ORS Chapter 297 - Oregon Statutes

Chapter 297 — Auditsof Public Funds and Financial Records

 

2009 EDITION

 

AUDITSOF PUBLIC FUNDS AND FINANCIAL RECORDS

 

PUBLICFINANCIAL ADMINISTRATION

 

DIVISIONOF AUDITS OF THE SECRETARY OF STATE’S OFFICE

 

297.010     Divisionof Audits; director and staff

 

297.020     Functionsand duties of Division of Audits; moneys available for use by division

 

297.030     Audits,reviews and investigations authorized to be made by the Secretary of State maybe assigned to Division of Audits

 

297.040     Paymentof costs and expenses of audits authorized by ORS 297.030

 

297.050     Supplyof audit reports to Joint Legislative Audit Committee, Committee on PerformanceExcellence and Legislative Fiscal Officer

 

297.060     Confidentialityof tax records; penalty for disclosure

 

LEGISLATIVEOVERSIGHT OF AUDITS

 

297.065     Oversightof performance and program audits and evaluation by Joint Legislative AuditCommittee

 

297.070     Criteriafor performance and program audits; rules; contracts with private auditors;audit expenses

 

INVESTIGATIONOF LOSS OF PUBLIC FUNDS OR PROPERTY

 

297.110     Definitionsfor ORS 291.226 and 297.120

 

297.120     Divisionof Audits investigation of state agency loss of public funds or property;report to Governor

 

AUDITSOF ACCOUNTS OF STATE AND STATE-AIDED INSTITUTIONS AND AGENCIES

 

297.210     Auditsof accounts of state agencies and state-aided institutions and agencies; auditsof school districts; subpoena; audits on retirement of executive head ofinstitution or department; terms and compensation of auditors

 

297.230     Estimateand payment of costs and expenses of audits; legislative report; creditingmoneys to Division of Audits Account

 

297.250     Filingof risk assessment or audit by state agency with Division of Audits

 

AUDITSOF NONGOVERNMENTAL ENTITIES

 

297.300     Auditof records related to public purpose charges paid to nongovernmental entity

 

MUNICIPALAUDIT LAW

 

297.405     Definitionsfor ORS 297.020, 297.230, 297.405 to 297.740 and 297.990

 

297.415     Periodicfinancial reports required

 

297.425     Annualaudits required; contracts related to audits; compensation; expenses; subjectsof audits

 

297.435     Exemptionfrom audit; financial statement and bonding required

 

297.445     Petitionto audit municipal corporation exempt under ORS 297.435; notice to corporation;audit

 

297.455     Auditsby federal government; review and approval by Secretary of State

 

297.459     Furnishingcounty audit reports to Department of Revenue

 

297.465     Standardsfor audits; form; filing

 

297.466     Auditorstatement required; procedure for determining and correcting deficiencies;withholding of state funds

 

297.475     Cancellationof request for Secretary of State assistance

 

297.485     Filingfees

 

297.495     Extraordinarycosts

 

297.505     Rules

 

297.515     Countyaudits include judicial and law enforcement agencies and officers

 

297.525     Annualaudit of county road work

 

297.527     Cityutilities separate municipal corporations

 

297.530     Subpoenaauthority of Secretary of State; enforcement; costs

 

297.535     Divisionof Audits Account

 

297.545     Dispositionof Municipal Audit Law filing fees

 

297.555     Shorttitle

 

ROSTEROF AUTHORIZED ACCOUNTANTS

 

297.670     Boardof Accountancy to prepare and maintain roster

 

297.680     Rulesfor establishing and maintaining roster

 

297.701     Personson roster on August 5, 1959; removal

 

297.710     Removalof accountant from roster; reinstatement

 

297.720     Biennialfee of accountants included on roster

 

297.730     Dispositionof fees of board

 

297.740     Rulesof board

 

PENALTIES

 

297.990     Penalties

 

DIVISIONOF AUDITS OF THE SECRETARY OF STATE’S OFFICE

 

      297.010Division of Audits; director and staff. There is established the Division ofAudits to be maintained under the supervision and control of the Secretary ofState and operated as one of the divisions of the secretary’s office. TheSecretary of State shall assign or appoint a director of the division and suchother assistants, accountants, auditors and clerks, upon such terms and forsuch compensation, as the secretary deems advantageous and necessary to carryout the duties and functions of the division. [1985 c.509 §1]

 

      297.020Functions and duties of Division of Audits; moneys available for use bydivision.(1) The Division of Audits shall have the function and duty of carrying out theprovisions of ORS 297.210, 297.230, 297.405 to 297.555, 297.990 and thissection.

      (2)All moneys received under authority of the sections listed in subsection (1) ofthis section and moneys appropriated for use by the Secretary of State incarrying out the provisions of those sections hereby are made available for useby the Division of Audits. [Amended by 1977 c.774 §19; 1979 c.286 §6]

 

      297.030Audits, reviews and investigations authorized to be made by the Secretary ofState may be assigned to Division of Audits. The audits, reviews orinvestigations authorized to be made by the Secretary of State may be assignedto the Division of Audits as a part of its functions and duties. [Amended by1955 c.287 §18; 1987 c.143 §1]

 

      297.040Payment of costs and expenses of audits authorized by ORS 297.030. The costs andexpenses of conducting audits authorized by ORS 297.030 shall be paid fromwhatever funds are appropriated by law for use in carrying out the provisionsof the respective laws relating thereto. The costs and expenses shall becharged and billed to such funds or activities in the same manner as are costsand expenses charged and billed for audits, reviews, investigations and systeminstallations to municipal corporations and the various state departments,boards and commissions. [Amended by 1987 c.143 §2]

 

      297.050Supply of audit reports to Joint Legislative Audit Committee, Committee onPerformance Excellence and Legislative Fiscal Officer. The Division ofAudits of the office of the Secretary of State shall supply the JointLegislative Audit Committee, the Committee on Performance Excellence establishedin ORS 182.562 and the Legislative Fiscal Officer with a copy of each auditreport made by or for the Division of Audits. [1959 c.70 §10; 1997 c.847 §5;2008 c.7 §7]

 

      297.060Confidentiality of tax records; penalty for disclosure. Informationfurnished to the Secretary of State by the Department of Revenue and madeconfidential by ORS 314.835 shall be used by the Secretary of State and theofficers and employees of the Secretary of State solely for the purposes ofperforming the functions of the office of Auditor of Public Accounts asrequired by section 2, Article VI of the Oregon Constitution, and shall not beused or disclosed for any other purpose. Any person who violates thisprohibition against disclosure, upon conviction, is punishable as provided byORS 314.991 (2). [1979 c.690 §17]

 

LEGISLATIVEOVERSIGHT OF AUDITS

 

      297.065Oversight of performance and program audits and evaluation by Joint LegislativeAudit Committee.(1) It is the policy of this state that state government services be deliveredwith the highest level of desired effectiveness at the lowest possible cost.

      (2)The Joint Legislative Audit Committee shall provide oversight of the conduct ofperformance and program audits and program evaluations, that are outside theauthority of the Secretary of State under section 2, Article VI of the OregonConstitution, of state departments, boards, commissions, institutions andstate-aided institutions and agencies. The joint committee shall review theefforts of state departments, boards, commissions, institutions and state-aidedinstitutions and agencies to comply with the recommendations of the audit orevaluation reports. [1997 c.847 §2]

 

      297.070Criteria for performance and program audits; rules; contracts with privateauditors; audit expenses. (1) Performance and program audits of all statedepartments, boards, commissions, institutions and state-aided institutions andagencies shall be conducted on the basis of risk assessment and on standardsestablished by national recognized entities including, but not limited to, theUnited States Government Accountability Office and the National Association ofState Auditors. The Secretary of State shall adopt and the Joint LegislativeAudit Committee shall approve rules specifying all criteria to be consideredfor conducting a performance or program audit under this section. The Secretaryof State shall schedule the performance and program audits as directed by theJoint Legislative Audit Committee.

      (2)The Secretary of State may subpoena witnesses, may require the production ofbooks and papers and rendering of reports in the manner and form that theSecretary of State requires and may do all things necessary to secure a fulland thorough audit. The Secretary of State shall report, in writing, to theLegislative Assembly as provided in ORS 192.245 and to the Committee onPerformance Excellence established in ORS 182.562. The report shall include acopy of the report on each performance and program audit.

      (3)The Secretary of State, as State Auditor, shall contract with qualified privatesector auditors to conduct audits required by this section, unless theSecretary of State determines that it is not practical or in the publicinterest to do so. If the Secretary of State determines that it is not practicalor in the public interest to contract with qualified private sector auditors,after notifying the Joint Legislative Audit Committee, the Secretary of Stateshall employ auditors for that purpose and shall include in the written auditreport the circumstances that rendered it impractical or not in the publicinterest to contract with qualified private sector auditors. All contracts forconducting performance and program audits under this section shall be in a formprescribed or approved by the Secretary of State. A copy of each completedcontract shall be furnished to the Secretary of State and the Joint LegislativeAudit Committee. The Secretary of State shall employ or contract with auditorsupon terms and for compensation as the Secretary of State determines areadvantageous and advisable.

      (4)An audit conducted under contract as provided in subsection (3) of this sectionshall be considered to be conducted by the Division of Audits for purposes ofORS 297.020, 297.050 and 297.535.

      (5)If a person fails to comply with any subpoena issued under subsection (2) ofthis section, a judge of the circuit court of any county, on application of theSecretary of State, shall compel obedience by proceedings for contempt as inthe case of disobedience of the requirements of a subpoena issued from thecircuit court.

      (6)The Secretary of State may enter into an agreement with the department, board,commission, institution, state-aided institution or agency that is the subjectof a performance or program audit for payment of the expenses incurred by theSecretary of State in conducting the audit. The Emergency Board may also makefunds available to the Division of Audits to reimburse it for expenses incurredunder this section.

      (7)As used in this section:

      (a)“Performance audit” includes determining:

      (A)Whether an entity described in subsection (1) of this section that is thesubject of the audit is acquiring, protecting and using its resourceseconomically and efficiently;

      (B)The causes of inefficiencies or uneconomical practices; and

      (C)Whether the entity has complied with laws and regulations concerning matters ofeconomy and efficiency.

      (b)“Program audit” includes determining:

      (A)The extent to which the desired results or benefits of a program established bythe Legislative Assembly or other authorizing body are being achieved;

      (B)The extent to which the need for or objectives of an ongoing program arenecessary or relevant;

      (C)Whether the program complements, duplicates, overlaps or conflicts with otherrelated programs;

      (D)The effectiveness of organizations, programs, activities or functions; and

      (E)Whether the entity described in subsection (1) of this section that is thesubject of the audit has complied with laws and regulations applicable to theprogram. [1997 c.847 §4; 2008 c.7 §8; 2009 c.11 §39]

 

INVESTIGATIONOF LOSS OF PUBLIC FUNDS OR PROPERTY

 

      297.110Definitions for ORS 291.226 and 297.120. As used in this section and ORS 291.226and 297.120:

      (1)“Public official” means any person who is serving a state agency as an officer,employee, member, agent or otherwise, regardless of whether the person iscompensated for the person’s services.

      (2)“State agency” means any state department, division, bureau or other agency orbody headed by an elected or appointed state officer or member of a board orcommission. [1963 c.617 §1; 1993 c.718 §1; 2007 c.219 §1]

 

      297.120Division of Audits investigation of state agency loss of public funds or property;report to Governor.(1) When a state agency sustains a loss of $100 or more of public funds orproperty under circumstances involving a public official who is entrusted withthe custody of the funds or property or who is charged with the duty to accountfor the funds or property, the agency shall, within 30 days after discovery ofthe loss, report the loss in writing to the Division of Audits.

      (2)Within 30 days after receiving the report under subsection (1) of this section,the division shall determine whether to investigate the loss.

      (3)If the division investigates a loss, the division shall prepare a reportregarding the accountability of the public official for the loss. The reportshall be presented to the Governor. [1963 c.617 §2; 1969 c.199 §48; 1991 c.219 §2;1993 c.718 §2; 2007 c.219 §2]

 

AUDITSOF ACCOUNTS OF STATE AND STATE-AIDED INSTITUTIONS AND AGENCIES

 

      297.210Audits of accounts of state agencies and state-aided institutions and agencies;audits of school districts; subpoena; audits on retirement of executive head ofinstitution or department; terms and compensation of auditors. (1)(a) TheSecretary of State, as State Auditor, shall have the accounts and financialaffairs of state departments, boards, commissions, institutions and state-aidedinstitutions and agencies of the state reviewed or audited as the Secretary ofState considers advisable or necessary.

      (b)The Secretary of State, as State Auditor, may conduct audits of the businesspractices of school districts and education service districts pursuant to acontract with the Department of Education authorized by ORS 326.133.

      (c)The Secretary of State may subpoena witnesses, require the production of booksand papers and rendering of reports in such manner and form as the Secretary ofState requires and may do all things necessary to secure a full and thoroughinvestigation. The Secretary of State shall report, in writing, to theGovernor. The report shall include a copy of the report on each audit.

      (2)The Secretary of State may audit or review any institution or department of thestate government at any time the executive head of the institution ordepartment, for any reason, retires from the head’s office or position. Thesecretary need not conduct an audit or review under this subsection if:

      (a)The institution or department has been the subject of an audit or review offinancial controls within the six months immediately preceding the retirementof the executive head of the institution or department; or

      (b)The secretary has not received a report within the 12 months immediatelypreceding the retirement of the executive head of the institution or departmentindicating that the executive head of the institution or department was unableor unwilling to follow state law, rules, policies or procedures.

      (3)The Secretary of State shall employ auditors upon such terms and for suchcompensation as the Secretary of State determines are advantageous andadvisable.

      (4)If a person fails to comply with any subpoena issued under subsection (1) ofthis section, a judge of the circuit court of any county, on application of theSecretary of State, shall compel obedience by proceedings for contempt as inthe case of disobedience of the requirements of a subpoena issued from thecircuit court. [Amended by 1969 c.135 §1; 1971 c.748 §3; 1983 c.154 §1; 1987c.143 §3; 1993 c.718 §4; 1997 c.157 §1; 2007 c.218 §3; 2007 c.839 §14]

 

      297.220 [Repealed by1969 c.135 §3]

 

      297.230Estimate and payment of costs and expenses of audits; legislative report;crediting moneys to Division of Audits Account. (1) TheDivision of Audits shall estimate in advance the expenses that it will incurduring the biennium in carrying out the provisions of ORS 297.030, 297.120 and297.210, and shall charge officers, departments, boards and commissions ofstate government and other public bodies for their share of such expenses forperiods within the biennium and in sufficient amounts to provide reasonablecash operating requirements for the Division of Audits within the biennialperiod. Each officer, department, board or commission or other public bodyshall pay to the credit of the Division of Audits Account such charge as anadministrative expense from funds or appropriations available to it in the samemanner as other claims against the state or public body are paid.

      (2)Payments authorized under this section shall be consistent with ORS 171.580 and171.585. The Division of Audits shall report to the Joint Legislative AuditCommittee established under ORS 171.580 when estimated expenses for an auditauthorized under subsection (1) of this section exceed the estimated expensesfor a biennium.

      (3)All moneys received from the various state departments, boards, commissions,institutions and state-aided institutions and agencies of the state in thepayment of the costs of audits and reviews under this section and ORS 297.210shall be credited to the Division of Audits Account. [Amended by 1977 c.774 §20;1987 c.143 §4; 1993 c.724 §24; 1999 c.324 §1]

 

      297.240 [Repealed by1977 c.774 §27]

 

      297.250Filing of risk assessment or audit by state