SPRINGFIELD – The Governor’s Office of Management and Budget today released its statement of revenues and expenditures which outline the significant financial activities of the state for fiscal year 2010 and the first quarter of fiscal year 2011. This report offers the most comprehensive financial overview of agency and fund spending long before the normal auditing process would produce annual reports on all funds. This financial information is now available online at www.state.il.us/budget.
“With the timely release of this financial disclosure, we continue to advance our efforts to make Illinois’ budget process more open and transparent,” said David Vaught, Director of the Governor’s Office of Management and Budget (GOMB). “Illinois residents now have the opportunity to view the most accurate and up-to-date financial picture of the state as we continue to pay our bills and consider additional budget cuts and revenue enhancements to restore fiscal balance.”
Today’s disclosure indicates the state is on track with its FY11 budget and details how each category of resources and expenses is tracking on an accrual basis.
Baker Tilly, an independent national accounting firm of chartered accountants and business advisors, along with the GOMB, analyzed 75 state funds within 35 agencies to provide the most reasonable indicators of the financial direction of the state. Although the state has over 600 funds, this unaudited financial report accounts for 90-95 percent of the operating revenue and costs of the state. The Civic Committee of the Commercial Club helped fund the project.
“Publishing timely operating results of revenues and costs for state government is a major step in the right direction,” said Eden Martin, President of the Civic Committee. “Until now there was no single place where citizens could gain access to this information so we are very pleased the Governor’s Office of Management and Budget developed this methodology and look forward to it being enhanced over the years.”
This new process of financial reporting is not intended to serve as a replacement of the normal reporting of any state agency. Under the normal auditing process, the state releases reports a year or more after revenue and costs are available. Starting today, information will now be available in a more timely manner by analyzing and reporting financial activities on both a quarterly and annual basis.
“This new variance report is how the private sector manages its business and will greatly improve the transparency of Illinois’ financial position, said Tom Johnson, President of the Taxpayers’ Federation of Illinois. “The report also includes important information about operating costs occurring outside the normally reported General Funds.”
The compilation and release of this quarterly financial statement marks one of the first steps toward implementation of Budgeting for Results, Governor Pat Quinn’s historic budgetary reform program. Budgeting for Results identifies available revenues to fund programs and services that work, and to reform, fix or eliminate programs that are not meeting expectations.
The Quinn administration understands the significant financial challenges facing the state and will continue to work to create jobs, reduce spending, pay the bills and increase revenues while making the fiscally-responsible decisions that Illinois residents deserve.