Late financial reports could trigger penalties against future state funding

The Department of Administration would assess a penalty and withhold it from the organization’s state funding allotment for the next fiscal year. This applies to organizations in the state’s financial reporting entity that must submit final financial statements or other information to the Department of Administration. The penalty is one twelfth of one percent of the organization’s state general fund appropriation for the next fiscal year for each 30 days late. The total penalty is capped at $8 million or one percent of the organization’s state general fund appropriation for the year the penalty is assessed, whichever is less. The submission is late if it is not accurate and complete on or before October 31. The penalty is calculated for each 30 days late and withheld from the next fiscal year’s allotment schedule.

The Department of Administration would assess a penalty and withhold it from the organization’s state funding allotment for the next year. This applies to organizations in the state’s financial reporting entity that spend federal money and must submit final federal spending or program information. The penalty is one twelfth of one percent of the organization’s state general fund appropriation for the next fiscal year for each 30 days late. The total penalty is capped at $8 million or one percent of the organization’s state general fund appropriation for the year the penalty is assessed, whichever is less. The submission is late if it is not accurate and complete on or before December 31. The penalty is calculated for each 30 days late and withheld from the next year’s allotment schedule.

The maximum total penalties would be adjusted each year based on changes in the maximum state general fund amount available for legislative appropriations. The adjustment applies to the maximum total penalties for late state financial reports and late federal spending or program information. The adjustment would be made annually.