SPRINGFIELD, Ill. – A bill introduced by state Rep. Anthony DeLuca, D-Chicago Heights, to allow local municipalities to maintain cost-effective accounting practices passed out of the Illinois House with bipartisan support.
“As a former mayor, I understand that just because something works in Chicago, doesn’t mean it will work elsewhere,” DeLuca said. “Cities and villages that have their clerk handle bookkeeping cannot afford to hire full-time accountants to convert all of their financial records.”
DeLuca introduced House Bill 4104 in response to a requirement from the Illinois Comptroller that all municipalities use the accrual method of accounting when filing annual audits. This requirement would force smaller municipalities that currently use the cash method to change the way they keep track of and report their budget, resulting in higher costs and burdensome paperwork for local officials. DeLuca’s legislation would exempt municipalities from switching accounting methods if they prefer to use the cash basis.
“This legislation provides greater flexibility to municipalities with regard to how they file their annual audits and assures that they are in compliance with state law,” said DeLuca. “As long as the mandated information is received by the Comptroller’s Office, units of local government should be able to continue using the method of accounting that works for them.”