ORS 327.174: Financial or performance audit initiated by department; contracts for audit; costs.

(1)(a) Based on factors identified by the State Board of Education by rule, the Department of Education may initiate a financial audit or a performance audit of a school district or an education service district. (b) Prior to initiating an audit, the Department of Education shall: (A) Give notice to the school district or the education service district of the department’s intent to initiate the audit; and (B) Provide the school district or the education service district with the opportunity to provide to the department any information related to the subject of the audit. (c) Following the review of any information provided under paragraph (b) of this subsection, the department may: (A) Decline to proceed with the audit; or (B) Cause the audit to be conducted. (2) For the purpose of causing an audit to be conducted as authorized by this section, the department may enter into a contract with: (a) The Secretary of State in accordance with ORS 297.210; or (b) If the Secretary of State is unable or unwilling to conduct the audit, a private entity. (3)(a) If the Secretary of State conducts the audit, the school district or education service district may be charged for a portion of the costs incurred for the audit as provided by ORS 297.210. (b) If a private entity conducts an audit, the Department of Education may charge the school district or education service district for a portion of the costs incurred for the audit. (4) A copy of an audit conducted as provided by this section must be forwarded to the Department of Education and to any other entity identified by the department in accordance with rules adopted by the State Board of Education. [Formerly 327.141] STUDENT INVESTMENT ACCOUNT