GAAP (Generally Accepted Accounting Principles) Report, FY 2002

              Illinois Economic and Fiscal Commission
March 12, 2001
MEMORANDUM
TO: The Honorable George Ryan, Governor, State of Illinois
The Honorable James “Pate” Philip, President of the Senate
The Honorable Michael Madigan, Speaker of the House of Representatives
The Honorable Lee Daniels, Minority Leader of the House of Representatives
The Honorable Emil Jones, Jr., Minority Leader of the Senate
FROM: Dan R. Long, Executive Director
RE: FY 2002 GAAP Report (Generally Accepted Accounting Principles)
Introduction
Included in this memorandum are the Illinois Economic and Fiscal Commission’s revenue
estimates formulated on a modified accrual basis in accordance with generally accepted
accounting principles (GAAP). Public Act 90-0479, a synopsis of which is included in the
Appendix, requires modified accrual basis estimates for the general funds, the Agricultural
Premium Fund, the Road Fund, and the Motor Fuel Tax Fund. The Bureau of the Budget
included their modified accrual revenue and expenditure estimates in the fiscal year 2002
budget book.
Recognition of revenue and liability in the fiscal year of collection or payment has been the
premise for formulating the Illinois budget and is known as cash basis budgeting. Estimates
formulated on a modified accrual basis instead recognize revenue and liability in the fiscal year
of accrual and provide an alternative perspective to the budget process.