HB3355 98TH GENERAL ASSEMBLY

LRB098 09649 JDS 39795 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3355

Introduced , by Rep. Michael W. Tryon

SYNOPSIS AS INTRODUCED:

15 ILCS 405/6.01	from Ch. 15, par. 206.01
30 ILCS 5/2-8.2 new
30 ILCS 5/3-6	from Ch. 15, par. 303-6
30 ILCS 5/3-9	from Ch. 15, par. 303-9
30 ILCS 5/3-15	from Ch. 15, par. 303-15

Amends the Illinois State Auditing Act. Provides that oversight of the State's compliance with auditing standards and generally accepted accounting principles for governments shall be the responsibility of the Auditor General. Provides that the Auditor General's annual review shall evaluate the State's compliance with generally accepted accounting principles for governments, as promulgated by the Governmental Accounting Standards Board. Provides that the Auditor General shall (instead of "may") adopt rules concerning audit standards. Amends the State Comptroller Act to require to Comptroller to consult with the Auditor General and provide the Auditor General with draft copies of any proposed accounting standards. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 5. The State Comptroller Act is amended by changing Section 6.01 as follows:

(15 ILCS 405/6.01) (from Ch. 15, par. 206.01)

Sec. 6.01. Specification and establishment of accounting standards and principles. The Comptroller shall specify and establish the financial accounting and reporting standards and principles to be used by all State government and State agencies. The standards and principles shall be effective upon filing by the Comptroller with the Auditor General. The Comptroller shall maintain and publish the standards and principles as a public document. These standards and principles shall be known as the Generally Accepted Accounting Standards and Principles for Illinois State Government, and shall, whenever possible, be compatible with any similar nationally existing generally accepted accounting standards and principles for government.

In establishing the Generally Accepted Accounting Standards and Principles for Illinois State Government, the Comptroller shall consult with the Governor and the other members of the Executive Branch, the Chief Justice of the Supreme Court, the Auditor General, and the leadership of the General Assembly and shall provide to these officials draft copies of any proposed standards at least 90 days prior to their adoption and shall consider any responses or suggestions that these officials may present.

(Source: P.A. 86-1415.)

Section 10. The Illinois State Auditing Act is amended by changing Sections 3-6, 3-9, and 3-15 and by adding Section 2-8.2 as follows:

(30 ILCS 5/2-8.2 new)

Sec. 2-8.2. Compliance with auditing standards and generally accepted accounting principles for governments. Oversight of the State's compliance with auditing standards and generally accepted accounting principles for governments shall be the responsibility of the Auditor General.

(30 ILCS 5/3-6) (from Ch. 15, par. 303-6)

Sec. 3-6. Audit Standards. The Auditor General shall adopt rules may adopt regulations establishing post audit standards consistent with Sections 1-13, 1-13.5, and 1-14 of this Act and in accordance with generally accepted government auditing standards. The regulations may specify separate or particular standards applicable only to audits of federal grants, aid or trust funds administered by State agencies in order to comply with applicable federal regulations. Post audit standards established under this paragraph shall govern all post audits conducted by the Auditor General.

The Auditor General shall adopt rules may adopt regulations making such standards applicable to financial audits, compliance audits, and other attestation engagements conducted by State agencies of local governmental agencies or private agencies which are grantees or recipients of public funds of the State or of federal funds not constituting public funds of the State through projects administered by that State agency. Notwithstanding any other statute to the contrary, those regulations shall govern the audits to which they are expressly applicable.

The Auditor General shall adopt rules may make regulations providing for the ordinary use of compliance audits conducted by State agencies or by certified public accountants as part of financial audits, if such compliance audits comply with the standards and regulations applicable under this Act.

(Source: P.A. 93-630, eff. 12-23-03.)

(30 ILCS 5/3-9) (from Ch. 15, par. 303-9)

Sec. 3-9. Annual review of State accounting and pre-audit system. The Auditor General shall review, annually, the uniform State accounting system prescribed by the State Comptroller. The review shall include a review of the comments, findings and recommendations in audit reports and investigation reports and such other inquiry as the Auditor General considers advisable. The review shall evaluate the State Comptroller's compliance with generally accepted accounting principles for governments, as promulgated by the Governmental Accounting Standards Board. The annual review shall be directed primarily at the operation of the accounting system in facilitating post audits.

The Auditor General shall review, annually, the operation of the pre-audit system in the office of the State Comptroller. This review shall include an analysis of the comments, findings and recommendations in audit reports and investigation reports and such other inquiries as the Auditor General considers advisable. The review shall be made in consultation with the State Comptroller.

The reviews made under this Section shall be included in the annual report of the Auditor General.

(Source: P.A. 84-832.)

(30 ILCS 5/3-15) (from Ch. 15, par. 303-15)

Sec. 3-15. Reports of Auditor General. By March 1, each year, the Auditor General shall submit to the Commission, the General Assembly and the Governor an annual report summarizing all audits, investigations and special studies made under this Act during the last preceding calendar year. The annual report shall include an evaluation of the State's overall compliance with generally accepted accounting principles for governments, as promulgated by the Governmental Accounting Standards Board.

Once each 3 months, the Auditor General shall submit to the Commission a quarterly report concerning the operation of his office, including relevant fiscal and personnel matters, details of any contractual services utilized during that period, a summary of audits and studies still in process and such other information as the Commission requires.

The Auditor General shall prepare and distribute such other reports as may be required by the Commission.

All post audits directed by resolution of the House or Senate shall be reported to the members of the General Assembly, unless the directing resolution specifies otherwise.

The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report with the Speaker, the Minority Leader and the Clerk of the House of Representatives and the President, the Minority Leader and the Secretary of the Senate and the Legislative Research Unit, as required by Section 3.1 of "An Act to revise the law in relation to the General Assembly", approved February 25, 1874, as amended, and filing such additional copies with the State Government Report Distribution Center for the General Assembly as is required under paragraph (t) of Section 7 of the State Library Act.

(Source: P.A. 84-1438.)

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