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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 430 By: Thompson
AS INTRODUCED
An Act relating to state auditor and inspec tor;
amending 74 O.S. 2011, Section 212, as last amended
by Section 1, Chapter 187, O.S.L. 2 014 (74 O.S. Supp.
2020, Section 212), which relates to duties and
powers; exempting certain audits of state agencies
under a specified annual collection; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2011, Section 212, as last
amended by Section 1, Chapter 187, O.S.L. 2014 (74 O.S. Supp. 2020,
Section 212), is amended to read as follows:
Section 212. A. STATE TREASURER AND OKLAHOMA TAX COMMISSION
1. The State Treasurer and the Oklahoma Tax Commission shall
prepare annual financial statements in ac cordance with the reporting
requirements set forth by the Governmental Accounting Standards
Board (GASB). The State Treasurer and the Tax Commission sh all
prescribe and implement sound internal control, accounting an d
recordkeeping practices consistent wi th and to facilitate compliance
with all reporting requirements as set forth by law.
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2. The annual financial statements of the State Treasurer and
the Tax Commission shall be delivered by the State Treasurer and the
Tax Commission 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 and the Tax
Commission for each state fiscal year. S uch 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 Gener al of the United States.
The State Auditor and Inspector shall complete the audits not later
than ninety (90) calendar days after the financial stateme nts are
delivered to the State Auditor and Inspector. The annual audit
reports and related financial st atements shall be delivered by the
State Auditor and Inspector to the Governor, President Pro Tempore
of the Senate, and Speaker of the House of Represe ntatives. The
annual audit report and related financial statemen ts of the State
Treasurer shall also be delivered to the Attorney General and the
members of the Cash Management and Investment Oversight Co mmission
created by Section 71.1 of Title 62 of the Oklahoma Statutes. The
annual audit report and related financia l statements of the Tax
Commission shall also be delivered to the Director of the Office of
Management and Enterprise Services and the Legis lative Service
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Bureau. The State Auditor and Inspe ctor shall conduct unannounced
cash audits of the State Treasury at least once each quarter.
4. The audit of the Tax Commission shall be continuous in
nature. The Tax Commission shall furnish the necessa ry office space
for the employees of the State Audi tor and Inspector making the
audit and, to the extent of the amou nt included in the Tax
Commission’s appropriation therefor, the Tax Commission shall pay
the expenses of the audits , including personal serv ices, equipment
and supplies, from the appropriatio n.
B. STATE AGENCIES
1. Except as otherwise provided by law, th e State Auditor and
Inspector shall audit at least once every two (2) fiscal years the
books and accounts of all state agencies whose duty i t is to
collect, disburse or manage funds of the st ate. 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 amen ded, 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 sh all include all funds
collected, disbursed, or mana ged by a state agency including, but
not limited to, all special, revolving, depository, canteen , or
other nonstate funds.
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3. As used in this section, “state agency” means every agency,
board, or commission included in the primary government of the State
of Oklahoma this state. For purposes of this paragraph, the primary
government of the State of Oklahoma this state includes all
agencies, boards, and commissions included in the primary government
in the State of Oklahoma this state Comprehensive Annual Financial
Report. The agencies, boards , and commissions included in the
primary government of the State of Oklahoma this state 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 expr ess an opinion on the
fairness with which they are presented in conformity
with generally accept ed 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 s tandards generally accepted
in the United States and the standards applicable to
financial audits contained in Government Auditing
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Standards, latest revised edi tion, issued by the
Comptroller General of the United States,
b. “operational audit”, which means an audit conducted in
accordance with appl icable 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 e xtent 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 recor ds 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,
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but is not required to be, conducted in accordance
with applicable Government Auditing Standards, and
e. any other type of engagement conducted in accordance
with Government Auditi ng Standards, and
f. engagements not conducted in accordance with
Government Auditing Standards, w hich would only apply
to state agencies who collect less than Three Million
Dollars ($3,000,000.00) annually .
C. GUBERNATORIAL REQUEST
Whenever called upon t o do so by the Governor, it shall be the
duty of the State Auditor and Inspector to examine the bo oks 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 o f each county treasurer of the state twice e ach
year.
E. DISTRICT ATTORNEYS
1. The State Auditor and Inspector shall annually audit t he
books and accounts o f the several offices of the district attorneys
of this state. The audits shall be reported in se parate reports for
each entity. The audit m ay include, but shall not be limited to,
the audit of the financial records, performance me asures, and
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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 o f the Senate, the Speaker of the House of
Representatives, and the Executive Coordinator of the Di strict
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 Audit or and Inspector
using a risk-based approach. The audit may include, but shall not
be limited to, the audit of th e 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
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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,
compliance with any state or federal statutes and r ules, and
compliance with any regulations of state programs. The audit shall
be contracted out to private audit firms. The cost of th e 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 dist rict
attorneys of the state, it shall be the duty of the State Auditor
and Inspector to exa mine the books and acco unts 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 Inspe ctor 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 powe r to employ
auditors. No auditor shall examine the books or records of the
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county of the auditor ’s residence in counties of under two hundred
thousand (200,000) pop ulation according to the most recent Federal
Decennial Census. The State Auditor and Inspe ctor may employ on an
as-needed basis only, legal counsel to carry out the statutory
duties of the Office of the State Au ditor and Inspector.
K. EXAMINATION OF LEVI ES
It shall be the duty of the State Auditor and Inspector to
examine all levies to raise p ublic revenue to see th at 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 Gov ernor, 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 upo n 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 cont ain the number of signatures
equivalent to ten percent (10%) of the registered voters of th e
subdivision as determ ined by the county election board or, if the
county election board determines that the number of r egistered
voters in the subdivision cannot b e determined due to boundary lines
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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 t he subdivision is a public
trust, the required number of petitioners shall be the same as those
required for an audit of its beneficiar y. The appropriate cou nty
election board shall provide the number of signatures so required
upon request.
3. The petition shall be in the form of an affidavit wher ein
the signatory shall declare upon oath or affirmation that the
information given is true and correct and that h e 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 ind ividual’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 t he
audit. Within thirty (30) days from the receipt of the request, the
State Auditor and Inspector shall mail a petition form to the p erson
requesting the information which shall state the anticipated range
of the cost and the items or concerns to be audi ted. The
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circulators of the petition shall have thirty (30) days from the
date the petition is mailed by the State Auditor and Inspect or 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) da ys 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 wh ether the petition
has the requisite number of signatures of such registered voters.
The county election board shall certify the petit ion 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 o f signatures, the public entity shall
encumber funds in an amount specified by the State Auditor and
Inspector, which shall be within t he range of anticipated cost
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stated on the petition from any funds not otherwise specifically
appropriated or allocated. Payment for the audit from such
encumbered funds shall be made as work progresses, and final payment
shall be made on or before its pu blication.
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 t reasurer may release them to any
other person or entity except upon an order from a court o f
competent jurisdictio n.
M. PENALTIES FOR NONPAYMENT
Except as otherwise provided by law, the cost of any services
provided by the State Auditor and Inspector or a s specified in an
audit contract shall be borne by the entity or fund audited and
shall be due and payable upon re ceipt of progress billing during the
course of an audit. Any such costs not paid within ninety (9 0) days
of the date of receipt of billing sh all incur a penalty of Ten
Dollars ($10.00) per day for each day from the date of receipt o f
billing.
SECTION 2. This act shall become effective November 1, 2021.
58-1-1090 MR 1/15/2021 4:35:22 PM