BILL ANALYSIS

C.S.H.B. 4510

By: Smithee

State Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

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 20th 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. C.S.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.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 4510 amends the Government Code to change the deadline for an applicable state agency to submit its annual financial report from November 20 to November 1. However, the bill retains the November 20 deadline for a public institution of higher education. The bill authorizes a state agency to submit an audited financial report in place of the regular annual financial report and requires an audited report to be submitted not later than December 15 of each year.

EFFECTIVE DATE

September 1, 2024.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4510 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced required a state agency that obtains an audited annual financial report to submit the audited report in place of the regular annual financial report, the substitute instead authorizes a state agency to do so.