Louisiana Senate Bill SB307

Louisiana 2018 Regular Session

• Introduced: 3/2/18
• Refer: 3/2/18
• Refer: 3/12/18

Caption

Provides relative to annual certifications by internal auditors. (gov sig)

Impact

The provisions outlined in SB 307 may significantly alter the landscape of governance within state agencies, fostering a more structured and compliant approach to financial oversight. By mandating annual certifications of compliance with professional audit standards to various state bodies—including the commissioner of administration and the Legislative Audit Advisory Council—the bill aims to ensure greater transparency and accountability. This change could lead to improved financial management and risk assessment protocols within these organizations, ultimately benefiting the state's fiscal health.

Summary

Senate Bill 307 seeks to enhance the effectiveness and accountability of internal audits within state agencies and boards in Louisiana. The bill mandates that entities with significant appropriations—specifically those receiving $30 million or more—must establish an internal audit function and appoint a chief audit executive. This individual is responsible for ensuring that the internal audit adheres to internationally recognized standards. Furthermore, the bill emphasizes the importance of organizational independence for the chief audit executive, allowing them unrestricted access to relevant authorities like the secretary of the department or the governing body of the entity being audited.

Sentiment

The sentiment surrounding SB 307 appears to be generally supportive among legislative members who prioritize accountability and transparency in state agencies. Advocates of the bill argue that it is a necessary step toward enhancing oversight mechanisms and mitigating the risks associated with financial mismanagement. However, there are concerns regarding the feasibility of implementing these additional requirements, particularly in terms of the resource burden it may place on smaller agencies with limited budgets.

Contention

A notable point of contention regarding SB 307 is the potential for the internal audit mandate to create challenges for smaller agencies that may struggle to meet the new requirements without additional resources. Critics may argue that while larger agencies can absorb the costs associated with implementing such an internal audit function, this mandate could inadvertently strain the operations of smaller entities. The debate centers around the balance of ensuring accountability while maintaining operational feasibility for all state agencies.