The audit law (Louisiana Revised Statute (R.S.) 24:513 A. (3)) requires virtually every local auditee report that is submitted to the Louisiana Legislative Auditor (LLA) to include a schedule of compensation, benefits, and other payments to the agency head, political subdivision head, or chief executive officer. This schedule is over and above what is required by generally accepted accounting principles (GAAP).

The compensation, benefits, and other payments that are to be reported on the schedule include but are not limited to travel, housing, unvouchered expenses, per diem, registration fees, and reimbursements.

Nongovernmental or nonprofit entities that receive public funds may report on the schedule only those payments to the agency head that are derived from the public funds the nonprofit receives. Public funds are defined as Louisiana state and/or local governmental funds and/or federal funds passed through a Louisiana state or local government agency.

The schedule is to be included in the supplementary information within the local auditee’s financial statements. If the supplemental schedule is included in an audit report with an unmodified opinion, the CPA performing the audit engagement must include an in-relation-to opinion on the schedule. The CPA should consult the professional standards on the type of opinion that may be rendered on supplemental information when a modified opinion is rendered on the financial statements as a whole.

LLA’s legal staff has prepared a frequently asked questions document on this subject that has an illustrative schedule that may be used for compliance with this provision of the law. The FAQ also addresses the following matters –

  • Who needs to report their compensation on the schedule of compensation, benefits, and other payments to the agency head or chief executive officer
  • What types of compensation, benefits, and other payments should be reported on the schedule
  • Special rules for judges’ compensation
Questions:
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