Oklahoma § 70-3909 - Audits - Audit Committee - Audit procedures and reports

§ 70-3909. Audits - Audit Committee - Audit procedures and reports

A. In addition to such other audits as may be required of or

desired by the various boards of regents responsible for the

institutions of The Oklahoma State System of Higher Education, each

board shall annually obtain the services of an independent

accounting firm or individual holding a permit to practice public

accounting in this state to perform a complete financial audit for

the preceding fiscal year of each institution for which the board is

responsible. The Oklahoma State Regents for Higher Education shall

likewise annually obtain the services of an independent accounting

firm or individual holding a permit to practice public accounting in

this state to perform a complete financial audit of all the offices,

operations, and accounts of the State Regents which are not subject

to the control of other boards of regents. The audits shall be

filed in accordance with the requirements set forth for financial

statement audits in Section 212A of Title 74 of the Oklahoma

Statutes.

B. Each board of regents shall appoint a standing Audit

Committee of the board consisting of not fewer than three (3) board

members. The Audit Committee shall be responsible for establishing

the qualifications of any accounting firm or individual seeking to

be hired to perform an audit for the board and shall recommend to

the board the firms or individuals whom the board shall invite to

submit competitive bids. The full board shall select the auditor

from among the competitive bidders. Audit committees shall not

recommend any firm or individual unwilling to meet the following

specifications. The specifications shall be among the terms and

conditions of any contract awarded:

1. All revolving fund accounts, special accounts, special

agency accounts, auxiliary enterprise accounts, and technical area

school district accounts, if any, shall be included within the scope

of the audit;

2. Where operations of constituent agencies or technical area

school districts are relevant to the complete financial audit of the

institution, records of those enterprises shall be included within

the scope of the audit;

Oklahoma Statutes - Title 70. Schools

3. To the extent required by subsection (d) of Section 4306 of

this title, records of college- or university-related foundations

shall be included within the scope of the audit;

4. At the conclusion of the audit, the auditor shall meet with

the president of the institution and the Audit Committee to review

the audit report to be issued, the management letter or other

comments or suggestions to be issued, and any other findings; and

5. Findings of material weaknesses, qualifications of the

auditor's report other than those deriving from inadequate plant

records, and of defalcations, or a report of lack of such findings,

shall be communicated in writing to the board, the State Auditor and

Inspector, the Legislative Service Bureau, and the Oklahoma State

Regents for Higher Education with or in advance of the filing of the

audit report required by Section 452.10 of Title 74 of the Oklahoma

Statutes; and such written communications shall include any

responses or other comments which the president or the Audit

Committee wishes to have included.

C. The State Auditor and Inspector whenever he or she deems it

appropriate, or upon receiving a written request to do so by the

Governor, Attorney General, President Pro Tempore of the Senate, the

Speaker of the House of Representatives, the governing board of an

institution of higher education, the Oklahoma State Regents for

Higher Education or the president of an institution of higher

education, shall conduct a special audit of any institution of

higher education within The Oklahoma State System of Higher

Education. The special audit shall include, but not necessarily be

limited to, a compliance audit as defined in subsection C of Section

213 of Title 74 of the Oklahoma Statutes. The State Auditor and

Inspector shall have the power to take custody of any records

necessary to the performance of the audit but shall minimize actual

physical removal of or denial of access to such records. At the

conclusion of the audit, the State Auditor and Inspector shall meet

with the president of the institution and the Audit Committee of the

board which governs the component audited to review the audit report

to be issued. The report, when issued, shall include any responses

to the audit which the president or the Audit Committee wishes to

have included and shall be presented to the full board, the

Legislative Service Bureau, and the Oklahoma State Regents for

Higher Education with or in advance of the filing required by

Section 452.10 of Title 74 of the Oklahoma Statutes. The cost of

such audit shall be borne by the audited entity and may be defrayed

in whole or in part by any federal funds available for that purpose.

D. Each board of regents shall require the employment of a

sufficient number of internal auditors to meet the board's fiduciary

responsibilities. Internal audits shall be conducted in accordance

with the provisions of Sections 228 and 229 of Title 74 of the

Oklahoma Statutes. The internal auditors shall submit a report

Oklahoma Statutes - Title 70. Schools

directly and simultaneously to the audit committee of the board and

the president of the institution; all members of the board of

regents governing the institution, however, shall receive all

internal audit reports and the board of regents shall, at least

annually, review and prescribe the plan of work to be performed by

the internal auditors.

E. Any person who alters or destroys records needed for the

performance of an audit or causes or directs a subordinate to do

such acts shall be guilty of a Class D1 felony offense punishable by

imprisonment as provided for in subsections B through F of Section

20N of Title 21 of the Oklahoma Statutes, or by a fine of not more

than Twenty Thousand Dollars ($20,000.00), or by both such fine and

imprisonment. Such person shall also be subject to immediate

removal from office or employment.

Added by Laws 1987, c. 229, § 6, eff. July 1, 1987. Amended by Laws

1991, c. 319, § 1, emerg. eff. June 12, 1991; Laws 1993, c. 287, §

1; Laws 1994, c. 317, § 1, eff. July 1, 1994; Laws 1996, c. 290, §

13, eff. July 1, 1996; Laws 1997, c. 133, § 577, eff. July 1, 1999;

Laws 1999, 1st Ex.Sess., c. 5, § 417, eff. July 1, 1999; Laws 2025,

c. 486, § 575, eff. Jan. 1, 2026.

NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective

date of Laws 1997, c. 133, § 577 from July 1, 1998, to July 1, 1999.