HB3770 97TH GENERAL ASSEMBLY

LRB097 11606 PJG 54624 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3770

Introduced 4/26/2011, by Rep. Tom Cross

SYNOPSIS AS INTRODUCED:

New Act

Creates the Government Accounting Oversight and Accountability Board (GAOAB). Provides that the GAOAB shall (1) review the accounting documents of the State of Illinois on a quarterly basis and report to the General Assembly on the transparency of the documents; (2) serve as a third party arbitrator between the Commission on Government Forecasting and Accountability and the Governor's Office of Management and Budget to facilitate the agreement of both parties on all budgetary numbers for agencies, revenue estimates, spending projections, and future liabilities; and (3) serve as an independent board to sign all documents affirming that all numbers transmitted by the State are the most accurate and transparent numbers available. Provides that the GAOAB is composed of 5 members, one appointed by each of the legislative leaders and one appointed by the Executive Ethics Commission. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Government Accounting Oversight and Accountability Board Act.

Section 5. Legislative findings. Transparency in government accounting is imperative to ensure current budgeting is accurate and that projections of future liabilities, including pension and health insurance liabilities, are adequately funded.

Newly adopted Government Accounting Standards Board (GASB) Statements 43 and 45 require the disclosure of annually required contributions for pension and health insurance benefits. These annually required contributions are the amounts a government must contribute or set aside each year to meet its actuarial accrued liability for all post-employment benefits.

Illinois offers its employees various retirement benefits in addition to pension benefits to boost their overall compensation package, including health insurance, prescription drug benefits, dental care, and vision care.

The State of Illinois needs to implement truth in accounting provisions to make certain that State officials report accurate financial information and that State officials are held accountable to the public.

Section 10. Creation of the Government Accounting Oversight and Accountability Board; duties.

(a) The Government Accounting Oversight and Accountability Board (GAOAB) is created to provide independent oversight of governmental accounting procedure, create transparency, and provide a level of accountability.

(b) The GAOAB shall:

(1) review the accounting documents of the State of Illinois on a quarterly basis and report to the General Assembly on the transparency of the documents;

(2) serve as a third party arbitrator between the Commission on Government Forecasting and Accountability and the Governor's Office of Management and Budget to facilitate the agreement of both parties on all budgetary numbers for agencies, revenue estimates, spending projections, and future liabilities; and

(3) serve as an independent board to sign all documents affirming that all numbers transmitted by the State of Illinois are, to the best of their knowledge, the most accurate and transparent numbers available.

Section 15. Membership; terms; experience; compensation.

(a) The GAOAB is composed of 5 members, one appointed by the President of the Senate, one appointed by the Speaker of the House, one appointed by the Minority Leader of the Senate, one appointed by the Minority Leader of the House, and one appointed by the Executive Ethics Commission. The appointee of the Executive Ethics Commission shall serve as the Chair of the GAOAB.

(b) Of the initial appointees, the member appointed by the Executive Ethics Commission shall serve a one-year term, the members appointed by the President of the Senate and the Speaker of the House shall each serve one 3-year term, and the members appointed by the Minority Leader of the Senate and the Minority Leader of the House shall each serve one 2-year term. Thereafter, members shall serve for 4-year terms. Members may be reappointed for succeeding terms.

(c) Each member shall have demonstrated sufficient business or professional experience in the area of business and accounting to perform the functions of the GAOAB.

(d) Members of the GAOAB shall serve without compensation.

Section 20. Administrative support. The Executive Ethics Commission shall provide administrative and other support to the GAOAB.

Section 99. Effective date. This Act takes effect upon becoming law.