Nongovernmental entities receiving appropriated funds must submit specified financial and expense information before funds are disbursed, and they must avoid political activity and certain spending from appropriated funds.
§89.3. Nongovernmental entities; requirements; prohibitions A.(1) Each nongovernmental entity that receives a legislative appropriation or an appropriation as part of a departmental or agency budget, including any federal funding sources, shall submit to the state agency distributing the appropriation or administering the contract or cooperative endeavor agreement the following information prior to the disbursement of funds: (a) An itemized report of the nongovernmental entity's administrative expenses associated with the distribution and utilization of state appropriated funds. (b)(i) The nongovernmental entity's most recent financial report in accordance with R.S. 24:513. The report shall be a sworn financial statement, compilation, review, or audit, as required based on the total revenues and other funding sources received by the entity in any one fiscal year, pursuant to R.S. 24:513(J). (ii) If the financial report is required to be prepared by a licensed certified public accountant, the engagement of the accountant shall be pre-approved by the legislative auditor through the submission of an engagement letter in accordance with R.S. 24:513(A)(5)(a)(i). (iii) The completed financial report shall also be submitted to and formally accepted by the legislative auditor in order to be deemed compliant for purposes of eligibility to receive appropriated funds. (iv) For nongovernmental entities subject to audit requirements pursuant to R.S. 24:513, the audit report shall include an auditor's unqualified opinion and a certification that there are no unresolved audit findings, or that the nongovernmental entity is actively working with the appropriate governmental authority to resolve them. (v) All financial reports submitted pursuant to this Subparagraph shall be reviewed and accepted by the legislative auditor pursuant to the provisions of R.S. 24:513. No report shall be deemed compliant without such acceptance. (2) The state agency may require the nongovernmental entity to submit a corrective action plan to address noncompliance with the provisions of this Subsection or any outstanding audit issues or findings. (3) Any nongovernmental entity that fails to comply with the provisions of this Subsection shall be ineligible to receive disbursement of an appropriation for a period of three years or until the entity has achieved compliance as determined by the state agency. B.(1)(a) No public official, public employee, or immediate family member thereof shall receive anything of economic value or any form of compensation, whether direct or indirect, from a nongovernmental entity or contract with a nongovernmental entity receiving appropriated funds. (b) The provisions of this Paragraph shall not apply if the nongovernmental entity is contracted with the Department of Education or with a city, parish, or other local public school system to provide standards-based educational services. (2) The provisions of this Subsection shall not preclude a public official or public employee from accepting a thing of economic value, gift, or complimentary admission, lodging, and reasonable transportation in compliance with the provisions of R.S. 42:1115, 1115.1, and 1115.2. C. Nongovernmental entities that receive appropriated funds shall refrain from political activities, including endorsement of any political party or candidate for public office, or the use of machinery, equipment, postage, stationary, or personnel on behalf of any political party or candidate. D. Nongovernmental entities shall not use appropriated funds for the following purposes: (1) Lobbying the legislature or a state or local government agency, including funding for employee hours spent lobbying. (2) Making contributions, directly or indirectly, to political action committees, political parties, or candidates for public office. E. For purposes of this Subpart, a nongovernmental entity shall not include any school governing authority required to post fiscal information through the School Transparency Project Portal pursuant to R.S. 17:88.1. Acts 2025, No. 467, §1, eff. June 30, 2025.