basis of accounting, as defined by

the American Institute of Certified Public

Accountants' Professional Standards, latest revised

edition. Financial audits must be conducted in

accordance with auditing standards generally accepted

in the United States and the standards applicable to

financial audits contained in Government Auditing

Standards, latest revised edition, issued by the

Comptroller General of the United States,

b. "operational audit", which means an audit conducted in

accordance with applicable Government Auditing

Standards, the purpose of which is to evaluate

management's performance in administering assigned

responsibilities in accordance with applicable laws,

administrative rules, and other policies and

guidelines and to determine the extent to which the

internal control, as designed and placed in operation,

promotes and encourages the achievement of

management's control objectives in the categories of

compliance, reliability of financial records and

reports, and safeguarding of assets,

c. "performance audit", which means an audit of a

program, activity, or function of a state agency

conducted in accordance with applicable Government

Auditing Standards. The term includes, but is not

limited to, an audit to assess program, activity, or

function effectiveness, economy and efficiency,

internal control, or compliance,

d. "special or investigative audit", which means an audit

with respect to a particular situation which may be,

but is not required to be, conducted in accordance

with applicable Government Auditing Standards,

e. any other type of engagement conducted in accordance

with Government Auditing Standards, and

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f. engagements not conducted in accordance with

Government Auditing Standards, when engagements

involve state agencies that collect less than Three

Million Dollars ($3,000,000.00) annually.

C. GUBERNATORIAL REQUEST

Whenever called upon to do so by the Governor, it shall be the

duty of the State Auditor and Inspector to examine the books and

accounts of any officer of the state or any of the officer's

predecessors. The cost of the audit shall be borne by the entity to

be audited.

D. COUNTY TREASURER

The State Auditor and Inspector shall examine without notice all

books and accounts of each county treasurer of the state twice each

year.

E. DISTRICT ATTORNEYS

1. The State Auditor and Inspector shall annually audit the

books and accounts of the several offices of the district attorneys

of this state. The audits shall be reported in separate reports for

each entity. The audit may include, but shall not be limited to,

the audit of the financial records, performance measures, and

compliance with state or federal statutes and rules, and compliance

with any regulations of state or federal programs. The expense of

the audits shall be paid by the entity audited.

2. The State Auditor and Inspector shall examine and file a

report of the accounts established within the office of each

district attorney for bogus check programs, drug task force

programs, child support collection programs, and any other programs

receiving any nonstate funds. The reports shall be filed with the

President Pro Tempore of the Senate, the Speaker of the House of

Representatives, and the Executive Coordinator of the District

Attorneys Council.

F. DEPARTMENT OF CORRECTIONS
thin the office of each

district attorney for bogus check programs, drug task force

programs, child support collection programs, and any other programs

receiving any nonstate funds. The reports shall be filed with the

President Pro Tempore of the Senate, the Speaker of the House of

Representatives, and the Executive Coordinator of the District

Attorneys Council.

F. DEPARTMENT OF CORRECTIONS

The State Auditor and Inspector shall perform an annual audit,

as defined in paragraph 4 of subsection B of this section, of the

books and accounts of the Department of Corrections. The scope of

the audit shall be determined by the State Auditor and Inspector

using a risk-based approach. The audit may include, but shall not

be limited to, the audit of the financial records, performance

measures, and compliance with any state or federal statutes and

rules, and compliance with any regulations of state or federal

programs. The expense of the audits shall be paid by the Department

of Corrections.

G. OKLAHOMA EMPLOYEES INSURANCE AND BENEFITS BOARD

The State Auditor and Inspector shall cause to be audited the

books and accounts of the office of the Oklahoma Employees Insurance

and Benefits Board. The audit may include, but shall not be limited

to, the audit of the financial records, performance measures,

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compliance with any state or federal statutes and rules, and

compliance with any regulations of state programs. The audit shall

be contracted out to private audit firms. The cost of the audit

shall be borne by the Oklahoma Employees Insurance and Benefits

Board.

H. DISTRICT ATTORNEY REQUEST

Whenever called upon to do so by any of the several district

attorneys of the state, it shall be the duty of the State Auditor

and Inspector to examine the books and accounts of any officer of

any public entity. The cost of the audit shall be borne by the

entity audited.

I. COUNTY OFFICERS BY REQUEST

Upon request of the county commissioners of any county or the

Governor, the State Auditor and Inspector shall examine the books

and accounts of all or any of the officers or custodians of the

various funds of the county; and payment for such examination shall

be made by the county so examined.

J. AUDITORS

The State Auditor and Inspector shall have power to employ

auditors. No auditor shall examine the books or records of the

county of the auditor's residence in counties of under two hundred

thousand (200,000) population according to the most recent Federal

Decennial Census. The State Auditor and Inspector may employ on an

as-needed basis only, legal counsel to carry out the statutory

duties of the Office of the State Auditor and Inspector.

K. EXAMINATION OF LEVIES

It shall be the duty of the State Auditor and Inspector to

examine all levies to raise public revenue to see that they are made

according to law and constitutional provisions. The State Auditor

and Inspector shall have the power to order all excessive or

erroneous lines (levies) to be corrected by the proper officers, and

shall report any irregularities to the Governor, the Speaker of the

House of Representatives and the President Pro Tempore of the

Senate.

L. PETITION AUDITS

1. The State Auditor and Inspector shall audit the books and

records of any subdivision of the State of Oklahoma upon petition

signed by the requisite number of voters registered in the

subdivision and meeting the requirements set out in this subsection.

2. The petition must contain the number of signatures

equivalent to ten percent (10%) of the registered voters of the

subdivision as determined by the county election board or, if the

county election board determines that the number of registered

voters in the subdivision cannot be determined due to boundary lines

not conforming to precinct lines, the required number of petitioners

shall be twenty-five percent (25%) of the total number of persons
quivalent to ten percent (10%) of the registered voters of the

subdivision as determined by the county election board or, if the

county election board determines that the number of registered

voters in the subdivision cannot be determined due to boundary lines

not conforming to precinct lines, the required number of petitioners

shall be twenty-five percent (25%) of the total number of persons

voting in the last general election. If the subdivision is a public

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trust, the required number of petitioners shall be the same as those

required for an audit of its beneficiary. The appropriate county

election board shall provide the number of signatures so required

upon request.

3. The petition shall be in the form of an affidavit wherein

the signatory shall declare upon oath or affirmation that the

information given is true and correct and that he or she is a

citizen of the entity to be audited. The petition shall clearly

state that falsely signing shall constitute perjury. It shall

include the signature of the individual, the name of the signatory

in printed form, the individual's residential address, the date of

signing, the public entity to be audited and the anticipated range

of the cost of the audit provided by the State Auditor and

Inspector.

4. Any person desiring to petition for an audit shall list the

areas, items or concerns they want to be audited, and request from

the State Auditor and Inspector the anticipated range of cost of the

audit. Within thirty (30) days from the receipt of the request, the

State Auditor and Inspector shall mail a petition form to the person

requesting the information which shall state the anticipated range

of the cost and the items or concerns to be audited. The

circulators of the petition shall have thirty (30) days from the

date the petition is mailed by the State Auditor and Inspector to

obtain the requisite number of signatures and return it to the State

Auditor and Inspector.

5. Upon collection of the required number of signatures, the

person desiring the audit shall present the signed petitions to the

State Auditor and Inspector. Within thirty (30) days of receipt of

the petitions, the State Auditor and Inspector shall present the

petitions to the county election board located in the county in

which the subdivision is located.

6. The county election board shall determine whether the

signers of the petition are registered voters of the county in which

the subdivision to be audited is located and whether the petition

has the requisite number of signatures of such registered voters.

The county election board shall certify the petition as having the

required number of signatures or as failing to have the required

number of signatures and return it to the State Auditor and

Inspector.

7. The cost of the audit shall be borne by the public entity

audited. Upon notification by the State Auditor and Inspector of

receipt of the petition, certified by the county election board as

having the required number of signatures, the public entity shall

encumber funds in an amount specified by the State Auditor and

Inspector, which shall be within the range of anticipated cost

stated on the petition from any funds not otherwise specifically

appropriated or allocated. Payment for the audit from such

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encumbered funds shall be made as work progresses, and final payment

shall be made on or before its publication.

8. The names of the signers of any petition shall be

confidential and neither the State Auditor and Inspector, the county

election board nor the county treasurer may release them to any

other person or entity except upon an order from a court of

competent jurisdiction.

M. PENALTIES FOR NONPAYMENT

Except as otherwise provided by law, the cost of any services

provided by the State Auditor and Inspector or as specified in an
ny petition shall be

confidential and neither the State Auditor and Inspector, the county

election board nor the county treasurer may release them to any

other person or entity except upon an order from a court of

competent jurisdiction.

M. PENALTIES FOR NONPAYMENT

Except as otherwise provided by law, the cost of any services

provided by the State Auditor and Inspector or as specified in an

audit contract shall be borne by the entity or fund audited and

shall be due and payable upon receipt of progress billing during the

course of an audit. Any such costs not paid within ninety (90) days

of the date of receipt of billing shall incur a penalty of Ten

Dollars ($10.00) per day for each day from the date of receipt of

billing.

R.L. 1910, § 8119. Amended by Laws 1939, p. 63, § 1, emerg. eff.

May 9, 1939; Laws 1979, c. 30, § 138, emerg. eff. April 6, 1979;