97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5556

 

Introduced 2/15/2012, by Rep. John E. Bradley

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 315/15  from Ch. 48, par. 1615
20 ILCS 415/26 new
30 ILCS 105/5.811 new
30 ILCS 105/6z-93 new

    Creates the Division of Financial Reporting Act. Provides that the Division will serve under the direction of the State Chief Information Officer, subject to the oversight of the Board of Trustees. Sets forth the responsibilities of the Division, including, but not limited to: implementing a modernized financial accounting system for the State of Illinois in the form of an Enterprise Resource Planning or "ERP" System and conducting management and operational evaluations of each executive branch agency. Creates a Board of Trustees to oversee the Division. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5556LRB097 20459 HLH 65971 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Division of Financial Reporting Act.
 
6    Section 5. Findings. The General Assembly finds that:
7        (1) Addressing the State's inability to produce
8    Generally Accepted Accounting Principles (GAAP)-compliant
9    financial reports in a timely manner is an urgent priority.
10        (2) The Auditor General's recent findings on the
11    State's financial accounting systems provide a unique
12    opportunity for key stakeholders to make policy choices
13    that can materially improve the State's likelihood of
14    success in addressing this problem.
15        (3) The State's problems in financial reporting
16    represent the cumulative effect of a multitude of systemic
17    challenges, including: archaic technology, insufficient
18    staff resources in the areas of accounting, technology,
19    training, financial analysis, and other fields, disparate
20    approaches to financial reporting among dozens of
21    agencies.
22        (4) Implementing a modern, agile process for
23    collecting, assembling, in a uniform fashion, financial

 

 

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1    information such that the State can produce timely,
2    GAAP-compliant financial reports through an Enterprise
3    Resource Planning (ERP) system will involve not only
4    significant monetary investment in software acquisition
5    and implementation services, but also, preliminarily,
6    changes to the structure and internal management of State
7    government.
 
8    Section 10. Division of Financial Reporting; creation.
9There is hereby created a Division of Financial Reporting. The
10Division will serve under the direction of the State Chief
11Information Officer, subject to the oversight of the Board of
12Trustees. The Division shall have the following
13responsibilities:
14        (1) to implement a modernized financial accounting
15    system for the State of Illinois in the form of an
16    Enterprise Resource Planning or "ERP" System;
17        (2) to assemble a group of management professionals,
18    having both public and private sector experience, in
19    addition to experience in ERP implementation and financial
20    reporting needs of agencies in the executive branch; the
21    Division shall be staffed with professionals having
22    high-level skill sets in accounting, financial reporting
23    and management, enterprise systems implementation, and
24    business process reengineering; these professionals will
25    provide assistance to executive branch agencies engaged in

 

 

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1    financial reporting, technology, and ERP implementation;
2        (3) to provide certification and continuing education
3    in the areas of accounting financial reporting and
4    technology;
5        (4) to conduct management and operational evaluations
6    of each executive branch agency; and to submit a
7    recommended plan for personnel changes, operational
8    changes, and policy modifications to the Office of the
9    Governor, the General Assembly, and the Comptroller's
10    office; all executive branch agencies directly responsible
11    to the Governor shall align their respective technology
12    strategies and operations to the plan and render full
13    cooperation in its implementation
14        (5) to work, in cooperation with the Executive Ethics
15    Commission, the Chief Procurement Officers appointed
16    pursuant to P.A. 96-795, the Department of Central
17    Management Services, the Office of the Comptroller, and
18    other stakeholders on an optimal procurement strategy for
19    acquiring the software and services for ERP implementation
20    and for the implementation of other enterprise wide
21    systems;
22        (6) to employ the individuals that are necessary to
23    carry out the duties and functions of the Office;
24        (7) to obligate and expend monetary resources
25    essential for carrying out the duties and responsibilities
26    of the Office;

 

 

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1        (8) to work in cooperation with the Governor's Office
2    of Management and Budget, agency directors, and the Office
3    of the Comptroller to address agency needs and the delivery
4    of timely information;
5        (9) to assemble a team of management professionals as
6    staff for the Division and for the performance of other
7    duties set forth in this Act;
8        (10) to undertake any other act essential for the
9    performance of the duties and responsibilities of the
10    Office.
11        (11) to direct the State's financial reporting and
12    related technology policies, practices, and objectives
13    with respect to all State agencies directly responsible to
14    the Governor.
 
15    Section 15. Board of Trustees. There is hereby created a
16Board of Trustees for the Division, consisting of 7 members.
17The Governor, the Comptroller, the Speaker of the House of
18Representatives, the Minority Leader of the House of
19Representatives, the Senate President, and the Senate Minority
20Leader shall each appoint one. The Governor and the Comptroller
21will each designate a person to serve as co-chairperson. The
22purpose of the Board of Trustees is to ensure transparency,
23open communication, and ongoing collaboration between the
24legislative and executive branches, as well as within and among
25the executive branch constitutional officers and agencies. At

 

 

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1each meeting the Director of the Division of Financial
2Reporting will present a detailed report to the trustees
3outlining all the activities of the Division during the
4preceding months and will solicit input advice and consultation
5from the trustees. Meetings of the board shall be subject to
6the provisions of the Open Meetings Act.
 
7    Section 20. Exemptions. Notwithstanding any laws, rules,
8or regulations to the contrary, the Division of Financial
9Reporting is exempt from all provisions of the Personnel Code
10and the Illinois Public Labor Relations Act.
 
11    Section 30. Cooperation. All executive branch agencies
12must render full cooperation to the Division and its employees.
 
13    Section 50. The Illinois Public Labor Relations Act is
14amended by changing Section 15 as follows:
 
15    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
16    Sec. 15. Act Takes Precedence.
17    (a) In case of any conflict between the provisions of this
18Act and any other law (other than Section 5 of the State
19Employees Group Insurance Act of 1971, and other than the
20changes made to the Illinois Pension Code by this amendatory
21Act of the 96th General Assembly, and other than the Division
22of Financial Reporting Act), executive order or administrative

 

 

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1regulation relating to wages, hours and conditions of
2employment and employment relations, the provisions of this Act
3or any collective bargaining agreement negotiated thereunder
4shall prevail and control. Nothing in this Act shall be
5construed to replace or diminish the rights of employees
6established by Sections 28 and 28a of the Metropolitan Transit
7Authority Act, Sections 2.15 through 2.19 of the Regional
8Transportation Authority Act. The provisions of this Act are
9subject to Section 5 of the State Employees Group Insurance Act
10of 1971. Nothing in this Act shall be construed to replace the
11necessity of complaints against a sworn peace officer, as
12defined in Section 2(a) of the Uniform Peace Officer
13Disciplinary Act, from having a complaint supported by a sworn
14affidavit.
15    (b) Except as provided in subsection (a) above, any
16collective bargaining contract between a public employer and a
17labor organization executed pursuant to this Act shall
18supersede any contrary statutes, charters, ordinances, rules
19or regulations relating to wages, hours and conditions of
20employment and employment relations adopted by the public
21employer or its agents. Any collective bargaining agreement
22entered into prior to the effective date of this Act shall
23remain in full force during its duration.
24    (c) It is the public policy of this State, pursuant to
25paragraphs (h) and (i) of Section 6 of Article VII of the
26Illinois Constitution, that the provisions of this Act are the

 

 

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1exclusive exercise by the State of powers and functions which
2might otherwise be exercised by home rule units. Such powers
3and functions may not be exercised concurrently, either
4directly or indirectly, by any unit of local government,
5including any home rule unit, except as otherwise authorized by
6this Act.
7(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
8    Section 55. The Personnel Code is amended by adding Section
926 as follows:
 
10    (20 ILCS 415/26 new)
11    Sec. 26. Division of Financial Reporting Act. This Code is
12subject to the provisions of the Division of Financial
13Reporting Act.
 
14    Section 90. The State Finance Act is amended by adding
15Sections 5.811 and 6z-93 as follows:
 
16    (30 ILCS 105/5.811 new)
17    Sec. 5.811. The Division of Financial Reporting Revolving
18Fund.
 
19    (30 ILCS 105/6z-93 new)
20    Sec. 6z-93. Division of Financial Reporting Revolving
21Fund; creation. There is hereby created in the State treasury a

 

 

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1revolving fund as a dedicated fund to receive funds payable to
2the Division of Financial Reporting for services provided to
3State agencies. Moneys may be expended from the Fund for the
4operations of the Division of Financial Reporting.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.