IL HR0558

Comptroller's Local Government Division notified local government units that cash basis accounting audits will no longer be compliant as of December 5, 2017, requiring conversion to accrual basis accounting.

The Comptroller retroactively applied this change to a practice in place since 1970 without advance notice, stakeholder outreach, or consultation with the Local Government Advisory Committee.

Converting from cash basis to accrual basis accounting will be costly and time-consuming for local government units, with some already mid-fiscal year when receiving non-compliance letters.

House encourages the Comptroller to suspend implementation of the accrual basis accounting requirement pending receipt of the Attorney General's opinion on Section 5/8-8-5 of the Illinois Municipal Code.

House encourages the Comptroller to work with stakeholders to minimize the impact of this accounting change on units of local government.