Section 297.435 - Exemption from audit; financial statement and bonding required; rules(1) Subject to ORS 297.445, ORS 297.425 does not apply to any municipal corporation, except a county or a school district, if, with respect to any one fiscal year, the municipal corporation meets all the conditions in either subsection (2) or (3) of this section.(2)(a) Total expenditures did not exceed $250,000 for the year;(b) The municipal corporation has submitted financial statements for the year to the Secretary of State within 90 days following the end of the year; and(c) A certificate has been submitted with the financial statements stating that the principal responsible official of the municipal corporation was covered during the entire year by a fidelity or faithful performance bond in an amount at least equal to the total amount of moneys received by the municipal corporation during the year.(3)(a) Total expenditures exceeded $250,000 but did not exceed $1,000,000 for the year;(b) The municipal corporation has submitted financial statements for the year to the Secretary of State within 180 days following the end of the year, and an accountant or the Secretary of State has performed the procedures established under subsection (5) of this section on the financial statements; and(c) A certificate has been submitted with the financial statements stating that the official responsible for receiving and disbursing moneys on behalf of the municipal corporation was covered during the entire year by a fidelity or faithful performance bond in an amount at least equal to 10 percent of the total receipts for the year, but not less than $25,000.(4) The financial statements required by this section shall be in a form prescribed by the Secretary of State and shall be considered audit reports for the purpose of the filing fee required by ORS 297.485.(5)(a) The Secretary of State shall, by rule, establish procedures to be performed on financial statements under subsection (3) of this section that the secretary deems appropriate to: (A) Address risks to municipal corporations; and(B) Ensure compliance by municipal corporations with applicable laws.(b) In adopting or amending rules under this subsection, the Secretary of State shall consult with the Oregon Board of Accountancy, the Oregon Society of Certified Public Accountants and one or more organizations representing municipal corporations.Amended by 2023 Ch. 10, § 2, eff. 1/1/2024.1977 c.774 §5; 1981 c.245 §1; 1997 c.401 §1; 2007 c. 709, § 1