Reduces frequency of enhanced audits required of certain local auditees with at least three consecutive years of enhanced audits with no findings. (8/1/18) (EN NO IMPACT LF See Note)
Impact
This legislative change primarily impacts local governments with populations between 225,000 and 250,000, which are subject to enhanced oversight due to their size and revenue. By allowing organizations to shift from annual to triennial audit requirements after demonstrating ongoing compliance, SB360 is designed to streamline financial operations and potentially reduce costs associated with frequent audit processes. However, it is essential to balance reduced oversight with accountability to ensure that public funds are accurately managed and reported.
Summary
Senate Bill 360 seeks to amend the existing regulations governing enhanced audits conducted by the legislative auditor for certain local auditees in Louisiana. Specifically, the bill intends to reduce the frequency of these audits for entities that have demonstrated compliance without any audit findings for at least three consecutive years. By modifying the audit requirements, the bill aims to lessen the administrative burden on local governments and organizations while still maintaining necessary oversight measures.
Sentiment
The sentiment surrounding SB360 appears to be mixed. Proponents of the bill argue that it provides a reasonable approach to reducing government oversight on compliant entities while fostering more efficient local governance. They contend that the bill encourages transparency and good practices among local entities without imposing unnecessary barriers. Conversely, opponents may express concerns about the adequacy of oversight, arguing that less frequent audits could lead to overlooks and diminish accountability in larger local government operations.
Contention
Notable points of contention stem from the balance between reducing bureaucratic processes and ensuring sufficient financial oversight. Critics of the bill worry about the potential for decreased scrutiny over how local entities manage taxpayer revenue, which could lead to issues of mismanagement or fraud going unchecked. Discussions would likely raise questions about the thresholds for compliance and whether three years with no findings is sufficient to warrant reduced audit frequency, emphasizing the importance of safeguarding public trust in local governance.
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
Requires local auditees and vendors who collect taxes on behalf of others to have certain annual audits and to submit certain sworn statements regarding tax collections to the legislative auditor (EN NO IMPACT LF EX See Note)
Authorizes the legislative auditor to obtain certain information about employees with access to federal tax records of auditees. (gov sig) (EN NO IMPACT GF 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)