Cities and towns; annual audits of municipalities; procedures; effective date.

This bill requires Oklahoma municipalities with at least $50,000 in annual revenue to undergo financial audits, mandating yearly audits for larger towns and biennial audits for smaller ones. For smaller municipalities, the law offers an alternative to a full audit by allowing the use of agreed-upon procedures, which involve specific tests like checking bank deposits and verifying employee pay rates. The bill also clarifies that grant money and certain public trust funds should not count toward the revenue threshold that triggers these audit requirements. Additionally, it sets strict deadlines for ordering and filing these audits with the State Auditor and Inspector to ensure timely financial oversight.