Or. Admin. Code § 125-700-0125 - Internal Auditing Requirements

(1) Agencies that meets two or more of the criteria below for the last two consecutive biennium, the agency head shall establish, maintain, and fully support an internal audit function within existing resources. Agencies may outsource some internal audit activities if the agency determines that it is more cost efficient and meets OAR 125-700-0126.

(a) Total biennial expenditures exceed $200 million.

(b) Number or full-time equivalent employees exceeds 400 reflected in the Legislative Adopted Budget.

(c) Dollar value of cash revenue and cash equivalent items received and processed annually exceeds $20 million as reflected in GL 3100.

(d) Agencies that are being funded over 50% from accounts in "other funds" and/or "federal funds" reflected in the Legislative Adopted Budget.

(2) For agencies that meet the requirement of this OAR, the internal audit function shall be staffed with a minimum of 1 FTE. This position shall be budgeted and maintained at the Chief Audit Executive level. Subsequent FTE may be budgeted at lower positions and reports to the Chief Audit Executive.

(3) Exceptions to having an internal audit function may be requested in writing by agency heads to the Chief Operating Officer of the Department of Administrative Services. Each exception request will be reviewed and decisions made on a case-by-case basis.

(4) For agencies not meeting the criteria above, an internal audit function is encouraged. Agencies that have an internal audit function must follow this OAR.

Notes

Or. Admin. Code § 125-700-0125

DAS 1-2011, f. 6-23-11, cert. ef. 6-30-11; DAS 2-2014, f. 4-30-14, cert. ef. 5-1-14; DAS 3-2022, amend filed 04/27/2022, effective 5/1/2022

Statutory/Other Authority: ORS 184.360

Statutes/Other Implemented: ORS 184.360(3)