Louisiana Governmental Audit Guide

Special Reporting Requirements In The State Of Louisiana

Special Reporting – Agencies That Collect Taxes Other Than Ad Valorem Taxes (300-1030)

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DISCLAIMER
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 of 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.


While sheriffs serve as the ex-officio ad valorem or property tax collector LLA LaGAG for most parishes, different types of local government agencies (such as school boards, municipalities, or dedicated sales tax collection agencies) act as the collector and distributor of sales and use taxes in the parish in which they are domiciled.

These sales and use tax collection agencies also collect hotel/motel, occupational, and other types of taxes, and remit them to the taxing authorities in the parish.

Louisiana Revised Statute 24:513 B. (3), which was enacted by Act 711 of the 2010 Legislative Session, was an amendment to the audit law LLA LaGAG and pertains to the annual reporting requirement of local auditees LLA LaGAG that collect and distribute taxes, other than ad valorem taxes, on behalf of other taxing authorities. This provision of the law states,
      Any other local auditee or vendor that collects and distributes taxes other than ad valorem taxes on behalf of other taxing authorities shall have its annual financial statement audited and shall distribute a copy of the audit report to the legislative auditor and each taxing authority for which it collects taxes. The audit report shall have a footnote disclosure including total collections and a schedule of distribution by taxing authority. The statement shall include other disclosures as may be determined necessary by the legislative auditor.

The Legislative Auditor has an illustrative schedule LLA LaGAG for reporting this information in compliance with the law. The schedule may be prepared on the cash or accrual basis, at the tax collector agency’s discretion. As stated in the law, this information is included in the notes to the financial statements in the tax collector agency’s audit report.


NB: This document is the current version as of 09/12/2017.

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