Connecticut Senate Bill SB00068

Connecticut 2011 Regular Session

• Introduced: 1/10/11
• Refer: 1/10/11

Caption

An Act Requiring The State To Use Generally Accepted Accounting Principles (gaap).

Impact

The implementation of GAAP could significantly enhance the financial transparency of the state government, making it easier for citizens and oversight bodies to evaluate the state's fiscal health. By aligning state accounting practices with generally accepted standards, the state may improve trust and confidence among its residents as financial dealings become more consistent and comprehensible. This adherence to GAAP is particularly crucial for managing public funds effectively, thereby ensuring that resources are allocated wisely and responsibly.

Summary

SB00068, introduced by Senator Welch, mandates that the state of Connecticut utilize Generally Accepted Accounting Principles (GAAP) in its financial reporting. The bill specifically amends Section 3-115b of existing statutes to ensure that both the Comptroller and the Secretary of the Office of Policy and Management adhere to these standards when preparing the state's annual financial statements and budget. This move is intended to promote greater accuracy and accountability in the state's financial practices.

Contention

There may be differing opinions regarding the practicality and the implications of enforcing GAAP at a state level. Proponents argue that this shift will lead to more rigorous financial oversight and better governance. However, there are concerns that implementing these principles may impose additional costs and administrative burdens on state agencies, especially if they lack the necessary infrastructure or expertise to transition to these standards efficiently. Some legislators might fear that the bill could complicate the budgeting process, requiring more time and training to adapt to the new requirements.