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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1840 By: Dahm
AS INTRODUCED
An Act relating to audits; amending 74 O.S. 2021,
Section 213, which relates to audits o f public
institutions; modifying allowable requestors of an
audit; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O .S. 2021, Section 213, is
amended to read as follows:
Section 213. A. It shall be the duty of the State Auditor and
Inspector, or designee, to examine and report upo n the books and
financial accounts of the public, educational, char itable, penal and
reformatory institutions belonging to the state; to prescribe and
enforce correct methods of keeping financial accounts of the state
institutions and instruct the proper o fficers thereof in the
performance of their duties concerning the s ame; to examine the
books and accounts of all public institu tions under the control of
the state at least once each year. Any officer of such public,
educational, charitable, penal and ref ormatory institutions who
shall refuse or willfully neglect to comp ly with such direction of
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the State Auditor and Inspector wi thin a reasonable time shall be
guilty of a misdemeanor.
B. Each board of regents of institutions in The Oklahoma State
System of Higher Education shall require a quality control review of
the internal audit function required pursuant to subsection D of
Section 3909 of Title 70 of the Oklahoma Statutes f or each
institution under its governance at least once every three (3)
years. This review shall be in accordance with the “Quality
Assurance Review Manual for Internal Auditing ” developed by the
Institute of Internal Auditors or any successor organization
thereto. A copy of the report on the quality control review shall
be filed with the State Auditor and Inspector.
C. 1. The State Auditor and I nspector shall perform a special
audit on elementary, independent, and technology center school
districts upon receiving a written request to do so by any of the
following: the Governor, At torney General, President Pro Tempore of
the Senate, Speaker of the House of Representatives, State Board of
Education, or the elementary, independent, or technology center
school district board of education.
2. The State Auditor and Inspector shall perfo rm a special
audit on any institution of higher education within Th e Oklahoma
State System of Higher Education whenever the Sta te Auditor and
Inspector deems it appropriate or u pon receiving a written request
to do so by any of the following: the Governor , the Attorney
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General, the President Pro Tempore of the Senate, th e Speaker of the
House of Representatives, any elected member of the Legislature, the
governing board of the i nstitution of higher education, or the
president of the institution of higher education.
3. The special audit shall include, but not necessarily be
limited to, a compliance audit. Suc h audits shall be des igned to
review items for management ’s compliance with statutes, rules,
policies and internal control procedures or othe r items applicable
to each entity. The costs of any such audit shall be borne by the
audited entity and may be def rayed, in whole or in part, by any
federal funds available for that pur pose.
D. In addition to any special audit conducted by the State
Auditor and Inspector as provided for in subsection C of this
section, the State Auditor and Inspector shall, contingen t upon the
availability of funding, perform a special audit, without no tice, on
not more than four common school districts each year. The sp ecial
audit shall be in a form as determined by the State Auditor and
Inspector.
E. The State Auditor and Inspecto r shall perform a spe cial
audit without notice on the office of any dis trict attorney or on
any division of the Department of Corrections upo n receiving a
written request to do so by any of the following: the Governor, the
Attorney General, or joint reque st of the President P ro Tempore of
the Senate and the Speaker of the Ho use of Representatives. The
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State Auditor and Inspector shall perform a special audit without
notice on any penal institution, corrections program, contract for
service or prison bed s pace provided to the Department of
Corrections, or any program administ ered by a district attorney ’s
office or staff of such office whenever the State Auditor and
Inspector deems it appropriate or upon receiving a written request
to do so by any of the fol lowing: the Governor , the Attorney
General, or joint request of the Pr esident Pro Tempore of the Senate
and the Speaker of the House of Repr esentatives. The special audit
shall include, but not necessarily be limited to, a compliance
audit. Such audits shall be designed to review items for compliance
with statutes, rules, policies and internal control procedures or
other items applicable to each entity. The costs of any such audit
shall be paid by the state agency and may be defrayed, in whole or
in part, by any federal fun ds available for that purpose through any
audited program.
SECTION 2. This act shall become effective November 1, 2022.
58-2-3142 BG 1/20/2022 9:51:47 PM