SECTION 150:1-21-4. Audit requirements

(a)   The Department's audit requirements shall apply to all contractors unless otherwise exempted.

(b)   The following contractors shall be exempt from the provisions of this subchapter:

(1)   Professional services contractors;

(2)   Vendors of products; and

(3)   Foreign office contractors.

(c)   Audits shall be performed annually.

(d)   Audits required by the Department shall be for both financial and program compliance. Program compliance shall be determined by reference to the Uniform Guidance for Federal Awards or such documents as OMB or its designee may issue to replace it. For those programs not covered in the Compliance Supplements, the auditor should ascertain compliance requirements by reviewing the statutes, regulations, and agreements governing individual programs.

(e)   All "government entities", as such term is defined by applicable law, shall comply with the applicable provisions of 74 O.S. Section 212A.

(f)   Any contractor not subject to the provisions of subsection (c) of this section or otherwise exempted from the provisions of this subchapter shall be subject to the following requirements:

(1)   If a contractor receives less than twenty-five thousand dollars ($25,000.00) from the Department during the contractor's fiscal year, no audit is required;

(2)   If the contractor is a municipality with an income of twenty-five thousand dollars ($25,000.00) or more during a fiscal year, it is required by 11 O.S. Section 17-105 to have an audit prepared; and the contractor shall provide one original, complete, bound audit report to the Department within thirty (30) days of the issuance of the report;

(3)   If the contractor is a county, an audit is required by 19 O.S. Sections 177.1 and 177.5; and the contractor shall provide one original, complete, bound audit report to the Department within thirty (30) days of the issuance of the report; and

(4)   If a contractor expends funds that total seven hundred fifty thousand dollars ($750,000.00) or more of federal funds during the contractor's fiscal year, then an audit is required. The required audit shall be a Single Entity Audit.

(g)   A Program Audit report is due within ninety (90) days of the end of the contract period.

(h)   A Single Entity Audit report is due within thirty (30) days of the completion of the audit. This audit should be completed and the report submitted no later than nine (9) months after the end of the contractor's fiscal year, pursuant to Uniform Guidance for Federal Awards.

(i)   The contractor shall submit one (1) original, complete bound audit report.

(j)   If the Department does not require an audit, but the contractor has an audit performed that includes Department funds, the contractor shall provide one (1) original, complete, bound audit report to the Department within thirty (30) days of the issuance of the report.

[Source: Added at 9 Ok Reg 2709, eff 7-15-92; Amended at 18 Ok Reg 3495, eff 9-14-01; Amended at 33 Ok Reg 1278, eff 9-11-16]