PA 07-229—sHB 7338 (VETOED)

Appropriations Committee

AN ACT CONCERNING THE IMPLEMENTATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)

SUMMARY: Starting in FY 09, the act requires the state comptroller, instead of the Governmental Accounting Standards Board (GASB), to prescribe the generally accepted accounting principles (GAAP) that (1) the comptroller can use to prepare and maintain the state's annual financial statements and (2) the Office of Policy and Management (OPM) can use to prepare the annual state budget.

The act also delays the use of GAAP for those purposes from July 1, 2007 to July 1, 2009. The provision has no effect since the act is not effective until the end of the two-year delay. (PA 07-1, June Special Session, corrects this provision by making the two-year delay effective July 1, 2007. )

EFFECTIVE DATE: July 1, 2009

BACKGROUND

Governmental Accounting Standards Board (GASB)

GASB is an independent, private, 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.

Related Act

PA 07-1, June Special Session, also delays GAAP implementation for two years. It makes corresponding two-year delays in requirements that (1) the comptroller and the OPM secretary prepare a conversion plan and submit the plan to the Appropriations Committee and (2) starting on the conversion date, the comptroller establish an opening combined balance sheet for all appropriated funds, with the accrued and unpaid expenses from prior years aggregated and carried as a deferred charge on the state's combined balance sheet and amortized in equal installments in state budgets over 15 fiscal years. The delay provisions of PA 07-1, June Special Session, take effect July 1, 2007.

OLR Tracking: JSL: SC: PF: RO