USA Statutes : oregon
Title : TITLE 28 PUBLIC FINANCIAL ADMINISTRATION
Chapter : Chapter 297 Audits of Public Funds and Financial Records
There is
established the Division of Audits to be maintained under the supervision
and control of the Secretary of State and operated as one of the
divisions of the secretary’s office. The Secretary of State shall assign
or appoint a director of the division and such other assistants,
accountants, auditors and clerks, upon such terms and for such
compensation, as the secretary deems advantageous and necessary to carry
out the duties and functions of the division. [1985 c.509 §1](1) The Division of Audits shall have the
function and duty of carrying out the provisions of ORS 297.210, 297.230,
297.405 to 297.555, 297.990 and this section.

(2) All moneys received under authority of the sections listed in
subsection (1) of this section and moneys appropriated for use by the
Secretary of State in carrying out the provisions of those sections
hereby are made available for use by the Division of Audits. [Amended by
1977 c.774 §19; 1979 c.286 §6]The audits,
reviews or investigations authorized to be made by the Secretary of State
may be assigned to the Division of Audits as a part of its functions and
duties. [Amended by 1955 c.287 §18; 1987 c.143 §1]The costs and expenses of conducting audits authorized by ORS
297.030 shall be paid from whatever funds are appropriated by law for use
in carrying out the provisions of the respective laws relating thereto.
The costs and expenses shall be charged and billed to such funds or
activities in the same manner as are costs and expenses charged and
billed for audits, reviews, investigations and system installations to
municipal corporations and the various state departments, boards and
commissions. [Amended by 1987 c.143 §2]The Division of Audits of
the office of the Secretary of State shall supply the Joint Legislative
Audit Committee and the Legislative Fiscal Officer with a copy of each
audit report made by or for the Division of Audits. [1959 c.70 §10; 1997
c.847 §5]
Information furnished to the Secretary of State by the Department of
Revenue and made confidential by ORS 314.835 shall be used by the
Secretary of State and the officers and employees of the Secretary of
State solely for the purposes of performing the functions of the office
of Auditor of Public Accounts as required by section 2, Article VI of the
Oregon Constitution, and shall not be used or disclosed for any other
purpose. Any person who violates this prohibition against disclosure,
upon conviction, is punishable as provided by ORS 314.991 (2). [1979
c.690 §17](1) It is the policy of this state that
state government services be delivered with the highest level of desired
effectiveness at the lowest possible cost.

(2) The Joint Legislative Audit Committee shall provide oversight
of the conduct of performance and program audits and program evaluations,
that are outside the authority of the Secretary of State under section 2,
Article VI of the Oregon Constitution, of state departments, boards,
commissions, institutions and state-aided institutions and agencies. The
joint committee shall review the efforts of state departments, boards,
commissions, institutions and state-aided institutions and agencies to
comply with the recommendations of the audit or evaluation reports. [1997
c.847 §2](1) Performance and program audits of all state
departments, boards, commissions, institutions and state-aided
institutions and agencies shall be conducted on the basis of risk
assessment and on standards established by national recognized entities
including, but not limited to, the United States General Accounting
Office and the National Association of State Auditors. The Secretary of
State shall adopt and the Joint Legislative Audit Committee shall approve
rules specifying all criteria to be considered for conducting a
performance or program audit under this section. The Secretary of State
shall schedule the performance and program audits as directed by the
Joint Legislative Audit Committee.

(2) The Secretary of State may subpoena witnesses, may require the
production of books and papers and rendering of reports in such manner
and form as the Secretary of State requires and may do all things
necessary to secure a full and thorough audit. The Secretary of State
shall report, in writing, to the Legislative Assembly as provided in ORS
192.245. The report shall include a copy of the report on each
performance and program audit.

(3) The Secretary of State, as State Auditor, shall contract with
qualified private sector auditors to conduct audits required by this
section, unless the Secretary of State determines that it is not
practical or in the public interest to do so. If the Secretary of State
determines that it is not practical or in the public interest to contract
with qualified private sector auditors, after notifying the Joint
Legislative Audit Committee, the Secretary of State shall employ auditors
for such purpose and shall include in the written audit report the
circumstances that rendered it impractical or not in the public interest
to contract with qualified private sector auditors. All contracts for
conducting performance and program audits under this section shall be in
a form prescribed or approved by the Secretary of State. A copy of each
completed contract shall be furnished to the Secretary of State and the
Joint Legislative Audit Committee. The Secretary of State shall employ or
contract with auditors upon terms and for compensation as the Secretary
of State determines are advantageous and advisable.

(4) An audit conducted under contract as provided in subsection (3)
of this section shall be considered to be conducted by the Division of
Audits for purposes of ORS 297.020, 297.050 and 297.535.

(5) If a person fails to comply with any subpoena issued under
subsection (2) of this section, a judge of the circuit court of any
county, on application of the Secretary of State, shall compel obedience
by proceedings for contempt as in the case of disobedience of the
requirements of a subpoena issued from the circuit court.

(6) The Secretary of State may enter into an agreement with the
department, board, commission, institution, state-aided institution or
agency that is the subject of a performance or program audit for payment
of the expenses incurred by the Secretary of State in conducting the
audit. The Emergency Board may also make funds available to the Division
of Audits to reimburse it for expenses incurred under this section.

(7) As used in this section:

(a) “Performance audit” includes determining:

(A) Whether an entity described in subsection (1) of this section
that is the subject of the audit is acquiring, protecting and using its
resources economically and efficiently;

(B) The causes of inefficiencies or uneconomical practices; and

(C) Whether the entity has complied with laws and regulations
concerning matters of economy and efficiency.

(b) “Program audit” includes determining:

(A) The extent to which the desired results or benefits of a
program established by the Legislative Assembly or other authorizing body
are being achieved;

(B) The extent to which the need for or objectives of an ongoing
program are necessary or relevant;

(C) Whether the program complements, duplicates, overlaps or
conflicts with other related programs;

(D) The effectiveness of organizations, programs, activities or
functions; and

(E) Whether the entity described in subsection (1) of this section
that is the subject of the audit has complied with laws and regulations
applicable to the program. [1997 c.847 §4]INVESTIGATING LOSS OF PUBLIC FUNDS OR PROPERTY As used in ORS
297.120 and 297.210:

(1) “Public officer” means any elected or appointed state officer,
including members of boards and commissions.

(2) “State agency” means any state department, division, bureau or
other agency or body headed by an elected or appointed state officer or
member of a board or commission. [1963 c.617 §1; 1993 c.718 §1]When a state
agency sustains a loss of public funds or property under circumstances
involving a public officer who is entrusted with the custody of the funds
or property or who is charged with the duty to account for the funds or
property, the agency shall report the loss in writing to the Division of
Audits. Within 30 days of discovering the loss of public funds or
property, the Division of Audits may investigate the loss and prepare a
report respecting the accountability of the public officer for the loss.
The report shall be presented to the Governor. [1963 c.617 §2; 1969 c.199
§48; 1991 c.219 §2; 1993 c.718 §2]AUDITING ACCOUNTS OF STATE AND STATE-AIDED INSTITUTIONS AND AGENCIES(1) The Secretary of State, as State Auditor, shall have the
accounts and financial affairs of state departments, boards, commissions,
institutions and state-aided institutions and agencies of the state
reviewed or audited as the Secretary of State considers advisable or
necessary. The Secretary of State may subpoena witnesses, require the
production of books and papers and rendering of reports in such manner
and form as the Secretary of State requires and may do all things
necessary to secure a full and thorough investigation. The Secretary of
State shall report, in writing, to the Governor. The report shall include
a copy of the report on each audit.

(2) An audit or review shall be made of any institution or
department of the state government at any time the executive head of the
institution or department, for any reason, retires from the head’s office
or position.

(3) The Secretary of State shall employ auditors upon such terms
and for such compensation as the Secretary of State determines are
advantageous and advisable.

(4) If a person fails to comply with any subpoena issued under
subsection (1) of this section, a judge of the circuit court of any
county, on application of the Secretary of State, shall compel obedience
by proceedings for contempt as in the case of disobedience of the
requirements of a subpoena issued from the circuit court. [Amended by
1969 c.135 §1; 1971 c.748 §3; 1983 c.154 §1; 1987 c.143 §3; 1993 c.718
§4; 1997 c.157 §1](1)
The Division of Audits shall estimate in advance the expenses that it
will incur during the biennium in carrying out the provisions of ORS
297.030, 297.120 and 297.210, and shall charge officers, departments,
boards and commissions of state government and other public bodies for
their share of such expenses for periods within the biennium and in
sufficient amounts to provide reasonable cash operating requirements for
the Division of Audits within the biennial period. Each officer,
department, board or commission or other public body shall pay to the
credit of the Division of Audits Account such charge as an administrative
expense from funds or appropriations available to it in the same manner
as other claims against the state or public body are paid.

(2) Payments authorized under this section shall be consistent with
ORS 171.580 and 171.585. The Division of Audits shall report to the Joint
Legislative Audit Committee established under ORS 171.580 when estimated
expenses for an audit authorized under subsection (1) of this section
exceed the estimated expenses for a biennium.

(3) All moneys received from the various state departments, boards,
commissions, institutions and state-aided institutions and agencies of
the state in the payment of the costs of audits and reviews under ORS
297.210 and 297.230 shall be credited to the Division of Audits Account.
[Amended by 1977 c.774 §20; 1987 c.143 §4; 1993 c.724 §24; 1999 c.324 §1]MUNICIPAL AUDIT LAW

(1) “Accountants” means all accountants whose names are included in
the roster prepared and maintained by the Oregon Board of Accountancy as
required by ORS 297.670.

(2) “Accounts” means all books, papers, files, letters and records
of any nature or in any form used in conducting the affairs of the
municipal corporation or in recording the transactions thereof.

(3) “Board” means the Oregon Board of Accountancy.

(4) “Fiscal affairs” means and includes all activities of any
nature giving rise to or resulting from financial transactions, including
compliance with legal requirements applicable to the operation of a
municipal corporation.

(5) “Municipal corporation” means a:

(a) City;

(b) County;

(c) Special district;

(d) Corporation, except a municipal corporation established
pursuant to ORS 441.525 to 441.595, upon which is conferred powers of the
state for the purpose of local government; or

(e) Public corporation, including a cooperative body formed between
municipal corporations.

(6) “Public corporation” means a corporation the operation of which
is subject to control by local government or its officers and which, at
least in part, is organized to serve a public purpose of, and receives
public funds or other support having monetary value from, such
government. [1977 c.774 §2; 1979 c.286 §7; 1987 c.423 §1; 2005 c.443 §15] The Secretary of State
shall require that periodic reports of financial condition and financial
operations be prepared and submitted to the Secretary of State by
municipal corporations in such form and at such times as the Secretary of
State considers necessary. The periodic reports may be required of all
municipal corporations. [1977 c.774 §3](1) Except
as provided in ORS 297.435, the accounts and fiscal affairs of every
municipal corporation shall be audited and reviewed at least once each
calendar or fiscal year, and more often if considered advisable by the
governing body or managing or executive officer of the municipal
corporation. The audits and reviews shall be made by accountants pursuant
to contracts entered into by the governing body, or managing or executive
officer, and accountants, or by the Secretary of State pursuant to a duly
adopted ordinance or resolution, a copy of which shall be furnished to
the Secretary of State.

(2) Municipal corporations may enter into contracts, or by
ordinance or resolution request the Secretary of State, to develop or
revise and install accounting systems.

(3) All contracts for conducting audits and reviews or for
developing or revising and installing accounting systems shall be in a
form prescribed or approved by the Secretary of State. A copy of each
completed contract shall be furnished the Secretary of State.

(4)(a) The compensation for audits and reviews performed by
accountants shall be as agreed upon between the governing body, or
managing or executive officer of the municipal corporation, and the
accountant, and shall be paid in the same manner as other claims against
the municipal corporation are paid.

(b) The compensation for installation of accounting systems
performed by parties under subsection (2) of this section, other than the
Secretary of State, shall be as agreed upon between the governing body,
or managing or executive officer of the municipal corporation, and the
other party, and shall be paid in the same manner as other claims against
the municipal corporation are paid.

(5) All expenses and costs incurred by the Secretary of State in
conducting audits and reviews, and installing accounting systems for
municipal corporations shall be borne by the municipal corporation for
which a particular audit, review or installation is made. The expenses
and costs shall be paid to the Secretary of State in the same manner as
other claims against the municipal corporation are paid.

(6) Audits and reviews required by this section shall inquire into:

(a) The principles of accounting and methods followed by the
municipal corporation in recording, summarizing and reporting its
financial transactions and financial condition;

(b) The accuracy and legality of the transactions, accounts,
records, files and financial reports of the officers and employees of the
municipal corporation as they relate to its fiscal affairs; and

(c) Compliance with requirements, orders and regulations of other
public officials which pertain to the financial condition or financial
operations of the municipal corporation. [1977 c.774 §4; 1987 c.143 §5;
2001 c.26 §1](1) Subject to ORS 297.445, the provisions of ORS 297.425 shall
not apply to any municipal corporation, except a county or a school
district, if, with respect to any one calendar year or fiscal year, the
municipal corporation meets all the conditions in either subsection (2)
or (3) of this section.

(2)(a) Total receipts from all sources and expenditures for all
purposes, including money obtained from borrowing and money expended for
debt retirement, did not exceed $150,000 for the year;

(b) The municipal corporation has submitted financial statements
for the year to the Secretary of State within 90 days following the end
of the year; and

(c) A certificate has been submitted with the financial statements
stating that the principal responsible official of the municipal
corporation was covered during the entire year by a fidelity or faithful
performance bond in an amount at least equal to the total amount of money
received by the municipal corporation during the year.

(3)(a) Total receipts from all sources and expenditures for all
purposes, including money obtained from borrowing and money expended for
debt retirement, exceeded $150,000 but did not exceed $500,000 for the
year;

(b) The municipal corporation has submitted financial statements
for the year to the Secretary of State within 180 days following the end
of the year, and the financial statements have been reviewed by an
accountant or the Secretary of State in accordance with standards
prescribed by the Secretary of State; and

(c) A certificate has been submitted with the financial statements
stating that the official responsible for receiving and disbursing moneys
on behalf of the municipal corporation was covered during the entire year
by a fidelity or faithful performance bond in an amount at least equal to
10 percent of the total receipts for the year, but not less than $10,000.

(4) The financial statements required by this section shall be in a
form prescribed by the Secretary of State and shall be considered audit
reports for the purpose of the filing fee required by ORS 297.485.

(5) The provisions of ORS 297.466 apply to financial statements for
cities reviewed under subsection (3) of this section. [1977 c.774 §5;
1981 c.245 §1; 1997 c.401 §1](1) ORS 297.435 does not apply to
a municipal corporation for any calendar or fiscal year if a petition
requesting an audit, signed by residents of the municipal corporation who
are subject to taxes, fees, assessments or other charges levied by the
municipal corporation, is filed with the Secretary of State within six
months of the end of the fiscal year for which the audit is requested. In
a municipal corporation with a population of 150 or less, the petition
must be signed by at least 10 residents. In a municipal corporation with
a population of more than 150, the petition must be signed by at least 30
residents.

(2) The Secretary of State shall give notice of the petition to the
governing body of the municipal corporation within 10 days of its
receipt. Upon receipt of notice of the petition from the Secretary of
State, the governing body or managing or executive officer of the
municipal corporation shall immediately comply with the provisions of ORS
297.425. If a copy of a signed contract between the governing body or
managing or executive officer and an accountant, or a duly authorized
ordinance or resolution requesting an audit by the Secretary of State, is
not received within 30 days of the dispatch of notice of petition, the
Secretary of State shall cause an audit and review to be made of the
accounts and fiscal affairs of the municipal corporation designated in
the petition.

(3) The costs incurred by the Secretary of State in making the
audit and review shall be borne by the municipal corporation, and shall
be paid to the Secretary of State in the same manner as other claims
against the municipal corporation. [1977 c.774 §6; 1987 c.143 §6; 2003
c.326 §1]If the accounts and fiscal affairs of a municipal
corporation are audited and reviewed for a calendar or fiscal year, in
accordance with the requirements of ORS 297.465, by auditors provided by
the federal government, the Secretary of State may accept for review and
filing the audit reports of such federal auditors if the reports also
comply with the requirements set forth in ORS 297.465. Any such audit
reports filed with the Secretary of State shall be subject to the filing
fee required by ORS 297.485. If the audits and reviews and resulting
audit reports are found by the Secretary of State to comply with ORS
297.465, the municipal corporation will be considered in compliance with
ORS 297.425. [1977 c.774 §7; 1987 c.143 §7]
An accountant who furnishes an audit report to a county pursuant to ORS
297.465 shall, at the same time, furnish a copy of the audit report to
the Department of Revenue. [1989 c.796 §9]Note: 297.459 was added to and made a part of 297.405 to 297.740 by
legislative action but was not added to any other series in ORS chapter
297. See Preface to Oregon Revised Statutes for further explanation. (1) The Secretary of
State, in cooperation with the Oregon Board of Accountancy, and in
consultation with the Oregon Society of Certified Public Accountants,
shall prescribe the minimum standards for conducting audits of municipal
corporations, preparing the resulting audit reports and expressing
opinions upon the financial condition and results of operation for the
period under audit. The expression of opinion shall be signed by the
accountant signing the contract, or in the case of a partnership or
professional corporation, by a partner or stockholder who is an
accountant as defined in ORS 297.405, who has personally conducted the
audit to an extent satisfactory to the Secretary of State and to the
municipal corporation.

(2) The municipal corporation shall be furnished with a written
audit report, containing a signed expression of opinion, in the form
prescribed by the Secretary of State. A copy of the audit report shall be
furnished to each person who was a member of the governing body at the
end of the calendar or fiscal year and to each member of the current
governing body. Other copies shall be furnished the municipal corporation
as are requested by the chairperson of the governing body or the managing
or executive officer. The accountant shall furnish the audit report to
the municipal corporation within six months after the close of the
calendar or fiscal year under audit, except that the Secretary of State,
for good cause shown, may grant to the accountant a reasonable extension
of time.

(3) The municipal corporation shall file one copy of its audit
report with the Secretary of State. The report shall be subject to review
by the Secretary of State, who may also require submission of the working
papers and audit programs of the accountant. If an audit, audit report or
expression of opinion is found by the Secretary of State not to be in
accordance with the prescribed standards, the Secretary of State shall
request compliance. If the accountant fails to comply with the request,
the Secretary of State shall so report to the Oregon Board of
Accountancy, which thereupon may remove or suspend the name of the
accountant from the roster required by ORS 297.670.

(4) Audit reports or financial statements filed with the Secretary
of State as required by ORS 297.405 to 297.555 shall include the names,
mailing addresses and titles of the officers and members of the governing
board of the municipal corporation. The report or statement of a special
district shall include the name of its registered agent and the address
of its registered office as provided by ORS 198.335 to 198.365. [1977
c.774 §8; 1979 c.646 §3](1) In performing an
audit and review required under ORS 297.425, 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 governmental
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.

(2) Upon receipt of an audit report under ORS 297.465 the governing
body of a county or city shall determine the measures it considers
necessary to correct any deficiencies disclosed in the report. The
governing body shall adopt a resolution setting forth the corrective
measures it proposes and the period of time estimated to complete them.

(3) Within 30 days after a county or city files a copy of its audit
report with the Secretary of State under ORS 297.465 a copy of the
resolution prepared under subsection (2) of this section shall also be
filed. Upon receipt of the audit report and the resolution, the Secretary
of State shall either acknowledge the city or county’s plans to correct
deficiencies cited in the audit report or notify the county or city of
those deficiencies which, if not corrected, could result in withholding
of funds under this section. At the request of the governing body of the
city or county the Secretary of State shall make suggestions for
correcting those deficiencies. If the governing body of the county or
city does not agree with the notification by the Secretary of State, it
shall be granted an opportunity for a conference regarding the
notification, audit determinations or corrective measures to be taken.

(4) 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 correct the deficiencies
cited in the notifications given under subsection (3) of this section,
the Secretary of State may certify these facts 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 of State shall only be issued 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.

(5) Upon receipt of a certificate from the Secretary of State under
subsection (4) 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, 323.455, 366.762 to 366.768,
366.785 to 366.820, 471.805 and 471.810. The moneys withheld shall be
disbursed to the county or city only after the officer responsible for
disbursement has received notice from the Secretary of State that the
governing body of the county or city has taken action to follow generally
accepted governmental 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.

(6) The Secretary of State shall not issue a certificate under
subsection (4) of this section for failure to follow generally accepted
governmental accounting principles if a county or city has followed
accounting practices authorized by state law.

(7) As used in this section, “generally accepted governmental
accounting principles” means those accounting principles sanctioned by
recognized authoritative bodies such as the National Council on
Governmental Accounting, 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]
Whenever any municipal corporation has made a request to the Secretary of
State, pursuant to ORS 297.425, for the audit of its accounts and fiscal
affairs, or for the installation of accounting systems, or both, the
municipal corporation may cancel that request by ordinance or resolution
adopted and furnished to the Secretary of State at least 90 days prior to
the end of a calendar or fiscal year. [1977 c.774 §9] (1) At the time an audit report, prepared by
an accountant, is filed with the Secretary of State, as required by ORS
297.465, the municipal corporation shall pay to the Secretary of State a
filing fee. The filing fee shall be determined by the total expenditures
made by the municipal corporation for any and all purposes during the
calendar or fiscal year audited, except that expenditures for principal
of bonded debt, principal of short-term loans, principal of warrants
redeemed which were issued during prior audit periods, transfers or loans
between funds and turnovers of taxes or other trust moneys to other
municipal corporations shall not be included in the total expenditures
upon which the amount of the fee is based.

(2) The filing fee to be paid shall be as indicated for those
municipal corporations whose total expenditures fall within the
classifications as follows:

___________________________________________________________________________
___          Over         Not Over                  Fee                             $     50,000     $           
20

$    50,000          150,000                   40

    150,000          500,000                 150

    500,000       1,000,000                 200

 1,000,000       5,000,000                 250

 5,000,000     10,000,000                 300

10,000,000     50,000,000                 350

50,000,000                                               400

___________________________________________________________________________
___
(3) Audit reports filed by the administrative office of the county,
under ORS 328.465 (2), for school districts with less than 1,000 children
according to the latest school census in the county, shall be considered
one report for purposes of the filing fee required by this section. The
filing fee shall be paid by the county administrative office and deducted
pro rata from moneys due to the several school districts. [1977 c.774
§10; 1999 c.345 §1] Any extraordinary work required to be
performed by the Secretary of State in connection with any of the audits
or the reports thereon filed pursuant to ORS 297.465 shall be compensated
by an additional payment to be agreed upon by the Secretary of State and
the municipal corporation for which the audit is made or to be made.
[1977 c.774 §11] The Secretary of State, subject to ORS chapter 183,
may adopt, amend and repeal rules necessary to carry out the provisions
of ORS 297.020, 297.230, 297.405 to 297.555 and 297.990. [1977 c.774 §12;
1979 c.286 §9]The audits of counties required under ORS 297.425 shall
include circuit and justice courts, their officers and employees,
district attorneys and their employees, sheriffs, constables and all
other officers and officials elected by the residents of a county or
appointed by an official elected by the residents of a county and
transacting public business. [1977 c.774 §13] The annual audit required
to be made of the accounts and fiscal affairs of a county shall include a
cost audit of the cost account for county road work. [1977 c.774 §13a] When a
city, by charter, establishes a board or commission that is elected by
the people to operate a water utility or an electric utility of the city,
the city and the water utility or the electric utility are separate
municipal corporations for the purposes of ORS 297.405 to 297.555 and
297.990. [2005 c.443 §17]Note: 297.527 was added to and made a part of 297.405 to 297.740 by
legislative action but was not added to any other series in ORS chapter
297. See Preface to Oregon Revised Statutes for further explanation.(1) The Secretary of State may subpoena witnesses, require the
production of accounts and do all things necessary to assure that the
accounts and fiscal affairs of a municipal corporation are subject to a
complete audit. If an accountant is denied access to any of the accounts
or other information pertaining to the fiscal affairs of a municipal
corporation, the accountant may request the Secretary of State to
subpoena the accounts, or witnesses who may be able to furnish the
necessary information. The accountant shall furnish to the Secretary of
State such information as the Secretary of State determines necessary to
carry out the provisions of subsections (1) and (2) of this section.

(2) If a person fails to comply with any subpoena issued under
subsection (1) of this section, a judge of the circuit court of any
county, on application of the Secretary of State, shall compel obedience
by proceedings for contempt as in the case of disobedience of the
requirements of a subpoena issued from the circuit court.

(3) All costs necessarily incurred by the Secretary of State or an
accountant in carrying out subsections (1) and (2) of this section shall
be paid by the municipal corporation. [1983 c.794 §§2,3] (1) All moneys received by the
Secretary of State under ORS 297.210, 297.230, 297.425 and 297.445 shall
be immediately turned over to the State Treasurer, who shall deposit the
moneys in the General Fund to the credit of an account to be known as the
Division of Audits Account.

(2) The moneys received under subsection (1) of this section and
deposited in the Division of Audits Account are continuously appropriated
to the Secretary of State for use in payment of salaries and other
expenses or costs of the Division of Audits.

(3) The moneys received under ORS 297.545 and deposited in the
Division of Audits Account are continuously appropriated to the Secretary
of State for use in payment of salaries and other expenses or costs
incurred by the Division of Audits of the Office of the Secretary of
State in connection with the carrying out of the provisions of ORS
297.020, 297.230, 297.405 to 297.740 and 297.990.

(4) The Secretary of State may use moneys in the Division of Audits
Account for cash advances for travel expenses necessary in carrying out
the provisions of ORS 297.020 to 297.555 and 297.990. Any moneys received
in reimbursement of these cash advances shall be deposited in the
Division of Audits Account.

(5) The Secretary of State shall keep a record of all moneys
deposited in the Division of Audits Account. The record shall indicate by
separate cumulative accounts the source from which the moneys are derived
and the individual activity or program against which each withdrawal is
charged. [Formerly 297.460; 1979 c.286 §10; 1995 c.144 §3; 2001 c.796
§20; 2005 c.755 §14] All filing
fees received by the Secretary of State under ORS 297.405 to 297.555
shall be immediately turned over to the State Treasurer who shall deposit
the moneys in the Division of Audits Account created under ORS 297.535.
[Formerly 297.660; 1979 c.286 §11; 1995 c.144 §5]The Oregon Board of Accountancy shall prepare and
maintain a roster of accountants authorized to conduct the municipal
audits required by ORS 297.425. [Amended by 1981 c.83 §1]The Oregon Board of Accountancy shall adopt by rule:

(1) Procedures and qualifications for admitting applicants to the
roster of authorized accountants referred to in ORS 297.670;

(2) Procedures for reviewing the qualifications of accountants
admitted to the roster for continuance on the roster;

(3) Fees payable upon application for admission to the roster; and

(4) Procedures for making the roster available to municipal
corporations described in ORS 297.405 (5) which are subject to the
Municipal Audit Law. [Amended by 1959 c.238 §2; 1965 c.332 §3; 1987 c.455
§1; 1999 c.309 §1; 1999 c.322 §34]
Notwithstanding the repeal of ORS 297.700, any person who is on the
roster referred to in ORS 297.670 on August 5, 1959, shall remain thereon
subject only to removal under ORS 297.710. [1959 c.238 §5] (1) The
Oregon Board of Accountancy, for cause, may remove from the roster the
name of any person appearing thereon and may provide for the
reinstatement thereof.

(2) The board shall remove from the roster the name of any person
appearing thereon if the person ceases to possess the qualifications
described in ORS 297.680. If after such removal the board determines that
such person later possesses such qualifications, the board may provide
for the reinstatement of that person’s name on the roster without an
examination. [Amended by 1965 c.332 §5] Every
auditor or accountant whose name is included on the roster of authorized
accountants referred to in ORS 297.670 shall pay to the Oregon Board of
Accountancy biennially a fee for continuance thereon. The fee shall be in
an amount not to exceed $100 as determined by the board by rule. [Amended
by 1971 c.217 §1; 1981 c.89 §13; 1987 c.455 §2] The fees collected by the
Oregon Board of Accountancy under ORS 297.670 to 297.740 shall be turned
over to the State Treasurer who shall deposit the moneys in the General
Fund to be credited to the Oregon Board of Accountancy for its use in
carrying out the provisions of ORS 297.405 to 297.555 and 297.670 to
297.740. [Amended by 1981 c.83 §2] The Oregon Board of Accountancy may adopt
rules necessary to exercise its powers and duties provided in ORS 297.405
to 297.555 and 297.670 to 297.740. [Amended by 1981 c.83 §3; 1999 c.322
§35]
In addition to all other penalties, any county
court, board of county commissioners or managing or executive officers of
any municipal corporation, who violate any of the provisions of ORS
297.405 to 297.555 or fail to have the audits and examinations required
by those sections made, upon such violation or failure shall forfeit to
the county or other municipality their salaries and fees due them from
the county or other municipality; and it shall be unlawful for any
officer of such county or municipality to draw any warrant in favor of
the members of such court, or such commissioners, or managing or
executive officers of such corporation, in payment of such salaries or
fees, or to pay the same in any manner. [Amended by 1977 c.774 §23; 1979
c.286 §13]