Multiple Amendments Enacted during the 2006 Legislative Session

1. A. The trustees of every trust created for the benefit and furtherance of any public function with the State of Oklahoma or any county or municipality with a population of two thousand five hundred (2,500) or more as of the most recent Federal Decennial Census as the beneficiary or beneficiaries thereof must cause an audit to be made of financial statements of the trust, such audit to be ordered within thirty (30) days of the close of each fiscal year of the trust. The audit shall be filed in accordance with the requirements set forth for financial statement audits in Section 212A of Title 74 of the Oklahoma Statutes.

2. B. The trustees of a trust whose beneficiary or beneficiaries are municipalities with a population as of the most recent Federal Decennial Census of less than two thousand five hundred (2,500) and more than Fifty Thousand Dollars ($50,000.00) in revenues, and for whom an annual financial statement audit is not required by another law, regulation, or contract, shall cause to be conducted, by an independent licensed public accountant or a certified public accountant, an annual audit of the trust’s financial statements in accordance with auditing standards generally accepted in the United States and Government Auditing Standards as issued by the Comptroller General of the United States or an agreed-upon-procedures engagement over certain financial information and compliance requirements to be performed in accordance with the applicable attestation standards of The American Institute of Certified Public Accountants, and the fieldwork and reporting standards in Government Auditing Standards. The specific procedures to be performed are:

   1. 1. Prepare a schedule of revenues, expenditures/expenses and changes in fund balances/net assets for each fund and determine compliance with any applicable trust or other prohibitions for creating fund balance deficits;
   2. 2. Agree material bank account balances to bank statements, and trace significant reconciling items to subsequent clearance;
   3. 3. Compare uninsured deposits to fair value of pledged collateral;
   4. 4. Compare use of material-restricted revenues and resources to their restrictions;
   5. 5. Determine compliance with requirements for separate funds; and

   6. 6. Determine compliance with reserve account and debt service coverage requirements of bond indentures.

      Such engagement shall be ordered within thirty (30) days of the close of each fiscal year of the trust. Copies of the annual audit or agreed-upon-procedures report shall be filed with the State Auditor and Inspector within six (6) months after the close of the fiscal year and with the trustees and governing body of the beneficiaries.

3. C. Public trusts whose beneficiary or beneficiaries are municipalities with a population as of the most recent Federal Decennial Census of less than two thousand five hundred (2,500) which have less than Fifty Thousand Dollars ($50,000.00) in revenue or assets, and for whom an annual financial statement audit is not required by another law, regulation, or contract and any public trust which did not have financial activity exceeding Fifty Thousand Dollars ($50,000.00) since its last audit may apply to the State Auditor and Inspector for a waiver of the requirements of subsections A and B of this section.

   Version 2 (as amended by Laws 2006, SB 1598, c. 325, § 2, eff. November 1, 2006):

4. A. The trustees of every trust created for the benefit and furtherance of any public function with the State of Oklahoma or any county or municipality as the beneficiary or beneficiaries thereof must cause an audit to be made of the financial statements of the trust, such audit to be ordered within thirty (30) days of the close of each fiscal year of the trust. The audit shall be filed in accordance with the requirements set forth for financial statement audits in Section 212A of Title 74 of the Oklahoma Statutes.

5. B. The trustees of a trust which has more than Fifty Thousand Dollars ($50,000.00) in revenues or assets, and for whom an annual financial statement audit is not required by another law, regulation, or contract, shall cause to be conducted, by an independent licensed public accountant or a certified public accountant, an annual audit of the trust’s financial statements in accordance with auditing standards generally accepted in the United States and Government Auditing Standards as issued by the Comptroller General of the United States or an agreed-upon-procedures engagement over certain financial information and compliance requirements to be performed in accordance with the applicable attestation standards of The American Institute of Certified Public Accountants, and the fieldwork and reporting standards in Government Auditing Standards. The specific procedures to be performed are:

   1. 1. Prepare a schedule of revenues, expenditures/expenses and changes in fund balances/net assets for each fund and determine compliance with any applicable trust or other prohibitions for creating fund balance deficits;
   2. 2. Agree material bank account balances to bank statements, and trace significant reconciling items to subsequent clearance;
   3. 3. Compare uninsured deposits to fair value of pledged collateral;
   4. 4. Compare use of material-restricted revenues and resources to their restrictions;
   5. 5. Determine compliance with requirements for separate funds; and

   6. 6. Determine compliance with reserve account and debt service coverage requirements of bond indentures.

      Such engagement shall be ordered within thirty (30) days of the close of each fiscal year of the trust. Copies of the annual audit or agreed-upon-procedures report shall be filed with the State Auditor and Inspector within six (6) months after the close of the fiscal year and with the trustees and governing body of the beneficiaries.

6. C. Public trusts which have less than Fifty Thousand Dollars ($50,000.00) in revenue and less than Fifty Thousand Dollars ($50,000.00) in assets, and for whom an annual financial statement audit is not required by another law, regulation, or contract may apply to the State Auditor and Inspector for a waiver of the requirements of subsections A and B of this section.

Version 1 (as amended by Laws 2006, HB 2796, c. 314, § 6, emerg. eff. July 1, 2006 (repealed by Laws 2007, HB 2195, c. 1, § 46, emerg. eff. February 22, 2007)):

Laws 1963, SB 125, c. 76, § 1, emerg. eff. May 21, 1963; Amended by Laws 1976, HB 1651, c. 222, § 7, eff. December 1, 1976; Amended by Laws 1996, HB 1788, c. 290, § 5, eff. July 1, 1996; Amended by Laws 2005, HB 1670, c. 459, § 6, emerg. eff. July 1, 2005 (superseded document available); Amended by Laws 2006, HB 2796, c. 314, § 6, emerg. eff. July 1, 2006 (repealed by Laws 2007, HB 2195, c. 1, § 46, emerg. eff. February 22, 2007) (superseded document available); Amended by Laws 2006, SB 1598, c. 325, § 2, eff. November 1, 2006 (superseded document available).