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to repealed rules.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
(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
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
Notes 1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.