News BREC Receives Unmodified Opinion on 2023 Audit

Baton Rouge, LouisianaAug 20, 2025BREC has received an unmodified opinion—the highest possible rating—on its 2023 financial statements from independent auditors EisnerAmper. This opinion confirms that BREC’s financial statements are fairly presented and free from material misstatements. The full audit report is available here.

The 2023 audit noted several areas where compliance and operational procedures can be strengthened, including:

• General Ledger Account Reconciliations: General ledger accounts were not reconciled to bank account statements on a timely basis. The resulting bank reconciliations contain unreconciled differences.
• Timely Filing of Report with Louisiana Legislative Auditor: BREC was required to have the 2023 audit completed by the filing deadline of June 30, 2024. BREC did not comply with the timeline established by regulation and therefore a finding is required by the Louisiana Legislative Auditor.
• Maintenance of Construction-in-Progress Schedules: BREC did not have appropriate procedures and controls implemented to accumulate and report accurate capital project costs. Material adjustments were required to the schedule to report complete and accurate capital project costs.
• Budget Publication and Hearing: Louisiana Revised Statute 39:1307 provides that political subdivisions shall publish a notice that states the proposed budget is available for public inspection and explains when the public hearing will occur. This notice shall be published at least 10 days prior to the public hearing. BREC did not publish the notice at least 10 days prior to the public hearing and therefore was not in compliance with Louisiana Revised Statute 39:1307.
• Compliance with Bid Law: BREC entered into a cooperative endeavor agreement in which a third party expended funds, contributed by BREC and a second entity, toward the improvement of BREC assets. The improvements made to the BREC assets were not procured under the Louisiana Public Bid Law (La. R.S. 38:2212 et seq.) and no documentation was maintained noting deliberation of whether these improvements were subject to bid law.
• Local Government Budget Act: Louisiana Revised Statute 39:1305 requires BREC to prepare and adopt a comprehensive budget presenting a complete financial plan each fiscal year for the General Fund and each Special Revenue Fund. The statute requires BREC to revise its budget when failing to meet total budgeted revenues or expenditures and other financing sources or uses unfavorably by five percent or more. BREC did not adopt an amended budget for the Special Revenue Enhancement Fund when actual expenditures were projected to exceed budgeted expenditures, and other financing uses by more than five percent.
• Timely Filing of the Federal Data Collection Form: Federal regulation requires Single Audit Reports from state and local governments to be submitted to the Federal Audit Clearinghouse in the annual period that the state and local government expend more than $750,000 in federal awards. Without any waivers, the report is due no later than nine months after an entity’s year end. The single audit report for BREC was not submitted to the Federal Audit Clearinghouse within the timeline established by regulation.
• Preparation of the Schedule of Expenditures of Federal Awards and Reconciliation of Grant Revenue: Federal regulation requires the preparation of a Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants along with the amount of funds disbursed to subrecipients. The SEFA provided by BREC for audit did not contain complete and accurate reporting of federal expenditures, and the grant information required to be reported on the SEFA. Additionally, the grant revenue recorded in the accounting system did not reflect all amounts due from awarding agencies for expenditures incurred in the fiscal year.
• Written Policies and Procedures Over Federal Grants: Federal regulation requires written policies and procedures documenting how the organization determines the allowable costs eligible for reimbursement with federal funds as well as written policies and procedures documenting how the organization complies with the federal procurement standards. BREC did not maintain written policies and procedures for determining allowable costs and compliance with procurement requirements in accordance with 2 CFR 200.318-326.

“Despite challenges in recent years, this audit reflects BREC’s financial stability and commitment to managing public resources responsibly,” said Don Johnson, BREC Chief Financial Officer. “We have already begun implementing improvements in the areas identified.”