Governor Rauner has signed Senate Bill 2638
into law. Public Act 100-0837 amends the Municipal Audit Act, the Local Government Audit Act, and the County Audit Act to clarify that units of local government can continue submitting audited financial statements with the Office of the Comptroller using cash basis accounting. Public Act 100-0837 is effective August 13, 2018.Summary
: Senate Bill 2638 is an initiative of the Illinois CPA Society and other stakeholder organizations that provides a legislative remedy in response to the Office of the Comptroller’s change of practice to require audited financial statements using accrual basis accounting. This legislation clarifies that local governments can continue submitting audited financial statements with the Comptroller’s Local Government Division using cash basis accounting. Local governments who file audited financial statements using accrual basis accounting after June 30, 2019 will be required to continue filing audited financial statements using accrual basis accounting.Background
: For the past year, the Illinois CPA Society’s Government Executive Committee and the Government Relations Office has worked closely with the Office of the Comptroller, the Attorney General’s Office, members of the General Assembly, and other stakeholder organizations in an effort to mitigate the retroactive application that local government audited financial statements using cash basis accounting would no longer be considered in compliance with the Office of the Comptroller.
The Illinois CPA Society would like to thank Governor Rauner, the Office of the Comptroller and the legislative sponsors for their assistance and work in passing this legislation. The Senate sponsors were Senate Majority Leader James Clayborne (D-57, Belleville), Senator Chapin Rose (R-51, Mahomet) and Senator Sue Rezin (R-38, Morris). The House sponsor was Representative Anthony DeLuca (D-80, Crete).
It is anticipated that the Illinois CPA Society will work with the Office of the Comptroller and stakeholder organizations for trailer legislation in January 2019 to make needed technical corrections to SB 2638.
Please contact the Illinois CPA Society Government Relations Office at 1.800.572.9870 or at [email protected]
with questions or comments. See additional background