{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-212","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-212","heading":"Duties and powers - Deputies - Audit of books of","body":"subdivisions of state - Cost of examination.\n\nA. STATE TREASURER AND OKLAHOMA TAX COMMISSION\n\n1. The State Treasurer shall prepare annual financial\n\nstatements in accordance with the reporting requirements set forth\n\nby the Governmental Accounting Standards Board (GASB). The State\n\nTreasurer shall prescribe and implement sound internal control,\n\naccounting and recordkeeping practices consistent with and to\n\nfacilitate compliance with all reporting requirements as set forth\n\nby law.\n\n2. The annual financial statements of the State Treasurer shall\n\nbe delivered by the State Treasurer to the State Auditor and\n\nInspector within ninety (90) calendar days after the close of the\n\nstate fiscal year.\n\n3. The State Auditor and Inspector shall perform an audit of\n\nthe annual financial statements of the State Treasurer for each\n\nstate fiscal year. Such audits shall be conducted in accordance\n\nwith auditing standards generally accepted in the United States and\n\nthe standards applicable to financial audits contained in Government\n\nAuditing Standards, latest revised edition, issued by the\n\nComptroller General of the United States. The State Auditor and\n\nInspector shall complete the audits not later than ninety (90)\n\ncalendar days after the financial statements are delivered to the\n\nState Auditor and Inspector. The annual audit reports and related\n\nfinancial statements shall be delivered by the State Auditor and\n\nInspector to the Governor, President Pro Tempore of the Senate, and\n\nSpeaker of the House of Representatives. The annual audit report\n\nand related financial statements of the State Treasurer shall also\n\nbe delivered to the Attorney General and the members of the Cash\n\nManagement and Investment Oversight Commission created by Section\n\n71.1 of Title 62 of the Oklahoma Statutes. The State Auditor and\n\nInspector shall conduct unannounced cash audits of the State\n\nTreasury at least once each quarter.\n\n4. The audit of the Tax Commission shall be an operational\n\naudit performed annually. To the extent of the amount included in\n\nthe Tax Commission's appropriation, the Tax Commission shall pay the\n\nexpenses of the audit including personal services, equipment and\n\nsupplies, from the appropriation.\n\nB. STATE AGENCIES\n\n1. Except as otherwise provided by law, the State Auditor and\n\nInspector shall audit at least once every two (2) fiscal years the\n\nbooks and accounts of all state agencies whose duty it is to\n\ncollect, disburse or manage funds of the state. The State Auditor\n\nand Inspector shall audit a state agency each fiscal year if that\n\nstate agency is required to be audited on an annual basis pursuant\n\nto the federal Single Audit Act of 1984, as amended, 31 U.S.C.,\n\nSection 7501 et seq. If the state agency is audited only once every\n\ntwo (2) fiscal years, the audit shall cover both fiscal years.\n\n2. Except as otherwise provided by law, the scope of audits\n\nperformed by the State Auditor and Inspector shall include all funds\n\ncollected, disbursed, or managed by a state agency including, but\n\nnot limited to, all special, revolving, depository, canteen, or\n\nother nonstate funds.\n\n3. As used in this section, \"state agency\" means every agency,\n\nboard, or commission included in the primary government of the State\n\nof Oklahoma. For purposes of this paragraph, the primary government\n\nof the State of Oklahoma includes all agencies, boards, and\n\ncommissions included in the primary government in the State of\n\nOklahoma Comprehensive Annual Financial Report. The agencies,\n\nboards, and commissions included in the primary government of the\n\nState of Oklahoma shall be determined using criteria set by the\n\nGovernmental Accounting Standards Board.\n\n4. As used in this subsection, \"audit\" means any of the\n\nfollowing:\n\na. \"financial audit\", which means an audit of financial\n\nstatements in order to express an opinion on the\nmprehensive Annual Financial Report. The agencies,\n\nboards, and commissions included in the primary government of the\n\nState of Oklahoma shall be determined using criteria set by the\n\nGovernmental Accounting Standards Board.\n\n4. As used in this subsection, \"audit\" means any of the\n\nfollowing:\n\na. \"financial audit\", which means an audit of financial\n\nstatements in order to express an opinion on the\n\nfairness with which they are presented in conformity\n\nwith generally accepted accounting principles or any\n\nother comprehensive basis of accounting, as defined by\n\nthe American Institute of Certified Public\n\nAccountants' Professional Standards, latest revised\n\nedition. Financial audits must be conducted in\n\naccordance with auditing standards generally accepted\n\nin the United States and the standards applicable to\n\nfinancial audits contained in Government Auditing\n\nStandards, latest revised edition, issued by the\n\nComptroller General of the United States,\n\nb. \"operational audit\", which means an audit conducted in\n\naccordance with applicable Government Auditing\n\nStandards, the purpose of which is to evaluate\n\nmanagement's performance in administering assigned\n\nresponsibilities in accordance with applicable laws,\n\nadministrative rules, and other policies and\n\nguidelines and to determine the extent to which the\n\ninternal control, as designed and placed in operation,\n\npromotes and encourages the achievement of\n\nmanagement's control objectives in the categories of\n\ncompliance, reliability of financial records and\n\nreports, and safeguarding of assets,\n\nc. \"performance audit\", which means an audit of a\n\nprogram, activity, or function of a state agency\n\nconducted in accordance with applicable Government\n\nAuditing Standards. The term includes, but is not\n\nlimited to, an audit to assess program, activity, or\n\nfunction effectiveness, economy and efficiency,\n\ninternal control, or compliance,\n\nd. \"special or investigative audit\", which means an audit\n\nwith respect to a particular situation which may be,\n\nbut is not required to be, conducted in accordance\n\nwith applicable Government Auditing Standards,\n\ne. any other type of engagement conducted in accordance\n\nwith Government Auditing Standards, and\n\nf. engagements not conducted in accordance with\n\nGovernment Auditing Standards, when engagements\n\ninvolve state agencies that collect less than Three\n\nMillion Dollars ($3,000,000.00) annually.\n\nC. GUBERNATORIAL REQUEST\n\nWhenever called upon to do so by the Governor, it shall be the\n\nduty of the State Auditor and Inspector to examine the books and\n\naccounts of any officer of the state or any of the officer's\n\npredecessors. The cost of the audit shall be borne by the entity to\n\nbe audited.\n\nD. COUNTY TREASURER\n\nThe State Auditor and Inspector shall examine without notice all\n\nbooks and accounts of each county treasurer of the state twice each\n\nyear.\n\nE. DISTRICT ATTORNEYS\n\n1. The State Auditor and Inspector shall annually audit the\n\nbooks and accounts of the several offices of the district attorneys\n\nof this state. The audits shall be reported in separate reports for\n\neach entity. The audit may include, but shall not be limited to,\n\nthe audit of the financial records, performance measures, and\n\ncompliance with state or federal statutes and rules, and compliance\n\nwith any regulations of state or federal programs. The expense of\n\nthe audits shall be paid by the entity audited.\n\n2. The State Auditor and Inspector shall examine and file a\n\nreport of the accounts established within the office of each\n\ndistrict attorney for bogus check programs, drug task force\n\nprograms, child support collection programs, and any other programs\n\nreceiving any nonstate funds. The reports shall be filed with the\n\nPresident Pro Tempore of the Senate, the Speaker of the House of\n\nRepresentatives, and the Executive Coordinator of the District\n\nAttorneys Council.\n\nF. DEPARTMENT OF CORRECTIONS\nthin the office of each\n\ndistrict attorney for bogus check programs, drug task force\n\nprograms, child support collection programs, and any other programs\n\nreceiving any nonstate funds. The reports shall be filed with the\n\nPresident Pro Tempore of the Senate, the Speaker of the House of\n\nRepresentatives, and the Executive Coordinator of the District\n\nAttorneys Council.\n\nF. DEPARTMENT OF CORRECTIONS\n\nThe State Auditor and Inspector shall perform an annual audit,\n\nas defined in paragraph 4 of subsection B of this section, of the\n\nbooks and accounts of the Department of Corrections. The scope of\n\nthe audit shall be determined by the State Auditor and Inspector\n\nusing a risk-based approach. The audit may include, but shall not\n\nbe limited to, the audit of the financial records, performance\n\nmeasures, and compliance with any state or federal statutes and\n\nrules, and compliance with any regulations of state or federal\n\nprograms. The expense of the audits shall be paid by the Department\n\nof Corrections.\n\nG. OKLAHOMA EMPLOYEES INSURANCE AND BENEFITS BOARD\n\nThe State Auditor and Inspector shall cause to be audited the\n\nbooks and accounts of the office of the Oklahoma Employees Insurance\n\nand Benefits Board. The audit may include, but shall not be limited\n\nto, the audit of the financial records, performance measures,\n\ncompliance with any state or federal statutes and rules, and\n\ncompliance with any regulations of state programs. The audit shall\n\nbe contracted out to private audit firms. The cost of the audit\n\nshall be borne by the Oklahoma Employees Insurance and Benefits\n\nBoard.\n\nH. DISTRICT ATTORNEY REQUEST\n\nWhenever called upon to do so by any of the several district\n\nattorneys of the state, it shall be the duty of the State Auditor\n\nand Inspector to examine the books and accounts of any officer of\n\nany public entity. The cost of the audit shall be borne by the\n\nentity audited.\n\nI. COUNTY OFFICERS BY REQUEST\n\nUpon request of the county commissioners of any county or the\n\nGovernor, the State Auditor and Inspector shall examine the books\n\nand accounts of all or any of the officers or custodians of the\n\nvarious funds of the county; and payment for such examination shall\n\nbe made by the county so examined.\n\nJ. AUDITORS\n\nThe State Auditor and Inspector shall have power to employ\n\nauditors. No auditor shall examine the books or records of the\n\ncounty of the auditor's residence in counties of under two hundred\n\nthousand (200,000) population according to the most recent Federal\n\nDecennial Census. The State Auditor and Inspector may employ on an\n\nas-needed basis only, legal counsel to carry out the statutory\n\nduties of the Office of the State Auditor and Inspector.\n\nK. EXAMINATION OF LEVIES\n\nIt shall be the duty of the State Auditor and Inspector to\n\nexamine all levies to raise public revenue to see that they are made\n\naccording to law and constitutional provisions. The State Auditor\n\nand Inspector shall have the power to order all excessive or\n\nerroneous lines (levies) to be corrected by the proper officers, and\n\nshall report any irregularities to the Governor, the Speaker of the\n\nHouse of Representatives and the President Pro Tempore of the\n\nSenate.\n\nL. PETITION AUDITS\n\n1. The State Auditor and Inspector shall audit the books and\n\nrecords of any subdivision of the State of Oklahoma upon petition\n\nsigned by the requisite number of voters registered in the\n\nsubdivision and meeting the requirements set out in this subsection.\n\n2. The petition must contain the number of signatures\n\nequivalent to ten percent (10%) of the registered voters of the\n\nsubdivision as determined by the county election board or, if the\n\ncounty election board determines that the number of registered\n\nvoters in the subdivision cannot be determined due to boundary lines\n\nnot conforming to precinct lines, the required number of petitioners\n\nshall be twenty-five percent (25%) of the total number of persons\nquivalent to ten percent (10%) of the registered voters of the\n\nsubdivision as determined by the county election board or, if the\n\ncounty election board determines that the number of registered\n\nvoters in the subdivision cannot be determined due to boundary lines\n\nnot conforming to precinct lines, the required number of petitioners\n\nshall be twenty-five percent (25%) of the total number of persons\n\nvoting in the last general election. If the subdivision is a public\n\ntrust, the required number of petitioners shall be the same as those\n\nrequired for an audit of its beneficiary. The appropriate county\n\nelection board shall provide the number of signatures so required\n\nupon request.\n\n3. The petition shall be in the form of an affidavit wherein\n\nthe signatory shall declare upon oath or affirmation that the\n\ninformation given is true and correct and that he or she is a\n\ncitizen of the entity to be audited. The petition shall clearly\n\nstate that falsely signing shall constitute perjury. It shall\n\ninclude the signature of the individual, the name of the signatory\n\nin printed form, the individual's residential address, the date of\n\nsigning, the public entity to be audited and the anticipated range\n\nof the cost of the audit provided by the State Auditor and\n\nInspector.\n\n4. Any person desiring to petition for an audit shall list the\n\nareas, items or concerns they want to be audited, and request from\n\nthe State Auditor and Inspector the anticipated range of cost of the\n\naudit. Within thirty (30) days from the receipt of the request, the\n\nState Auditor and Inspector shall mail a petition form to the person\n\nrequesting the information which shall state the anticipated range\n\nof the cost and the items or concerns to be audited. The\n\ncirculators of the petition shall have thirty (30) days from the\n\ndate the petition is mailed by the State Auditor and Inspector to\n\nobtain the requisite number of signatures and return it to the State\n\nAuditor and Inspector.\n\n5. Upon collection of the required number of signatures, the\n\nperson desiring the audit shall present the signed petitions to the\n\nState Auditor and Inspector. Within thirty (30) days of receipt of\n\nthe petitions, the State Auditor and Inspector shall present the\n\npetitions to the county election board located in the county in\n\nwhich the subdivision is located.\n\n6. The county election board shall determine whether the\n\nsigners of the petition are registered voters of the county in which\n\nthe subdivision to be audited is located and whether the petition\n\nhas the requisite number of signatures of such registered voters.\n\nThe county election board shall certify the petition as having the\n\nrequired number of signatures or as failing to have the required\n\nnumber of signatures and return it to the State Auditor and\n\nInspector.\n\n7. The cost of the audit shall be borne by the public entity\n\naudited. Upon notification by the State Auditor and Inspector of\n\nreceipt of the petition, certified by the county election board as\n\nhaving the required number of signatures, the public entity shall\n\nencumber funds in an amount specified by the State Auditor and\n\nInspector, which shall be within the range of anticipated cost\n\nstated on the petition from any funds not otherwise specifically\n\nappropriated or allocated. Payment for the audit from such\n\nencumbered funds shall be made as work progresses, and final payment\n\nshall be made on or before its publication.\n\n8. The names of the signers of any petition shall be\n\nconfidential and neither the State Auditor and Inspector, the county\n\nelection board nor the county treasurer may release them to any\n\nother person or entity except upon an order from a court of\n\ncompetent jurisdiction.\n\nM. PENALTIES FOR NONPAYMENT\n\nExcept as otherwise provided by law, the cost of any services\n\nprovided by the State Auditor and Inspector or as specified in an\nny petition shall be\n\nconfidential and neither the State Auditor and Inspector, the county\n\nelection board nor the county treasurer may release them to any\n\nother person or entity except upon an order from a court of\n\ncompetent jurisdiction.\n\nM. PENALTIES FOR NONPAYMENT\n\nExcept as otherwise provided by law, the cost of any services\n\nprovided by the State Auditor and Inspector or as specified in an\n\naudit contract shall be borne by the entity or fund audited and\n\nshall be due and payable upon receipt of progress billing during the\n\ncourse of an audit. Any such costs not paid within ninety (90) days\n\nof the date of receipt of billing shall incur a penalty of Ten\n\nDollars ($10.00) per day for each day from the date of receipt of\n\nbilling.\n\nR.L. 1910, § 8119. Amended by Laws 1939, p. 63, § 1, emerg. eff.\n\nMay 9, 1939; Laws 1979, c. 30, § 138, emerg. eff. April 6, 1979;","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"2fb35b717d8c7fbdc7e993058c655ac3d6c825748bb36e08ab80ac95a23fc7f1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-2118","next":"us-ok/okla.-stat.-tit.-74-74-212.1"},"notice":"GroundRules: Original legal text. Not legal advice."}