DOES NOT MANDATE THAT SUCH AUDIT BE MADE BY THE STATE AUDITOR AND INSPECTOR.
THE QUESTION THUS BECOMES WHETHER THE FUNDS RECEIVED BY THE FREE FAIR ASSOCIATIONS CONSTITUTE "PUBLIC FUNDS" SO AS TO BRING THEM WITHIN THE AUDIT REQUIREMENTS OF 74 O.S. 212(A).
ALTHOUGH THEY ARE NOT STATE INSTITUTIONS (2 O.S. 104(A)), FREE FAIR ASSOCIATIONS ARE CREATURES OF STATE LAW, HAVING AS THEIR GENESIS STATE STATUTES. MORE IMPORTANTLY, THESE ASSOCIATIONS ARE RECIPIENTS OF TAXES LEVIED BY THE COUNTIES. SEE 2 O.S. 98/2 O.S. 104(E), AND 2 O.S. 131.13. CLEARLY THEN, THESE FUNDS ARE PUBLIC IN NATURE, OLUSTEE CO-OPERATIVE ASSOCIATION V. OKLAHOMA WHEAT UTILIZATION RESEARCH AND MARKET DEVELOPMENT COMMISSION, 391 P.2D 216, 218 (OKLA. 1964), AND THUS SUBJECT TO THE PROVISIONS OF 74 O.S. 212(A), WHICH REQUIRES A FINANCIAL AUDIT. OF COURSE, UNLIKE THE PROVISIONS OF 74 O.S. 212, UNDER 74 O.S. 212(A), IT IS WITHIN THE DISCRETION OF THE ASSOCIATION WHETHER TO USE THE STATE AUDITOR AND INSPECTOR.
IT IS THEREFORE THE OPINION OF THE UNDERSIGNED THAT:
1) THE BOARD OF DIRECTORS OF THE COUNTY FREE FAIR ASSOCIATIONS MUST BE ELECTED, EXCEPT IN THE INSTANCE DESCRIBED IN 2 O.S. 94. IN ADDITION, AS PUBLIC OFFICERS, MEMBERS OF A BOARD OF DIRECTORS OF A COUNTY FREE FAIR ASSOCIATION ARE SUBJECT TO 51 O.S. 10(B), WHICH ALLOWS COUNTY COMMISSIONERS TO FILL THE UNEXPIRED TERMS OF COUNTY OFFICERS SHOULD THEY BE VACATED PRIOR TO THE EXPIRATION OF THE TERM. EXCEPT FOR THESE LIMITED INSTANCES, OKLAHOMA STATUTES ARE CLEAR THAT MEMBERS OF THE BOARD OF DIRECTORS OF THE COUNTY FREE FAIR ASSOCIATION MUST BE ELECTED; AND
2) FUNDS USED BY THE COUNTY FREE FAIR ASSOCIATIONS, INSOFAR AS THEY ARE PART OF THE BOOKS AND ACCOUNTS OF THE COUNTY TREASURER, WILL BE SUBJECT TO THE REQUIRED TWICE-A-YEAR EXAMINATION BY THE STATE AUDITOR AND INSPECTOR. IN ADDITION, AS RECEIVERS OF "PUBLIC FUNDS" EACH COUNTY FREE FAIR ASSOCIATION MUST HAVE PREPARED, EACH FISCAL YEAR, AN AUDIT OF ITS FINANCIAL STATEMENTS. THIS AUDIT MAY BE PREPARED BY THE STATE AUDITOR AND INSPECTOR, AN INDEPENDENT LICENSED PUBLIC ACCOUNTANT, OR A CERTIFIED PUBLIC ACCOUNTANT.
(JOSEPH L. MCCORMICK)