Louisiana Revised Statute (R.S.) 24:513(opens in new tab) and 24:514(opens in new tab) (the audit law) requires local governments and quasi-public organizations (local auditees) to provide their annual financial reports to the Louisiana Legislative Auditor (LLA). The audit law also provides for the due dates of these reports.
Before 2005, the audit law did not give LLA the authority to extend the due dates of local auditee reports. In 2005, the Louisiana Legislature amended the audit law to provide for extensions due to gubernatorially declared disasters or emergencies. Legislation in subsequent years provided for extensions for other reasons.
LLA’s current policies and procedures regarding extensions support its objective of assisting local auditees that are unable to submit their annual financial reports by the statutory due date through no fault of their own, while ensuring that their reports are submitted in as timely a manner as possible.
Emergency Extension Requests – In 2005, following Hurricanes Katrina and Rita, the Louisiana Legislature amended the audit law to include a provision that allowed a local auditee to request an extension in which to file its annual financial report with LLA when a gubernatorially declared disaster or emergency prevented the local auditee from completing the report by the statutory due date. LLA’s granting of an emergency extension request was subject to approval by the Legislative Audit Advisory Council (LAAC).
Non-emergency Extension Requests – During the 2007 Legislative Session, language was added to House Bill 1 (the General Appropriations Act) and House Bill 2 (the Capital Outlay Act) that prohibited the payment of funds authorized in these acts to any recipient that had failed to comply with the audit law and had not obtained an extension from LLA.
Because the language in House Bills 1 and 2 was silent as to the criteria under which an extension could be granted, LLA began approving extensions for reasons other than gubernatorially declared disasters or emergencies in 2007.
In 2007, LLA also began publishing on its website a list of local auditees that had failed to comply with the audit law. The noncompliance list is reviewed by the Louisiana Department of Treasury and other state agencies before paying state funds to local auditees.
A provision for non-emergency extension requests was promulgated in R.S. 39:72.1 by Act 771 of the Regular Legislative Session of 2008.
LLA Extension Request Policies and Procedures Regarding Extension Requests – Extensions are requested by a local auditee or the CPA performing the local auditee’s audit, review/attestation or compilation engagement, through the extension request form available on LLA’s website. A full explanation of the reason the report is delayed must accompany the request along with the date by which the report is expected to be submitted to LLA and the extent to which the auditee relies on public funds that come from or flow through the state for its operation.
A committee of three LLA employees (the Legislative Auditor, the Director of Local Government Services (LGS), and the Local Government Reporting (LGR) Senior Administrator or Manager) determines whether each extension request should be approved.
In order to support the objectives of timely financial reporting and compliance with the audit law, approval of non-emergency extension requests is the exception, not the rule. In order for a non-emergency extension request to be considered for approval, all of the following criteria should be met:
- The report for the prior year must have been received by the LLA;
- The reason for the extension request must be beyond the control of the local auditee;
- The local auditee must have engaged a CPA firm, approved by LLA, to perform its audit or other engagement and submit it to the LLA via LLA's Local Government Reporting System, also known as the CPA portal, no later than sixty days after its fiscal year end; and
- The local auditee must have submitted two of its last three annual financial reports to LLA via LLA's CPA portal by the original statutory due date, excluding any approved extensions.
Extensions are normally granted to month end dates rather than mid-month dates.
If the auditee does not meet the above criteria, the LGR Senior Administrator or Manager will prepare a worksheet that includes the reporting history and the extent that the auditee relies on public funds for its operations. This will be given to the Legislative Auditor for his determination as to whether a denial of the extension will "adversely and significantly" impact public safety, health or welfare of the public.
An exception may be made when the denial of an extension will adversely and significantly impact public safety, health, or welfare as determined by the Legislative Auditor.
At each LAAC meeting LLA provides a list of all extension requests provisionally approved by LLA since the last LAAC meeting. LAAC votes on confirmation of the extension requests.
Extension Requests and Late Report Findings Audit reports are not required to include a finding for late submission if the extension request was submitted to LLA on or before the statutory due date and LLA provisionally approved the extension.  To qualify for this late finding exemption, the auditor must verify that the request was filed timely, the extension was ultimately approved by LLA, and the report was submitted within the newly established date.  If the extension request is denied, if the extension request was not submitted to LLA on or before the statutory due date, or if the revised deadline is not met, a finding regarding the local auditee’s noncompliance with the audit law by failing to submit its annual financial report to the LLA by the statutory due date is required.  The table below summarizes the instructions described above.
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Extension Request Date | Extension Approved by LLA | Report Submission Date | Finding Required? |
Before Due Date | Yes | By Extension Date | No |
After Due Date | Yes | By Extension Date | Yes (Request was late) |
Before Due Date | Yes | After Extension Date | Yes (Missed new deadline) |
Before or After Due Date | No | After Statutory Due Date | Yes (Request was denied) |
If an emergency extension request is approved for a report, that report is not required to include a late finding if the report is submitted to LLA by the revised deadline.
If an extension request is denied, the local auditee is considered non-compliant with the audit law and will be placed on the noncompliance list until the report is received by LLA.