Agency Name and Address

Agency Name and Address: Health Education Authority of Louisiana 300 LaSalle Street, Suite B New Orleans, Louisiana 70112 Website: www.heal.la.gov

Solicitation Number: 17-3401

Type of Engagement: Audit

Contract Period: October 2, 2017 – November 30, 2017

Period to be Examined: Year ending June 30, 2017

Description of the State Agency:  The Health Education Authority of Louisiana (HEAL) was created within the Department of Health as provided by Louisiana Revised Statutes (R.S.) 17:3051-3060. Effective August 1, 2016, HEAL was removed from the Department of Health and transferred the Department of Education under the Board of Regents to operate as an independent bonding authority. HEAL’s primary mission is to plan, acquire, and/or construct facilities to develop communities in Louisiana where graduate medical education is offered. HEAL is also responsible for the operation of a parking garage.  HEAL is governed by a board of trustees consisting of the Governor as ex officio trustee and nine members selected pursuant to the requirements for membership. Members do not receive compensation or per diem but are authorized by R.S. 17:3054 to be reimbursed for actual expenses incurred when engaged in board business in accordance with state travel regulations as prescribed by the Division of Administration.  Per its bylaws, the board holds four meetings per year. At each meeting, the board reviews various financial reports. Currently, HEAL does not have any active board members.  HEAL has three employees. The accounting department within the Department of Health previously provided most accounting services. However, as a result of recent legislation, for fiscal year 2017 going forward HEAL is now responsible for its own accounting functions. HEAL contracts with an accountant for these services.  As of June 30, 2016, HEAL had one bank account and 10 certificates of deposit. HEAL does not make any journal entries. All journal entries are made by HEAL’s contracted accountant within Quickbooks. HEAL’s contracted accountant also compiles special-purpose financial statements consisting of a Statement of Financial Position, Statement of Activities, and various supplemental schedules for use by HEAL’s board of trustees and is not prepared in conformity with GAAP.  The Division of Administration, Office of Statewide Accounting and Reporting Policy’s Annual Fiscal Report (AFR) packet, which is a statutory basis report, should be included in the report as supplementary information.  Operations of HEAL are primarily funded by the revenues resulting from the parking garage operations and the issuance of HEAL bonds. HEAL is engaged in business-type activities. The following activity/balances were reported as of and for the year ended June 30, 2016: Total Assets $1,848,983 Total Liabilities $191,532 Net Position $1,657,451 Revenues $350,688 Expenses $381,882

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Accounting System: Quickbooks

Financial Statements: HEAL will provide a general ledger and a trial balance.

Estimated Start of Fieldwork: No later than October 2.

Engagement Completion Date: No later than November 30.

Special Requirements:  The successful ICPA will assist with preparing the financial statements in accordance with GAAP, to include appropriate note disclosures, for each period.  The successful ICPA will prepare the AFR packet that includes a Statement of Net Position and Statement of Activities. No note disclosure required for the AFR.

State Agency Assistance: HEAL will provide supporting schedules as required.

Last Engagement: Audit as of and for the period ended June 30, 2016

Results of Last Engagement:  Unmodified opinion  One finding: Inadequate controls over professional service contracts

Prior Auditor: Louisiana Legislative Auditor 1600 North Third Street Baton Rouge, Louisiana 70804

Prior Engagement Fee: $5,445 Proposers’ Conference:  A proposers' conference will not be held.  Any questions regarding the SFP or the agency should be sent to [email protected]

Proposal Due Date and Time: Friday, September 15, 2017; 5:00 p.m.