Increases annual audit requirements for certain entities in certain parishes. (8/1/14)
Impact
The enactment of SB 642 will directly affect financial auditing practices in affected parishes, which may lead to improved fiscal responsibility among local entities. By compelling these entities to undergo more thorough audits, the legislation seeks to ensure that public resources are managed effectively and transparently. This measure highlights a commitment to strengthening the state's oversight of local finances, which can instill greater public trust in government operations.
Summary
Senate Bill 642, sponsored by Senator Crowe, enhances the audit requirements for local governmental entities in specific parishes in Louisiana. The bill enacts provisions allowing the Louisiana Legislative Auditor to establish additional criteria for auditing entities with annual revenues of fifty thousand dollars or more, particularly in parishes with populations between 225,000 and 250,000. The intent is to increase financial oversight and accountability for these entities, effectively augmenting the existing annual reporting requirements under Louisiana law.
Sentiment
The general sentiment around SB 642 appears positive among proponents of increased accountability and transparency in local governance. Supporters argue that enhanced audit requirements will help identify and mitigate potential mismanagement or misuse of funds. However, there may be concerns among local entities regarding the additional financial burdens that increased auditing could impose, potentially leading to mixed feelings about the bill's implications.
Contention
Notable points of contention regarding SB 642 revolve around the potential financial strain it could place on smaller local entities required to comply with the new audits. Critics may argue that the bill, while aimed at fostering accountability, could unintentionally overburden local governments with audit costs, which they would need to bear. There is a delicate balance to strike between necessary oversight and the practical realities faced by local administrations, making it a subject worthy of careful scrutiny as implementation approaches.
Reduces frequency of enhanced audits required of certain local auditees with at least three consecutive years of enhanced audits with no findings. (8/1/18) (EN NO IMPACT LF See Note)
Provides that certain audits completed by the office of the legislative auditor shall be reported to the Joint Legislative Committee on the Budget on an annual basis. (7/1/14) (EN NO IMPACT See Note)
Requires local auditees and vendors who collect taxes on behalf of others to have certain annual audits and to submit certain sworn statements regarding tax collections to the legislative auditor (EN NO IMPACT LF EX See Note)
Provides relative to notification of the legislative auditor and district attorney of the misappropriation of certain public funds and restitution of audit costs. (8/1/14)