Louisiana Governmental Audit Guide

Special Reporting Requirements In The State Of Louisiana

Special Reporting - Overview (300-1010)

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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.


The audit law LLA LaGAG (Louisiana Revised Statute (R.S.) 24:514) requires that the annual financial reports of local auditees LLA LaGAG be prepared in accordance with generally accepted accounting principles LLA LaGAG or GAAP. Preparing financial statements in accordance with GAAP ensures consistency and comparability between the financial reports of like entities.

The laws of the state of Louisiana require certain information to be included in the annual financial reports of local auditees, over and above what is required by GAAP. This includes additional information regarding –
      Ø Collections of ad valorem, sales, and other taxes
      Ø College and university foundations and alumni associations
      Ø Bonds issued by certain entities (continuing disclosure requirements of the SEC and the State of Louisiana)
      Ø Housing Authorities
      Ø Collections of court costs, fines and fees
      Ø Juvenile justice districts
      Ø District public defenders
      Ø Payments made to the head of a local auditee
      Ø School boards and charter schools

Additional information is required by Louisiana Legislative Auditor’s (LLA’s) policies for local auditees that report fraud and misappropriations, deficits, and expense detail for charter schools. Any additional information that LLA requires in local auditee reports is in addition to, and does not supplant, GAAP.

LLA carefully considers the requirements of Louisiana law, as well as the needs of report users, before requiring any additional information be included in local auditees’ reports that is over and above what is required by GAAP.

The Practice Aids section of the Louisiana Governmental Audit Guide includes a checklist LLA LaGAG of special reporting requirements for local auditees in the state of Louisiana. Note that this checklist is intended to assist the user in determining whether an agency has complied with the reporting requirements specific to local auditees in the state of Louisiana. It is not a comprehensive list of the reporting requirements under generally accepted accounting principles.

QUESTIONS:

Q. What authority allows LLA to require information in a report that is over and above what is required by GAAP or Louisiana law?
A. LLA has been given broad authority in the audit law LLA LaGAG (R.S. 24:513) to prescribe the terms and conditions of the engagements of local auditees; including the form and content of the reports that it receives. Approved CPA firms stand in the shoes of LLA when they perform the audit and other attest engagements of local auditees, and the reports that they submit to LLA must conform to LLA’s requirements.

Q. What is LLA’s process for implementing reporting requirements that are over and above GAAP?
A. LLA carefully considers the requirements of Louisiana law, as well as the needs of report users, before requiring that additional information be included in local auditees’ reports that is over and above what is required by GAAP. Input is sought from interested parties, including the Society of CPAs of Louisiana, before a final decision is made regarding additional reporting requirements.

Q. How are approved CPA firms and local auditees notified of new reporting requirements that are mandated by state law or LLA?
A. CPAs are made aware of new state or LLA reporting requirements by the Audit Risk Alert. Notification of new Audit Risk Alerts is sent by email to the contact persons in LLA's CPA database.

Depending upon the nature of the new reporting requirement and its impact on local auditees, LLA will either notify local auditees directly of new requirements, or will ask the CPAs to discuss the matter with their local auditee clients.

Past Audit Risk Alerts are archived in the Louisiana Governmental Audit Guide.

Q. I am a CPA performing an audit of a local auditee. I received a request from LLA to revise a report to report an immaterial misappropriation. I don’t agree that this information should be included in the report. May I appeal?
A. You may appeal; however, LLA makes the final decision regarding the information that is to be included in the reports of local auditees.


NB: This document is the current version as of 05/27/2021.

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