{"data":{"id":"us-ok/okla.-stat.-tit.-11-11-17-105","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 11, § 11-17-105","heading":"Annual financial statement audit or agreed-upon-","body":"procedures engagement.\n\nA. The governing body of each municipality with Fifty Thousand\n\nDollars ($50,000.00) or more in total revenue to all funds,\n\nincluding component units of which the municipality is a\n\nbeneficiary, during a fiscal year shall cause to be prepared, by an\n\nindependent licensed public accountant or a certified public\n\naccountant, an annual financial statement audit to be conducted in\n\naccordance with auditing standards generally accepted in the United\n\nStates of America and Government Auditing Standards as issued by the\n\nComptroller General of the United States. Such audit shall be\n\nordered within thirty (30) days of the close of each fiscal year.\n\nCopies shall be filed with the State Auditor and Inspector within\n\nsix (6) months after the close of the fiscal year in accordance with\n\nthe provisions of the Municipal Audit Reform Act of 2022 and with\n\nthe governing body of the municipality.\n\nB. The governing body of each municipality with Fifty Thousand\n\nDollars ($50,000.00) or more in total revenue to all funds,\n\nincluding component units of which the municipality is a\n\nbeneficiary, and with a population of less than two thousand five\n\nhundred (2,500) as of the most recent Federal Decennial Census, and\n\nfor whom an annual financial statement audit is not required by\n\nanother law, regulation or contract, shall cause to be prepared, by\n\nan independent licensed public accountant or a certified public\n\naccountant, a biennial financial statement audit in accordance with\n\nauditing standards generally accepted in the United States and\n\nGovernment Auditing Standards as issued by the Comptroller General\n\nof the United States. Each biennial audit shall cover the two (2)\n\npreceding years.\n\nThe governing body of each municipality may alternatively\n\nrequest a biennial agreed-upon-procedures engagement. Agreed-upon\n\nprocedures required under the Municipal Audit Reform Act of 2022\n\nshall be performed in accordance with the applicable attestation\n\nstandards of the American Institute of Certified Public Accountants.\n\nThe audit or agreed-upon-procedures engagement shall be ordered\n\nwithin thirty (30) days of the close of the fiscal year that the\n\naudit is due. Copies shall be filed with the State Auditor and\n\nInspector within nine (9) months after the close of the fiscal year\n\nin accordance with the provisions of paragraph 2 of subsection A of\n\nSection 212A of Title 74 of the Oklahoma Statutes and with the\n\ngoverning body of the municipality, with the deadline to order and\n\nfile the audit or agreed-upon procedures eligible for extension by\n\nthe State Auditor and Inspector for special circumstances or\n\nemergencies.\n\nC. The municipal income requirements in subsections A and B of\n\nthis section shall not include any grant monies provided to a\n\nmunicipality from any federal, state, or other governmental entity.\n\nThe municipal income requirements shall not include income of any\n\npublic trust established under Sections 176 through 180.4 of Title\n\n60 of the Oklahoma Statutes with a municipality as the beneficiary\n\nof the trust; provided, income from trusts established principally\n\nfor the purpose of operating electric, water, wastewater, and\n\nsanitation utilities shall be included for purposes of the municipal\n\nincome requirements.\n\nD. The governing body of each municipality that requests the\n\nbiennial agreed-upon-procedures engagement provided in subsection B\n\nof this section shall:\n\n1. Determine the establishment of policies related to\n\nadjustments, write-downs, or write-offs for various receivables due\n\nto the municipality or the utility-related trust and select a sample\n\nof adjustments to test for adherence to policies and for appropriate\n\nsupporting documentation;\n\n2. Obtain two (2) months of bank statements of the general fund\n\nand utility fund and confirm that cash deposits were made in the\n\nappropriate accounts and verify utility billing receipts or posting\n-offs for various receivables due\n\nto the municipality or the utility-related trust and select a sample\n\nof adjustments to test for adherence to policies and for appropriate\n\nsupporting documentation;\n\n2. Obtain two (2) months of bank statements of the general fund\n\nand utility fund and confirm that cash deposits were made in the\n\nappropriate accounts and verify utility billing receipts or posting\n\nreports agree with the daily deposits;\n\n3. Agree upon a pay rate for the city manager or town\n\nadministrator, city or town clerk, city or town treasurer, and\n\npayroll clerk, to be authorized and documented in the personnel file\n\nor in approved meeting minutes. If any employee received\n\ncompensation over and above his or her authorized salary or hourly\n\nrate, the payroll clerk, upon request, shall provide appropriate\n\ndocumentation of authorization for such pay. The requirements of\n\nthis paragraph shall not include expense reimbursements but shall\n\ninclude any allowances considered taxable;\n\n4. Determine the establishment of policies of use, proper\n\nmunicipal purpose, and adherence to prescribed policies for entities\n\nthat use debit or credit cards;\n\n5. Select a sample of transactions to test for supporting\n\ndocumentation;\n\n6. Prepare a cash basis schedule of changes in fund balances\n\nfor each fund and determine compliance with the statutory\n\nprohibition of creating fund balance deficits;\n\n7. Agree material fiscal year-end bank account balances to bank\n\nstatements and trace significant reconciling items to subsequent\n\nclearance and determine if any bank accounts exist that are not\n\nunder city council purview;\n\n8. Compare uninsured deposits at fiscal year-end to the fair\n\nvalue of pledged collateral;\n\n9. Inquire if any instances of known fraud, illegal acts, or\n\nnoncompliance with laws and regulations have occurred; and\n\n10. Compare the use of material-restricted revenues and\n\nresources to the restrictions of the governing body of the\n\nmunicipality.\n\nE. A public trust with a municipal government or governments as\n\nthe beneficiary that meet the same financial requirements\n\nestablished in subsection B of this section may, as an alternative\n\nto obtaining an audit as required in Section 180.1 of Title 60 of\n\nthe Oklahoma Statutes, follow the biennial agreed-upon-procedures\n\nengagement outlined in subsection D of this section.","path":["OK Code","Title 11"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os11.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"7a57d576f14990f1d03f247366f6402427ad6ffe635e26007e3ec1c3f4fec3cf","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-11-11-17-104","next":"us-ok/okla.-stat.-tit.-11-11-17-105.1"},"notice":"GroundRules: Original legal text. Not legal advice."}