Provides contract restrictions on public entities that fail to comply with audit requirements. (8/1/17) (EN NO IMPACT See Note)
Impact
The impact of SB 67 is significant as it sets forth clear restrictions on public entities that do not adhere to audit compliance. By enforcing these measures, the bill seeks to mitigate the risks associated with the misuse of public funds and ensures that financial oversight is maintained at the state and federal levels. It creates a situation where entities must remain diligent with their auditing processes to avoid losing access to critical funding necessary for their operations.
Summary
Senate Bill 67, enacted in Louisiana on August 1, 2017, introduces stricter compliance requirements for public entities regarding audit provisions. The bill mandates that any public entity that fails to comply with the state audit requirements will be prohibited from entering into contracts that utilize state funds, including both direct appropriations and federal funds that are disbursed through the state. This aims to enhance governmental oversight and ensure that public funds are used responsibly and in accordance with audit standards.
Sentiment
The sentiment surrounding SB 67 appears to be largely favorable among legislators and state officials who prioritize financial accountability and transparency in government operations. The bill received unanimous support during the voting process in the Senate, indicating a strong consensus on the importance of compliance in the use of public funds. However, there may be potential concerns from some public entities regarding the increased burden of compliance and the risks associated with being restricted from future contracts due to audit failures.
Contention
While no significant points of contention were recorded during the discussions of SB 67, the bill does highlight a potential area of concern for public entities that may struggle with ongoing compliance. These entities could face operational challenges if they are unable to secure contracts due to previous audit failures. Overall, the bill represents a legislative effort to fortify accountability measures while also offering a pathway for entities to regain compliance and access to funding.
Requires certain contracting entities to submit information to the legislative auditor prior to contracting with a state agency or receiving state monies (Item #33) (RE INCREASE GF EX See Note)
Requires certain contracting entities to submit information to the legislative auditor prior to contracting with a state agency or receiving state monies (RE INCREASE GF EX See Note)
Requires certain contracting entities to submit information to the legislative auditor prior to contracting with a state agency or receiving state monies (OR +$121,500 GF EX See Note)
Provides that public entities are liable for interest due for failure to pay progressive stage or final payments on public contracts under certain conditions. (8/1/18) (EN SEE FISC NOTE 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)