BILL ANALYSIS

Senate Research Center	H.B. 4510
88R18175 SCP-F	By: Smithee (Schwertner)
	Finance
	5/8/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

State agencies and institutions of higher education are required to submit an annual financial report (AFR) not later than November 20 of each year. The Comptroller of Public Accounts is responsible for compiling these individual agency reports into an annual comprehensive financial report (ACFR). Compiling the ACFR requires many hours of work from dedicated and knowledgeable professionals at the comptroller's office and across all state agencies and institutions. Developing new processes and utilizing new reporting tools is always at the forefront of improving the compilation process. Prior to the 2019 ACFR, the compilation included workflows outside the Uniform Statewide Accounting System (USAS) environment that involved significant manual entry. This manual workflow necessitated supporting the historical deadline of November 20 for agency AFR submissions. Beginning in fiscal year 2020, the comptroller retired the legacy mainframe program that was the core of the ACFR compilation process. Cloud-based software became the core support for compiling the ACFR using activity directly imported from USAS. As a result of this new software, the time frame for agency AFR submissions can be shifted from the previous deadline of November 20.

H.B. 4510 seeks to allow comptroller staff additional time to compile the ACFR by moving the submission deadline for most state agencies to November 1 for unaudited reports or to December 15 for audited reports, while retaining the current November 20 deadline for public institutions of higher education.

H.B. 4510 amends current law relating to annual financial reports submitted by state agencies.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2101.011, Government Code, by amending Subsections (a) and (b) and adding Subsections (b-1) and (b-2), as follows:

(a) Defines "institution of higher education."

(b) Requires a state agency, except as provided by Subsections (b-1) and (b-2), not later than November 1 of each year, rather than November 20 of each year, to submit an annual financial report regarding the agency's use of appropriated money during the preceding fiscal year to the governor, the Comptroller of Public Accounts of the State of Texas, the Legislative Reference Library, the state auditor, and the Legislative Budget Board.

(b-1)� Requires an institution of higher education to submit the annual financial report described by Subsection (b) not later than November 20 of each year.

(b-2) Authorizes a state agency to submit an audited financial report in place of the report described by Subsection (b). Requires that an audited financial report be submitted not later than December 15 of each year.

SECTION 2. Effective date: September 1, 2024.