Oklahoma 2022 Regular Session

Oklahoma House Bill HB3134 Compare Versions

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	30	+	April 7, 2022
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3	34		BILL NO. 3134 By: Kendrix and McDugle of the
4	35		House
5	36
6	37		and
7	38
8	39		Bergstrom of the Senate
9		-
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11		-
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15	43		An Act relating to state government; amending 74 O.S.
16	44		2021, Section 212, which relates to audits of the
17	45		subdivisions of the state; expanding the definition
18	46		of audit; and providing an effective date .
19	47
20	48
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22	50
23		-	SUBJECT: State government
24		-
25	51		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
26		-
27	52		SECTION 1. AMENDATORY 74 O.S. 2021, Section 212, is
28	53		amended to read as follows:
29		-
30	54		Section 212. A. STATE TREASURER AND OKLAHOMA TAX COMMISSION
31		-
32	55		1. The State Treasurer shall prepa re annual financial
33	56		statements in accordance with the reporting requ irements set forth
34	57		by the Governmental Accounting Standards Board (GASB). The St ate
35	58		Treasurer shall prescribe and implement sound interna l control,
36	59		accounting and recordkeeping practices consistent with and to
37	60		facilitate compliance with all reporting requ irements as set forth
38	61		by law.
39		-
40	62		2. The annual financial statements of the State Tr easurer shall
41	63		be delivered by the State Treasurer to the State Auditor and
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42	91		Inspector within ninety (90) cal endar days after the close of the
43	92		state fiscal year.
44		-
45	93		3. The State Auditor and Inspector shall perform an audit of
46		-	the annual financial statements of the State Treasurer for each ~~ENR. H. B. NO. 3134 Page 2~~
	94	+	the annual financial statements of the State Treasurer for each
47	95		state fiscal year. Such au dits shall be conducted in accordance
48	96		with auditing standards generally accepted in the United States and
49	97		the standards applicable to financial audits contained in Government
50	98		Auditing Standards, late st revised edition, issued by the
51	99		Comptroller General of the United States. The State Auditor and
52	100		Inspector shall complete the audits not later than ninety (90)
53	101		calendar days after the financial statements are delivered to the
54	102		State Auditor and Inspector. The annual audit reports and related
55	103		financial statements shall be delivered by the State Auditor and
56	104		Inspector to the Governor, President Pro Tempore of the Senate, and
57	105		Speaker of the House of Representatives. The annual audit report
58	106		and related financial statements of the State Treasurer shall also
59	107		be delivered to the Attorney General and the members of th e Cash
60	108		Management and Investment Oversight Commission created by Sec tion
61	109		71.1 of Title 62 of the Oklahoma Statutes. The State Auditor and
62	110		Inspector shall conduct unannounced cash audits of the State
63	111		Treasury at least once each quarter.
64		-
65	112		4. The audit of the Tax Commission shall be an operational
66	113		audit performed annually. To the extent of the amount included in
67	114		the Tax Commission's appropriation, the T ax Commission shall pay the
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68	142		expenses of the audit includi ng personal services, equipment and
69	143		supplies, from the appropriation.
70		-
71	144		B. STATE AGENCIES
72		-
73	145		1. Except as otherwise provi ded by law, the State Auditor and
74	146		Inspector shall audit at least once every two ( 2) fiscal years the
75	147		books and accounts of all state agenc ies whose duty it is to
76	148		collect, disburse or manag e funds of the state. The State Auditor
77	149		and Inspector shall audit a state agency each fiscal year if that
78	150		state agency is required to be audited on an annual basis pursuant
79	151		to the federal Single Audit Act of 1984, as amended, 31 U.S.C.,
80	152		Section 7501 et seq. If the state agency is audited only once every
81	153		two (2) fiscal years, the audit shall cover both fiscal years.
82		-
83	154		2. Except as otherwise provided by law, the scope of audits
84	155		performed by the State Auditor and Inspector shall include all funds
85	156		collected, disbursed, or managed by a state agency including, but
86	157		not limited to, all special, revolving, depository, canteen, or
87	158		other nonstate funds.
88		-
89	159		3. As used in this section, "state agency" means every agency,
90	160		board, or commission included in the primary governm ent of the State
91		-	of Oklahoma. For purposes of this paragraph, the p rimary government ~~ENR. H. B. NO. 3134 Page 3~~
	161	+	of Oklahoma. For purposes of this paragraph, the p rimary government
92	162		of the State of Oklahoma includes all agencies, boards, and
93	163		commissions included in the primary government in the State of
94	164		Oklahoma Comprehensive Annual Financial Report. The agencies,
95	165		boards, and commissions included in the primary gove rnment of the
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96	193		State of Oklahoma shall be determined using criteria set by the
97	194		Governmental Accounting Standards Board.
98		-
99	195		4. As used in this subsection, "audit" means any of the
100	196		following:
101		-
102	197		a. "financial audit", which means an audit of financial
103	198		statements in order to express an opinion on the
104	199		fairness with which they are presented in con formity
105	200		with generally accepted accounting principles or any
106	201		other comprehensive basis of accounting, as de fined by
107	202		the American Institute of Certified Public
108	203		Accountants' Professional Standards, latest revised
109	204		edition. Financial audits must be conducted in
110	205		accordance with auditing standards generally accepted
111	206		in the United States and the standards applicable to
112	207		financial audits contained in Government Auditing
113	208		Standards, latest revised edition, issued by the
114	209		Comptroller General of the United States,
115		-
116	210		b. "operational audit", which means an audit conducted in
117	211		accordance with applicable Government Auditing
118	212		Standards, the purpose of which is to evaluate
119	213		management's performance in administering assigned
120	214		responsibilities in accordance with applicable laws,
121	215		administrative rules, and other policies and
122	216		guidelines and to determine the extent to which the
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123	244		internal control, as designed and placed in operation,
124	245		promotes and encourages the achievement of
125	246		management's control objectives in the categories of
126	247		compliance, reliability of financial records and
127	248		reports, and safeguar ding of assets,
128		-
129	249		c. "performance audit", which means an audit of a
130	250		program, activity, or function of a state agency
131	251		conducted in accordance with applicable Government
132	252		Auditing Standards. The term inc ludes, but is not
133	253		limited to, an audit to assess program, activity, or
134	254		function effectiveness, economy and efficiency,
135	255		internal control, or compliance,
136		-	ENR. H. B. NO. 3134 Page 4
137	256		d. "special or investigative audit", which means an audit
138	257		with respect to a particular situation which m ay be,
139	258		but is not required to be, conducted in accordance
140	259		with applicable Government Auditing Standards, and
141		-
142	260		e. any other type of engagement conducted in accordance
143	261		with Government Auditing Standards , and
144		-
145	262		f. engagements not conducted in accordance with
146	263		Government Auditing Standards, when engagements
147	264		involve state agencies that collect less than Three
148	265		Million Dollars ($3,000,000.00) annually .
	266	+	C. GUBERNATORIAL REQUEST
149	267
150		-	C. GUBERNATORIAL REQUEST
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151	293
152	294		Whenever called upon to do so by the Governor, it shall be the
153	295		duty of the State Auditor an d Inspector to examine the books and
154	296		accounts of any offi cer of the state or any of the officer 's
155	297		predecessors. The cost of the audit shall be borne by the entity to
156	298		be audited.
157		-
158	299		D. COUNTY TREASURER
159		-
160	300		The State Auditor and Inspector shall examine without no tice all
161	301		books and accounts of each county treasurer of t he state twice each
162	302		year.
163		-
164	303		E. DISTRICT ATTORNEYS
165		-
166	304		1. The State Auditor and Inspector shall annually audit the
167	305		books and accounts of the several offices of the district attorneys
168	306		of this state. The a udits shall be reported in separate reports for
169	307		each entity. The audit may include, but shall not be limi ted to,
170	308		the audit of the financial records, performance measures, and
171	309		compliance with state or federal statutes and rules, and compliance
172	310		with any regulations of state or federal programs. The expense of
173	311		the audits shall be paid by the entity audited.
174		-
175	312		2. The State Auditor and Inspector shall examine and file a
176	313		report of the accounts established within the office of each
177	314		district attorney for bogus che ck programs, drug task force
178	315		programs, child support coll ection programs, and any other programs
179	316		receiving any nonstate funds. The reports shall be filed with the
180		-	President Pro Tempore of the Senate, the Speaker of the House of ENR. H. B. NO. 3134 Page 5
	317	+	President Pro Tempore of the Senate, the Speaker of the House of
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181	345		Representatives, and the Ex ecutive Coordinator of the District
182	346		Attorneys Council.
183		-
184	347		F. DEPARTMENT OF CORRECTIONS
185		-
186	348		The State Auditor and Inspector shall perform an annual audit,
187	349		as defined in paragraph 4 of subsection B of this section, of the
188	350		books and accounts of the Department of Co rrections. The scope of
189	351		the audit shall be determined by the State Auditor and Inspector
190	352		using a risk-based approach. The audit may include, but shall not
191	353		be limited to, the audit of the financial records, performance
192	354		measures, and compliance with any st ate or federal statutes and
193	355		rules, and compliance with an y regulations of state or federal
194	356		programs. The expense of the audits shall be paid by the Department
195	357		of Corrections.
196		-
197	358		G. OKLAHOMA EMPLOYEES INSURANCE AND BENEFITS BOARD
198		-
199	359		The State Auditor and Inspec tor shall cause to be audited the
200	360		books and accounts of t he office of the Oklahoma Employees Insurance
201	361		and Benefits Board. The audit may include, but shall not be limited
202	362		to, the audit of the financial records, performance measures,
203	363		compliance with any st ate or federal statutes and rules, and
204	364		compliance with any regulations of state programs. The audit shall
205	365		be contracted out to private audit firms. The cost of the audit
206	366		shall be borne by the Oklahoma Employees Insurance and Benefits
207	367		Board.
	368	+	H. DISTRICT ATTORNEY REQUEST
208	369
209		-	H. DISTRICT ATTORNEY REQUEST
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210	395
211	396		Whenever called upon to do so by any of the several district
212	397		attorneys of the state, it s hall be the duty of the State Auditor
213	398		and Inspector to examine the books and accounts of any officer of
214	399		any public entity. The cost of the audit shal l be borne by the
215	400		entity audited.
216		-
217	401		I. COUNTY OFFICERS BY REQUEST
218		-
219	402		Upon request of the county commissioners of any county or the
220	403		Governor, the State Auditor and Inspector shall examine the books
221	404		and accounts of all or any of the officers or custodians of the
222	405		various funds of the county; and payment for such examin ation shall
223	406		be made by the county so examined.
224		-
225		-	J. AUDITORS ENR. H. B. NO. 3134 Page 6
226		-
	407	+	J. AUDITORS
227	408		The State Auditor and Inspector shall have power to employ
228	409		auditors. No auditor shall examine the books or records of the
229	410		county of the auditor's residence in counties of under two hundred
230	411		thousand (200,000) population according to the most rec ent Federal
231	412		Decennial Census. The State Auditor and Inspector may employ on an
232	413		as-needed basis only, legal counsel to carry out the statutory
233	414		duties of the Office of the State Auditor and Inspector.
234		-
235	415		K. EXAMINATION OF LEVIES
236		-
237	416		It shall be the duty of the St ate Auditor and Inspector to
238	417		examine all levies to raise public revenue to see that they are made
239	418		according to law and constitutional provisions. The State Auditor
240	419		and Inspector shall have the power to orde r all excessive or
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241	447		erroneous lines (levies) to be corrected by the proper officers, and
242	448		shall report any irregularities to the Governor, the Speaker of the
243	449		House of Representatives and the President Pro Tempore of the
244	450		Senate.
245		-
246	451		L. PETITION AUDITS
247		-
248	452		1. The State Auditor and Inspector shall audit the books a nd
249	453		records of any subdivision of the State of Oklahoma upon petition
250	454		signed by the requisite number of voters registered in the
251	455		subdivision and meetin g the requirements set out in this subsection.
252		-
253	456		2. The petition must contain the number of signatures
254	457		equivalent to ten percent (10%) of the registered voters of the
255	458		subdivision as determined by the county election board or, if the
256	459		county election board de termines that the number of registered
257	460		voters in the subdivision cannot be determined due to boundary line s
258	461		not conforming to precinct lines, the required number of petitioners
259	462		shall be twenty-five percent (25%) of the total number of persons
260	463		voting in the last general election. If the subdivision is a public
261	464		trust, the required number of petitioners shall be the same as those
262	465		required for an audit of its beneficiary. The appropriate county
263	466		election board shall provide the number of signatures so required
264	467		upon request.
265		-
266	468		3. The petition shall be in the form of a n affidavit wherein
267	469		the signatory shall declare u pon oath or affirmation that the
268	470		information given is true and correct and that he or she is a
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269	498		citizen of the entity to be audited. The petition shal l clearly
270		-	state that falsely ~~s igning~~ shall constitute per jury. It shall ~~ENR. H. B. NO. 3134 Page 7~~
	499	+	state that falsely signing shall constitute per jury. It shall
271	500		include the signature of the indi vidual, the name of the signatory
272	501		in printed form, the individual 's residential address, the date of
273	502		signing, the public entity to be audited and the anticipated range
274	503		of the cost of the audit provided by th e State Auditor and
275	504		Inspector.
276		-
277	505		4. Any person desiring to petition for an audit shall list the
278	506		areas, items or concerns they want to be audited, and request from
279	507		the State Auditor and Inspector the a nticipated range of cost of the
280	508		audit. Within thirty (30 ) days from the receipt of the request, the
281	509		State Auditor and Inspector shall mail a petition form to the person
282	510		requesting the information which shall state the anticipated range
283	511		of the cost and the items or concerns to be audited. The
284	512		circulators of the petition shall have thirty (30) days from the
285	513		date the petition is mailed by the State Auditor and Inspector to
286	514		obtain the requisite number of signatures and return it to the State
287	515		Auditor and Inspector.
288		-
289	516		5. Upon collection of the required number of signa tures, the
290	517		person desiring the audit shall presen t the signed petitions to the
291	518		State Auditor and Inspector. Within thirty (30) days of receipt of
292	519		the petitions, the State Auditor and Inspector shall present the
293	520		petitions to the county election board locat ed in the county in
294	521		which the subdivision is loca ted.
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295	548
296	549		6. The county election board shall determine whether the
297	550		signers of the petition are registered voters of the county in which
298	551		the subdivision to be audited is located and whether the petition
299	552		has the requisite number of signatures of such registered voters.
300	553		The county election board shall certify the petition as having the
301	554		required number of signatures or as failing to have the required
302	555		number of signatures and return it to the State Auditor and
303	556		Inspector.
304		-
305	557		7. The cost of the audit shall be borne by the public entity
306	558		audited. Upon notification by the State Auditor and Inspector of
307	559		receipt of the petition, certified by the county election board as
308	560		having the required number of signatures, the public ent ity shall
309	561		encumber funds in an amount specified b y the State Auditor and
310	562		Inspector, which shall be within the range of anticipated cost
311	563		stated on the petition from any funds not otherwise specificall y
312	564		appropriated or allocated. Payment for the audit from such
313	565		encumbered funds shall be made as work progr esses, and final payment
314	566		shall be made on or before its publication.
315		-	ENR. H. B. NO. 3134 Page 8
316	567		8. The names of the signers of any petition shall be
317	568		confidential and neither th e State Auditor and Inspector, the county
318	569		election board nor the county treasurer may release them to any
319	570		other person or entity except upon an order from a court of
320	571		competent jurisdiction.
	572	+	M. PENALTIES FOR NONPAYMENT
321	573
322		-	M. PENALTIES FOR NONPAYMENT
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323	599
324	600		Except as otherwise provided by law, the cost of any services
325	601		provided by the State Auditor an d Inspector or as specified in an
326	602		audit contract shall be borne by the entity or fund audited and
327	603		shall be due and payable upon receipt of progress billing during the
328	604		course of an audit. Any such co sts not paid within ninety (90) days
329	605		of the date of recei pt of billing shall incur a penalty of Ten
330	606		Dollars ($10.00) per day for each day from the date of receipt of
331	607		billing.
332		-
333	608		SECTION 2. This act shall become effective November 1, 2022.
334		-	ENR. H. B. NO. 3134 Page 9
335		-	Passed the House of Representatives the 7th day of March, 2022.
336		-
337		-
338		-
339		-
340		-	Presiding Officer of the House
341		-	of Representatives
342		-
343		-
344		-	Passed the Senate the 25th day of April, 2022.
345		-
346		-
347		-
348		-
349		-	Presiding Officer of the Senate
350		-
351		-
352		-	OFFICE OF THE GOVERN OR
353		-	Received by the Office of the Governor this ____________________
354		-	day of ___________________, 20_______, at _______ o'clock _______ M.
355		-	By: _________________________________
356		-	Approved by the Governor of the State of Oklahoma this _____ ____
357		-	day of ___________________, 20_______, at _______ o'clock _______ M.
358		-
359		-
360		-	_________________________________
361		-	Governor of the State of Oklahoma
362		-
363		-	OFFICE OF THE SECRETARY OF STATE
364		-	Received by the Office of the Secretary of State this __________
365		-	day of ___________________, 20__ _____, at _______ o'clock _______ M.
366		-	By: _________________________________
367		-
	609	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	610	+	April 7, 2022 - DO PASS