Full Text of SB3794 97th General Assembly
SB3794eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Financial Reporting Standards Board Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Board" means the Financial Reporting Standards Board
| 8 | | created under Section 10 of this Act.
| 9 | | "CAFR" means the Comprehensive Annual Financial Report | 10 | | required under Section 19.5 of the State Comptroller Act. | 11 | | "Comptroller" means the Comptroller of the State of
| 12 | | Illinois.
| 13 | | "GAAP Coordinator" means a designated representative, | 14 | | employed by a State agency or component unit of the State, who | 15 | | is responsible for submission to the Office of the Comptroller | 16 | | all required documentation, as determined by the Office of the | 17 | | Comptroller, necessary for the preparation of the | 18 | | Comprehensive Annual Financial Report. | 19 | | "Internal auditor" means an auditor employed by a State
| 20 | | agency under the Fiscal Control and Internal Auditing Act.
| 21 | | "Licensed Certified Public Accountant" has the meaning
| 22 | | provided in Section 0.03 of the Illinois Public Accounting Act.
| 23 | | "Registered Certified Public Accountant" has the meaning
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| 1 | | provided in Section 0.03 of the Illinois Public Accounting Act.
| 2 | | "Schedule of Expenditures of Federal Awards" and "SEFA"
| 3 | | mean the supplemental information required by the federal
| 4 | | Office of Management and Budget, Circular A-133. | 5 | | "State agency" means all departments, officers,
| 6 | | commissions, boards, authorities, institutions, universities, | 7 | | foundations, and bodies politic and corporate of the State that | 8 | | are required to submit financial
reporting information to the | 9 | | Office of the Auditor General, the
Office of the Comptroller, | 10 | | or the federal government.
| 11 | | Section 10. Financial Reporting Standards Board;
creation.
| 12 | | (a) There is created the Financial Reporting Standards
| 13 | | Board. The Board shall assist the State in
improving the | 14 | | timeliness, quality, and processing of
financial reporting for | 15 | | the State. | 16 | | (b) The Board shall consist of 3 members appointed by the | 17 | | Comptroller and 2 members appointed by the Governor, all with | 18 | | the advice and consent of the Senate. | 19 | | (c) Each member shall be licensed or registered as a | 20 | | certified public accountant. | 21 | | (d) Of the initial members appointed to the Board: one | 22 | | member appointed by the Comptroller shall be appointed for a | 23 | | 2-year term; one member appointed by the Comptroller and one | 24 | | member appointed by the Governor shall be appointed for a | 25 | | 3-year term; and one member appointed by the Comptroller and |
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| 1 | | one member appointed by the Governor shall be appointed for a | 2 | | 4-year term. Those members may be reappointed for 4-year terms. | 3 | | Their successors shall be appointed for 4-year terms and may be | 4 | | reappointed. A vacancy on the Board shall be filled for the | 5 | | remainder of the unexpired term, in the same manner and by the | 6 | | same officer who made the original appointment. | 7 | | (e) The Comptroller and the Governor shall each designate | 8 | | one of their appointed members as co-chairperson of the Board. | 9 | | (f) The Board shall meet at least 2 times each year and at | 10 | | other times at the call of the chairpersons. Meetings of the | 11 | | Board shall be subject to the provisions of the Open Meetings | 12 | | Act. | 13 | | (g) The members of the Board shall serve without | 14 | | compensation, but may be reimbursed for expenses. | 15 | | Section 15. Powers. The Board has the following powers: | 16 | | (1) to have a corporate seal, and to alter that seal at
| 17 | | pleasure, and to use it by causing it or a facsimile to be
| 18 | | affixed or impressed or reproduced in any other manner; | 19 | | (2) to use the services of the Office of the | 20 | | Comptroller and the Office of the Governor as necessary to | 21 | | carry out the Board's purposes; | 22 | | (3) to receive and expend funds appropriated to it by
| 23 | | the General Assembly; | 24 | | (4) to assist State agencies with being timely and | 25 | | accurate in the processing of financial reporting for the |
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| 1 | | State by: | 2 | | (A) establishing minimum qualifications for all | 3 | | new GAAP Coordinators, in cooperation with the | 4 | | Comptroller's Division of Financial Reporting; | 5 | | (B) establishing minimum training requirements for | 6 | | GAAP Coordinators, in cooperation with the | 7 | | Comptroller's Division of Financial Reporting; | 8 | | (C) establishing continuing education requirements | 9 | | for GAAP Coordinators, in cooperation with the | 10 | | Comptroller's Division of Financial Reporting; | 11 | | (D) establishing best practice guidelines for GAAP | 12 | | package submissions, in cooperation with the | 13 | | Comptroller's Division of Financial Reporting; and | 14 | | (E) providing assistance during the GAAP cycle, in | 15 | | cooperation with the Comptroller's Financial Reporting | 16 | | Division; | 17 | | (5) to request information, and to make any inquiry,
| 18 | | investigation, survey, audit, or study that the Board may | 19 | | deem
necessary to enable it effectively to carry out the
| 20 | | provisions of this Act;
| 21 | | (6) to engage in any activity or operation that is
| 22 | | incidental to and in furtherance of efficient operation to
| 23 | | accomplish the Board's purposes;
| 24 | | (7) to adopt, revise, amend, and repeal rules with
| 25 | | respect to its operations, properties, and facilities as
| 26 | | may be necessary or convenient to carry out the purposes of
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| 1 | | this Act, subject to the provisions of the Illinois
| 2 | | Administrative Procedure Act;
| 3 | | (8) to consult with other states and private
businesses | 4 | | that have successfully modernized and
streamlined their | 5 | | financial reporting systems; | 6 | | (9) to use current State resources that are already
| 7 | | available inside of State government, and to use current
| 8 | | financial reporting principles and practices, including,
| 9 | | but not limited to, principles and practices of the Auditor
| 10 | | General and the Comptroller; | 11 | | (10) to issue reports to the General Assembly | 12 | | concerning State agencies that are deficient in their GAAP | 13 | | submission responsibilities; and | 14 | | (11) to participate in the development of a statewide | 15 | | GAAP-compliant financial reporting system. | 16 | | Section 20. Audits. | 17 | | (a) Within 12 months after the effective date of this Act, | 18 | | the Internal Auditor of every State agency that submits a GAAP | 19 | | package must submit a completed initial audit to the Board. | 20 | | The audit shall include, but is not limited to, the | 21 | | following: | 22 | | (1) the identity, tenure, and qualifications of the | 23 | | agency's GAAP Coordinator; | 24 | | (2) whether the agency is or has been delinquent in the
| 25 | | submission of any GAAP packages or forms and the number of |
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| 1 | | days during which the submission was delinquent;
| 2 | | (3) whether the agency is or has been delinquent in the
| 3 | | submission of any Schedule of Expenditures of Federal
| 4 | | Awards (where applicable); and
| 5 | | (4) any errors in any financial statements published by | 6 | | the
agency (where applicable).
| 7 | | (b) In addition, the Internal Auditor of every State agency | 8 | | that submits a GAAP package must submit an annual audit of its | 9 | | GAAP and financial statement process, if applicable, to the | 10 | | Board. | 11 | | (c) The Board shall submit the reports created under
| 12 | | subsections (a) and (b) to the Comptroller and the Governor.
| 13 | | Section 25. Responsibilities of other parties. | 14 | | (a) The Comptroller's Division of Financial Reporting | 15 | | shall assist State agencies during the GAAP process and shall | 16 | | review GAAP packages and preparation of the CAFR. In addition, | 17 | | the Comptroller's Division of Financial Reporting shall | 18 | | cooperate with the Board in the following matters: | 19 | | (1) the development of a GAAP training program for | 20 | | State agencies; | 21 | | (2) the development of continuing education for | 22 | | employees of State agencies; and | 23 | | (3) the development of detailed standards for GAAP | 24 | | reporting by State agencies. | 25 | | (b) The Governor's Office has the following |
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| 1 | | responsibilities under this Act: | 2 | | (1) to ensure that State agencies maintain the minimum | 3 | | standards for qualifications, training and education for | 4 | | GAAP Coordinators; | 5 | | (2) to ensure that State agencies complete an initial | 6 | | audit on the GAAP process; | 7 | | (3) to ensure that State agencies complete an annual | 8 | | audit on the GAAP process; and | 9 | | (4) to ensure that proper resources are allocated to | 10 | | the State agencies to meet their GAAP and Financial | 11 | | Statement reporting responsibilities. | 12 | | (c) State agencies have the following responsibilities | 13 | | under this Act: | 14 | | (1) to perform an initial audit of the GAAP process; | 15 | | (2) to perform annual audits of the GAAP process; | 16 | | (3) to ensure that proper resources are allocated to | 17 | | meet their GAAP and Financial Statement reporting | 18 | | responsibilities; and | 19 | | (4) to adhere to the Board's guidance in regards to | 20 | | GAAP package processing and maintaining minimum standards | 21 | | for qualifications, training, and education for GAAP | 22 | | Coordinators. | 23 | | Section 30. Cooperation. All State agencies must render
| 24 | | full cooperation to the Board and its employees. |
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| 1 | | Section 65. The State Finance Act is amended by adding | 2 | | Sections 5.811 and 6z-93 as follows: | 3 | | (30 ILCS 105/5.811 new) | 4 | | Sec. 5.811. The Financial Reporting Standards Revolving | 5 | | Fund. | 6 | | (30 ILCS 105/6z-93 new) | 7 | | Sec. 6z-93. The Financial Reporting Standards Revolving | 8 | | Fund; creation. The Financial Reporting Standards Revolving | 9 | | Fund is hereby created as a revolving Fund in the State | 10 | | treasury. The Fund may receive moneys or transfers for | 11 | | GAAP-related services provided to State agencies. State | 12 | | agencies shall reimburse the Comptroller for the cost of | 13 | | training, education, assistance, audits, studies, and other | 14 | | costs incurred on their behalf as a result of the Financial | 15 | | Reporting Standards Board Act. The Comptroller may advance bill | 16 | | for services for the upcoming GAAP cycle. The Comptroller shall | 17 | | adjust any future billings for any advance billing | 18 | | inaccuracies. The State agency may voucher the payments to the | 19 | | Comptroller or they may initiate a fund transfer to the | 20 | | Comptroller. State moneys may be appropriated from the Fund for | 21 | | the expenses of the Financial Reporting Standards Board and for | 22 | | the operations of the Comptroller's Division of Financial | 23 | | Reporting.
| 24 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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