Bill > S631

Introduced Session

This bill establishes the "GAAP Reporting Pilot Program." The pilot program would permit the annual financial statement of participating counties and municipalities to be completed in accordance with the generally accepted accounting principles ("GAAP") promulgated by the Governmental Accounting Standards Board. Currently, county and municipal financial statements are not required to comply with GAAP accounting standards. However, most local governments throughout the country, as well as all school districts in this State, currently follow these standards. Under the bill, the governing body of a pilot county or pilot municipality may apply to the Director of the Division of Local Government Services in the Department of Community Affairs to participate in the pilot program. The bill defines a "pilot county" as any county having a population of not more than 150,000 people. Any municipality located within a pilot county is defined a "pilot municipality." The pilot program would begin after at least six counties and municipalities are approved to participate in the pilot program. The pilot program would operate for approximately three years. The bill requires the director of the division to prescribe a form upon which any participating county or municipality may complete its annual financial statement using the GAAP standards. The bill also requires the division to provide technical assistance to any county or municipality that participates in the pilot program. Within six months after each participating county and municipality has submitted its third annual financial statement using the GAAP standards, the division would be required to submit a report to the Legislature concerning the pilot program. Specifically, the report would be required to examine whether the interests of the State would be served by requiring every local unit to adopt the GAAP standards. Under the bill, the pilot program would terminate immediately following the submission of this report.

AI Summary

Committee Categories

Paul Sarlo (D)*,  Samuel Thompson (D)*,  Steven Oroho (R), 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/14/2020)

Official Document