SR0609

LRB096 20125 JDS 35661 r





  
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SENATE RESOLUTION

  
 
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    WHEREAS, Pursuant to State law, the State Comptroller is 
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given the responsibility to "develop
and prescribe for the use 
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of all State agencies a uniform accounting system . . ." in 
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accordance
with generally accepted accounting principles 
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applicable to government; and
  
 
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    WHEREAS, For the last 7 years, the Auditor General's audits 
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of the State's financial
statements have concluded that the 
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State of Illinois does not have adequate controls to ensure

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that information reported by individual agencies of the primary 
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government is fairly stated and
compliant with generally 
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accepted accounting principles; and
  
 
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    WHEREAS, For the last 7 years, the Auditor General's 
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statewide single audits have
concluded that the State's current 
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financial reporting process also is not sufficient to allow the

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State to prepare a complete and accurate Comprehensive Annual 
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Financial Report (CAFR) or the
Schedule of Expenditures of the 
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Federal Awards in a timely manner; and
  
 
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    WHEREAS, Financial reporting problems result in 
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inaccuracies, inefficiencies, and delays that
negatively 
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impact the ability of State decision-makers to have timely and 
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accurate information
on which to base their decisions and could 
 


 






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potentially jeopardize the State's eligibility for federal

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funding; and
  
 
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    WHEREAS, A centralized automated reporting system, if 
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properly implemented, would increase
the State's timeliness, 
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accuracy, and consistency in financial reporting and enhance 
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its
accountability and transparency to  citizens, other units of 
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government, vendors, bond-rating
agencies, and other 
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interested persons; and
  
 
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    WHEREAS, The cost of a centralized automated reporting 
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system sufficient to address these
issues is estimated at more 
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than $100 million; therefore, be it
  
 
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    RESOLVED, BY THE SENATE OF THE NINETY-SIXTH GENERAL 
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ASSEMBLY OF THE STATE OF ILLINOIS, that the Auditor General is 
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directed to conduct a management
 audit of the State's financial 
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reporting system; and be it further
  
 
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    RESOLVED, That that the audit include, but not be limited 
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to, the following determinations:
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        (1) an analysis of the State's current financial 
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    reporting procedures, practices, and
systems, including 
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    the number of different systems used by the various State

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    agencies, an estimate of the cost of maintaining those 
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    systems, and whether those
systems are compliant with 
 


 






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    generally accepted accounting principles applicable to

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    government; and
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        (2) a survey of other states to determine their methods 
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    of financial reporting and any
advantages or disadvantages 
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    to those methods, with particular emphasis on those
states, 
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    if any, with centralized automated reporting systems; and 
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    be it further
 
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    RESOLVED, That the Office of the Governor, Office of the 
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State Comptroller, Governor's
Office of Management and Budget, 
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and any other entity having information relevant to this audit

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cooperate fully and promptly with the Auditor General's Office 
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in the conduct of this audit; and be it further
  
 
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    RESOLVED, That the Auditor General commence this audit as 
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soon as possible and report
findings and recommendations upon 
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completion in accordance with the provisions of Section 3-14 of 
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the Illinois State Auditing Act, but no later than 12 months 
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after the adoption of this resolution; and be it further
 
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    RESOLVED, That copies of this resolution be delivered to 
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the Auditor General, Governor, and State Comptroller.