The Louisiana Legislative Auditor’s (LLA’s) legal authority is found in Title 24 of the Louisiana Revised Statutes. LLA has broad authority to enforce the reporting requirement of those agencies named in the audit law (Louisiana Revised Statute (R.S.) 24:513), but has limited authority to enforce a reporting requirement to LLA that is found in the Louisiana Revised Statutes outside of R.S. 24:513.
R.S. 17:3390 D addresses the reporting requirement of alumni associations, alumni foundations, and other private, nonprofit alumni organizations that raise private funds for the support of colleges and universities; and nonprofit corporations whose primary purpose is to finance the design, construction, renovation, or equipping of facilities to be leased to colleges and universities (building corporations). If these organizations receive more than $75,000 in funds in a fiscal year, they are required to provide audited financial statements to LLA.
Alumni associations, alumni foundations, and other, nonprofit private alumni organizations that raise private funds for the support of colleges and universities, and that receive $75,000 or less in funds in a fiscal year, are not required to have an audit, but shall provide the certification, sworn financial statements, and recitals required byR.S. 17:3390 D (3) (a) and (b). These reports are required to be submitted to LLA.
With regard to an audit received by LLA from any of these organizations that are under the management of the Board of Supervisors of Community and Technical Colleges, LLA may recommend to the Legislative Audit Advisory Council that an audit be conducted by LLA pursuant to and in the manner provided in R.S. 24:513. Upon such recommendation, LAAC may direct that such an audit be conducted.
LLA sends email notifications to these agencies to remind them of their reporting requirement to LLA under R.S. 17:3390. There is no due date for these reports to be submitted to LLA; and LLA does not put these agencies on the noncompliance list if the reports are not submitted to LLA in a timely manner, or are not submitted at all.
- Does LLA approve the engagements between foundations, alumni associations, etc., and their auditors?
- If a foundation, alumni association, etc., is required to have an audit, does the audit need to be performed in accordance with generally accepted government auditing standards?
- Does LLA have an illustrative sworn financial statement for the use of those foundations, alumni associations, etc., that receive $75,000 or less in funds?
- If a building corporation receives $75,000 or less in funds, are they allowed to provide the sworn financial statements, or must they provide an audit?
- Are the audit and other reports of foundations, alumni associations, etc., published as public documents by LLA?