HB 5391

Creates the Government Reporting Enhancement and Transparency Act. Provides that, beginning fiscal year 2028, the annual cash receipts from all external sources of a local government shall determine if the local government is a Category 1 government, Category 2 government, Category 3 government, or Category 4 government. Provides that, each fiscal year, the responsible officials of a Category 1 local government shall appoint an auditing committee composed of 3 independent electors to inspect the local government's records using the template for that fiscal year published by the Comptroller. Provides that, each fiscal year, the responsible officials of a Category 2 local government shall enter into agreed upon procedures with an independent CPA. Requires the agreed upon procedures to align with the minimum agreed upon procedures published by the Comptroller. Provides that the responsible officials of a Category 3 local government shall oversee management's preparation of the local government's draft financial statements following the cash basis of accounting. Provides that the responsible officials of a Category 4 local government shall oversee management's preparation of the local government's draft financial statements following GAAP. Provides that, upon completion of the Category 3 local government's or Category 4 local government's draft financial statements, management shall furnish the draft financial statements to the local government's independent CPA firm for audit. Limits home rule powers. Makes other and conforming changes to various Acts. Effective immediately.