Public Act 097-1055
 
SB3794 EnrolledLRB097 20441 HLH 65939 b


  
    AN ACT concerning State government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
    Section 1. Short title. This Act may be cited as the 
Financial Reporting Standards Board Act.
 
    Section 5. Definitions. As used in this Act:
    "Board" means the Financial Reporting Standards Board

created under Section 10 of this Act.

    "CAFR" means the Comprehensive Annual Financial Report 
required under Section 19.5 of the State Comptroller Act.
    "Comptroller" means the Comptroller of the State of

Illinois.

    "GAAP Coordinator" means a designated representative, 
employed by a State agency or component unit of the State, who 
is  responsible for submission to the Office of the Comptroller 
all required documentation, as determined by the Office of the 
Comptroller, necessary for the preparation of the 
Comprehensive Annual Financial Report.
    "Internal auditor" means an auditor employed by a State

agency under the Fiscal Control and Internal Auditing Act.

    "Licensed Certified Public Accountant" has the meaning

provided in Section 0.03 of the Illinois Public Accounting Act.

    "Registered Certified Public Accountant" has the meaning

provided in Section 0.03 of the Illinois Public Accounting Act.

    "State agency" means all departments, officers,

commissions, boards, authorities, institutions, universities, 
foundations, and bodies politic and corporate of the State that 
are required to submit financial
reporting information to the 
Office of the Auditor General, the
Office of the Comptroller, 
or the federal government.
 "State agency" does not include the 
legislative branch or judicial branch.
 
    Section 10. Financial Reporting Standards Board;
creation.
 
    (a) There is created the Financial Reporting Standards

Board. The Board shall assist the State in
improving the 
timeliness, quality, and processing of
financial reporting for 
the State.
    (b) The Board shall consist of 3 members appointed by the 
Comptroller and 3 members appointed by the Governor, all with 
the advice and consent of the Senate.
    (c)  At least one member appointed by the Comptroller and at 
least one member appointed by the Governor shall be a licensed 
or registered Certified Public Accountant. Any member who is 
not a licensed or registered Certified Public Accountant shall 
have relevant experience in business, government accounting, 
or finance.
    (d) Of the initial members appointed to the Board:  one 
member appointed by the Comptroller and one member appointed by 
the Governor shall be appointed for a 2-year term; one member 
appointed by the Comptroller and one member appointed by the 
Governor shall be appointed for a 3-year term; and one member 
appointed by the Comptroller and one member appointed by the 
Governor shall be appointed for a  4-year term.  Those members 
may be reappointed for 4-year terms.  Their successors shall be 
appointed for 4-year terms and may be reappointed. A vacancy on 
the Board shall be filled for the remainder of the unexpired 
term, in the same manner and by the same officer who made the 
original appointment.
    (e) The Comptroller and the Governor shall each designate 
one of their appointed members as co-chairperson of the Board.
    (f) The Board shall meet at least 2 times each year and at 
other times at the call of the chairpersons.  Meetings of the 
Board shall be subject to the provisions of the Open Meetings 
Act.
    (g) The members of the Board shall serve without 
compensation, but may be reimbursed for expenses.
 
    Section 15. Powers. The Board has the following powers:
        (1) to have a corporate seal, and to alter that seal at

    pleasure, and to use it by causing it or a facsimile to be

    affixed or impressed or reproduced in any other manner;
        (2)  to use the services of the Office of the 
    Comptroller and the Office of the Governor to carry out the 
    Board's purposes, subject to the approval of the respective 
    office;
        (3) to assist State agencies with being timely and 
    accurate in the processing of financial reporting for the 
    State by:
            (A) establishing minimum qualifications for all 
        new GAAP      Coordinators, in cooperation with the 
        Comptroller's Division of Financial Reporting;
            (B) establishing minimum training requirements for 
        GAAP Coordinators, in cooperation with the 
        Comptroller's Division of Financial Reporting;
            (C) establishing continuing education requirements 
        for GAAP Coordinators, in cooperation with the 
        Comptroller's Division of Financial Reporting;
            (D) establishing best practice guidelines for GAAP 
        package submissions, in cooperation with the 
        Comptroller's Division of Financial Reporting; and
            (E) providing assistance during the GAAP cycle, in 
        cooperation with the Comptroller's Financial Reporting 
        Division and the Governor's Office of Management and 
        Budget;
        (4)  to make available to the Comptroller or Governor 
    any information related to the processing of financial 
    reports that the Board may deem
necessary to enable it 
    effectively to carry out the
provisions of this Act;

        (5)  to promulgate rules with
respect to its operations 
    as
may be necessary to carry out the purposes of
this Act, 
    subject to the provisions of the Illinois
Administrative 
    Procedure Act;

        (6) to consult with other states and private
businesses 
    that have successfully modernized and
streamlined their 
    financial reporting systems;
        (7)  to use current State resources that are already

    available inside of State government, and to use current

    financial reporting principles and practices, including,

    but not limited to, principles and practices of the Auditor

    General and the Comptroller; and
        (8)  to participate in the development of a statewide 
    GAAP-compliant financial reporting system.
 
    Section 20. Audits. 
    (a)  The Internal Auditor of every State agency that submits 
a GAAP package must submit an annual audit of its GAAP and 
financial statement process, if applicable, to the Board.
    (b)  The Board shall review all information submitted and 
may prepare a report for the Comptroller and the Governor.

 
    Section 25. Responsibilities of other parties. 
    (a) The Comptroller's Division of Financial Reporting, in 
cooperation with the Governor's Office of Management and 
Budget, shall assist State agencies during the GAAP process and 
shall review GAAP packages and preparation of the CAFR.
    (b) The Comptroller's Division of Financial Reporting and 
the Governor's Office of Management and Budget shall cooperate 
with the Board in the following matters:
        (1) the development of a GAAP training program for 
    State agencies;
        (2) the development of continuing education for 
    employees of State agencies; and
        (3) the development of  detailed standards for GAAP 
    reporting by State agencies.
    (c)  State agencies  must  adhere to the Board's guidance in 
regards to GAAP package processing and maintaining minimum 
standards for qualifications, training, and education for GAAP 
Coordinators.
 
    Section 30. Cooperation. All State agencies must render

full cooperation to the Board and its employees, consistent 
with and subject to all otherwise applicable laws, regulations, 
rules and contractual obligations, including collective 
bargaining agreements, and budget constraints of the agencies.
 
    Section 90. Repeal. This Act is repealed on June 30, 2016.
 
    Section 100. The Personnel Code is amended  by changing 
Section 4c as follows:
 
    (20 ILCS 415/4c)  (from Ch. 127, par. 63b104c)
    Sec. 4c. General exemptions.   The following positions in 
State
service shall be exempt from jurisdictions A, B, and C, 
unless the
jurisdictions shall be extended as provided in this 
Act:


        (1) All officers elected by the people.


        (2) All positions under the Lieutenant Governor, 
    Secretary of State,
State Treasurer, State Comptroller, 
    State Board of Education, Clerk of
the Supreme Court,

    Attorney General, and State Board of Elections.


        (3) Judges, and officers and employees of the courts, 
    and notaries
public.


        (4) All officers and employees of the Illinois General 
    Assembly, all
employees of legislative commissions, all 
    officers and employees of  the
Illinois Legislative 
    Reference Bureau, the Legislative
Research Unit, and the 
    Legislative Printing Unit.


        (5) All positions in the Illinois National Guard and 
    Illinois State
Guard, paid from federal funds or positions

    in the State  Military Service filled by enlistment and paid 
    from State
funds.


        (6) All employees of the Governor at the executive 
    mansion and on
his immediate personal staff.


        (7) Directors of Departments, the Adjutant General, 
    the Assistant
Adjutant General, the Director of the 
    Illinois Emergency
Management Agency, members of boards 
    and commissions,  and all other
positions appointed by the 
    Governor by and with the consent of the
Senate.


        (8) The presidents, other principal administrative 
    officers, and
teaching, research and extension faculties 
    of
Chicago State University, Eastern Illinois University, 
    Governors State
University, Illinois State University, 
    Northeastern Illinois University,
Northern Illinois 
    University, Western Illinois University, the Illinois

    Community College Board, Southern Illinois
University, 
    Illinois Board of Higher Education, University of

    Illinois, State Universities Civil Service System, 
    University Retirement
System of Illinois, and the 
    administrative officers and scientific and
technical staff 
    of the Illinois State Museum.


        (9) All other employees except the presidents, other 
    principal
administrative officers, and teaching, research 
    and extension faculties
of the universities under the 
    jurisdiction of the Board of Regents and
the colleges and 
    universities under the  jurisdiction of the Board of

    Governors of State Colleges and Universities, Illinois 
    Community College
Board, Southern Illinois University, 
    Illinois Board of Higher Education,
Board of Governors of 
    State Colleges and Universities, the Board of
Regents, 
    University  of Illinois, State Universities Civil Service

    System, University Retirement System of Illinois, so long 
    as these are
subject to the provisions of the State 
    Universities Civil Service Act.


        (10) The State Police so long as they are subject to 
    the merit
provisions of the State Police Act.


        (11) (Blank).


        (12) The technical and engineering staffs of the 
    Department of
Transportation, the Department of Nuclear 
    Safety, the Pollution Control
Board, and the Illinois 
    Commerce Commission, and the technical and engineering

    staff providing architectural and engineering services in 
    the Department of
Central Management Services.


        (13) All employees of the Illinois State Toll Highway 
    Authority.


        (14) The Secretary of the Illinois Workers' 
    Compensation Commission.


        (15) All persons who are appointed or employed by the 
    Director of
Insurance  under authority of Section 202 of the 
    Illinois Insurance Code
to assist the Director  of Insurance 
    in discharging his responsibilities
relating to the 
    rehabilitation, liquidation, conservation, and
dissolution 
    of companies that are subject to the jurisdiction of the

    Illinois  Insurance Code.


        (16) All employees of the St. Louis Metropolitan Area 
    Airport
Authority.


        (17) All investment officers employed by the Illinois 
    State Board of
Investment.


        (18) Employees of the Illinois Young Adult 
    Conservation Corps program,
administered by the Illinois 
    Department of Natural Resources, authorized
grantee under 
    Title VIII of the Comprehensive
Employment and Training Act 
    of 1973, 29 USC 993.


        (19) Seasonal employees of the Department of 
    Agriculture for the
operation of the Illinois State Fair 
    and the DuQuoin State Fair, no one
person receiving more 
    than 29 days of such employment in any calendar year.


        (20) All "temporary" employees hired under the 
    Department of Natural
Resources' Illinois Conservation 
    Service, a youth
employment program that hires young people 
    to work in State parks for a period
of one year or less.


        (21) All hearing officers of the Human Rights 
    Commission.


        (22) All employees of the Illinois Mathematics and 
    Science Academy.


        (23) All employees of the Kankakee River Valley Area

    Airport Authority.


        (24) The commissioners and employees of the Executive 
    Ethics
Commission.

        (25) The Executive Inspectors General, including 
    special Executive
Inspectors General, and employees of 
    each Office of an
Executive Inspector General.

        (26) The commissioners and employees of the 
    Legislative Ethics
Commission.


        (27) The Legislative Inspector General, including 
    special Legislative
Inspectors General, and employees of 
    the Office of
the Legislative Inspector General.


        (28) The Auditor General's Inspector General and 
    employees of the Office
of the Auditor General's Inspector 
    General.


        (29) All employees of the Illinois Power Agency. 
        (30) Employees having demonstrable, defined advanced 
    skills in accounting, financial reporting, or technical 
    expertise who are employed within executive branch 
    agencies and whose duties are directly related to the 
    submission to the Office of the Comptroller of financial 
    information for the publication of the Comprehensive 
    Annual Financial Report (CAFR). 
(Source: P.A. 97-618, eff. 10-26-11.)

 

    Section 999. Effective date. This Act takes effect upon 
becoming law.