Louisiana Governmental Audit Guide

Who Reports To The Legislative Auditor?

Special Service Districts And Public Trusts (200-1150)

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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.


Local governments are authorized by Article 6, Sections 15 through 19 of the Louisiana Constitution of 1974, and various Louisiana Revised Statutes, to create special service districts in order to provide public services for their residents. It is especially common for parish governing authorities to create special service districts to facilitate certain public services.

Services provided by these districts include but are not limited to airport, ambulance, drainage, economic development, emergency communications, fire protection, historic preservation, industrial development, land use, library, mosquito abatement, recreation, sewerage, tourism, utilities, and zoning.

Special service districts may also be created as joint ventures between two or more local governments. Depending upon the type of services provided by the special district, revenues may consist of user fees, ad valorem taxes, state revenue sharing funds, or state and federal grants.

The state of Louisiana and Louisiana local government agencies are authorized by Louisiana Revised Statutes 9:2341 – 2347 to create public trusts, such as mortgage authorities, to provide funding for public facilities and other public purposes through the issuance of bonds, notes, or other indebtedness. Public trusts are commonly used to provide funding for public housing projects and college and university dormitories. The revenue stream for the payment of debt incurred by a public trust includes interest earned on loans, interest earned on investments, and user fees or rents.

Special service districts and public trusts are subject to the oversight of the creating authority, and may be determined to be component units LLA LaGAG of the creating authority.

Most special service districts and public trusts are considered to be local auditees LLA LaGAG, and provide annual financial reports to the Louisiana Legislative Auditor.

The Louisiana Compliance Questionnaire LLA LaGAG requires special service districts and public trusts to provide statements or representations to their auditor regarding their compliance with certain provisions laws and regulations. Auditors are required to test the district’s/authority’s compliance with these laws and regulations.


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

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