Bill Would Impact Municipal Accounting Methods
On November 7, 2017, the Illinois House Government Transparency Committee will
hear testimony on HB
4104. That bill was introduced to
address confusion about acceptable bases for municipal accounting that resulted from letters the Office of the Illinois Comptroller sent
to many municipalities in the spring. The Comptroller letters notified municipalities that they would be required to file
audits on an accrual basis of accounting. Although cash basis of accounting is currently permitted under Illinois
statute, the Comptroller took the position that the cash basis practice of many municipalities was prohibited, and municipalities that using cash basis for
their audits would be fined.
This bill would clarify that both methods of accounting, cash and
accrual, are acceptable methods of filing audits that meet generally accepted
accounting principles. The bill is on
second reading and may be amended prior to being read on the House floor. We will keep you posted on this bill.
Post Authored by Jessi DeWalt, Ancel Glink
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