HLS 15RS-761 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 123
BY REPRESENTATIVE THIBAUT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AUDITS/AUDITING: Provides relative to the threshold for certain audit requirements
1 AN ACT
2To amend and reenact R.S. 24:513(J)(1)(c)(introductory paragraph), (i)(aa) and (bb), (ii),
3 and (v)(aa) and (3), relative to audits; to provide relative to the threshold amount for
4 certain audit requirements; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 24:513(J)(1)(c)(introductory paragraph), (i)(aa) and (bb), (ii), and
7(v)(aa) and (3) are hereby amended and reenacted to read as follows:
8 ยง513. Powers and duties of legislative auditor; audit reports as public records;
9 assistance and opinions of attorney general; frequency of audits; subpoena
10 power
11 * * *
12 J.(1) The audits enumerated in Subsection A of this Section shall be
13 conducted frequently enough to control and safeguard the assets of the auditee as
14 follows:
15 * * *
16 (c) The financial statements of local auditees, as defined in Paragraph
17 A(3)(A)(3) of this Section, shall be audited as follows:
18 (i)(aa) Any local auditee that receives fifty one hundred thousand dollars or
19 less in revenues and other sources in any one fiscal year shall not be required to have
20 an audit, but must file a certification with the legislative auditor indicating that it
Page 1 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-761 ENGROSSED
HB NO. 123
1 received fifty one hundred thousand dollars or less in funds for the fiscal year.
2 Monies received from urban or rural development grants shall not be used in fiscal
3 year computation of revenue amounts requiring an audit. The auditee shall annually
4 file with the legislative auditor sworn financial statements as required by R.S.
5 24:514. However, the legislative auditor, at his discretion, may require said local
6 auditee to have an audit of its books and accounts.
7 (bb) However, any volunteer fire department that receives fifty one hundred
8 thousand dollars or less in funds in any one fiscal year shall not be required to have
9 an audit, but shall file a certification with the legislative auditor signed by the
10 president of the volunteer fire department indicating that the department received
11 fifty one hundred thousand dollars or less for the fiscal year and shall annually file
12 with the legislative auditor sworn financial statements as required by R.S. 24:514.
13 The legislative auditor, at his discretion, may require any such volunteer fire
14 department to have an audit of its books and accounts.
15 * * *
16 (ii) Notwithstanding the provisions of R.S. 24:514, any local auditee that
17 receives more than fifty one hundred thousand dollars in revenues and other sources
18 in any one fiscal year, but less than two hundred thousand dollars, shall cause to be
19 conducted an annual compilation of its financial statements, with or without
20 footnotes, in accordance with the Louisiana Governmental Audit Guide. However,
21 the legislative auditor, at his discretion, may require said local auditee to have an
22 audit of its books and accounts.
23 * * *
24 (v)(aa) To provide enhanced additional oversight by the legislative auditor,
25 in any parish having a population of not less than two hundred twenty-five thousand
26 and not more than two hundred fifty thousand according to the latest federal
decennial census, the legislative auditor shall establish the criteria for procedures27
28 which shall be performed in addition to annual reporting requirements required by
Page 2 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-761 ENGROSSED
HB NO. 123
1 this Section for entities with revenues of fifty more than one hundred thousand
2 dollars or more per fiscal year.
3 * * *
4 (3) Notwithstanding the provisions of Subparagraph (1)(d) of this
5 Subsection, any auditee contained described in Item (A)(1)(b)(v) of this Section shall
6 be audited in accordance with Subitem (1)(c)(i)(aa) of this Subsection when it has
7 received fifty one hundred thousand or less in public funds in any one fiscal year.
8 Any such auditee shall be audited in accordance with Item (1)(c)(ii) of this
9 Subsection when it has received more than fifty one hundred thousand dollars in
10 public funds in any one fiscal year. Any such auditee shall be audited in accordance
11 with Item (1)(c)(iii) of this Subsection when it has received three hundred fifty
12 thousand or more in public funds in any one fiscal year. Any such auditee shall be
13 audited in accordance with Item (1)(c)(iv) of this Subsection when it has received
14 three million five hundred thousand dollars or more in public funds.
15 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 123 Engrossed 2015 Regular Session Thibaut
Abstract: For local auditees and certain other auditees, changes the threshold between
being required to file certification and an annual financial statement with the
legislative auditor or being required to conduct an annual compilation of financial
statements, with or without footnotes, from more than $50,000 to more than
$100,000 in revenues and funds.
Present law provides for the legislative auditor to compile financial statements and to
examine, audit, or review the books of the state treasurer, all public boards, commissions,
agencies, departments, political subdivisions of the state, public officials and employees,
designated public retirement systems, municipalities, and all other public or quasi public
agencies or bodies. For certain entities, authorizes filing of audits or other reports prepared
by a licensed CPA or a specified certified statement. Also requires auditees to file sworn
annual financial statements.
Present law requires that any local auditee or volunteer fire department and certain other
auditees that receive $50,000 or less in any one fiscal year shall not be required to have an
audit, but the auditee must file a certification with the legislative auditor indicating that it
received $50,000 or less in funds for the fiscal year, further provides that the auditee shall
annually file with the legislative auditor sworn financial statements. Provides that the
Page 3 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-761 ENGROSSED
HB NO. 123
legislative auditor, at his discretion, may require the auditee to have an audit of its books and
accounts. Proposed law changes the amount to $100,000 or less and otherwise maintains
present law.
Present law requires any local auditee and certain other auditees that receive more than
$50,000 in any one fiscal year, but less than $200,000, to conduct an annual compilation of
financial statements, with or without footnotes in accordance with the La. Governmental
Audit Guide. Provides that the legislative auditor, at his discretion, may require the auditee
to have an audit of its books and accounts. Proposed law changes the amount to more than
$100,000 but less than $200,000 and otherwise maintains present law.
(Amends R.S. 24:513(J)(1)(c)(intro. para.), (i)(aa) and (bb), (ii), and (v)(aa) and (3))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on House and
Governmental Affairs to the original bill:
1. Make technical changes.
Page 4 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.