Illinois General Assembly - Full Text of SB3794
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Full Text of SB3794  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,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Financial Reporting Standards Board Act.
6    Section 5. Definitions. As used in this Act:
7    "Board" means the Financial Reporting Standards Board
8created under Section 10 of this Act.
9    "CAFR" means the Comprehensive Annual Financial Report
10required under Section 19.5 of the State Comptroller Act.
11    "Comptroller" means the Comptroller of the State of
13    "GAAP Coordinator" means a designated representative,
14employed by a State agency or component unit of the State, who
15is responsible for submission to the Office of the Comptroller
16all required documentation, as determined by the Office of the
17Comptroller, necessary for the preparation of the
18Comprehensive Annual Financial Report.
19    "Internal auditor" means an auditor employed by a State
20agency under the Fiscal Control and Internal Auditing Act.
21    "Licensed Certified Public Accountant" has the meaning
22provided in Section 0.03 of the Illinois Public Accounting Act.
23    "Registered Certified Public Accountant" has the meaning



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1provided in Section 0.03 of the Illinois Public Accounting Act.
2    "Schedule of Expenditures of Federal Awards" and "SEFA"
3mean the supplemental information required by the federal
4Office of Management and Budget, Circular A-133.
5    "State agency" means all departments, officers,
6commissions, boards, authorities, institutions, universities,
7foundations, and bodies politic and corporate of the State that
8are required to submit financial reporting information to the
9Office of the Auditor General, the Office of the Comptroller,
10or the federal government.
11    Section 10. Financial Reporting Standards Board; creation.
12    (a) There is created the Financial Reporting Standards
13Board. The Board shall assist the State in improving the
14timeliness, quality, and processing of financial reporting for
15the State.
16    (b) The Board shall consist of 3 members appointed by the
17Comptroller and 2 members appointed by the Governor, all with
18the advice and consent of the Senate.
19    (c) Each member shall be licensed or registered as a
20certified public accountant.
21    (d) Of the initial members appointed to the Board: one
22member appointed by the Comptroller shall be appointed for a
232-year term; one member appointed by the Comptroller and one
24member appointed by the Governor shall be appointed for a
253-year term; and one member appointed by the Comptroller and



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1one member appointed by the Governor shall be appointed for a
24-year term. Those members may be reappointed for 4-year terms.
3Their successors shall be appointed for 4-year terms and may be
4reappointed. A vacancy on the Board shall be filled for the
5remainder of the unexpired term, in the same manner and by the
6same officer who made the original appointment.
7    (e) The Comptroller and the Governor shall each designate
8one of their appointed members as co-chairperson of the Board.
9    (f) The Board shall meet at least 2 times each year and at
10other times at the call of the chairpersons. Meetings of the
11Board shall be subject to the provisions of the Open Meetings
13    (g) The members of the Board shall serve without
14compensation, 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,
18the Internal Auditor of every State agency that submits a GAAP
19package must submit a completed initial audit to the Board.
20    The audit shall include, but is not limited to, the
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
8that submits a GAAP package must submit an annual audit of its
9GAAP and financial statement process, if applicable, to the
11    (c) The Board shall submit the reports created under
12subsections (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
15shall assist State agencies during the GAAP process and shall
16review GAAP packages and preparation of the CAFR. In addition,
17the Comptroller's Division of Financial Reporting shall
18cooperate 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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1responsibilities 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
13under 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
24full cooperation to the Board and its employees.



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1    Section 65. The State Finance Act is amended by adding
2Sections 5.811 and 6z-93 as follows:
3    (30 ILCS 105/5.811 new)
4    Sec. 5.811. The Financial Reporting Standards Revolving
6    (30 ILCS 105/6z-93 new)
7    Sec. 6z-93. The Financial Reporting Standards Revolving
8Fund; creation. The Financial Reporting Standards Revolving
9Fund is hereby created as a revolving Fund in the State
10treasury. The Fund may receive moneys or transfers for
11GAAP-related services provided to State agencies. State
12agencies shall reimburse the Comptroller for the cost of
13training, education, assistance, audits, studies, and other
14costs incurred on their behalf as a result of the Financial
15Reporting Standards Board Act. The Comptroller may advance bill
16for services for the upcoming GAAP cycle. The Comptroller shall
17adjust any future billings for any advance billing
18inaccuracies. The State agency may voucher the payments to the
19Comptroller or they may initiate a fund transfer to the
20Comptroller. State moneys may be appropriated from the Fund for
21the expenses of the Financial Reporting Standards Board and for
22the operations of the Comptroller's Division of Financial
24    Section 99. Effective date. This Act takes effect upon



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1becoming law.