 News About Municipal Audits in Oregon
AUP Clarification: Local Budget Law
2024 is the first reporting year entities are permitted to file Agreed-Upon Procedures (AUP) engagements in lieu of an audit. As feedback and questions have come in from practitioners completing these newly permitted AUPs, we identified an area that may benefit from further clarification.
Minimum Standards (OAR 162-040-0165(17)) require the practitioner to perform procedures over the entity’s annual or biennial budget. Questions came in related to which budget the procedures should be performed for.
The intent is for the practitioner to perform procedures related to Local Budget Law for the period applicable to the AUP engagement. Specifically, the practitioner should perform procedures over the preparation, adoption, and execution of the budget for the current period reported. The practitioner should also perform procedures over the preparation and adoption of the budget for the next succeeding year.
Please see the recently revised AUP guidance on the Secretary of State’s website to address this matter.
We welcome additional feedback and questions as we work through this first year of implementing HB 2110A. Your feedback throughout this reporting season will help inform whether revisions to the rules and procedures are necessary this next spring.
Find Municipal Reports and Forms: sos.oregon.gov/audits/Pages/muniaudits.aspx
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