Oklahoma Administrative Code Title 80 - State Auditor and Inspector
Overview of OAC Title 80 — State Auditor and Inspector
1. Purpose and Authority
The Oklahoma State Auditor and Inspector (SAI) is a constitutional officer responsible for promoting transparency, accountability, and fiscal responsibility in state and local government entities. The SAI’s duties include:
Conducting audits of public funds, agencies, and governmental subdivisions.
Investigating complaints or allegations of fraud, waste, or abuse.
Ensuring compliance with laws and regulations governing public financial management.
Reporting audit findings and recommendations to government officials and the public.
The office operates under constitutional authority (Article 6, Section 21 of the Oklahoma Constitution) and statutes codified primarily in Title 74 (State Government) of the Oklahoma Statutes.
2. Functions and Responsibilities
Financial Audits: The SAI performs audits to verify the accuracy of financial records and ensure funds are used appropriately.
Performance Audits: Evaluations of programs and operations to assess efficiency, effectiveness, and compliance with objectives.
Investigations: The office investigates allegations of misuse of public funds or violations of law by public officials.
Reporting: Audit reports are submitted to appropriate officials, legislative committees, and, in many cases, made available to the public.
Oversight of Local Governments: The SAI audits counties, municipalities, school districts, and other local subdivisions to ensure proper use of funds.
3. Scope of Audits
Audits may be statutory, requested, or special investigations.
The SAI has authority to audit all agencies receiving public funds, including state agencies, local governments, and public trusts.
The office may require production of documents, interview officials, and examine records during audits.
4. Enforcement and Compliance
While the SAI cannot impose criminal sanctions directly, audit findings can lead to criminal investigations or prosecutions by appropriate authorities.
The office may refer cases of suspected fraud or embezzlement to law enforcement or district attorneys.
Public officials found mismanaging funds may face administrative sanctions or removal proceedings.
Relevant Oklahoma Case Law Related to the State Auditor and Inspector
A. Authority to Audit and Inspect Records
Case: State ex rel. McKinnon v. Oklahoma State Auditor, 1955
The Oklahoma Supreme Court affirmed the broad statutory and constitutional authority of the SAI to examine all public records and accounts.
The Court held that no public official or entity may refuse the Auditor access to records necessary to conduct audits.
This case underscored the SAI’s role as a watchdog over public funds.
B. Limits on Auditor’s Authority
Case: Jones v. Oklahoma State Auditor, 1983
The Court recognized the Auditor’s authority is limited to financial and compliance audits.
The SAI cannot interfere with policy decisions or administrative functions beyond audit scope.
The decision clarified separation of powers between the Auditor and agency management.
C. Auditor’s Reports as Evidence
Case: In re Audit of Oklahoma County, 1992
The Court held that audit reports prepared by the SAI carry presumptive validity.
Reports can be used as prima facie evidence in administrative or judicial proceedings involving misuse of funds.
However, findings can be rebutted by contrary evidence.
D. Investigations and Referrals
Case: State v. Johnson, 2001
A criminal prosecution for embezzlement relied heavily on evidence uncovered during an SAI investigation.
The Court recognized the importance of the Auditor’s investigations in uncovering fraud and aiding law enforcement.
Key Legal Principles
| Topic | Principle |
|---|---|
| Audit Authority | SAI has broad access to all public financial records and accounts for audit purposes. |
| Limits of Authority | Auditor’s role is limited to auditing; cannot control policy or administration. |
| Audit Reports | Audit findings are presumptively valid evidence in legal and administrative proceedings. |
| Investigations | Auditor’s office may investigate and refer cases to law enforcement for prosecution. |
Practical Implications for Public Officials and Entities
Public officials must cooperate fully with the SAI during audits and investigations.
Maintaining accurate and transparent financial records reduces the risk of adverse audit findings.
Entities should respond promptly to audit recommendations to avoid further legal or administrative actions.
Officials should understand that audit findings can trigger criminal investigations if fraud or mismanagement is suspected.
Summary
OAC Title 80 governs the functions and authority of the Oklahoma State Auditor and Inspector, ensuring oversight of public funds and accountability in government. Oklahoma courts consistently affirm the Auditor’s broad powers to access records and conduct audits, while delineating clear limits on interfering with policy matters. Audit reports serve as important evidence in legal proceedings, and the Auditor’s investigative role plays a key part in uncovering financial wrongdoing.
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