 News About Municipal Audits in Oregon
Annual Filing Reminders
Filing Deadline
December 31st is the deadline to file annual audit and AUP reports for entities with fiscal years that end on June 30th. Entities that spent $250,000 or less and were eligible to file a report in lieu of audit had a September 30th filing deadline.
Audit Summary Report
It is important for local governments to file audits and any other required items on time. An audit summary is published each year reporting whether local governments complied with various aspects of Municipal Audit Law. This published information includes whether an entity filed on time or late, with or without and approved extension, the number and type of deficiencies reported, and whether the required communication and plans associated with those deficiencies were received.
Updated Forms
Most program forms have been updated to reflect changes related to reporting types, filing thresholds, and increased fees. Please visit the website to ensure the most current forms and correct fees are filed with our office.
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 entities and audit firms remains a critical challenge.
Please keep the following in mind when requesting an extension:
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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).
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The auditor and municipality must agree on a reasonable extension date. The requested date should be realistic to avoid multiple requests.
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Be specific about the reason for any delay to demonstrate good cause. If the reason might disclose sensitive information, consider contacting our office to discuss the matter prior to submitting the request.
Submit requests for extension online. Entities that file by their approved extension date are considered on time and reported as compliant in the Audit Summary Report.
Entities filing a report in lieu of audit or an AUP report are not eligible to request an 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 Audit Summary Report.
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 in the Summary of Revenue and Expenditures information form (SRE).
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.
If deficiencies are communicated in the audit report, such as in a GAS report, Oregon Minimum Standards report, of Schedule of Findings and Questions Costs, we ask the deficiency communication still be submitted separately. If that is not possible, indicate this on the SRE by selecting "other" and noting which pages of the audit report include the deficiency communication. We do not read each audit in its entirety; if the SRE does not include a notice for where the communication was reported, the entity will be considered out of compliance with this aspect of Municipal Audit Law.
Season's Greetings
We wish you all a happy holiday season and time spent with those you love.
Questions?
If you have questions, please consult the FAQs on our website or send us an email.
Find Municipal Reports and Forms: sos.oregon.gov/audits/Pages/muniaudits.aspx
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