Committee advances bill to exempt very small towns from pre‑grant audit requirement

The Senate Local and County Government Committee advanced a bill to ease a pre‑grant audit requirement for the smallest towns, amid questioning about fiscal oversight and whether audits could be completed after grant awards.

Senator Murdock, sponsor of Senate Bill 2,130, said the measure responds to constituent requests from towns such as Keys, Oklahoma, where municipalities cannot afford the roughly $15,000 audits required before applying for some grants. The bill would lower the population threshold to 500 and exempt towns with $50,000 or less in total receipts from having to obtain an audit before applying for grants.

Senator Goodwin and others pressed the sponsor on fiscal accountability, asking whether towns might seek large grants (amounts were not specified in the transcript) and how the absence of a pre‑grant audit would affect responsible use of funds. Goodwin suggested alternatives such as an agreed‑upon‑procedures engagement, which could be less costly than a full audit. Senator Alberts clarified that customary audits would still apply in other circumstances and that the bill specifically targets the requirement to have an audit prior to applying for grants.

Murdock said the towns he represents are ‘‘starving to death’’ and that, in practice, they rarely can pay an audit upfront; he said he is willing to work on language that might allow towns to use grant funds to pay for required audits after awards, provided the change is legally permissible. The committee recorded a roll‑call vote of 9 ayes and 1 nay; the chair declared SB 2,130 advanced.

The bill will proceed from committee; the sponsor and questioning senators indicated a willingness to refine language on timing and audit alternatives before further action.