SLS 18RS-204 ORIGINAL
2018 Regular Session
SENATE BILL NO. 307
BY SENATOR WARD
LEGISLATIVE OVERSIGHT. Provides relative to annual certifications by internal
auditors. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 17:3023(B), 3138.6, and 3351(I), R.S. 30:2011(C)(1)(a)(i), R.S.
3 36:8.2(A) and 238(B)(1), and R.S. 47:9009(B)(3), relative to internal auditing; to
4 provide that the chief audit executive shall annually certify conformity with audit
5 standards to the board, secretary, or corporation of the entity being audited, the
6 commissioner of administration, the Legislative Audit Advisory Council, and the
7 Joint Legislative Committee on the Budget; to provide that if the chief audit
8 executive identifies certain significant issues, those issues must be communicated to
9 the board, secretary, or corporation of the entity being audited, the commissioner of
10 administration, the Legislative Audit Advisory Council, and the Joint Legislative
11 Committee on the Budget; to provide for an effective date; and to provide for related
12 matters.
13 Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 17:3023(B), 3138.6, and 3351(I) are hereby amended and reenacted
15 to read as follows:
16 §3023. Powers and duties
17 * * *
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SLS 18RS-204 ORIGINAL
1 B. In addition to any other powers and duties authorized by this Section, the
2 board shall establish an internal audit function and shall establish an office of the
3 chief audit executive who shall be responsible for ensuring that the internal audit
4 function adheres to the Institute of Internal Auditors, International Standards for the
5 Professional Practice of Internal Auditing. The chief audit executive shall maintain
6 organizational independence in accordance with these standards and shall have direct
7 and unrestricted access to the board. The chief audit executive shall annually certify
8 to the board, the commissioner of administration, the Legislative Audit Advisory
9 Council, and the Joint Legislative Committee on the Budget that the internal
10 audit function conforms to the Institute of Internal Auditors, International Standards
11 for the Professional Practice of Internal Auditing. If the chief audit executive
12 identifies significant issues with governance, risk management, or control, those
13 issues must be communicated to the board, the commissioner of administration,
14 the Legislative Audit Advisory Council, and the Joint Legislative Committee on
15 the Budget.
16 * * *
17 §3138.6. Internal auditing function of the Board of Regents
18 In addition to any other powers and duties authorized for the Board of
19 Regents by this Chapter, the board shall establish an internal audit function and shall
20 establish an office of the chief audit executive who shall be responsible for ensuring
21 that the internal audit function adheres to the Institute of Internal Auditors,
22 International Standards for the Professional Practice of Internal Auditing. The chief
23 audit executive shall maintain organizational independence in accordance with these
24 standards and shall have direct and unrestricted access to the board. The chief audit
25 executive shall annually certify to the board, the commissioner of administration,
26 the Legislative Audit Advisory Council, and the Joint Legislative Committee on
27 the Budget that the internal audit function conforms to the Institute of Internal
28 Auditors, International Standards for the Professional Practice of Internal Auditing.
29 If the chief audit executive identifies significant issues with governance, risk
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SLS 18RS-204 ORIGINAL
1 management, or control, those issues must be communicated to the board, the
2 commissioner of administration, the Legislative Audit Advisory Council, and
3 the Joint Legislative Committee on the Budget.
4 * * *
5 §3351. General powers, duties, and functions of postsecondary education
6 management boards
7 * * *
8 I. In addition to any other powers and duties authorized by this Section, any
9 board with an appropriation in the general appropriation bill of thirty million dollars
10 or more shall establish an internal audit function and shall establish an office of the
11 chief audit executive who shall be responsible for ensuring that the internal audit
12 function adheres to the Institute of Internal Auditors, International Standards for the
13 Professional Practice of Internal Auditing. The chief audit executive shall maintain
14 organizational independence in accordance with these standards and shall have direct
15 and unrestricted access to the management board. The chief audit executive shall
16 annually certify to the management board, the commissioner of administration, the
17 Legislative Audit Advisory Council, and the Joint Legislative Committee on the
18 Budget that the internal audit function conforms to the Institute of Internal Auditors,
19 International Standards for the Professional Practice of Internal Auditing. If the
20 chief audit executive identifies significant issues with governance, risk
21 management, or control, those issues must be communicated to the board, the
22 commissioner of administration, the Legislative Audit Advisory Council, and
23 the Joint Legislative Committee on the Budget.
24 * * *
25 Section 2. R.S. 30:2011(C)(1)(a)(i) is hereby amended and reenacted to read as
26 follows:
27 §2011. Department of Environmental Quality created; duties; powers; structure
28 * * *
29 C.(1) * * *
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SLS 18RS-204 ORIGINAL
1 (a)(i) The executive office of the secretary shall provide for the general
2 oversight and supervision of the department in addition to providing internal audits,
3 technical advisors, and communications. The secretary shall establish an internal
4 audit function and shall establish an office of the chief audit executive who shall
5 be responsible for ensuring that the internal audit function adheres to the
6 Institute of Internal Auditors, International Standards for the Professional
7 Practice of Internal Auditing. The chief audit executive shall maintain
8 organizational independence in accordance with these standards and shall have
9 direct and unrestricted access to the secretary. The chief audit executive shall
10 annually certify to the secretary, the commissioner of administration, the
11 Legislative Audit Advisory Council, and the Joint Legislative Committee on the
12 Budget that the internal audit function conforms to the Institute of Internal
13 Auditors, International Standards for the Professional Practice of Internal
14 Auditing. If the chief audit executive identifies significant issues with
15 governance, risk management, or control, those issues must be communicated
16 to the secretary, the commissioner of administration, the Legislative Audit
17 Advisory Council, and the Joint Legislative Committee on the Budget.
18 * * *
19 Section 3. R.S. 36:8.2(A) and 238(B)(1) are hereby amended and reenacted to read
20 as follows:
21 §8.2. Internal auditing function
22 A. The secretary of a department that includes an agency that has an
23 appropriation in the general appropriation bill or the ancillary appropriation bill of
24 thirty million dollars or more shall establish an internal audit function and shall
25 establish an office of the chief audit executive who shall be responsible for ensuring
26 that the internal audit function adheres to the Institute of Internal Auditors,
27 International Standards for the Professional Practice of Internal Auditing. The chief
28 audit executive shall maintain organizational independence in accordance with these
29 standards and shall have direct and unrestricted access to the secretary. The chief
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SLS 18RS-204 ORIGINAL
1 audit executive shall annually certify to the secretary, the commissioner of
2 administration, the Legislative Audit Advisory Council, and the Joint
3 Legislative Committee on the Budget that the internal audit function conforms to
4 the Institute of Internal Auditors, International Standards for the Professional
5 Practice of Internal Auditing. If the chief audit executive identifies significant
6 issues with governance, risk management, or control, those issues must be
7 communicated to the board, the commissioner of administration, the Legislative
8 Audit Advisory Council, and the Joint Legislative Committee on the Budget.
9 * * *
10 §238. Offices; purposes and functions
11 * * *
12 B.(1) The executive office of the secretary shall provide for the general
13 oversight and supervision of the department in addition to providing internal audits,
14 technical advisory support, and communications. The secretary shall establish an
15 internal audit function and shall establish an office of the chief audit executive
16 who shall be responsible for ensuring that the internal audit function adheres
17 to the Institute of Internal Auditors, International Standards for the
18 Professional Practice of Internal Auditing. The chief audit executive shall
19 maintain organizational independence in accordance with these standards and
20 shall have direct and unrestricted access to the secretary. The chief audit
21 executive shall annually certify to the secretary, the commissioner of
22 administration, the Legislative Audit Advisory Council, and the Joint
23 Legislative Committee on the Budget that the internal audit function conforms
24 to the Institute of Internal Auditors, International Standards for the
25 Professional Practice of Internal Auditing. If the chief audit executive identifies
26 significant issues with governance, risk management, or control, those issues
27 must be communicated to the secretary, the commissioner of administration, the
28 Legislative Audit Advisory Council, and the Joint Legislative Committee on the
29 Budget.
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SLS 18RS-204 ORIGINAL
1 * * *
2 Section 4. R.S. 47:9009(B)(3) is hereby amended and reenacted to read as follows:
3 §9009. Conduct and administration of lottery games; powers and duties of
4 corporation; authorized contracts
5 * * *
6 B. The corporation shall:
7 * * *
8 (3) Adopt by administrative regulation a system of continuous internal
9 audits. The corporation shall establish an internal audit function and shall
10 establish an office of the chief audit executive who shall be responsible for
11 ensuring that the internal audit function adheres to the Institute of Internal
12 Auditors, International Standards for the Professional Practice of Internal
13 Auditing. The chief audit executive shall maintain organizational independence
14 in accordance with these standards and shall have direct and unrestricted access
15 to the corporation. The chief audit executive shall annually certify to the
16 corporation, the commissioner of administration, the Legislative Audit Advisory
17 Council, and the Joint Legislative Committee on the Budget that the internal
18 audit function conforms to the Institute of Internal Auditors, International
19 Standards for the Professional Practice of Internal Auditing. If the chief audit
20 executive identifies significant issues with governance, risk management, or
21 control, those issues must be communicated to the corporation, the
22 commissioner of administration, the Legislative Audit Advisory Council, and
23 the Joint Legislative Committee on the Budget.
24 * * *
25 Section 5. This Act shall become effective upon signature by the governor or, if not
26 signed by the governor, upon expiration of the time for bills to become law without signature
27 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
28 vetoed by the governor and subsequently approved by the legislature, this Act shall become
29 effective on the day following such approval.
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SLS 18RS-204 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 307 Original 2018 Regular Session Ward
Present law provides that the Board of Regents, each postsecondary system management
board, and any state department that includes an agency that has an appropriation in the
general appropriation bill or the ancillary appropriation bill of $30,000,000 or more shall
establish an internal audit function and an office of the chief audit executive who shall be
responsible for ensuring that the internal audit function adheres to the Institute of Internal
Auditors, International Standards for the Professional Practice of Internal Auditing (audit
standards). The chief audit executive is to maintain organizational independence in
accordance with these audit standards and have direct and unrestricted access to the
secretary.
Proposed law retains present law.
Present law further provides that the secretary of the Department of Environmental Quality
shall provide for the general oversight and supervision of the department in addition to
providing internal audits, technical advisors, and communications. Proposed law retains
present law and further provides that the secretary shall establish an internal audit function
and an office of the chief audit executive who shall be responsible for ensuring that the
internal audit function adheres to the audit standards. The chief audit executive is to maintain
organizational independence in accordance with these audit standards and have direct and
unrestricted access to the secretary.
Present law provides that the Louisiana Lottery Corporation shall adopt by administrative
regulation a system of continuous internal audits. Proposed law retains present law and
further provides that the corporation shall establish an internal audit function and an office
of the chief audit executive who shall be responsible for ensuring that the internal audit
function adheres to the audit standards. The chief audit executive is to maintain
organizational independence in accordance with these audit standards and have direct and
unrestricted access to the corporation.
Present law provides that the chief audit executive shall annually certify to the board or the
secretary that the internal audit function conforms to the audit standards. Proposed law
retains present law but further provides that the chief audit executive shall also certify that
the audit standards have been met to the commissioner of administration, the Legislative
Audit Advisory Council, and the Joint Legislative Committee on the Budget.
Proposed law further provides that if the chief audit executive identifies significant issues
with governance, risk management, or control, those issues must be communicated to the
secretary, corporation, or board, the commissioner of administration, the Legislative Audit
Advisory Council, and the Joint Legislative Committee on the Budget.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 17:3023(B), 3138.6, and 3351(I), R.S. 30:2011(C)(1)(a)(i), R.S. 36:8.2(A) and
238(B)(1), and R.S. 47:9009(B)(3))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.