71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2621
House Bill 2765
Sponsored by Representative LEONARD; Representatives BACKLUND,
BOWMAN, GARDNER, HASS, KNOPP, KROPF, MERKLEY, MORRISETTE,
NOLAN, RINGO, STARR, TOMEI, WITT, ZAUNER, Senators BROWN,
BURDICK, CORCORAN, GORDLY, MINNIS, STARR
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Directs Secretary of State to cause to have prepared financial
audits of all school districts. Allows Secretary of State to
contract for audits.
A BILL FOR AN ACT
Relating to school district audits; creating new provisions; and
amending ORS 297.435, 297.485 and 328.465.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 328.465 is amended to read:
328.465. (1) { - All common and union high school district
boards - } { + The Secretary of State + } shall cause to have
prepared an annual { + financial + } audit of the books and
accounts of { - the district in the manner set forth in
subsection (2) or (3) of - } { + all school districts in the
manner set forth in + } this section. { - County school
districts shall cause the audit to be prepared as provided in
subsection (3) of this section. - } { + The Secretary of State
shall file + } the audit statements { - must be filed - } with
the administrative office for the county { + in which the school
district is located + } on or before November 1 of the year in
which the audit is conducted. { + In addition, the Secretary
of State shall send a copy of the audit statement to the board of
the school district. + }
{ - (2) The district school board may contract for its audit
with the administrative office for the county in which the
administrative office of the school district is located. The
administrative office for the county shall secure the services of
accountants who shall audit the books and accounts of the
districts and file with the administrative office for the county
a statement setting forth the financial condition of each
district. A copy of the audit report of the district shall be
sent to the appropriate district board. Each district, upon
receipt of billing from the administrative office for the county,
shall pay its share of the audit costs. - }
{ - (3) - } { + (2) + } { - The district board may
employ - } { + The Secretary of State shall contract with + }
accountants to audit the books and accounts of the
{ - district - } { + school districts. Each school district
shall pay the cost and expenses associated with the financial
audit of the school district + }.
{ - (4) - } { + (3) + } Accountants employed under
subsection (2) { - or (3) - } of this section must be selected
from the roster of authorized municipal accountants maintained by
the Oregon Board of Accountancy under ORS 297.670.
{ - (5) - } { + (4) + } The { + financial + } audit
required by this section shall include an audit of those factors
that are used to compute the State School Fund distribution under
ORS 327.013.
SECTION 2. ORS 297.435 is amended to read:
297.435. (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.
SECTION 3. ORS 297.485 is amended to read:
297.485. (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:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over Not Over Fee
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
$50,000 20
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
$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
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(3) Audit { - reports - } { + statements + } filed by the
{ + Secretary of State with 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.
SECTION 4. { + The Secretary of State shall create an advisory
committee to provide advice on rules adopted to implement ORS
328.465, as amended by section 1 of this 2001 Act. The advisory
committee shall consist of members representing:
(1) The Oregon Society of Certified Public Accountants;
(2) The Oregon Association of School Business Officials;
(3) The Oregon School Boards Association;
(4) The Confederation of Oregon School Administrators; and
(5) The Department of Education. + }
SECTION 5. { + Section 4 of this 2001 Act is repealed on
January 1, 2003. + }
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