EXTENSION REQUEST POLICY (June 15, 2020)
There are two types of extensions allowed under Louisiana law:
- An emergency extension, which may be requested when a gubernatorially declared disaster or emergency prevents an agency from submitting its report to the Legislative Auditor by the statutory due date.
- A non-emergency extension, which may be requested for any reason other than a gubernatorially declared disaster or emergency.
The Legislative Auditor will consider each extension request on a case-by-case basis; and approval of an extension request will be the exception, not the rule. Agencies should be aware that non-emergency extensions will be granted only in exceptional cases.
The agency will be required to attach an electronic file containing its own written explanation for requesting the extension to the extension request form. The agency should also consider attaching an electronic file with corroborating evidence supporting the reason the extension is being requested.
The Legislative Auditor may approve an extension for up to ninety days after the due date of an agency's report, subject to affirmation by the Legislative Audit Advisory Council (Council) at its next meeting. Extension requests that are greater than ninety days after the due date of an agency's report must be tentatively approved by the Council chairperson., subject to final approval by the Council at its next meeting.
The Legislative Auditor will not approve extensions in which:
- The agency did not procure the services of a CPA firm to perform the engagement within sixty days after the agency's fiscal year, as required by law
- The agency's report was not submitted to the Legislative Auditor by the statutory due date in any two of the prior three years
An exception to the above may be made in accordance with the provisions of the law pertaining to gubernatorially declared disasters or emergencies. Another 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 and the Council chairperson.
If an extension request is not approved and the agency's report is not submitted by the statutory due date, the agency's name will be placed on the non-compliance list on the Legislative Auditor's website. No state or federal funds passed through the state may be paid out to any agency whose name is listed on the non-compliance list on the Legislative Auditor's website.
In addition, agencies on the non-compliance list are not allowed to let any contract that utilizes state funds, either received directly or received indirectly from another public entity. If an agency is in compliance with reporting requirements when entering into a public contract related to public safety, health, or welfare and subsequently becomes non-compliant, the Legislative Auditor may grant an extension for the public entity to tender payment to contractors and others, subject to conditions imposed by the Legislative Auditor to monitor the proper payment of funds due to contractors and others. The appropriateness of such extensions will be tentatively approved by the Legislative Auditor and Council chairperson, subject to final approval by the Council at its next meeting.
We believe that the Legislative Auditor's extension request policy will ensure compliance with Louisiana law and ensure timely financial reporting, which is a cornerstone of good financial management. If there are any questions, please contact Gayle Fransen at (225) 339-3874 or firstname.lastname@example.org.