Okla. Stat. tit. 70, § 22

Repealed by Laws 1949, p. 607, art. 20, § 9. §70-22-101. Official title of law. This article may be cited as the "Oklahoma Public School Audit Law." Added by Laws 1971, c. 281, § 22-101, eff. July 2, 1971. §70-22-102. "Public School" - Defined. The term "Public School" as used herein shall include a school district as provided in the Oklahoma Statutes. The term "auditor" as used herein means a person or partnership who makes an audit and prepares a report thereon as provided in this article. Added by Laws 1971, c. 281, § 22-102, eff. July 2, 1971. §70-22-103. Annual audits - Final exit interview. A. The board of education of each school district in this state shall provide for and cause to be made an annual audit of such school district for each fiscal year. Said audit shall be a financial audit and a compliance audit of all funds of the school district, including the records of all student activity funds designated in Section 5-129 of this title. Such audit or audits shall be made at the end of the fiscal year; provided, however, the local board of education may require that audits be made at more frequent intervals. B. Findings of material weaknesses, qualifications of the auditor's report and of defalcations, or a report of lack of such findings, shall be communicated in writing to the board. Upon completion of an audit, the auditor shall conduct the final exit interview at a meeting of the board. No part of the final exit interview shall be conducted with any employee of the board except in open meeting of the board; provided, portions of the final exit interview related to matters which the board is authorized by law to consider in executive session may be so considered. Laws 1971, c. 281, § 22-103, eff. July 2, 1971; Laws 1982, c. 111, § 1, emerg. eff. April 6, 1982; Laws 1989, c. 335, § 21, eff. July 1, 1989; Laws 1993, c. 361, § 9, eff. July 1, 1993; Laws 2005, c. 472, § 14, eff. July 1, 2005. §70-22-104. Standards - Qualifications of accountants - Liability insurance. A. 1. The audit of the financial statements and compliance requirements of each public school district shall be made in accordance with auditing standards generally accepted in the United States as defined by the American Institute of Certified Public Accountants or its successor organization and shall comply with the most recent Government Auditing Standards issued by the United States Government Accountability Office. 2. The auditor’s opinions shall state whether the financial statements of the school district were prepared in accordance with: a. accounting principles generally accepted in the United States, or b. accounting and financial reporting regulations prescribed or permitted by the State Department of Education, 3. The auditor shall also report in accordance with: a. Government Auditing Standards on the school district’s internal control over financial reporting and compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters, and b. the United States Office of Management and Budget Circular A-133, as required. B. All firms, as defined by the Oklahoma Accountancy Act, before entering into audit contracts required pursuant to the Oklahoma Public School Audit Law, shall satisfy the State Auditor and Inspector that the registrant, as defined by the Oklahoma Accountancy Act, has an individual responsible for the audits of school districts who: 1. Has at least two (2) years of experience auditing public entities; 2. Has completed a minimum of eight (8) clock hours of continuing education credit in school district accounting and auditing as defined by the Governmental Accounting Standards Board (GASB) and the Office of the Comptroller General during the prior year; and 3. Is licensed by and is in good standing with the Oklahoma Accountancy Board. C. Firms shall submit their application to perform audits of a school district with their most recent peer review, which must include the audit of at least one school district, if the firm has performed such an audit, and any letter of comment for approval or disapproval by the State Auditor and Inspector for the current audit year on or before the first day of January of each calendar year. D. 1. Until June 30, 2014, all firms entering into audit contracts required pursuant to the Oklahoma Public School Audit Law shall carry a minimum of Two Hundred Fifty Thousand Dollars ($250,000.00) accountants' professional liability insurance or the total amount of the budget being audited, whichever is less. 2. Beginning July 1, 2014, all firms entering into audit contracts required pursuant to the Oklahoma Public School Audit Law shall carry a minimum of Five Hundred Thousand Dollars ($500,000.00) accountants’ professional liability insurance or the total amount of the budget being audited, whichever is less. 3. Proof of such insurance shall be submitted to the State Auditor and Inspector prior to entering into a contract. Added by Laws 1971, c. 281, § 22-104, eff. July 2, 1971. Amended by Laws 1977, c. 225, § 1; Laws 1986, c. 32, § 1, emerg. eff. March 21, 1986; Laws 1986, c. 259, § 60, operative July 1, 1986; Laws 2005, c. 472, § 15, eff. July 1, 2005; Laws 2010, c. 477, § 2, eff. July 1, 2010. §70-22-105. Expenses. The expenses of audits required by this article, whether ordered by the local board of education or the State Board of Education, shall be paid by the local board of education for which the audit is made. It shall be the duty of the board of education of the local public school to make provision for payment of said expenses. Added by Laws 1971, c. 281, § 22-105, eff. July 2, 1971. §70-22-106. Preparation of budgets and financial statements. The board of education may employ persons other than those enumerated in Section 22-102 of this article for the preparation of the estimate of needs and financial statement for presentation to the county excise board. Added by Laws 1971, c. 281, § 22-106, eff. July 2, 1971. §70-22-107. Repealed by Laws 2005, c. 472, § 18, eff. July 1, 2005. §70-22-108. Auditor's opinion - Time to complete - Distribution of copies. A. Each audit of the financial statements of a school district required by the Oklahoma Public School Audit Law shall be completed and the auditor's opinion thereon shall be submitted by the firm to the district board of education within nine (9) months after the close of the fiscal year of the district board of education. B. One copy of the auditor's opinions and related financial statements shall be maintained by the district board of education as a public record for public inspection at all reasonable times at the office of the district board of education. A copy or a hyperlink to a copy of the most recent audit shall be posted on the front page of the school district website for public inspection. All records shall be kept at least five (5) years. C. The district board of education shall forward a copy of the auditor's opinions and related financial statements to the State Board of Education and the State Auditor and Inspector within thirty (30) days after receipt of the audit. The State Board of Education shall retain such copy in its office as a public record where it shall be available for public inspection at all reasonable times. D. The State Board of Education may make inquiries it deems necessary to determine that each district board of education is properly complying with the Oklahoma Public School Audit Law. If within eleven (11) months after the end of the fiscal year of the school district a copy of the auditor's opinions and related financial statements has not been received by the State Board of Education and by the State Auditor and Inspector, an inquiry shall be made by the State Auditor and Inspector as to why such auditor's opinions and related financial statements have not been filed, pursuant to the provisions of Section 212A of Title 74 of the Oklahoma Statutes. Should the State Auditor and Inspector find that the district board of education has failed to cause an annual audit of the financial statements and compliance requirements of the school district to be commenced, the State Auditor and Inspector shall make a written demand on the board to complete and file such annual audit of the financial statements and compliance requirements of the school district within thirty (30) days of the date of such demand. Added by Laws 1971, c. 281, § 22-108, eff. July 2, 1971. Amended by Laws 1979, c. 30, § 132, emerg. eff. April 6, 1979; Laws 2010, c. 477, § 3, eff. July 1, 2010; Laws 2021, c. 63, § 1, eff. Nov. 1, 2021. §70-22-109. Examination of the auditor's opinions - Deficiencies. The State Auditor and Inspector shall examine all auditor’s opinions and related financial statements submitted to it and shall determine whether the auditor’s opinions and related financial statements comply with the provisions of the Oklahoma Public School Audit Law. If the State Auditor and Inspector finds that they have not been complied with, the State Auditor and Inspector shall notify the district board of education and the firm that submitted the auditor’s opinions and related financial statements by submitting to them a statement of deficiencies. If the deficiencies are not corrected within ninety (90) days from the date of the statement of deficiencies or within twelve (12) months after the end of the fiscal year of the school district, whichever is later, the State Auditor and Inspector shall make or cause an audit to be made in the manner provided for in Section 22-108 of this title. Any school district audited pursuant to this section shall pay for the cost of the audit as provided by Section 212A of Title 74 of the Oklahoma Statutes. Added by Laws 1971, c. 281, § 22-109, eff. July 2, 1971. Amended by Laws 2010, c. 477, § 4, eff. July 1, 2010. §70-22-110. False statements in auditor's opinions - False information - Penalty. A. In any case where a firm has knowingly issued auditor’s opinions and related financial statements, required under the provisions of the Oklahoma Public School Audit Law, containing any false or misleading statements, the State Auditor and Inspector shall report such violation in writing to the board of education of such school district and to the Oklahoma Accountancy Board. The State Auditor and Inspector shall revoke their rights to perform such audits in the future. B. Any member of the governing body of the district board of education or any member, officer, employee or agency of any department, board or commission of the school district who knowingly and willfully furnishes to the firm or to an employee of the firm any false or fraudulent information shall be deemed guilty of malfeasance, and upon conviction, the court shall enter judgment that such person so convicted shall be removed from office or employment of the school district. It shall be the duty of the court rendering such judgment to cause immediate notice of such removal from office or employment to be given to the proper officer of the school district so that the vacancy thus caused may be filled. Added by Laws 1971, c. 281, § 22-110, eff. July 2, 1971. Amended by Laws 2005, c. 472, § 16, eff. July 1, 2005; Laws 2010, c. 477, § 5, eff. July 1, 2010. §70-22-111. Duties of board of education - Removal of members. It shall be the duty of each local board of education to cause such audits to be made in accordance with this article. It shall be the further duty of said board to file a copy of said audit with the proper authorities set forth in this article. Such filings shall be not later than thirty (30) days after completion of the audit. Any court of competent jurisdiction shall have the power to remove members of such board from office for violation of this article. Added by Laws 1971, c. 281, § 22-111, eff. July 2, 1971. §70-22-112. State aid withheld for failure to comply with article. All further payment of state aid for each district shall be withheld until the provisions of this article have been fulfilled by said district. Laws 1971, c. 281, § 22-112, eff. July 2, 1971. §70-22-113. State Board of Education to prescribe accounting systems and procedures. All accounting systems and procedures used by the school districts of the State of Oklahoma shall conform with the accounting systems and procedures prescribed by the State Board of Education. Added by Laws 1971, c. 281, § 22-113, eff. July 2, 1971.