Thibaut HB No. 123
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
AUDITS/AUDITING: Provides relative to the threshold for certain audit requirements
DIGEST
HB 123 Engrossed 2015 Regular Session Thibaut
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
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.
Proposed law provides for the rate of compensation for a contract entered into by the
Department of Revenue for auditing, accounting, or data analytic services. Proposed law
requires that compensation the such contracts cannot be by contingency contract, but must
be an hourly or lump sum, plus reasonable expenses.
(Amends R.S. 24:513(J)(1)(c)(intro. para.), (i)(aa) and (bb), (ii), and (v)(aa) and (3); and R.S.
47:1542)
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.
Committee Amendments Proposed by Senate Committee on Senate and Governmental
Affairs to the engrossed bill
1. Specifies that the compensation for certain contracts entered into by the
Department of Revenue be hourly or lump sum compensation only, plus
reasonable fees.
2. Prohibits contingency contract compensation for certain contracts entered into by
the Department of Revenue.
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Prepared by Ashley Menou.