Oregon Bulletin

March 1, 2011


Secretary of State,
Audits Division
Chapter 162

Rule Caption: General Housekeeping.

Adm. Order No.: AUDIT 1-2011

Filed with Sec. of State: 1-27-2011

Certified to be Effective: 1-27-11

Notice Publication Date: 12-1-2010

Rules Amended: 162-010-0030

Rules Repealed: 162-001-0010, 162-011-0000, 162-011-0010, 162-011-0020, 162-011-0030, 162-011-0040, 162-012-0000, 162-012-0010, 162-012-0020, 162-012-0030, 162-012-0040, 162-012-0050, 162-013-0000, 162-013-0010, 162-013-0020, 162-013-0030, 162-013-0040, 162-013-0050, 162-013-0060, 162-014-0000, 162-014-0010, 162-014-0020, 162-014-0030, 162-014-0040, 162-014-0050, 162-014-0060, 162-014-0070, 162-014-0080, 162-014-0090, 162-014-0100, 162-014-0110, 162-014-0120, 162-014-0130, 162-014-0140, 162-014-0150, 162-014-0160, 162-014-0170, 162-014-0180, 162-014-0190, 162-014-0200, 162-014-0210, 162-014-0220, 162-014-0230, 162-014-0240, 162-015-0000, 162-015-0010, 162-015-0020, 162-015-0030, 162-015-0040, 162-015-0050, 162-015-0060, 162-015-0070, 162-015-0080, 162-015-0090, 162-015-0100, 162-015-0110, 162-015-0120, 162-015-0130, 162-016-0000

Subject: Repealing 162-001-0010 and 162-011-0000 to 162-016-0000: General Housekeeping. Amending 162-010-0030 to remove reference to repealed rules.

Rules Coordinator: Julie A. Sparks—(503) 986-2262


General Requirements

(1) Audits are to be undertaken in accordance with a contract executed by the independent auditor and the municipal corporation. The contract shall set forth clearly the scope of work to be conducted by the auditor and must include provision for an expression of opinion on the financial statements of the municipal corporation and for a determination of compliance with finance related legal provisions. If the municipal corporation does not prepare the financial statements set forth in OAR 162-010-0050 through 162-010-0190, the contract must provide for the auditor to make a reasonable attempt to draft them for and on behalf of the municipal corporation. Standard Form of Contract is as follows:

THIS CONTRACT, made this __________ day of ________, 20___, in accordance with the requirements of Oregon Revised Statutes 297.405 through 297.555 between __(Auditor)_, Certified Public Accountant(s) of _______, Oregon, and the ____(Client)____, Oregon, provides as follows:

It hereby is agreed that ___(Auditor)___ shall conduct an audit of the accounts and fiscal affairs of ____(Client)____, Oregon, for the period beginning _________, and ending __________, (and annually thereafter) in accordance with the Minimum Standards for Audits of Municipal Corporations as prescribed by law. The audit shall be undertaken in order to express an opinion upon the financial statement of ___(Client)___, Oregon, and to determine if the ___(Client)___ has complied substantially with appropriate legal provisions.

____(Auditor)____ agree(s) that the services contracted to perform under this contract shall be rendered by or under personal supervision and that the work will be faithfully performed with care and diligence.

It is understood and agreed that, should unusual conditions arise or be encountered during the course of the audit whereby the services of ____(Auditor)____ are necessary beyond the extent of the work contemplated, written notification of such unusual conditions shall be delivered to the _(Client)_, Oregon, who shall instruct in writing __(Auditor)__ concerning such additional services, and that a signed copy of each such notification and instruction shall be delivered immediately to the Secretary of State by the party issuing the same.

The audit shall be started as soon after this contract is executed as is agreeable to the parties hereto and shall be completed and a written report thereon delivered within a reasonable time, but not later than six months, after the close of the audit period covered by this contract. Adequate copies of such report shall be delivered to the __(Client)__, Oregon, and its form and content shall be in accordance with and not less than that required by the Minimum Standards for Audits of Oregon Municipal Corporations.

It is understood and agreed that the _____(Client)____, Oregon, is responsible for such financial statements as may be necessary to fully disclose and fairly present the results of operations for the period under audit and the financial condition at the end of that period. Should such financial statements not be prepared and presented within a reasonable period of time, it is understood that ____(Auditor)____ shall draft them for ____(Client)____, Oregon. The cost of preparing such financial statements shall be [(in addition to) (included in)] the fee for conducting the audit as set forth in Paragraph 7 below.

It is understood and agreed that either party may cancel this contract by giving notice in writing to the other party at least (ninety days) prior to July 1 of any year.

In consideration of the faithful performance of the conditions, covenants, and undertakings herein set forth the ____(Client)____, Oregon, hereby agrees to pay ___(Auditor)___ the sum of ____(a reasonable fee)____ and the ___(Client)____, Oregon, hereby affirms that proper provision for the payment of such fee has been or will be duly made and that funds for the payment thereof are or will be made legally available.









(2) Audits are to be conducted in accordance with the standards set forth in OAR 162-10-020.

(3) The scope of the audit of a municipal corporation shall include programs wholly or partially funded by other federal, state, or local governmental agencies. In determining the audit procedures to be applied to such programs, the independent auditor shall consider any specific audit procedures which may have been developed for those programs by appropriate governmental agencies. The auditor shall also determine if financial reporting requirements applicable to such programs have been complied with.

(4) If the municipal corporation requests the scope of the audit to be expanded to include a performance audit, a separate contract covering the expanded scope audit should be executed. Performance audits should be conducted in accordance with Government Auditing Standards published by the Comptroller General or the United States.

Stat. Auth.: ORS 297.465

Stats. Implemented: ORS 297.465

Hist.: SD 104, f. 2-20-76, ef. 7-1-76; DOA 3-1986, f. & ef. 5-29-86, Renum­bered from 165-030-0020; DOA 1-1991, f. 3-8-91, cert. ef. 7-1-91; AUDIT 2-2001, f. 4-26-01, cert. ef. 7-1-01; AUDIT 1-2007, f. 6-7-07, cert. ef. 6-30-07; AUDIT 1-2010, f. 3-23-10, cert. ef. 4-1-10; AUDIT 1-2011, f. & cert. ef. 1-27-11

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