Agenda Item
Docket No. 11-1873
Advisory opinion regarding CPA's who contract with governmental entities to perform audits needing to receive mandatory training in connection with La. R.S. 42:1170.
The Louisiana Legislative Auditor indicates that independent CPA's contract with and perform audits for governmental entities and quasi-public entities. Any such contractor is subject to perform the work pursuant to agreements governed by Louisiana Audit Law (La. R.S. 24:513 et seq.).

La. R.S. 24:513 provides that each governmental entity with a population of under 50,000 persons must file financial statements on a yearly basis with the Legislative Auditor. Entities with a population of over 50,000 are required to provided a certified financial review, performed by a CPA, and provide such review to the Legislative Auditor on a yearly basis. Entities with populations of over 500,000 are required to provide the Auditor with a yearly audit.

Further, state agencies are required to have annual audits.

Conversations with staff of the Legislative Auditor have indicated that most of the governmental entities contract to provide this required financial review or audit with a local CPA. The Legislative Auditor has the right to veto this contract between the local CPA and governmental entity, if the contract does not provide for accepted terms and conditions, and if the selected CPA is not qualified.

In terms of state agency audits, the contracted CPA for the state agency, stands in the shoes of the Legislative Auditor. The agency pays the Legislative Auditor, who then pays the contracted CPA. For the state agency audits, the Legislative Auditor is a party to the contract.

The CPA's, once contracted to provide the services, normally work with the CFO's of the governmental entities to perform the audit.

"Public employee:" means anyone, whether compensated or not, who is: (a) An administrative officer or official of a governmental entity who is not filling an elective office. (b) Appointed by any elected official when acting in an official capacity, and the appointment is to a post or position wherein the appointee is to serve the governmental entity or an agency thereof, either as a member of an agency, or as an employee thereof. (c) Engaged in the performance of a governmental function. (d) Under the supervision or authority of an elected official or another employee of the governmental entity.
"Public servant:" means a public employee or an elected official.

42:1170(3): Commencing on January 1, 2012, each public servant who was not required to complete education and training pursuant to Paragraph (1) or (2) of this Subsection shall receive a minimum of one hour of education and training on the Code of Governmental Ethics during each year of his public employment or term of office, as the case may be.

Adopt the proposed advisory opinion.

Assigned Attorney: Mike Dupree
2011-1873 Draft Opinion
2011-1873- Advisory Opinion Request
R.S. 24:513