Bill Text: IL HB3389 | 2015-2016 | 99th General Assembly | Chaptered

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Bill Title: Amends the Illinois Municipal Code. Provides that various documents that are submitted to the Comptroller must be filed within 180 days after the close of a fiscal year (removing the option to file as soon thereafter as various audits become available). Further changes audit due dates from 6 months to 180 days. Amends the Counties Code changing audit due dates from 6 months to 180 days. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2015-08-25 - Public Act . . . . . . . . . 99-0459 [HB3389 Detail]

Download: Illinois-2015-HB3389-Chaptered.html

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Public Act 099-0459
HB3389 Enrolled LRB099 10967 AWJ 31321 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Governmental Account Audit Act is amended by
changing Sections 2 and 4 as follows:
(50 ILCS 310/2) (from Ch. 85, par. 702)
Sec. 2. Except as otherwise provided in Section 3, the
governing body of each governmental unit shall cause an audit
of the accounts of the unit to be made by a licensed public
accountant. Such audit shall be made annually and shall cover
the immediately preceding fiscal year of the governmental unit.
The audit shall include all the accounts and funds of the
governmental unit, including the accounts of any officer of the
governmental unit who receives fees or handles funds of the
unit or who spends money of the unit. The audit shall begin as
soon as possible after the close of the last fiscal year to
which it pertains, and shall be completed and the audit report
filed with the Comptroller within 180 days 6 months after the
close of such fiscal year unless an extension of time is
granted by the Comptroller in writing. An audit report which
fails to meet the requirements of this Act shall be rejected by
the Comptroller and returned to the governing body of the
governmental unit for corrective action. The licensed public

accountant making the audit shall submit not less than 3 copies
of the audit report to the governing body of the governmental
unit being audited.
All audits to be filed with the Comptroller under this
Section must be submitted electronically and the Comptroller
must post the audit reports on the Internet no later than 45
days after they are received. If the governmental unit provides
the Comptroller's Office with sufficient evidence that the
audit report cannot be filed electronically, the Comptroller
may waive this requirement. The Comptroller must also post a
list of governmental units that are not in compliance with the
reporting requirements set forth in this Section.
Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively bid
contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(Source: P.A. 97-932, eff. 8-10-12; 97-1142, eff. 12-28-12.)
(50 ILCS 310/4) (from Ch. 85, par. 704)
Sec. 4. Overdue report.
(a) If the required report for a governmental unit is not
filed with the Comptroller in accordance with Section 2 or
Section 3, whichever is applicable, within 180 days 6 months
after the close of the fiscal year of the governmental unit,
the Comptroller shall notify the governing body of that unit in

writing that the report is due and may also grant a 60 day
extension for the filing of the audit report. If the required
report is not filed within the time specified in such written
notice, the Comptroller shall cause an audit to be made by a
licensed public accountant, and the governmental unit shall pay
to the Comptroller actual compensation and expenses to
reimburse him for the cost of preparing or completing such
report.
(b) The Comptroller may decline to order an audit and the
preparation of an audit report (i) if an initial examination of
the books and records of the governmental unit indicates that
the books and records of the governmental unit are inadequate
or unavailable due to the passage of time or the occurrence of
a natural disaster or (ii) if the Comptroller determines that
the cost of an audit would impose an unreasonable financial
burden on the governmental unit.
(c) The State Comptroller may grant extensions for
delinquent audits or reports. The Comptroller may charge a
governmental unit a fee for a delinquent audit or report of $5
per day for the first 15 days past due, $10 per day for 16
through 30 days past due, $15 per day for 31 through 45 days
past due, and $20 per day for the 46th day and every day
thereafter. These amounts may be reduced at the Comptroller's
discretion. All fees collected under this subsection (c) shall
be deposited into the Comptroller's Administrative Fund.
(Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;

98-922, eff. 8-15-14.)
Section 10. The Counties Code is amended by changing
Sections 6-31003, 6-31004, and 6-31005 as follows:
(55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
Sec. 6-31003. Annual audits and reports. The county board
of each county shall cause an audit of all of the funds and
accounts of the county to be made annually by an accountant or
accountants chosen by the county board or by an accountant or
accountants retained by the Comptroller, as hereinafter
provided. In addition, each county shall file with the
Comptroller a financial report containing information required
by the Comptroller. Such financial report shall be on a form so
designed by the Comptroller as not to require professional
accounting services for its preparation. All audits and reports
to be filed with the Comptroller under this Section must be
submitted electronically and the Comptroller must post the
audits and reports on the Internet no later than 45 days after
they are received. If the county provides the Comptroller's
Office with sufficient evidence that the audit or report cannot
be filed electronically, the Comptroller may waive this
requirement. The Comptroller must also post a list of counties
that are not in compliance with the reporting requirements set
forth in this Section.
Any financial report under this Section shall include the

name of the purchasing agent who oversees all competitively bid
contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
The audit shall commence as soon as possible after the
close of each fiscal year and shall be completed within 180
days 6 months after the close of such fiscal year, unless an
extension of time is granted by the Comptroller in writing.
Such extension of time shall not exceed 60 days. When the
accountant or accountants have completed the audit a full
report thereof shall be made and not less than 2 copies of each
audit report shall be submitted to the county board. Each audit
report shall be signed by the accountant making the audit and
shall include only financial information, findings and
conclusions that are adequately supported by evidence in the
auditor's working papers to demonstrate or prove, when called
upon, the basis for the matters reported and their correctness
and reasonableness. In connection with this, each county board
shall retain the right of inspection of the auditor's working
papers and shall make them available to the Comptroller, or his
designee, upon request.
Within 60 days of receipt of an audit report, each county
board shall file one copy of each audit report and each
financial report with the Comptroller and any comment or
explanation that the county board may desire to make concerning
such audit report may be attached thereto. An audit report

which fails to meet the requirements of this Division shall be
rejected by the Comptroller and returned to the county board
for corrective action. One copy of each such report shall be
filed with the county clerk of the county so audited.
This Section is a limitation under subsection (i) of
Section 6 of Article VII of the Illinois Constitution on the
concurrent exercise by home rule counties of powers and
functions exercised by the State.
(Source: P.A. 97-890, eff. 8-2-12; 97-932, eff. 8-10-12;
97-1142, eff. 12-28-12.)
(55 ILCS 5/6-31004) (from Ch. 34, par. 6-31004)
Sec. 6-31004. Overdue reports.
(a) In the event the required reports for a county are not
filed with the Comptroller in accordance with Section 6-31003
within 180 days 6 months after the close of the fiscal year of
the county, the Comptroller shall notify the county board in
writing that the reports are due, and may also grant an
extension of time of up to 60 days for the filing of the
reports. In the event the required reports are not filed within
the time specified in such written notice, the Comptroller
shall cause the audit to be made and the audit report prepared
by an accountant or accountants.
(b) The Comptroller may decline to order an audit and the
preparation of an audit report if an initial examination of the
books and records of the governmental unit indicates that the

books and records of the governmental unit are inadequate or
unavailable due to the passage of time or the occurrence of a
natural disaster.
(c) The State Comptroller may grant extensions for
delinquent audits or reports. The Comptroller may charge a
county a fee for a delinquent audit or report of $5 per day for
the first 15 days past due, $10 per day for 16 through 30 days
past due, $15 per day for 31 through 45 days past due, and $20
per day for the 46th day and every day thereafter. These
amounts may be reduced at the Comptroller's discretion. All
fees collected under this subsection (c) shall be deposited
into the Comptroller's Administrative Fund.
(Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;
98-922, eff. 8-15-14.)
(55 ILCS 5/6-31005) (from Ch. 34, par. 6-31005)
Sec. 6-31005. Funds managed by county officials. In
addition to any other audit required by this Division, the
County Board shall cause an audit to be made of all funds and
accounts under the management or control of a county official
as soon as possible after such official leaves office for any
reason. The audit shall be filed with the county board not
later than 180 days 6 months after the official leaves office.
The audit shall be conducted and the audit report shall be
prepared and filed with the Chairman of the County Board by a
person lawfully qualified to practice public accounting as

regulated by "An Act to regulate the practice of public
accounting and to repeal certain acts therein named", approved
July 22, 1943 as amended.
As used in this Section, "county official" means any
elected county officer or any officer appointed by the county
board who is charged with the management or control of any
county funds; and "audit" means a post facto examination of
books, documents, records, and other evidence relating to the
obligation, receipt, expenditure or use of public funds of the
county, including governmental operations relating to such
obligations, receipt, expenditure or use.
(Source: P.A. 86-962.)
Section 15. The Illinois Municipal Code is amended by
changing Sections 8-8-3 and 8-8-4 as follows:
(65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3)
Sec. 8-8-3. Audit requirements.
(a) The corporate authorities of each municipality coming
under the provisions of this Division 8 shall cause an audit of
the funds and accounts of the municipality to be made by an
accountant or accountants employed by such municipality or by
an accountant or accountants retained by the Comptroller, as
hereinafter provided.
(b) The accounts and funds of each municipality having a
population of 800 or more or having a bonded debt or owning or

operating any type of public utility shall be audited annually.
The audit herein required shall include all of the accounts and
funds of the municipality. Such audit shall be begun as soon as
possible after the close of the fiscal year, and shall be
completed and the report submitted within 180 days 6 months
after the close of such fiscal year, unless an extension of
time shall be granted by the Comptroller in writing. The
accountant or accountants making the audit shall submit not
less than 2 copies of the audit report to the corporate
authorities of the municipality being audited. Municipalities
not operating utilities may cause audits of the accounts of
municipalities to be made more often than herein provided, by
an accountant or accountants. The audit report of such audit
when filed with the Comptroller together with an audit report
covering the remainder of the period for which an audit is
required to be filed hereunder shall satisfy the requirements
of this section.
(c) Municipalities of less than 800 population which do not
own or operate public utilities and do not have bonded debt,
shall file annually with the Comptroller a financial report
containing information required by the Comptroller. Such
annual financial report shall be on forms devised by the
Comptroller in such manner as to not require professional
accounting services for its preparation.
(d) In addition to any audit report required, all
municipalities, except municipalities of less than 800

population which do not own or operate public utilities and do
not have bonded debt, shall file annually with the Comptroller
a supplemental report on forms devised and approved by the
Comptroller.
(e) Notwithstanding any provision of law to the contrary,
if a municipality (i) has a population of less than 200, (ii)
has bonded debt in the amount of $50,000 or less, and (iii)
owns or operates a public utility, then the municipality shall
cause an audit of the funds and accounts of the municipality to
be made by an accountant employed by the municipality or
retained by the Comptroller for fiscal year 2011 and every
fourth fiscal year thereafter or until the municipality has a
population of 200 or more, has bonded debt in excess of
$50,000, or no longer owns or operates a public utility.
Nothing in this subsection shall be construed as limiting the
municipality's duty to file an annual financial report with the
Comptroller or to comply with the filing requirements
concerning the county clerk.
(f) All audits and reports to be filed with the Comptroller
under this Section must be submitted electronically and the
Comptroller must post the audits and reports on the Internet no
later than 45 days after they are received. If the municipality
provides the Comptroller's Office with sufficient evidence
that the audit or report cannot be filed electronically, the
Comptroller may waive this requirement. The Comptroller must
also post a list of municipalities that are not in compliance

with the reporting requirements set forth in this Section.
(g) Subsection (f) of this Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule
municipalities of powers and functions exercised by the State.
(h) Any financial report under this Section shall include
the name of the purchasing agent who oversees all competitively
bid contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(Source: P.A. 96-1309, eff. 7-27-10; 97-890, eff. 8-2-12;
97-932, eff. 8-10-12; 97-1142, eff. 12-28-12.)
(65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
Sec. 8-8-4. Overdue reports.
(a) In the event the required audit report for a
municipality is not filed with the Comptroller in accordance
with Section 8-8-7 within 180 days 6 months after the close of
the fiscal year of the municipality, the Comptroller shall
notify the corporate authorities of that municipality in
writing that the audit report is due, and may also grant an
extension of time of 60 days, for the filing of the audit
report. In the event the required audit report is not filed
within the time specified in such written notice, the
Comptroller shall cause such audit to be made by an accountant
or accountants. In the event the required annual or

supplemental report for a municipality is not filed within 6
months after the close of the fiscal year of the municipality,
the Comptroller shall notify the corporate authorities of that
municipality in writing that the annual or supplemental report
is due and may grant an extension in time of 60 days for the
filing of such annual or supplemental report.
(b) In the event the annual or supplemental report is not
filed within the time extended by the Comptroller, the
Comptroller shall cause such annual or supplemental report to
be prepared or completed and the municipality shall pay to the
Comptroller reasonable compensation and expenses to reimburse
him for the cost of preparing or completing such annual or
supplemental report. Moneys paid to the Comptroller pursuant to
the preceding sentence shall be deposited into the
Comptroller's Audit Expense Revolving Fund.
(c) The Comptroller may decline to order an audit or the
completion of the supplemental report if an initial examination
of the books and records of the municipality indicates that
books and records of the municipality are inadequate or
unavailable to support the preparation of the audit report or
the supplemental report due to the passage of time or the
occurrence of a natural disaster.
(d) The State Comptroller may grant extensions for
delinquent audits or reports. The Comptroller may charge a
municipality a fee for a delinquent audit or report of $5 per
day for the first 15 days past due, $10 per day for 16 through

30 days past due, $15 per day for 31 through 45 days past due,
and $20 per day for the 46th day and every day thereafter.
These amounts may be reduced at the Comptroller's discretion.
All fees collected under this subsection (d) shall be deposited
into the Comptroller's Administrative Fund.
(Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;
98-922, eff. 8-15-14.)
Section 99. Effective date. This Act takes effect upon
becoming law.