Municipal Audit Law Changes

​​Notice of Proposed Rulemaking

Revisions to align with 2023 legislative amendments to Municipal Audit Law

The deadline to provide comment on the notice of proposed rulemaking for OAR 162-010 Minimum Standards for Audits of Oregon Municipal Corporations is Wednesday, May 22, 2024.​​

​​​​​​​​Impact of HB 2110

​​​​​​​​​​​During the 2023 legislative session, House Bill 2110 amended Municipal Audit Law (ORS 297.405-297.990); these changes are effective January 1, 2024. Key changes include:

  • Updated thresholds: Audits are required for counties and school districts and are now required for entities spending more than $1 million annually — an increase from $500,000. All other entities may be eligible for an audit exemption. Entities spending less than $250,000 may be eligible to file a self-prepared report in lieu of audit. 

​ ​
​​Report TypeThreshold as of January 1, 2024​
​​Audit
​> $1,000,000​
​AUP
​$250,001 - $1,000,000
Self-Prepared
​≤ $250,000
​​ ​
  • Agreed-Upon Procedures (AUP) reporting: Replacing review reports, AUP reporting directs auditors to perform and report results of procedures specified in the Oregon Minimum Standards (OAR 162-040). The procedures will address certain components of financial reporting, operations, and compliance. 

  • Filing fees: As determined by entity spending, increased fees will range from $40 to $500. 
​ ​Spending Over ​ ​Spending Not Over ​​ ​Annual Fee​
​​$0
​$50,00
​$40
​$50,000
​$150,000
​$80
​$150,000
​$250,000
​$150
​$250,000
​$500,000
​$250
​$500,000
​$1,000,000
​$300
​$1,000,000
​$5,000,000
​$350
​$5,000,000
​$10,000,000
​$400
​$10,000,000
​$50,000,000
​$450
​$50,000,000
​-
​$500
​​​​ ​
  • Definitions: The definition of expenditures is removed from statute and will be developed in Oregon Administrative Rulemaking. The new definition will be used consistently in determining the reporting threshold and annual filing fee. The definition of cost audits for counties that perform road work will be developed in Oregon Administrative Rulemaking.

  • ​Withholdings: The withholdings provision for cities and counties that don’t file on time is removed. 

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Questions?

Call our office at 503-986-2255 or email municipalfilings.sos@sos.oregon.gov​​​.

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