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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) 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
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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 by maintaining funds in a separate account or by using accounting2
procedures that allow the legislative auditor to identify the separate funds3
pursuant to the authority of this Section. Such accounting shall allow for4
thorough auditing of the receipt and expenditure of state scholarship funds5
allocated through the Louisiana Department of Education. The participating6
school shall return to the state any funds that the legislative auditor determines were7
expended in a manner inconsistent with state law or program regulations. The cost8
of such audit shall be paid by the department from funds appropriated by the9
legislature to implement the provisions of this Chapter.10
* * *11
Section 2. R.S. 24:513(A)(1)(b)(iv) is hereby amended and reenacted to read as12
follows:13
§513. Powers and duties of legislative auditor; audit reports as public records;14
assistance and opinions of attorney general; frequency of audits;15
subpoena power16
A.(1) * * *17
(b) For the sole purpose of this Subsection, a quasi public agency or body is18
defined as:19
* * *20
(iv) Any not-for-profit organization that receives or expends any local or state21
assistance in any fiscal year. Assistance shall include grants, loans, transfers of22
property, awards, and direct appropriations of state or local public funds. Assistance23
shall not include guarantees, membership dues, vendor contracts for goods and24
services related to administrative support for a local or state assistance program,25
assistance to private or parochial schools except as provided in R.S. 17:4022,26
assistance to private colleges and universities, or benefits to individuals.27
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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 was prepared by Ashley Menou. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by McHenry Lee.
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.
Present law authorizes the legislative auditor to perform audits on quasi public agencies or
bodies.
Present law provides that a quasi public agency or body is defined as any not-for-profit
organization that receives or expends any local or state assistance in any fiscal year but does
not include guarantees, membership dues, vendor contracts for goods and services related
to administrative support for a local or state assistance program, assistance to private or
parochial schools, assistance to private colleges and universities, or benefits to individuals.
Proposed law retains present law but includes private or parochial schools participating in
the Student Scholarships for Educational Excellence Program as organizations that receive
and expend local or state assistance in any fiscal year.
Effective August 1, 2014.
(Amends R.S. 17:4022(3) and R.S. 24:513(A)(1)(b)(iv))
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.
Senate Floor Amendments to engrossed bill
1. Includes private or parochial schools participating in the Student Scholarship
for Educational Excellence Program as quasi public organizations that may
be audited by the legislative auditor.