71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
 
                            Enrolled
 
                         Senate Bill 283
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor John A. Kitzhaber,
  M.D., for Oregon Board of Accountancy)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
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
 
 
Enrolled Senate Bill 283 (SB 283-INTRO)                    Page 1
 
 
 
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.
                         ----------
 
 
Passed by Senate February 5, 2001
 
 
      ...........................................................
                                              Secretary of Senate
 
      ...........................................................
                                              President of Senate
 
Passed by House February 28, 2001
 
 
      ...........................................................
                                                 Speaker of House
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled Senate Bill 283 (SB 283-INTRO)                    Page 2
 
 
 
 
 
Received by Governor:
 
......M.,............., 2001
 
Approved:
 
......M.,............., 2001
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2001
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled Senate Bill 283 (SB 283-INTRO)                    Page 3