Provides relative to the threshold for certain audit requirements (EN DECREASE LF EX See Note)
Impact
The bill would simplify the audit process for smaller local entities and organizations, potentially reducing the financial and administrative burden associated with maintaining compliance under state audit requirements. By raising the threshold for mandatory audits, the intent is to allocate audit resources more effectively while allowing smaller organizations to focus on their operational activities without the need for extensive financial scrutiny. However, this change could lead to concerns regarding financial oversight and transparency for entities that handle public funds.
Summary
House Bill 123, introduced by Representative Thibaut, seeks to amend existing Louisiana law concerning the audit requirements for local government entities and non-profit organizations. The primary focus of the bill is to adjust the threshold for when audits are required, increasing the revenue limit from $50,000 to $75,000. This change means that local auditees with revenues below this threshold would no longer need to have a full audit but must still certify their financial status with the legislative auditor. Additionally, certain volunteer fire departments would also be affected by similar changes in audit requirements.
Sentiment
General sentiment surrounding HB 123 appears to lean towards support from those advocating for reduced regulatory burdens on small local entities, including volunteer organizations. Proponents argue that easing audit requirements will promote efficiency and compliance, thereby allowing local auditees to allocate more resources to their essential functions. Conversely, some stakeholders may express concerns over diminished oversight, fearing that reducing audit frequency could result in less accountability for the management of public funds.
Contention
Notable points of contention include the balance between oversight and operational efficiency. Critics may argue that by raising the threshold for audits, the state is compromising transparency and accountability in local governance, at a time when fiscal responsibility is critically demanded. These differing perspectives underscore the complex interplay between regulatory necessities and the capacity of smaller organizations to operate effectively without disproportionate burdens.
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)
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 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)