ORS 297.466
Auditor statement required

  • procedure for determining and correcting deficiencies
  • withholding of state funds

(1)

In performing an audit and review required under ORS 297.425 (Annual audits required), the accountant under contract with the municipal corporation or the Secretary of State, whoever performs the audit and review, shall determine if the municipal corporation has, or has not, followed generally accepted accounting principles in reporting its financial condition and operations, established appropriate accounting systems and internal controls and substantially complied with legal requirements in conducting its financial affairs. The determination shall either be included in the signed expression of opinion or otherwise disclosed in the audit report required under ORS 297.465 (Standards for audits).

(2)

Upon receipt of an audit report under ORS 297.465 (Standards for audits), the governing body of a municipal corporation shall determine the measures it considers necessary to address any deficiencies disclosed in the report. The governing body shall adopt a plan of action to address the deficiencies. The plan must include the estimated period of time necessary to complete the planned actions.

(3)

Intentionally left blank —Ed.

(a)

Within 30 days after filing an audit report with the Secretary of State under ORS 297.465 (Standards for audits), a municipal corporation shall file with the secretary a copy of the plan of action adopted under subsection (2) of this section.

(b)

At the request of the governing body of the municipal corporation, the secretary shall make suggestions for addressing the deficiencies cited in the audit report.

(c)

For counties and cities, upon receipt by the secretary of the audit report and the plan of action adopted under subsection (2) of this section, the secretary shall either acknowledge the county or city’s plan of action to address the deficiencies cited in the audit report or notify the county or city of deficiencies that, if not addressed, could result in withholding of funds under this section. If the governing body of the county or city does not agree with the notification by the secretary, the secretary shall provide the governing body with an opportunity for a conference regarding the notification, audit determinations or corrective measures to be taken.

(4)

If the Secretary of State determines that a county or city has not filed an audit report with the secretary as required under ORS 297.465 (Standards for audits), the secretary may certify the determination to the State Treasurer, the Director of the Department of Revenue, the Director of Transportation and the Director of the Oregon Department of Administrative Services.

(5)

If the Secretary of State concurs with determinations made under subsection (1) of this section in two successive audits and reviews of the same county or city, and determines that the governing body of the county or city has not taken adequate action to address the deficiencies cited in the notifications given under subsection (3) of this section, the secretary may certify the determination to the State Treasurer, the Director of the Department of Revenue, the Director of Transportation and the Director of the Oregon Department of Administrative Services. The certificate of the secretary under this subsection may be issued only after notice, opportunity to be heard and hearing pursuant to the provisions of ORS chapter 183, governing contested cases. The hearing shall be held within the jurisdiction of the county or city.

(6)

Upon receipt of a certificate from the Secretary of State under subsection (4) or (5) of this section, the State Treasurer, the Director of the Department of Revenue, the Director of Transportation and the Director of the Oregon Department of Administrative Services shall withhold from distribution to the county or city 10 percent of the moneys otherwise to be distributed to it under ORS 221.770 (Revenue sharing to cities), 323.455 (Distribution of certain cigarette tax revenues), 366.762 (Appropriation from highway fund for counties) to 366.768 (Advances from highway fund to county), 366.785 (Definitions for ORS 366.785 to 366.820) to 366.820 (Limit to application of ORS 366.785 to 366.815), 471.805 (Disposition of moneys) and 471.810 (Distribution of available moneys in Oregon Liquor and Cannabis Commission Account). The moneys withheld shall be disbursed to the county or city only after the officer responsible for disbursement has received notice from the secretary that:

(a)

The county or city has filed the audit report required under ORS 297.465 (Standards for audits) with the secretary; or

(b)

The governing body of the county or city has taken action to follow generally accepted accounting principles in reporting financial condition and operations and establish appropriate accounting systems and internal controls and will substantially comply with legal requirements in conducting its financial affairs.

(7)

The Secretary of State may not issue a certificate under subsection (5) of this section for failure to follow generally accepted accounting principles if a county or city has followed accounting practices authorized by state law.

(8)

As used in this section, “generally accepted accounting principles” means those accounting principles sanctioned by recognized authoritative bodies such as the Governmental Accounting Standards Board, the American Institute of Certified Public Accountants, the Financial Accounting Standards Board or their successors. [1979 c.646 §2; 1981 c.245 §3; 1987 c.143 §8; 2007 c.184 §3; 2015 c.29 §3]

Source: Section 297.466 — Auditor statement required; procedure for determining and correcting deficiencies; withholding of state funds, https://www.­oregonlegislature.­gov/bills_laws/ors/ors297.­html.

297.010
Division of Audits
297.020
Functions and duties of Division of Audits
297.030
Audits, reviews and investigations
297.040
Payment of costs and expenses of audits authorized by ORS 297.030
297.050
Supply of audit reports to Joint Legislative Audit Committee and Legislative Fiscal Officer
297.060
Confidentiality of tax records
297.065
Oversight of performance audits and evaluation by Joint Legislative Audit Committee
297.070
Performance audits
297.076
Audit plans
297.100
Audit information in Governor’s budget
297.103
Audit information in Secretary of State budget
297.110
Definitions for ORS 297.120
297.120
Division of Audits investigation of state agency loss of public funds or property
297.210
Audits of accounts of state agencies and state-aided institutions and agencies
297.230
Estimate and payment of costs and expenses of audits
297.250
Filing of risk assessment or audit by state agency with Division of Audits
297.300
Audit of records related to certain charges paid to nongovernmental entity
297.405
Definitions for ORS 297.020, 297.230, 297.405 to 297.740 and 297.990
297.415
Periodic financial reports required
297.425
Annual audits required
297.435
Exemption from audit
297.445
Petition to audit municipal corporation exempt under ORS 297.435
297.455
Audits by federal government
297.459
Furnishing county audit reports to Department of Revenue
297.465
Standards for audits
297.466
Auditor statement required
297.471
Secretary of State to prepare summary report
297.475
Cancellation of request for Secretary of State assistance
297.485
Filing fees
297.495
Extraordinary costs
297.505
Rules
297.515
County audits include justice courts and law enforcement agencies and officers
297.525
Annual audit of county road work
297.527
City utilities separate municipal corporations
297.530
Subpoena authority of Secretary of State
297.535
Division of Audits Account
297.545
Disposition of Municipal Audit Law filing fees
297.555
Short title
297.670
Board of Accountancy to prepare and maintain roster
297.680
Rules for establishing and maintaining roster
297.701
Persons on roster on August 5, 1959
297.710
Removal of accountant from roster
297.720
Biennial fee of accountants included on roster
297.730
Disposition of fees of board
297.740
Rules of board
297.760
Establishment of local government waste hotline
297.765
Policies and procedures for local government waste hotline
297.990
Penalties
Green check means up to date. Up to date