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| 1 | HOUSE RESOLUTION
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| 2 | WHEREAS, The Local Government Account Audit Act, the County | ||||||
| 3 | Code Division
of Audits, and the Municipal Code-Audit Report | ||||||
| 4 | Contents requires units of local government to file audit | ||||||
| 5 | reports of local government
financial statements with the | ||||||
| 6 | Comptroller's Local Government Division; and
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| 7 | WHEREAS, Audits of local government financial statements | ||||||
| 8 | prepared on a cash basis accounting
have been accepted by the | ||||||
| 9 | Office of the Comptroller since the office was created by the | ||||||
| 10 | 1970
State Constitution; and
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| 11 | WHEREAS, The Comptroller's Local Government Division has | ||||||
| 12 | began notifying units of local
government who have submitted | ||||||
| 13 | audits that as of December 5, 2016 audits of financial
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| 14 | statements prepared on a cash basis accounting are no longer in | ||||||
| 15 | compliance; and
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| 16 | WHEREAS, The Comptroller's Local Government Division has | ||||||
| 17 | retroactively applied a change in
practice in place since 1970 | ||||||
| 18 | without any advance notice, stakeholder outreach, or | ||||||
| 19 | consultation
with the Comptroller's Local Government Advisory | ||||||
| 20 | Committee; and | ||||||
| 21 | WHEREAS, Audit standards provide for audits of financial | ||||||
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| 1 | statements prepared on the cash basis
of accounting; and | ||||||
| 2 | WHEREAS, The conversion from a cash basis system of | ||||||
| 3 | accounting to an accrual basis system of
accounting will be | ||||||
| 4 | costly and time consuming for units of local government; and
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| 5 | WHEREAS, Local governments who have already received | ||||||
| 6 | non-compliant letters from the
Comptroller are more than half | ||||||
| 7 | way through their current fiscal year and audit period and the
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| 8 | Comptroller's Office is requiring the upcoming audit to be | ||||||
| 9 | completed using an accrual basis of
accounting; and
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| 10 | WHEREAS, An opinion has been requested from the Attorney | ||||||
| 11 | General on the interpretation and
application of Section | ||||||
| 12 | 5/8-8-5 audit contents of the Illinois Municipal Code; | ||||||
| 13 | therefore, be it
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| 14 | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE | ||||||
| 15 | HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we | ||||||
| 16 | encourage the Comptroller to suspend implementation of the | ||||||
| 17 | accrual basis of accounting requirement pending the receipt of | ||||||
| 18 | the Attorney General's opinion; and be it further
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| 19 | RESOLVED, That we encourage the Comptroller to work with | ||||||
| 20 | stakeholders to minimize the impact of this change on units of | ||||||
| 21 | local government; and be it further | ||||||
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| 1 | RESOLVED, That a suitable copy of this resolution be | ||||||
| 2 | delivered to the Comptroller Susana A. Mendoza.
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