97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3699

 

Introduced 2/10/2012, by Sen. Linda Holmes

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 315/15  from Ch. 48, par. 1615
20 ILCS 415/26 new
30 ILCS 105/5.811 new
30 ILCS 105/6z-93 new

    Creates the Division of Financial Reporting Act. Provides that the Division will serve under the direction of the State Chief Information Officer, subject to the oversight of the Board of Trustees. Sets forth the responsibilities of the Division, including, but not limited to: implementing a modernized financial accounting system for the State of Illinois in the form of an Enterprise Resource Planning or "ERP" System and conducting management and operational evaluations of each executive branch agency. Creates a Board of Trustees to oversee the Division. Effective immediately.


LRB097 19476 HLH 64729 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3699LRB097 19476 HLH 64729 b

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
5Division of Financial Reporting Act.
 
6    Section 5. Findings. The General Assembly finds that:
7        (1) Addressing the State's inability to produce
8    Generally Accepted Accounting Principles (GAAP)-compliant
9    financial reports in a timely manner is an urgent priority.
10        (2) The Auditor General's recent findings on the
11    State's financial accounting systems provide a unique
12    opportunity for key stakeholders to make policy choices
13    that can materially improve the State's likelihood of
14    success in addressing this problem.
15        (3) The State's problems in financial reporting
16    represent the cumulative effect of a multitude of systemic
17    challenges, including: archaic technology, insufficient
18    staff resources in the areas of accounting, technology,
19    training, financial analysis, and other fields, disparate
20    approaches to financial reporting among dozens of
21    agencies.
22        (4) Implementing a modern, agile process for
23    collecting, assembling, in a uniform fashion, financial

 

 

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1    information such that the State can produce timely,
2    GAAP-compliant financial reports through an Enterprise
3    Resource Planning (ERP) system will involve not only
4    significant monetary investment in software acquisition
5    and implementation services, but also, preliminarily,
6    changes to the structure and internal management of State
7    government.
8        
 
9    Section 10. Division of Financial Reporting; creation.
10There is hereby created a Division of Financial Reporting. The
11Division will serve under the direction of the State Chief
12Information Officer, subject to the oversight of the Board of
13Trustees. The Division shall have the following
14responsibilities:
15        (1) to implement a modernized financial accounting
16    system for the State of Illinois in the form of an
17    Enterprise Resource Planning or "ERP" System;
18        (2) to assemble a group of management professionals,
19    having both public and private sector experience, in
20    addition to experience in ERP implementation and financial
21    reporting needs of agencies in the executive branch; the
22    Division shall be staffed with professionals having
23    high-level skill sets in accounting, financial reporting
24    and management, enterprise systems implementation, and
25    business process reengineering; these professionals will

 

 

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1    provide assistance to executive branch agencies engaged in
2    financial reporting, technology, and ERP implementation;
3        (3) to provide certification and continuing education
4    in the areas of accounting financial reporting and
5    technology;
6        (4) to conduct management and operational evaluations
7    of each executive branch agency; and to submit a
8    recommended plan for personnel changes, operational
9    changes, and policy modifications to the Office of the
10    Governor, the General Assembly, and the Comptroller's
11    office; all executive branch agencies directly responsible
12    to the Governor shall align their respective technology
13    strategies and operations to the plan and render full
14    cooperation in its implementation
15        (5) to work, in cooperation with the Executive Ethics
16    Commission, the Chief Procurement Officers appointed
17    pursuant to P.A. 96-795, the Department of Central
18    Management Services, the Office of the Comptroller, and
19    other stakeholders on an optimal procurement strategy for
20    acquiring the software and services for ERP implementation
21    and for the implementation of other enterprise wide
22    systems;
23        (6) to employ the individuals that are necessary to
24    carry out the duties and functions of the Office;
25        (7) to obligate and expend monetary resources
26    essential for carrying out the duties and responsibilities

 

 

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1    of the Office;
2        (8) to work in cooperation with the Governor's Office
3    of Management and Budget, agency directors, and the Office
4    of the Comptroller to address agency needs and the delivery
5    of timely information;
6        (9) to assemble a team of management professionals as
7    staff for the Division and for the performance of other
8    duties set forth in this Act;
9        (10) to undertake any other act essential for the
10    performance of the duties and responsibilities of the
11    Office.
12        (11) to direct the State's financial reporting and
13    related technology policies, practices, and objectives
14    with respect to all State agencies directly responsible to
15    the Governor.
 
16    Section 15. Board of Trustees. There is hereby created a
17Board of Trustees for the Division, consisting of 7 members.
18The Governor, the Comptroller, the Speaker of the House of
19Representatives, the Minority Leader of the House of
20Representatives, the Senate President, and the Senate Minority
21Leader shall each appoint one. The Governor and the Comptroller
22will each designate a person to serve as co-chairperson. The
23purpose of the Board of Trustees is to ensure transparency,
24open communication, and ongoing collaboration between the
25legislative and executive branches, as well as within and among

 

 

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1the executive branch constitutional officers and agencies. At
2each meeting the Director of the Division of Financial
3Reporting will present a detailed report to the trustees
4outlining all the activities of the Division during the
5preceding months and will solicit input advice and consultation
6from the trustees. Meetings of the board shall be subject to
7the provisions of the Open Meetings Act.
 
8    Section 20. Exemptions. Notwithstanding any laws, rules,
9or regulations to the contrary, the Division of Financial
10Reporting is exempt from all provisions of the Personnel Code
11and the Illinois Public Labor Relations Act.
 
12    Section 30. Cooperation. All executive branch agencies
13must render full cooperation to the Division and its employees.
 
14    Section 50. The Illinois Public Labor Relations Act is
15amended by changing Section 15 as follows:
 
16    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
17    Sec. 15. Act Takes Precedence.
18    (a) In case of any conflict between the provisions of this
19Act and any other law (other than Section 5 of the State
20Employees Group Insurance Act of 1971, and other than the
21changes made to the Illinois Pension Code by this amendatory
22Act of the 96th General Assembly, and other than the Division

 

 

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1of Financial Reporting Act), executive order or administrative
2regulation relating to wages, hours and conditions of
3employment and employment relations, the provisions of this Act
4or any collective bargaining agreement negotiated thereunder
5shall prevail and control. Nothing in this Act shall be
6construed to replace or diminish the rights of employees
7established by Sections 28 and 28a of the Metropolitan Transit
8Authority Act, Sections 2.15 through 2.19 of the Regional
9Transportation Authority Act. The provisions of this Act are
10subject to Section 5 of the State Employees Group Insurance Act
11of 1971. Nothing in this Act shall be construed to replace the
12necessity of complaints against a sworn peace officer, as
13defined in Section 2(a) of the Uniform Peace Officer
14Disciplinary Act, from having a complaint supported by a sworn
15affidavit.
16    (b) Except as provided in subsection (a) above, any
17collective bargaining contract between a public employer and a
18labor organization executed pursuant to this Act shall
19supersede any contrary statutes, charters, ordinances, rules
20or regulations relating to wages, hours and conditions of
21employment and employment relations adopted by the public
22employer or its agents. Any collective bargaining agreement
23entered into prior to the effective date of this Act shall
24remain in full force during its duration.
25    (c) It is the public policy of this State, pursuant to
26paragraphs (h) and (i) of Section 6 of Article VII of the

 

 

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1Illinois Constitution, that the provisions of this Act are the
2exclusive exercise by the State of powers and functions which
3might otherwise be exercised by home rule units. Such powers
4and functions may not be exercised concurrently, either
5directly or indirectly, by any unit of local government,
6including any home rule unit, except as otherwise authorized by
7this Act.
8(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
9    Section 55. The Personnel Code is amended by adding Section
1026 as follows:
 
11    (20 ILCS 415/26 new)
12    Sec. 26. Division of Financial Reporting Act. This Code is
13subject to the provisions of the Division of Financial
14Reporting Act.
 
15    Section 90. The State Finance Act is amended by adding
16Sections 5.811 and 6z-93 as follows:
 
17    (30 ILCS 105/5.811 new)
18    Sec. 5.811. The Division of Financial Reporting Revolving
19Fund.
 
20    (30 ILCS 105/6z-93 new)
21    Sec. 6z-93. Division of Financial Reporting Revolving

 

 

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1Fund; creation. There is hereby created in the State treasury a
2revolving fund as a dedicated fund to receive funds payable to
3the Division of Financial Reporting for services provided to
4State agencies. Moneys may be expended from the Fund for the
5operations of the Division of Financial Reporting.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.