Okla. Stat. tit. 74, § 74-2234

of multicounty organizations.

A. The Department, with the approval of the Commission, shall

develop rules to administer any of the matching funds derived from

the Department for the allowable expenditures of multicounty

organizations. The rules shall be developed in accordance with this

section and shall be adopted by the Commission. As used in the

Oklahoma Tourism, Parks and Recreation Enhancement Act:

1. “Multicounty organization” means a nonprofit organization

which satisfies the following requirements:

a. its primary purpose is to promote the tourism

attributes of a multiple-county region which is

identified as a tourism “country” or “lake” area, or

any other organization participating in the matching

funds program on July 1, 2001,

b. it is governed by a board of directors elected by the

membership of the organization,

c. it is governed by a board of directors which equitably

represents the counties within the multiple-county

region,

d. it has an administrator of operations position who is

not an elected director,

e. it utilizes income from private sector sources as the

basis for funding its administrative and promotion

expenses, and

f. it has provided to the Department an independent and

certified financial audit for the preceding fiscal

year;

2. "Administrative expenditure" means expenditures for the

administration of fund raising and tourism promotion.

Administrative expenditures shall include salaries, payroll taxes,

insurance, personal services contracts, travel expenses not to

exceed the amounts provided in the State Travel Reimbursement Act,

rent, lease or purchase of facilities, office supplies, telephone

and electronic communications and multicounty organization audit

costs;

3. "Allowable expenditures" means expenditures by a multicounty

organization submitted to the Department for matching funds in

accordance with the provisions of this section and the rules

promulgated by the Commission;

4. "Discretionary expenditure" means those expenditures by

multicounty organizations for which matching funds are not

requested. Discretionary expenditures are not subject to the

limiting provisions of this section and the rules promulgated by the

Commission;

5. "Independent and certified audit" means a financial audit

performed in accordance with Generally Accepted Government Auditing

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Standards, issued by the Comptroller General of the United States.

The scope of the audit shall, at a minimum, consist of a statement

of revenue and expenditures and shall include the specific

requirements identified in this section and the rules promulgated by

the Commission; and

6. "Tourism promotion expenditure" means an expenditure for the

preparation, printing, publication and distribution of media

advertising in brochures, news and publicity materials, travel

posters, mailing pieces, newspapers, magazines, television, radio,

billboards, advertising and promotional specialties, exhibit space

and displays at trade shows and conventions and the expenses for

operating such exhibits, including travel expenses, not to exceed

amounts provided for in the State Travel Reimbursement Act, the cost

of a travel writer, travel agent, tour broker and tour operator

familiarization tours into the State of Oklahoma, and registration

fees for an annual tourism and recreation industry conference with

the purpose of attracting tourists or generating travel or tourism

activity within the state or multicounty organization areas. The

amount expended within the multicounty organization area for tourism

promotion shall not exceed fifty percent (50%) of the total of

allowable expenditures and allocated matching funds.

B. It is the intent of the Legislature to encourage the

promotion of tourism by multicounty organizations in cooperation

with the statewide program of the Department. Allowable
ticounty organization areas. The

amount expended within the multicounty organization area for tourism

promotion shall not exceed fifty percent (50%) of the total of

allowable expenditures and allocated matching funds.

B. It is the intent of the Legislature to encourage the

promotion of tourism by multicounty organizations in cooperation

with the statewide program of the Department. Allowable

administrative expenditures by multicounty organizations shall not

exceed forty percent (40%) of the lesser of either the total amount

allocated, including reallocations, to the organization from

appropriations made by the Legislature or the total of the matched

expenditures. The limitation on administrative expenditures applies

only to those expenditures submitted for matching with state-

appropriated funds.

C. With the exception of those organizations identified as

“country” or “lake” associations participating in the matching funds

program on July 1, 2001, not more than one organization representing

a recognized “country” or “lake” area shall be eligible to receive

matching funds.

D. Matching funds for the allowable expenditures shall be based

upon actual expenditures by the multicounty organization less any

discount, refund, or rebate to the multicounty organization.

Multicounty organizations shall use a State of Oklahoma Notarized

Claim Form with all applicable statements and affidavits to request

matching funds for the allowable expenditures.

E. In order for a multicounty organization to receive matching

funds for expenditures incurred to publish and distribute a

promotional periodical emphasizing the attractions, landmarks,

activities, geographical features and other characteristics of

counties within the multicounty organization's area of

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responsibility, the multicounty organization shall be subject to the

following requirements:

1. Maintain an account with a financial institution subject to

the regulatory control of a state or federal financial regulatory

entity for the deposit and withdrawal of all funds collected by or

on behalf of the multicounty organization;

2. Prepare an annual Statement of Income and Expense showing

all deposits to the account maintained with the financial

institution and all withdrawals from the account with the financial

institution for the period covered by the annual income and expense

statement;

3. May enter into a contract with a person or legally organized

business entity for the solicitation of advertising revenue in a

promotional periodical publication and for the publication and

distribution of the periodical emphasizing the attributes of sites,

scenes, businesses and attractions located within the area for which

the multicounty organization is responsible if:

a. the person or legally organized business entity

provides a detailed written disclosure to the

multicounty organization of its actual costs incurred

in performance of the contract on a periodic basis

during the period prescribed in the contract for

performance which disclosure shall be at least

quarterly,

b. the multicounty organization ensures that the actual

cost of publication for the promotional periodical is

printed in at least 10-point type somewhere in the

body of the publication,

c. the multicounty organization ensures that the person

or legally organized business entity performing

services on behalf of the multicounty organization

identifies to the multicounty organization each

purchaser of advertising in the multicounty

organization promotional periodical, the amount of

money paid for advertising in the promotional

periodical, and the size or other relevant

characteristics of the material purchased for

publication in the promotional periodical,

d. the person or legally organized business entity

soliciting advertising revenue may not advance or

deposit their own funds as a means of securing
the multicounty

organization promotional periodical, the amount of

money paid for advertising in the promotional

periodical, and the size or other relevant

characteristics of the material purchased for

publication in the promotional periodical,

d. the person or legally organized business entity

soliciting advertising revenue may not advance or

deposit their own funds as a means of securing

matching state funds, and such acts shall be deemed as

fraud, subject to prosecution, and

e. the multicounty organization and the person or legally

organized business entity acting on behalf of the

multicounty organization both execute a statement,

upon a form to be prescribed by the State Auditor and

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Inspector, under oath, that any funds being requested

from the Department for matching of an allowable

expenditure as authorized by this section represent an

amount of money equal to an amount of money that has

previously been deposited into the account maintained

by the multicounty organization as of the date the

request for matching funds is made. The statement

shall include the identity of each purchaser of

advertising in the multicounty organization

promotional periodical and the amount of money paid

for advertising in the periodical together with the

other information required by subparagraph c of this

paragraph. The statement shall also include a

verification that the funds collected by or on behalf

of the multicounty organization were expended for:

(1) a legitimate operational expense of the

multicounty organization,

(2) the purpose of obtaining matching funds as

authorized by this section, or

(3) a promotional event sponsored, conducted or

organized by the multicounty organization for

attracting attention to a specific location or

occasion in furtherance of a purpose of the

multicounty organization.

F. 1. Each multicounty organization shall prepare and submit

appropriate plans, including a budget work program, for the ensuing

fiscal year to the Commission. Expenditures for obligations

incurred before the Commission approves the multicounty

organizations' plans and budget work programs and any changes

thereto, and expenditures not in accordance with the multicounty

organizations' plans and budget work programs, shall not be

allowable expenditures. The approval by the Commission of a

multicounty organization budget work program constitutes a firm

commitment of the multicounty organization's appropriated funds,

subject to any fiscal year limitation, except that the Commission

may reallocate unobligated funds as provided by law.

2. Any funds collected on behalf of the multicounty

organization for advertisements in the promotional periodical shall

be paid to the multicounty organization within twenty (20) working

days after collection by any entity acting on behalf of the

multicounty organization for solicitation of advertising revenue.

The multicounty organization shall deposit any funds paid to it

within five (5) working days of receipt.

G. Each multicounty organization shall be required to submit an

annual independent and certified audit of the multicounty

organization. The audits shall encompass all funds available to the

multicounty organization. The audit report shall include a

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statement of Income and Expense and, at a minimum, encompass all

monies received by the multicounty organization and all matched

expenditures reimbursed to the multicounty organization. Revenue

reported shall include all advertising revenue received and define

all other individual sources of revenue. The names and addresses of

and amounts received from each advertiser shall be included as an

unaudited supplemental schedule to the audit report.

H. The person or entity engaged to perform the audit required

by subsection G of this section shall:
o the multicounty organization. Revenue

reported shall include all advertising revenue received and define

all other individual sources of revenue. The names and addresses of

and amounts received from each advertiser shall be included as an

unaudited supplemental schedule to the audit report.

H. The person or entity engaged to perform the audit required

by subsection G of this section shall:

1. Not be the same person or entity that performs bookkeeping,

controllership or management functions, or other accounting services

for the multicounty organization;

2. Be registered with the Oklahoma Accountancy Board and

possess a license to practice; and

3. File a copy of the audit performed on behalf of a

multicounty organization with the State Auditor and Inspector.

I. Failure to submit an audit report shall be cause for

withholding of matching funds to a multicounty organization. Audit

reports showing matching by any amount in excess of the allowable

expenditures, matching for unallowable expenditures, or

noncompliance with statutes, procedures prescribed herein, or in

rules promulgated by the Commission shall be cause for withholding

of matching funds until such time as restitution is made to the

Department.

J. The State Auditor and Inspector shall conduct an office

examination of the audits filed pursuant to paragraph 3 of

subsection H of this section on an annual basis. The examination

shall include analysis of the quality of the audit performed and

shall include written recommendations for modifications in future

audits conducted on behalf of a multicounty organization.