Illinois General Assembly - Full Text of SB3794
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Full Text of SB3794  97th General Assembly


Sen. Linda Holmes

Filed: 3/26/2012





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2    AMENDMENT NO. ______. Amend Senate Bill 3794 by replacing
3everything after the enacting clause with the following:
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



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1Comptroller, necessary for the preparation of the
2Comprehensive Annual Financial Report.
3    "Internal auditor" means an auditor employed by a State
4agency under the Fiscal Control and Internal Auditing Act.
5    "Licensed Certified Public Accountant" has the meaning
6provided in Section 0.03 of the Illinois Public Accounting Act.
7    "Registered Certified Public Accountant" has the meaning
8provided in Section 0.03 of the Illinois Public Accounting Act.
9    "Schedule of Expenditures of Federal Awards" and "SEFA"
10mean the supplemental information required by the federal
11Office of Management and Budget, Circular A-133.
12    "State agency" means all departments, officers,
13commissions, boards, authorities, institutions, universities,
14foundations, and bodies politic and corporate of the State that
15are required to submit financial reporting information to the
16Office of the Auditor General, the Office of the Comptroller,
17or the federal government.
18    Section 10. Financial Reporting Standards Board; creation.
19    (a) There is created the Financial Reporting Standards
20Board. The Board shall assist the State in improving the
21timeliness, quality, and processing of financial reporting for
22the State.
23    (b) The Board shall consist of 3 members appointed by the
24Comptroller and 2 members appointed by the Governor, all with
25the advice and consent of the Senate.



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1    (c) Each member shall be licensed or registered as a
2certified public accountant.
3    (d) Of the initial members appointed to the Board: one
4member appointed by the Comptroller shall be appointed for a
52-year term; one member appointed by the Comptroller and one
6member appointed by the Governor shall be appointed for a
73-year term; and one member appointed by the Comptroller and
8one member appointed by the Governor shall be appointed for a
94-year term. Those members may be reappointed for 4-year terms.
10Their successors shall be appointed for 4-year terms and may be
11reappointed. A vacancy on the Board shall be filled for the
12remainder of the unexpired term, in the same manner and by the
13same officer who made the original appointment.
14    (e) The Comptroller and the Governor shall each designate
15one of their appointed members as co-chairperson of the Board.
16    (f) The Board shall meet at least 2 times each year and at
17other times at the call of the chairpersons. Meetings of the
18Board shall be subject to the provisions of the Open Meetings
20    (g) The members of the Board shall serve without
21compensation, but may be reimbursed for expenses.
22    Section 15. Powers. The Board has the following powers:
23        (1) to have a corporate seal, and to alter that seal at
24    pleasure, and to use it by causing it or a facsimile to be
25    affixed or impressed or reproduced in any other manner;



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1        (2) to use the services of the Office of the
2    Comptroller and the Office of the Governor as necessary to
3    carry out the Board's purposes;
4        (3) to receive and expend funds appropriated to it by
5    the General Assembly;
6        (4) to assist State agencies with being timely and
7    accurate in the processing of financial reporting for the
8    State by:
9            (A) establishing minimum qualifications for all
10        new GAAP Coordinators, in cooperation with the
11        Comptroller's Division of Financial Reporting;
12            (B) establishing minimum training requirements for
13        GAAP Coordinators, in cooperation with the
14        Comptroller's Division of Financial Reporting;
15            (C) establishing continuing education requirements
16        for GAAP Coordinators, in cooperation with the
17        Comptroller's Division of Financial Reporting;
18            (D) establishing best practice guidelines for GAAP
19        package submissions, in cooperation with the
20        Comptroller's Division of Financial Reporting; and
21            (E) providing assistance during the GAAP cycle, in
22        cooperation with the Comptroller's Financial Reporting
23        Division;
24        (5) to request information, and to make any inquiry,
25    investigation, survey, audit, or study that the Board may
26    deem necessary to enable it effectively to carry out the



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1    provisions of this Act;
2        (6) to engage in any activity or operation that is
3    incidental to and in furtherance of efficient operation to
4    accomplish the Board's purposes;
5        (7) to adopt, revise, amend, and repeal rules with
6    respect to its operations, properties, and facilities as
7    may be necessary or convenient to carry out the purposes of
8    this Act, subject to the provisions of the Illinois
9    Administrative Procedure Act;
10        (8) to consult with other states and private businesses
11    that have successfully modernized and streamlined their
12    financial reporting systems;
13        (9) to use current State resources that are already
14    available inside of State government, and to use current
15    financial reporting principles and practices, including,
16    but not limited to, principles and practices of the Auditor
17    General and the Comptroller;
18        (10) to issue reports to the General Assembly
19    concerning State agencies that are deficient in their GAAP
20    submission responsibilities; and
21        (11) to participate in the development of a statewide
22    GAAP-compliant financial reporting system.
23    Section 20. Audits.
24    (a) Within 12 months after the effective date of this Act,
25the Internal Auditor of every State agency that submits a GAAP



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1package must submit a completed initial audit to the Board.
2    The audit shall include, but is not limited to, the
4        (1) the identity, tenure, and qualifications of the
5    agency's GAAP Coordinator;
6        (2) whether the agency is or has been delinquent in the
7    submission of any GAAP packages or forms and the number of
8    days during which the submission was delinquent;
9        (3) whether the agency is or has been delinquent in the
10    submission of any Schedule of Expenditures of Federal
11    Awards (where applicable); and
12        (4) any errors in any financial statements published by
13    the Agency (where applicable).
14    (b) In addition, the Internal Auditor of every State agency
15that submits a GAAP package must submit an annual audit of its
16GAAP and financial statement process, if applicable, to the
18    (c) The Board shall submit the reports created under
19subsections (a) and (b) to the Comptroller and the Governor.
20    Section 25. Responsibilities of other parties.
21    (a) The Comptroller's Division of Financial Reporting
22shall assist State agencies during the GAAP process and shall
23review GAAP packages and preparation of the CAFR. In addition,
24the Comptroller's Division of Financial Reporting shall
25cooperate with the Board in the following matters:



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1        (1) the development of a GAAP training program for
2    State agencies;
3        (2) the development of continuing education for
4    employees of State agencies; and
5        (3) the development of detailed standards for GAAP
6    reporting by State agencies.
7    (b) The Governor's Office has the following
8responsibilities under this Act:
9        (1) to ensure that State agencies maintain the minimum
10    standards for qualifications, training and education for
11    GAAP coordinators;
12        (2) to ensure that State agencies complete an initial
13    audit on the GAAP process;
14        (3) to ensure that State agencies complete an annual
15    audit on the GAAP process; and
16        (4) to ensure that proper resources are allocated to
17    the State agencies to meet their GAAP and Financial
18    Statement reporting responsibilities.
19    (c) State agencies have the following responsibilities
20under this Act:
21        (1) to perform an initial audit of the GAAP process;
22        (2) to perform annual audits of the GAAP process;
23        (3) to ensure that proper resources are allocated to
24    meet their GAAP and Financial Statement reporting
25    responsibilities; and
26        (4) to adhere to the Board's guidance in regards to



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1    GAAP package processing and maintaining minimum standards
2    for qualifications, training, and education for GAAP
3    coordinators.
4    Section 30. Cooperation. All State agencies must render
5full cooperation to the Board and its employees.
6    Section 65. The State Finance Act is amended by adding
7Sections 5.811 and 6z-93 as follows:
8    (30 ILCS 105/5.811 new)
9    Sec. 5.811. The Financial Reporting Standards Revolving
11    (30 ILCS 105/6z-93 new)
12    Sec. 6z-93. The Financial Reporting Standards Revolving
13Fund; creation. The Financial Reporting Standards Revolving
14Fund is hereby created as a revolving Fund in the State
15treasury. The Fund may receive moneys or transfers for
16GAAP-related services provided to State agencies. State
17agencies shall reimburse the Comptroller for the cost of
18training, education, assistance, audits, studies, and other
19costs incurred on their behalf as a result of the Financial
20Reporting Standards Board Act. The Comptroller may advance bill
21for services for the upcoming GAAP cycle. The Comptroller shall
22adjust any future billings for any advance billing



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1inaccuracies. The State agency may voucher the payments to the
2Comptroller or they may initiate a fund transfer to the
3Comptroller. State moneys may be appropriated from the Fund for
4the expenses of the Financial Reporting Standards Board, and
5for the operations of the Comptroller's Division of Financial
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".