The board received a letter from the state auditor that advised the board a peer review for a local CPA firm did not pass for the year ending 06/30/2022, and members voted to receive the letter into the record.

The chair said the letter "was brought to me by the state auditor," and presented it as a record item rather than a request for immediate action. A board member with CPA credentials cautioned the board not to take peer-review failures lightly, noting peer review exists to make sure audit firms keep up with new rules and regulations and that repeated failures can have serious consequences.

Board discussion clarified that peer reviews are performed on a three-year cycle and that the firm considered in the letter disputed some findings. One member said the next audit is expected to be completed by Dec. 31 and that the board will place that report on the January agenda for further review. The CPA-affiliated board member explained that if required curative actions are not completed by the next cycle, subsequent reports will continue to show deficiencies and repeated failures can lead to suspension from performing audits in Oklahoma.

After questions about the identity and status of the reviewer firm (referred to in the discussion as "HBC"), the board formally moved and voted to receive the auditor's letter into the record. The board did not take further action at this meeting; members directed staff to bring the upcoming peer-review report back for the board's consideration.