Chapter 26 Oregon Laws 2001

AN ACT

SB 283

Relating to municipal corporations; amending ORS 297.425.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 297.425 is amended to read:

297.425. (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 [contract with accountants] 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[, and installation of accounting systems] 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.

Approved by the Governor April 4, 2001

Filed in the office of Secretary of State April 4, 2001

Effective date January 1, 2002

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