PA 08-111—HB 5839
AN ACT CONCERNING THE IMPLEMENTATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
SUMMARY: Starting in FY 09, this act allows the comptroller to make incremental changes to the way she prepares and maintains the state's annual financial statement. The changes must be consistent with generally accepted accounting principles (GAAP) prescribed by the Governmental Accounting Standards Board (GASB) and eventually lead to full GAAP implementation.
By law, the Office of Policy and Management (OPM) secretary may use GAAP to prepare the annual state budget. The act allows, rather than requires, the comptroller and presumably the OPM secretary to concurrently prepare conversion plans for implementing GAAP. If they decide to do so, they must prepare the plans annually, rather than by February 1, 2009, and submit them to the Appropriations Committee when the governor submits her biennial budget and budget status report to the General Assembly. By law, the governor must submit the budget document by the first session day after February 3rd in odd-numbered years and the status report by the opening day of the session in even-numbered years.
The act eliminates a requirement for the comptroller to (1) use GAAP to establish an opening combined balance sheet for all appropriated funds beginning in FY 10 and (2) amortize the GAAP deficit over 15 years beginning in FY 11.
EFFECTIVE DATE: July 1, 2008
GASB is an independent, private-sector, not-for-profit organization that establishes standards of financial accounting and reporting for state and local governments. Governments and the accounting industry recognize GASB as the official source of GAAP for state and local governments.
OLR Tracking: SNE: SP: PF: dw