SLS 14RS-583 ENGROSSED
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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. Requires schools receiving certain state scholarship funds to
maintain funds in a separate account or use certain accounting procedures established for the
legislative auditor. (8/1/14)
AN ACT1
To amend and reenact R.S. 17:4022(3), relative to the legislative auditor; to provide relative2
to public funds received by schools as tuition payments under the Student3
Scholarships for Educational Excellence Program; to provide authority to the4
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
ยง4022. 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 ENGROSSED
Page 2 of 2
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 by maintaining funds in a separate account or by using accounting2
procedures that allow the legislative auditor to identify the separate funds.3
Such accounting shall allow for thorough auditing of the receipt and4
expenditure of state scholarship funds allocated through the Louisiana5
Department of Education. The participating school shall return to the state any6
funds that the legislative auditor determines were expended in a manner inconsistent7
with state law or program regulations. The cost of such audit shall be paid by the8
department from funds appropriated by the legislature to implement the provisions9
of this Chapter.10
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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 by maintaining funds in a separate account or by using
accounting procedures that allow the legislative auditor to identify the separate funds.
Effective August 1, 2014.
(Amends R.S. 17:4022(3))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Senate and
Governmental Affairs to the original bill
1. Requires participating schools to maintain funds in a separate account or use
accounting methods that allow the legislative auditor to identify the separate
funds.
2. Adds that the funds audited shall be funds allocated through the Louisiana
Department of Education.
3. Deletes Section 2 providing for not-for-profit organizations receiving or
expending local or state assistance in any fiscal year.