SR0609 96TH GENERAL ASSEMBLY

SR0609 LRB096 20125 JDS 35661 r

SENATE RESOLUTION

WHEREAS, Pursuant to State law, the State Comptroller is given the responsibility to "develop and prescribe for the use of all State agencies a uniform accounting system . . ." in accordance with generally accepted accounting principles applicable to government; and

WHEREAS, For the last 7 years, the Auditor General's audits of the State's financial statements have concluded that the State of Illinois does not have adequate controls to ensure that information reported by individual agencies of the primary government is fairly stated and compliant with generally accepted accounting principles; and

WHEREAS, For the last 7 years, the Auditor General's statewide single audits have concluded that the State's current financial reporting process also is not sufficient to allow the State to prepare a complete and accurate Comprehensive Annual Financial Report (CAFR) or the Schedule of Expenditures of the Federal Awards in a timely manner; and

WHEREAS, Financial reporting problems result in inaccuracies, inefficiencies, and delays that negatively impact the ability of State decision-makers to have timely and accurate information on which to base their decisions and could potentially jeopardize the State's eligibility for federal funding; and

WHEREAS, A centralized automated reporting system, if properly implemented, would increase the State's timeliness, accuracy, and consistency in financial reporting and enhance its accountability and transparency to citizens, other units of government, vendors, bond-rating agencies, and other interested persons; and

WHEREAS, The cost of a centralized automated reporting system sufficient to address these issues is estimated at more than $100 million; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Auditor General is directed to conduct a management audit of the State's financial reporting system; and be it further

RESOLVED, That that the audit include, but not be limited to, the following determinations:

(1) an analysis of the State's current financial reporting procedures, practices, and systems, including the number of different systems used by the various State agencies, an estimate of the cost of maintaining those systems, and whether those systems are compliant with generally accepted accounting principles applicable to government; and

(2) a survey of other states to determine their methods of financial reporting and any advantages or disadvantages to those methods, with particular emphasis on those states, if any, with centralized automated reporting systems; and be it further

RESOLVED, That the Office of the Governor, Office of the State Comptroller, Governor's Office of Management and Budget, and any other entity having information relevant to this audit cooperate fully and promptly with the Auditor General's Office in the conduct of this audit; and be it further

RESOLVED, That the Auditor General commence this audit as soon as possible and report findings and recommendations upon completion in accordance with the provisions of Section 3-14 of the Illinois State Auditing Act, but no later than 12 months after the adoption of this resolution; and be it further

RESOLVED, That copies of this resolution be delivered to the Auditor General, Governor, and State Comptroller.