§9038.1. Tax increment financing; audits authorized

A. For purposes of this Section, "development district" means a development district that meets all of the following criteria:

(1) The district was created by law and has a board of commissioners that is not the governing authority of a parish or municipality.

(2) The municipality in which the district is located is authorized to levy taxes and incur indebtedness for the benefit of the development district.

(3) The district receives funds from tax increment financing through agreements with the municipality in which it is located.

B.(1) The governing authority of a development district may provide for an audit of certain financial activities, statements, and records of the municipality in which it is located and of other entities as provided in this Section. The governing authority of a development district may request that the legislative auditor conduct such audit, in accordance with the provisions of R.S. 24:513, or if the legislative auditor notifies the development district governing authority that his office will not perform the audit, the development district governing authority may contract with an auditor approved by the legislative auditor to conduct such audit, in accordance with the provisions of R.S. 24:513.

(2) An audit conducted pursuant to this Section shall include financial activities, statements, and records of the municipality and of other local governmental entities related to tax increment financing from which the development district receives or should receive funds pursuant to agreements with the municipality and other local governmental entities. The audit report shall be in compliance with governmental auditing standards and shall call attention to those matters required by governmental auditing standards and the Louisiana Governmental Audit Guide, including reportable conditions, failure to comply with laws and regulations, and such additional matters as may be appropriate. The audit report shall make specific recommendations for future avoidance together with the response of the municipality and any other entities audited.

C. The governing authority of a development district may provide for an audit as provided in this Section as often as it deems necessary but not more frequently than once in a twelve-month period. The development district may use any funds of the district for payment of the cost of such audit except taxes dedicated to the payment of bonds or indebtedness.

Acts 2014, No. 667, §1, eff. June 18, 2014.