justicedao/ipfs_state_laws huggingface dataset:
162-001-0000 Notice of Proposed Rule Prior to the adoption, amendment, or repeal of any rule, the Division of Audits shall give notice of the proposed adoption, amendment or repeal: (1) In the Secretary of State's Bulletin referred to in ORS 183.360 at least 15 days prior to the effective date. (2) By mailing a copy of the Notice to persons on the Division of Audits mailing list established pursuant to ORS 183.351(4). (3) By mailing a copy of the Notice to the following persons or organizations listed according to Division programs, where Division determines that such persons or organizations would have an interest in the subject matter proposed: (a) Oregon Society of Certified Public Accountants; (b) League of Oregon Cities; (c) Association of Oregon Counties; (d) Oregon School Boards Association; (e) Special Districts Association of Oregon; (f) Oregon Board of Accountancy Statutory/Other Authority: ORS 183 Statutes/Other Implemented: ORS 297.210 & 297.465 History: AUDIT 1-2015, f. & cert. ef. 8-19-15 DOA 4-1985, f. & cert. ef. 11-18-85
162-001-0005 Model Rules of Procedure The Model Rules of Procedure as promulgated by the Attorney General of the State of Oregon under the Administrative Procedures Act effective January 1, 2006, are adopted as the rules of procedure for the Audits Division of the Secretary of State's Office. [ED. NOTE: The full text of the Attorney General’s Model Rules of Procedure is available from the office of the Attorney General or Audits Division.] Statutory/Other Authority: ORS 183 Statutes/Other Implemented: ORS 297.210, 297.465, 128.435 & 692.285 History: AUDIT 1-2006, f. & cert. ef. 10-11-06 AUDIT 1-2001, f. & cert. ef. 4-26-01 AUDIT 1-1999, f. & cert. ef. 12-16-99 DOA 6-1991, f. & cert. ef. 12-5-91 DOA 4-1991, f. & cert. ef. 8-28-91 DOA 1-1988, f. & cert. ef. 8-10-88 DOA 1-1985, f. & cert. ef. 10-11-85
162-010-0000 Preface (1) Pursuant to the provisions of ORS 297.465, there is presented herewith the Minimum Standards for Audits of Oregon Municipal Corporations. (2) These Standards have been approved by the Oregon Board of Accountancy (the Board), and have been adopted by the Secretary of State as Administrative Rules under the provisions of ORS Chapter 183. (3) All audits of municipal corporations shall be made in accordance with these Standards, and all audit reports shall be in the form prescribed herein. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & cert. ef. 5-29-86
162-010-0010 Definitions The following definitions describe terms within the context of their application to Municipal Audit Law. (1) “Independent Auditor” means the Accountants whose names are included in the roster prepared and maintained by the Oregon Board of Accountancy and defined in ORS 297.405. (2) “Municipal Audit Law” means the laws enacted by the Oregon Legislature and prescribed in Oregon Revised Statutes (ORS) Chapter 297.405 to 297.740 and 297.990. (3) “Municipal Corporation” means any public entity subject to audit defined in ORS 297.405. (4) “Cash basis or modified cash basis” means a basis of accounting that the entity uses to record cash receipts and disbursements and modifications of the cash basis having substantial support, such as recording depreciation on capital assets. The cash basis of accounting is the only special purpose framework allowable under Oregon law. (5) “Fiscal year” means for a municipal corporation with the power to impose ad valorem property taxes, the fiscal year commencing on July 1 and ending on June 30, and for all other municipal corporations, an accounting period of 12 months ending on the last day of any month. (6) “Documentation” means the written record of procedures performed, relevant evidence obtained, and conclusions the independent auditor reached. (7) “Governing body” means the city council, board of commissioners, board of directors, county court or other managing board of a municipal corporation including a board managing a municipality owned public utility or a dock commission. (8) “Management” means the person(s) with executive responsibility for the conduct of the municipal corporation’s operation and may include some or all of those charged with governance; for example the elected or appointed public officials. (9) “Legally adopted budget” means the statutory budget required by Oregon law prescribed on ORS Chapter 294.305 to 294.565 (Local Budget Law) and intergovernmental entities formed under ORS Chapter 190. (10) “Expenditures” for the purpose of ORS 297.435 and 297.485 and throughout OAR 162-010 and 162-040 includes the amount reported as expenses on the government-wide Statement of Activities; or, in the case of a municipal corporation that reports only proprietary funds, expenditures include total operating and non-operating expenses reported on the proprietary fund operating statement. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 3-2024, amend filed 06/03/2024, effective 07/01/2024 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0665 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0030 Contracts Municipal Audit Law requires audits be performed pursuant to a contract between the independent accountant and the governing body, or managing or executive officer, of the municipal corporation. Laws governing contracts are prescribed in the Orego n Public Contracting Code, ORS Chapters 279A, 279B, and 279C. Statutory/Other Authority: ORS 297.465 Statutes/Other Implemented: ORS 297.465 History: AUDIT 3-2024, amend filed 06/03/2024, effective 07/01/2024 AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2011, f. & cert. ef. 1-27-11 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0020 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0050 Financial Statements (1) The GASB is recognized as the standard-setting authority of GAAP for state and local governments. As such, fair presentation of financial position and results of operations in conformity with GAAP for Oregon municipal corporations are those financial statements, notes thereto, and supporting information consistent with GASB Statements and Interpretations and the hierarchy of GAAP applicable to state and local governments established by the AICPA and adopted by GASB. (2) Since the focus of accounting in a governmental unit is the individual fund, the financial statements to be presented in the municipal corporation's annual report must also include nonmajor fund combining statements and individual fund statements/schedules. (3) Compliance with m unicipal audit law includes financial statements prepared on the cash basis or modified cash basis of accounting. (4) If information necessary to prepare the financial statements, or any of them individually, is not readily available or is not maintained by the municipal corporation appropriate disclosure must be made in the auditor's report. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 3-2024, amend filed 06/03/2024, effective 07/01/2024 AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0100 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0115 Required Supplementary Financial Information (RSI) For financial statements presented in accordance with GAAP, the Governmental Accounting Standards Board has determined that certain statements, schedules, statistical data, or other information are necessary to supplement, although not required to be a part of, the basic financial statements. These standards do not place any additional responsibilities upon the independent auditor beyond those required by generally accepted auditing standards and OAR 162-10-0020(9)(c). Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07
162-010-0120 Supplementary Financial Information (SI) In addition to financial statements, notes and required supplementary information thereto, certain other financial information is considered necessary for full disclosure of the fiscal affairs of Oregon municipal corporations. Whenever appropriate, audit reports must contain the other financial information set forth in OAR 162-010-0130 through 162-010-0140 or reasonable combinations thereof. If information necessary to prepare these schedules, or any of them individually, is not readily available or is not maintained by the municipal corporation appropriate comments to that effect shall be included in the audit report. If appropriate, these schedules may be included in the notes to the financial statements. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 2-2024, minor correction filed 04/04/2024, effective 04/04/2024 AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0135 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0130 Schedule of Revenues, Expenditures/Expenses, and Changes in Fund Balances/Net Assets/Net Position, Budget and Actual (Each Fund) An individual schedule of receipts/revenues, expenditures/expenses, and changes in fund balances/net position, budget and actual, must be prepared for each fund of any municipal corporation for which budgets are legally required. They must compare estimated with actual revenues or receipts, transfers in, expenditures or disbursements, transfers out and ending balances on the basis of the legally adopted budget. If the municipal corporation has made appropriations in a manner which differs materially from the presentation of estimated expenditures in the budget document, a separate schedule must be included which compares actual expenditures/expenses with the legally adopted appropriations. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0125 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0140 Schedule of Accountability for Independently Elected Officials A schedule of accountability must be prepared for each independently elected official collecting or receiving money on behalf of the municipal corporation. This schedule is to present, at a minimum, beginning balances, receipts, disbursements, refunds, and turnovers to the appropriate governmental official, reconciled to cash on hand at the beginning and end of the audit period. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0140 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0190 Other Financial or Statistical Information (OI) The report may include such other financial or statistical information as desired by the municipal corporation, including financial statements relating specifically to programs funded wholly or partially by other governmental agencies. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0195 SD 104-1976, f. 2-20-76, cert. ef. 7-1-76
162-010-0200 Independent Auditor’s Review of Fiscal Affairs Each audit report shall contain appropriate comments and disclosures relating to the independent auditor’s review of fiscal affairs and compliance with legal requirements. These comments and disclosures shall, at a minimum, reference the subjects set forth in OAR 162-010-0230 through 162-010-0320. The independent auditor is required to prepare working papers that show a clear understanding of the procedures performed, the evidence obtained and its source, and the conclusions reached to support each disclosure. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 328.465 History: AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-1998, f. 2-2-98, cert. ef. 2-15-98 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0200 SD 104-1975, f. 2-20-76, ef. 7-1-76
162-010-0230 Accounting Records and Internal Control The independent auditor shall state in a separately issued by-product report, that in planning the audit, he or she followed generally accepted auditing standards in obtaining an understanding of the entity and its internal control over financial reporting. If significant deficiencies, material weaknesses or other recommendations for improvements have been communicated in a separate letter to management or in a report issued in accordance with Government Auditing Standards, the independent auditor shall file a copy of the letter with the Secretary of State within 30 days of delivering the report to the municipal corporation. Statutory/Other Authority: ORS 297.465 Statutes/Other Implemented: ORS 297.465 History: AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0215 SD 104-1975, f. 2-20-76, ef. 7-1-76
162-010-0240 Public Fund Deposits There shall be comments regarding the municipal corporation's compliance with ORS Chapter 295 — Depositories of Public Funds and Securities. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0220 SD 104-1975, f. 2-20-76, cert. ef. 7-1-76
162-010-0250 Indebtedness There shall be comments regarding the municipal corporation’s compliance relating to short-term and long-term debt. These comments shall include limitations on the amount of debt which may be incurred, liquidation of debt within the prescribed period of time, and compliance with provisions of bond indentures or other agreements, including any restrictions on the use of moneys available to retire indebtedness. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0225 SD 104-1975, f. 2-20-76, cert. ef. 7-1-76
162-010-0260 Budget Compliance with legal requirements relating to the preparation, adoption, and execution of the annual or biennial budget for the year being audited, and the preparation and adoption of the budget for the next succeeding year shall be disclosed. The auditor shall also disclose the financial or organizational level at which the governing body makes the annual appropriations. The minimum levels of legal appropriation are established in ORS 294. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2014, f. & cert. ef. 2-13-14 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95 DOA 3-1986, f. & cert. ef. 5-29-86, Renumbered from 165-030-0230 SD 104-1975, f. 2-20-76, cert. ef. 7-1-76
162-010-0270 Insurance and Fidelity Bonds Compliance with legal requirements and the government’s policies relating to insurance and fidelity bond coverage shall be disclosed. Recommendations for further review of coverage by qualified individuals may be included, if appropriate. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0235 SD 104-1975, f. 2-20-76, ef. 7-1-76
162-010-0280 Programs Funded from Outside Sources (1) Compliance with appropriate laws, rules, and regulations pertaining to programs funded wholly or partially by other governmental agencies shall be disclosed. This would include, but not necessarily be limited to, state and federal governmental agencies. Material instances of noncompliance must be sufficiently disclosed to enable the municipal corporation and the appropriate governmental agencies to initiate corrective action. (2) If separate reports have been issued to disclose compliance with federal financial assistance programs under the Single Audit Act Amendments of 1996 (the Single Audit Act), then reference to those reports is required in this disclosure. Statutory/Other Authority: ORS 297.465 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0240 SD 104-1975, f. 2-20-76, ef. 7-1-76
162-010-0295 Highway Funds Compliance with legal requirements, (as contained in Article IX, section 3a of the Oregon Constitution), pertaining to the use of revenue from taxes on motor vehicle use and fuel shall be disclosed. The auditor shall also disclose compliance with statutory requirements pertaining to the use of road funds (as contained in ORS 294, 368, and 373). Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 DOA 2-1995, f. 3-1-95, cert. ef. 7-1-95
162-010-0300 Investments Compliance with legal requirements, (as contained in ORS Chapter 294), pertaining to the investment of public funds shall be disclosed. Statutory/Other Authority: ORS 297.465 Statutes/Other Implemented: ORS 297.465 History: DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91 DOA 3-1986, f. & ef. 5-29-86
162-010-0310 Public Contracts and Purchasing Compliance with Public Contracting Code, ORS Chapters 279A, 279B and 279C pertaining to: The awarding of public contracts; and the construction of public improvements shall be disclosed. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 DOA 3-1986, f. & ef. 5-29-86
162-010-0315 State School Fund There shall be comments regarding the school district’s compliance with legal requirements as stated in ORS 327.013 and as further defined by the Oregon State Department of Education pertaining to the district’s calculation and reporting of the factors used to compute the State School Fund distribution. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 328.465 History: AUDIT 1-1998, f. 2-2-98, cert. ef. 2-15-98
162-010-0316 Public Charter Schools Public charter schools created under ORS Chapter 338 are subject to review and compliance with the following: (1) Insurance and Fidelity Bonds — OAR 162-010-0270; (2) Programs Funded from Outside Sources — OAR 162-010-0280; and (3) Public Contracts and Purchasing — OAR 162-010-0310. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 328.465 History: AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10
162-010-0320 Other Comments and Disclosures (1) The independent auditor shall include such other comments or disclosures with respect to the review of fiscal affairs and compliance with legal requirements as may be appropriate in the circumstances. (2) Other comments and disclosures may include those related to any county cost audit performed in accordance with ORS 297.525. A cost audit may be performed at a county, specific to any road fund, if (1) the county performs their own road work, (2) the road fund is reported as a major fund, and (3) the county and accountant engagement terms include a cost audit in the scope of work. The cost audit does not consist of specific procedures required by these Minimum Standards; the objectives are to verify the cost of performance and administration of county road work performed by the county, establish the accuracy of costing data and expense records, and determine whether the county adhered to approved budgets and planning. Contracted road work is not subject to cost auditing. The auditor should perform cost audit procedures in accordance with professional standards, be responsive to the auditor’s risk assessment procedures, and consider the intent of material compliance as imbedded within these Minimum Standards for audits. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 3-2024, amend filed 06/03/2024, effective 07/01/2024 AUDIT 2-2015, f. & cert. ef. 8-19-15 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0295
162-010-0330 Extensions of Time to Deliver Audit Reports If the required report is not filed with the Secretary of State within six months following the end of the fiscal year, the municipal corporation shall file a written request for extension of time. The request shall state the reasons for the delay and the expected filing date of the report. The Secretary of State, for good cause shown, may grant the request for a reasonable period of time. (1) Requests for extensions of time to deliver audit reports must be submitted in a manner as prescribed by the Secretary of State. The request must contain the following information: (a) The name and registered or mailing address of the municipal corporation; (b) The name, address, and signature of the accountant or firm, if known, conducting the audit; (c) The accounting period under audit; (d) A statement setting forth the reasons for the delay in delivering the audit report; (e) The signed approval or disapproval of the request by the chair of the governing body, or managing or executive officer, of the municipal corporation. Reasons for disapproval must be included; (f) Requests applicable to school districts and community colleges must also contain the signed approval or disapproval of the local district superintendent or the superintendent's designee. (2) A request for extension of time shall be submitted to the Secretary of State. The Secretary of State shall notify the independent auditor and the municipal corporation of its approval to grant an extension of time or reasons for its disapproval. Statutory/Other Authority: ORS 297 Statutes/Other Implemented: ORS 297.465 History: AUDIT 3-2024, amend filed 06/03/2024, effective 07/01/2024 AUDIT 2-2015, f. & cert. ef. 8-19-15 AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10 AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07 AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01 DOA 3-1986, f. & ef. 5-29-86, Renumbered from 165-030-0670 SD 115-1977, f. & ef. 10-1-77