The audit law (Louisiana Revised Statute (R.S.) 24:514) requires that the annual financial reports of local auditees be prepared in accordance with generally accepted accounting principles or GAAP. Preparing financial statements in accordance with GAAP ensures consistency and comparability between the financial reports of like entities.
The laws of the state of Louisiana require certain information to be included in the annual financial reports of local auditees, over and above what is required by GAAP. This includes additional information regarding –
- Collections of ad valorem, sales, and other taxes
- College and university foundations and alumni associations
- Bonds issued by certain entities (continuing disclosure requirements of the SEC and the State of Louisiana)
- Housing Authorities
- Collections of court costs, fines and fees
- Juvenile justice districts
- Payments made to the head of a local auditee
- School boards and charter schools
Additional information is required by Louisiana Legislative Auditor’s (LLA’s) policies for local auditees that report fraud and misappropriations, deficits, and expense detail for charter schools. Any additional information that LLA requires in local auditee reports is in addition to, and does not supplant, GAAP.
LLA carefully considers the requirements of Louisiana law, as well as the needs of report users, before requiring any additional information be included in local auditees’ reports that is over and above what is required by GAAP.
The Practice Aids section of the Louisiana Governmental Audit Guide includes a checklist of special reporting requirements for local auditees in the state of Louisiana. Note that this checklist is intended to assist the user in determining whether an agency has complied with the reporting requirements specific to local auditees in the state of Louisiana. It is not a comprehensive list of the reporting requirements under generally accepted accounting principles.
- What authority allows LLA to require information in a report that is over and above what is required by GAAP or Louisiana law?
- What is LLA’s process for implementing reporting requirements that are over and above GAAP?
- How are approved CPA firms and local auditees notified of new reporting requirements that are mandated by state law or LLA?
- I am a CPA performing an audit of a local auditee. I received a request from LLA to revise a report to report an immaterial misappropriation. I don’t agree that this information should be included in the report. May I appeal?