Provides relative to the powers of the Legislative Audit Advisory Council (RE SEE FISC NOTE GF EX)
Impact
The bill is likely to increase the scrutiny over local auditees, particularly municipalities and other public entities. By mandating public hearings and providing the LAAC with the authority to forward noncompliance determinations to the JLCB, it aligns with a broader aim of improving financial accountability and transparency in government operations. Effective June 30, 2016, the law underscores the importance of compliance with financial audits and holds entities accountable for their financial practices, which could discourage mismanagement of public funds.
Summary
House Bill 647, introduced by Representative Ivey, amends the powers and authority of the Legislative Audit Advisory Council (LAAC) in Louisiana. The bill seeks to enhance the accountability of auditees, requiring them to sufficiently resolve findings from audit reports. If an auditee fails to address these findings for three consecutive years, the LAAC has the authority to determine noncompliance and recommend penalties to the Joint Legislative Committee on the Budget (JLCB). The emphasis on legislative oversight is designed to strengthen governance and ensure that public funds are properly managed.
Sentiment
Overall, the sentiment surrounding HB 647 appears to be supportive among legislators who prioritize governmental accountability and financial oversight. The clear mechanisms for accountability are viewed as a necessary step towards improving ethical governance. However, some may express concerns regarding the potential for punitive actions against local governments, which could impact their funding and operations. The debate may focus on balancing the need for oversight with the autonomy of local entities to manage their affairs.
Contention
One notable point of contention revolves around the enforcement mechanisms that the bill establishes. Critics argue that the potential for withholding funds could unfairly penalize local governments for issues that may arise due to systemic budgetary constraints rather than administrative failures. Also, the threshold of requiring a two-thirds vote of the LAAC to impose penalties may provoke discussions regarding the fairness and practicality of such a measure, especially for smaller municipalities with limited resources to address audit findings promptly.
Relative to the legislative auditor, requires the auditor to provide for certain notifications of noncompliant auditees and requires auditees to designate an individual to file reports with the auditor and notify the auditor