Illinois General Assembly - Full Text of HR0558
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Full Text of HR0558  100th General Assembly

HR0558 100TH GENERAL ASSEMBLY


  

 


 
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1
HOUSE RESOLUTION

 
2    WHEREAS, The Local Government Account Audit Act, the County
3Code Division of Audits, and the Municipal Code-Audit Report
4Contents requires units of local government to file audit
5reports of local government financial statements with the
6Comptroller's Local Government Division; and
 
7    WHEREAS, Audits of local government financial statements
8prepared on a cash basis accounting have been accepted by the
9Office of the Comptroller since the office was created by the
101970 State Constitution; and
 
11    WHEREAS, The Comptroller's Local Government Division has
12began notifying units of local government who have submitted
13audits that as of December 5, 2016 audits of financial
14statements prepared on a cash basis accounting are no longer in
15compliance; and
 
16    WHEREAS, The Comptroller's Local Government Division has
17retroactively applied a change in practice in place since 1970
18without any advance notice, stakeholder outreach, or
19consultation with the Comptroller's Local Government Advisory
20Committee; and
 
21    WHEREAS, Audit standards provide for audits of financial

 

 

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1statements prepared on the cash basis of accounting; and
 
2    WHEREAS, The conversion from a cash basis system of
3accounting to an accrual basis system of accounting will be
4costly and time consuming for units of local government; and
 
5    WHEREAS, Local governments who have already received
6non-compliant letters from the Comptroller are more than half
7way through their current fiscal year and audit period and the
8Comptroller's Office is requiring the upcoming audit to be
9completed using an accrual basis of accounting; and
 
10    WHEREAS, An opinion has been requested from the Attorney
11General on the interpretation and application of Section
125/8-8-5 audit contents of the Illinois Municipal Code;
13therefore, be it
 
14    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE
15HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
16encourage the Comptroller to suspend implementation of the
17accrual basis of accounting requirement pending the receipt of
18the Attorney General's opinion; and be it further
 
19    RESOLVED, That we encourage the Comptroller to work with
20stakeholders to minimize the impact of this change on units of
21local government; and be it further
 

 

 

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1    RESOLVED, That a suitable copy of this resolution be
2delivered to the Comptroller Susana A. Mendoza.