Many public services in Louisiana are provided by quasi-public organizations. Quasi-public organizations include for-profit and not-for-profit agencies specifically created to assist government in providing public services. Quasi-public organizations also include not-for-profit agencies that receive local and/or state public funds (defined in the law as local or state assistance), but were not specifically created to assist government in providing public services.
The state audit law (Louisiana Revised Statute (R.S.) 24:513 A.(1)(b)) defines a quasi-public organization as:
(i) An organization, either not-for-profit or for-profit, created by the state of Louisiana or any political subdivision or agency thereof, any special district or authority, or unit of local government to perform a public purpose
(ii)An organization, either not-for-profit or for-profit, that is a component unit of a governmental reporting entity, as defined under generally accepted accounting principles
(iii)An organization, either not-for-profit or for-profit, created to perform a public purpose and having one or more of the following characteristics:
- (aa) the governing authority is elected by the general public;
(bb) a majority of the governing body is appointed by or authorized to be appointed by a governmental entity or individual governmental official as a part of his official duties;
(cc) the entity is the recipient of the proceeds of an ad valorem tax or general sales tax levied specifically for its operations;
(dd) the entity is able to directly issue debt, the interest of which is exempt from federal taxation; or
(ee) the entity can be dissolved unilaterally by a governmental entity and its net assets assumed without compensation by that governmental entity.
(iv) Any not-for-profit organization that receives or expends any local or state assistance in any fiscal year. Assistance shall include grants, loans, transfers of property, awards, and direct appropriations of state or local public funds. Assistance shall not include guarantees, membership dues, vendor contracts for good and services related to administrative support for a local or state assistance program, assistance to private or parochial schools, except as provided in R.S. 17:4022, assistance to private colleges and universities, or benefits to individuals.
(v) Any organization, either not-for-profit or for profit, which is subject to the open meetings law and derives a portion of its income from payments received from any public agency or body.
An entity that meets the definition of a quasi-public organization must report to the Legislative Auditor as a local auditee under the audit law (R.S. 24:513 and 24:514).
Examples of quasi-public organizations include councils on aging, community action agencies, court -appointed special advocate organizations, volunteer fire departments, and water systems that receive grants from Louisiana state and local government agencies.
The Louisiana Compliance Questionnaire requires quasi-public organizations to provide statements or representations to their auditor regarding their compliance with certain provisions laws and regulations. Auditors are required to test the agency's compliance with these laws and regulations.
The Louisiana Legislative Auditor has created a fillable form to help not-for-profit organizations to determine their reporting requirements under the audit law (Reporting Requirements for Not-for-Profit Organizations).