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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2090 By: Menz
AS INTRODUCED
An Act relating to the State Auditor and Inspector;
amending 74 O.S. 2021, Section 213, which relates to
examination of public institutions ; requiring the
State Auditor and Inspector perform a special audit
of the Oklahoma Turnpike Authority by certain date;
listing contents of special audit; requiring written
report be distributed; providing an effective date;
and declaring an emergency .
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 upon the books and
financial accounts of the public, educational, charitable, 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 officers thereof in the
performance of their duties co ncerning the same; to examine the
books and accounts of all public institutions under the control of
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the state at least once each year. Any officer of such public,
educational, charitable, penal and reformatory institutions who
shall refuse or willfully neglect to comply with such direction of
the State Auditor and Inspector within a reasonable time shall be
guilty of a misdemeanor.
B. Each board of regents of institutions in Th e Oklahoma State
System of Higher Education shall require a quality control re view of
the internal audit function required pursuant to subsection D of
Section 3909 of Title 70 of the Oklahoma Statutes for 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 Inspector 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, Attorney 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 perform a special
audit on any institution of higher educa tion within The Oklahoma
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State System of Higher Education whenever the State Auditor and
Inspector deems it appropriate or upon receiving a written request
to do so by any of the following: the Governor, the Attorney
General, the President Pro Tempore of the Senate, the Speaker of the
House of Representatives, the governing board of the institution 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 complian ce audit. Such audits shall be designed to
review items for management's compliance with statutes, rules,
policies and internal control procedures or other items applicable
to each entity. The costs of any such audit shall be borne by the
audited entity and may be defrayed, in whole or in part, by any
federal funds available for that purpose.
D. In addition to any special audit conducted by the State
Auditor and Inspector as pr ovided for in subsection C of this
section, the State Auditor and Inspector sh all, contingent upon the
availability of funding, perform a special audit, without notice, on
not more than four common school districts each year. The special
audit shall be in a form as determined by the State Auditor and
Inspector.
E. The State Auditor and Inspector shall perform a special
audit without notice on the office of any district attorney or on
any division of the Department of Corrections upon receiving a
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written request to do so by any of the following: the Governor, the
Attorney General, or joint request of the President Pro Tempore of
the Senate and the Speaker of the House of Representatives. The
State Auditor and Inspector shall perform a special audit withou t
notice on any penal institution, corrections program, contract for
service or prison bed space provided to the Department of
Corrections, or any program administered 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 following: the Governor, the Attorney
General, or joint request of the President Pro Tempore of the Senate
and the Speaker of the House of Representatives. The speci al 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 w hole or
in part, by any federal funds available for that purpose through any
audited program.
F. The State Auditor and Inspector shall perform a special
audit of the Oklahoma Tu rnpike Authority to be completed no later
than December 1, 2023. The special audit shall:
1. Provide a determination of the amount of revenue that is
required to be generated in order for the Oklahoma Turnpike
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Authority to repay the original cost of exis ting turnpikes and the
length of time it will take to generate the funds so th at turnpikes
can be conveyed to state ownership and converted to toll -free roads;
2. Provide an assessment of risk within the agency and develop
performance audit objectives dur ing each audit cycle;
3. Conduct a fifteen -year look-back and ten-year projection of
maintenance reserve fund balance, deposits, and expenditures and an
explanation cross-pledging refinancing practices;
4. Provide an explanation of the gap between the re quired
reserve maintenance fund deposits and the actual reserve maintenance
fund deposits and why they have not met the minimum as per the trust
agreement; and
5. Provide an explanation of the financial impact of cost -
overruns on the recent Driving Forwar d Program.
The State Auditor and Inspector's office shall provide a written
report of the special audit to the Governor, President Pro Tempore
of the Oklahoma State Senate, Speaker of the Oklahoma House of
Representatives, Legislative Office of Fiscal Tran sparency, and
members of the Transportation Committees of the Senate and House of
Representatives.
SECTION 2. This act shall become effective November 1, 2025.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-10818 JBH 12/09/24