Oklahoma § 70-22

§ 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Repealed by Laws 1949, p. 607, art. 20, § 9.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,

Oklahoma Statutes - Title 70. Schools

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

Oklahoma Statutes - Title 70. Schools

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

Oklahoma Statutes - Title 70. Schools

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

Oklahoma Statutes - Title 70. Schools

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.

Oklahoma Statutes - Title 70. Schools

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.