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(opens in new tab)), 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(opens in new tab) 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)(opens in new tab). 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(opens in new tab). 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.
Special Reporting – College And University Foundations | Alumni Associations| and Building Corporations
The Louisiana Governmental Audit Guide (LAGAG) is authorized by Louisiana Revised Statute 24:513 A. (5) (a) (i) to set forth the standards by which the engagements of local governments and quasi-public organizations (local auditees) are to be performed. The LAGAG is jointly produced by the Louisiana Legislative Auditor (LLA) and the Society of Louisiana Certified Public Accountants.
Although the LAGAG is intended to assist CPAs in performing their audits and other engagements for local auditees, it does not include a detailed analysis of the professional auditing and accounting standards a CPA must consider during his or her audit, review/attestation or compilation engagements; nor is it a substitute for professional judgment. CPAs must reach their own conclusions through research of all applicable auditing and accounting standards, in addition to the LAGAG, in the performance of their local auditee engagements.
In addition, although the LAGAG is intended to assist local auditees, it does not include all the legal and accounting information an agency needs to perform its operations; nor is it a substitute for professional, legal or accounting advice; or professional or personal judgment. Local auditees should use the information in the LAGAG, in conjunction with the guidance of the professionals most familiar with the particular facts and circumstances regarding their agency, in the performance of their operations.
For questions and comments about the LAGAG, please contact LLA at (225) 339-3800.