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House of Representatives
Session of 2021 - 2022 Regular Session

MEMORANDUM

Posted:	December 2, 2020 05:26 PM
From:	Representative Francis X. Ryan
To:	All House members
Subject:	LEGISLATION – CODIFYING THE COMMONWEALTH’S ANNUAL FINANCIAL REPORT

Each year, the Office of the Budget produces a comprehensive annual financial report (CAFR), a set of government statements that aims to provide information about the financial condition of the Commonwealth. Information in these reports typically include: basic financial statements; reports of independent auditors; facts and figures about financial trends in the Commonwealth; revenue and debt capacity; demographic and economic information; and, the operations of state government. While useful, there is no statutory guidelines nor requirements for the exact contents of this report. My legislation will address this by adding a new section to Title 72 (Taxation and Fiscal Affairs) to implement a uniform accounting system and standards for those responsible for producing audits based on the Governmental Accounting Standards Board. To ensure accountability, if it is suspected that a Commonwealth agency or political subdivision may have committed fraudulent or criminal activity during preparation of their audit for the CAFR, my legislation would permit the Auditor General to initiative a forensic or fraud audit of the entity, as deemed necessary. My bill will require Commonwealth agencies and political subdivisions to provide all necessary and requested information to the Secretary of the Budget by September 1, with the Secretary compiling and issuing a final CAFR to the Governor and the General Assembly no later than March 1 of the following year. I believe it is imperative that we compare the financial conditions of the Commonwealth from year to year based on the same material. Please join me in co-sponsoring this legislation (former HB952) to implement uniform policy and ensure accountability and transparency in understanding the Commonwealth’s financial condition.

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