SLS 14RS-583 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 460
BY SENATOR ADLEY
LEGISLATIVE AUDITOR. Provide that the legislative auditor has the authority to audit
nonpublic schools that receive state monies through the voucher program. (8/1/14)
AN ACT1
To amend and reenact R.S. 17:4022(3) and R.S. 24:513(A)(1)(b)(iv), relative to the2
legislative auditor; to provide relative to public funds received by schools as tuition3
payments under the Student Scholarships for Educational Excellence Program; to4
provide authority to the legislative auditor; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 17:4022(3) is hereby amended and reenacted to read as follows:7
§4022. Participating schools; requirements8
* * *9
(3) Submit to the department an independent financial audit of the school10
conducted by a certified public accountant who has been approved by the legislative11
auditor. Such audit shall be accompanied by the auditor's statement that the report12
is free of material misstatements and fairly presents the participating school's13
maximum tuition or actual cost of educating a student pursuant to R.S. 17:4016. The14
audit shall be limited in scope to those records necessary for the department to make15
scholarship payments to the participating school and shall be submitted to the16
legislative auditor for review and investigation of any irregularities or audit findings.17 SB NO. 460
SLS 14RS-583 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The participating school shall account for all scholarship funds separately from1
other funds in a manner, prescribed by the legislative auditor, that allows2
thorough auditing of the receipt and expenditure of scholarship funds. The3
participating school shall return to the state any funds that the legislative auditor4
determines were expended in a manner inconsistent with state law or program5
regulations. The cost of such audit shall be paid by the department from funds6
appropriated by the legislature to implement the provisions of this Chapter.7
* * *8
Section 2. R.S. 24:513(A)(1)(b)(iv) is hereby amended and reenacted to read as9
follows:10
§513. Powers and duties of legislative auditor; audit reports as public records;11
assistance and opinions of attorney general; frequency of audits;12
subpoena power13
A.(1) * * *14
(b) For the sole purpose of this Subsection, a quasi public agency or body is15
defined as:16
* * *17
(iv) Any not-for-profit organization that receives or expends any local or state18
assistance in any fiscal year. Assistance shall include grants, loans, transfers of19
property, awards, and direct appropriations of state or local public funds, and any20
scholarship program administered by the Louisiana Department of Education.21
Assistance shall not include guarantees, membership dues, vendor contracts for22
goods and services related to administrative support for a local or state assistance23
program, assistance to private or parochial schools, assistance to private colleges and24
universities, or benefits to individuals.25
* * *26 SB NO. 460
SLS 14RS-583 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Ashley Menou.
DIGEST
Adley (SB 460)
Present law provides that schools participating in the Student Scholarships for Educational
Excellence Program must submit to the Department of Education an independent financial
audit of the school.
Proposed law retains present law except to require that schools account for all scholarship
funds separately from other funds in a manner prescribed by the legislative auditor that
allows thorough auditing of the receipt and expenditure of scholarship funds.
Present law provides that any not-for-profit organization receiving state or local assistance
is subject to audit by the legislative auditor.
Proposed law adds scholarship programs administered by the Department of Education to
the types of assistance not-for-profit organizations receive that subject them to audit by the
legislative auditor.
Effective August 1, 2014.
(Amends R.S. 17:4022(3) and R.S. 24:513(A)(1)(b)(iv))