Louisiana House Bill HB789

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16

Caption

Provides that the legislative auditor shall accept audits of public postsecondary education management boards prepared by licensed certified public accountants

Impact

By enacting HB 789, the legislative framework surrounding the auditing of public postsecondary education is expected to streamline processes, reduce the burden on the legislative auditor's office, and allow for a more diverse range of auditing practices. This could potentially lead to increased transparency and accountability among higher education institutes as they can engage private auditors who may bring different perspectives and expertise into financial examinations. The goal is to ensure educational institutions can operate with integrity while still adhering to legislative requirements.

Summary

House Bill 789, introduced by Representative Jefferson, aims to modify the auditing process for public postsecondary education management boards in Louisiana. The bill requires the legislative auditor to accept audits prepared by licensed certified public accountants instead of exclusively performing audits through their own staff. This proposed change is intended to enhance the efficiency and flexibility of financial oversight for these education institutions, allowing them to utilize reputable external auditors while still holding them accountable to state standards.

Sentiment

General sentiment around HB 789 appears to be supportive among those advocating for more efficient and flexible auditing solutions. Stakeholders may view the acceptance of external audits as beneficial for managing public funds within education. However, there may also be concerns from some legislators or oversight advocates about the potential for compromised oversight or quality in auditing, as reliance shifts towards private accountants. Ongoing discussions are likely to address the balance between efficiency and thorough governmental oversight.

Contention

Notable points of contention surrounding HB 789 may arise regarding accountability and the standards set for approved auditors. Critics might argue that accepting external audits could diminish the rigor typically associated with state audits, creating a risk of oversight failures. Supporters, however, contend that well-regulated private audits can meet or exceed current standards, potentially improving the auditing process. This dialogue touches on broader themes of governmental oversight versus reliance on private sector capabilities, which is a central issue in contemporary discussions regarding public financial management.