Year-end filing reminders

Oregon Secretary of State sent this bulletin at 12/13/2023 02:28 PM PST

Secretary of State, Audits Division

Municipal Audit Program
255 Capitol St. NE, Suite 180
Salem OR 97310
sos.oregon.gov/audits

News About Municipal Audits in Oregon

Year End Filing Reminders

Filing Deadline

December 31 is the filing deadline for annual audit and review reports for municipalities with fiscal years that end on June 30. Entities that spent $150,000 or less and were eligible to file a report in lieu of audit had a September 30 filing deadline.

Requests for Extension

The number of requests for extension of time to file continues to be high. While the reason listed on each request varies, the theme of staffing challenges at municipalities and audit firms remains a critical challenge.

Please keep the following in mind when requesting extensions:

Requests must include the name of the licensed municipal auditor engaged to perform the work and the reason the audit could not be completed on time (ORS 297.465).
The auditor and municipality must agree on a reasonable extension date.
Be specific about the cause for any delay to demonstrate good cause. If the cause might disclose sensitive information, consider calling our office to discuss the matter prior to submitting the request.
Estimate a realistic extension date to avoid multiple requests.

Submit requests for extension online. Municipalities filing a report in lieu of audit are not eligible to request extension of time to file.

What must be done when an audit includes reportable findings?

Plan of Action

When the audit results in findings reported as material weaknesses or significant deficiencies, the governing body must adopt a Plan of Action and submit the plan to the Secretary of State within 30 days of filing the audit report. The plan should address each material weakness and significant deficiency reported and include the timeframe for corrective action.

More information about the plan of action and a template can be found on our website. Compliance with this requirement is reported in the summary report of annual filing each year.

Auditor Deficiency Communication

When the auditor reports financial statement audit findings classified as a material weakness or a significant deficiency, the auditor should file a copy of the deficiency communication with the Secretary of State. The auditor should also include the number and type of deficiencies reported on the Summary of Revenue and Expenditures information form.

As a reminder, federal compliance findings reported in a Single Audit should not be included in Municipal Audit Law reporting. Findings that do not rise to the level of a material weakness or significant deficiency are also not applicable. This includes other matters, verbal comments, and auditor comments and disclosures reported on the Oregon Minimum Standards regulatory report.

Legislative Changes - Effective for fiscal years ending on or after January 1, 2024

If you are filing for a fiscal year ending on or before December 31, 2023, the current thresholds, filing requirements and fees apply. Entities spending more than $150,000 are required to hire a licensed municipal auditor and submit an audit or review.

Fiscal years ending on or after January 1, 2024, will be subject to the legislative changes that include an increased threshold, different report options, and increased fees. Our website has more information on these changes.