The resolution proposes a major shift in the management of South Dakota's state accounting system by transferring oversight from the Bureau of Finance and Management to the state auditor. This change is intended to improve accountability and efficiency in financial reporting and management within the state government. To facilitate this transition, the resolution includes amendments to existing laws that define the state accounting system, outline the responsibilities of the state auditor, and establish procedures for financial reporting and budgeting. It also mandates the preparation of annual financial statements in accordance with generally accepted accounting principles and ensures that the state auditor provides necessary financial information to the Bureau of Management and Budget upon request.

Additionally, the resolution addresses the management of state funds, requiring the state auditor to retain sufficient funds to cover outstanding liabilities before transferring any remaining balance when a fund becomes nonexistent or is transferred. It specifies the auditor's role in reconciling accounts and reviewing budgetary reports while adhering to standard financial reporting practices. The resolution also includes provisions for the allocation of state capital construction fund revenues to the state highway fund and the water and environment fund, starting in fiscal year 2023. The proposed changes will be submitted to voters for approval in the next general election, with an effective date set for January 1, 2025, and preparations beginning on July 1, 2025.

Statutes affected:
Introduced, 02/05/2025: 4-4-5, 4-4-6, 4-5-30, 4-7-1, 4-7-3, 4-7-7, 4-7-7.1, 4-7-32, 4-7-39, 4-7-40, 4-7-41, 4-7-45, 4-8A-5, 4-8B-10, 4-9-17, 4-10-3, 4-10-4, 4-10-6, 4-10-7, 5-27-5, 5-27-6, 10-12-3, 28-1-67