Okla. Stat. tit. 74, § 74-840-2.19

A. The Director of the Office of Management and Enterprise

Services shall not approve any payroll claim for payment for any

agency unless said claim contains or is accompanied by the

certification by the administrative head of said agency or an

authorized employee of said agency that the persons named in said

claim have been appointed and employed in accordance with the law

and the rules and orders promulgated thereunder. For purposes of

this section, "payroll claim" shall also include longevity payments

made pursuant to Section 840-2.18 of this title.

B. If, as a result of a payroll audit, the Office of Management

and Enterprise Services finds that an agency has made payments of

salaries or wages contrary to the provisions and rules promulgated

pursuant to the provisions of this act:

1. Audit findings shall be promptly transmitted to the

appointing authority of the agency certifying the payroll claim or

claims involved;

2. An audit conference with said agency shall be scheduled

within fifteen (15) days, at which time the audit exceptions will be

resolved or become a determination of error unless the parties to

the conference agree to a further review;

3. If underpayments or overpayments made by said agency are

deemed to be the result of administrative error, the agency which

certified the payroll claim or claims in error shall refund to the

employee the balance of the actual amounts due and owing to the

payee or shall seek repayment from the payee of any amount paid in

excess of the actual amount due and owing the payee;

Oklahoma Statutes - Title 74. State Government Page 531

4. If an agency neglects or refuses to seek repayment after a

determination that an error in payroll amount or amounts has been

made, or to properly adjust a then current salary or wage, the

Director of the Office of Management and Enterprise Services shall

note an unresolved audit exception stating the agency involved and

the person to whom said exception refers;

5. Upon receipt of notification that a procedure to initiate

repayment has been instituted by the certifying agency, said notice

shall be withdrawn or waived by the Director of the Office of

Management and Enterprise Services. Implementation of procedures

provided in this section shall not operate to deny or delay payment

of proper salaries or wages to any employee of this state;

6. The provisions of this section regarding collections of any

overpayment of salaries or wages by any agency to any state employee

or officer shall not include any such overpayment made prior to July

1, 1983;

7. Recovery of overpayments from an employee shall include all

overpayments occurring within one (1) year prior to the

determination of error. Disbursement of underpayments to an

employee shall include all underpayments made within a period of two
overpayment of salaries or wages by any agency to any state employee

or officer shall not include any such overpayment made prior to July

1, 1983;

7. Recovery of overpayments from an employee shall include all

overpayments occurring within one (1) year prior to the

determination of error. Disbursement of underpayments to an

employee shall include all underpayments made within a period of two

(2) years prior to the determination of error; and

8. If an agency discovers overpayment or underpayment errors

through an internal audit, the agency shall recover overpayments

from the employee or disburse underpayment amounts in accordance

with this section. Prior to initiation of recovery of overpayments

from an employee, the agency shall provide the employee with

adequate notice and an opportunity to respond.

C. The Director of the Office of Management and Enterprise

Services shall not approve any payroll claim for payment for any

agency for which a notification of an unresolved audit exception

pursuant to this section has been filed, unless the person named in

the audit exception has been removed from the payroll by the

certifying agency, the overpayment has been converted by the agency,

or the exception has been withdrawn or waived in writing by the

Office of Management and Enterprise Services.

D. Any sum on a payroll claim found to have been paid in excess

of the actual amount due and owing may be recovered from the payee

through the following procedures:

1. Upon the determination that an error in payroll amount has

been made, the agency which certified the claim or claims shall

notify the payee in writing within ten (10) days from said

determination. The notice to the payee shall contain:

a. the amounts paid in error,

b. the dates of said payments,

c. the options available for repayment, and

d. the right of the payee to protest the findings.

Oklahoma Statutes - Title 74. State Government Page 532

Said notice shall also provide space for the payee to indicate

an election of a repayment option or to protest the findings. Said

election shall be required within thirty (30) days after the

notification;

2. If the payee is, at the time of said notification, an

officer or employee of the agency seeking repayment, options

available for repayment shall be by:

a. lump-sum cash repayment,

b. reduction of the corrected current salary or

miscellaneous payroll deduction in a lump sum or in

installments over a term not to exceed the term in

which the erroneous payments were made,

c. reduction in accrued annual leave by an amount of time

at the then current correct salary level equal in

value to the total of the amount or amounts to be

repaid, or

d. any combination thereof;

3. If the payee is, at the time of said notification, an

officer or employee of an agency of the state other than the agency

seeking repayment, the options provided by paragraph 2 of this

subsection may be exercised by the payee with the approval of the

then current employing agency. Payment of amounts deducted or

charged against annual leave shall be paid to the agency seeking

repayment by an appropriate miscellaneous claim for interagency

payment. If a payroll deduction is elected pursuant to the

provisions of this paragraph and employment is subsequently

terminated, any balance remaining shall be deducted from any final

payment otherwise due to the employee;

4. If the payee is no longer an employee of the state but

agrees to repay the amount or amounts paid in error, repayment may

be accepted:

a. by lump-sum cash repayment, or

b. in installments over a period not to exceed twelve
provisions of this paragraph and employment is subsequently

terminated, any balance remaining shall be deducted from any final

payment otherwise due to the employee;

4. If the payee is no longer an employee of the state but

agrees to repay the amount or amounts paid in error, repayment may

be accepted:

a. by lump-sum cash repayment, or

b. in installments over a period not to exceed twelve

(12) months;

5. If the payee is no longer an employee of the state, and does

not respond or cannot be located within ten (10) days after mailing

of the determination of error, or refuses repayment, the agency

seeking repayment shall present the facts in writing to the Attorney

General and shall send a copy to the Office of Management and

Enterprise Services. The Attorney General shall determine what

action may be taken to recover said amount; and

6. Repayments other than by reduction in present salary or

reduction in accrued annual leave for a payee currently employed by

the agency seeking repayment shall be deposited in the General

Revenue Fund unless the fund to which the amount in error was

originally charged can be identified and was other than a General

Oklahoma Statutes - Title 74. State Government Page 533

Revenue Fund appropriation. Said deposits shall be treated as

nonrevenue receipts.