Bill Text: IL HB3389 | 2015-2016 | 99th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Enrolled.html
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-Enrolled.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Governmental Account Audit Act is amended by | ||||||
5 | changing Sections 2 and 4 as follows:
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6 | (50 ILCS 310/2) (from Ch. 85, par. 702)
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7 | Sec. 2.
Except as otherwise provided in Section 3, the | ||||||
8 | governing body of
each governmental unit shall cause an audit | ||||||
9 | of the accounts of the unit to be
made by a licensed public | ||||||
10 | accountant. Such audit shall be made annually and
shall cover | ||||||
11 | the immediately preceding fiscal year of the governmental unit.
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12 | The audit shall include all the accounts and funds of the | ||||||
13 | governmental
unit, including the accounts of any officer of the | ||||||
14 | governmental unit who
receives fees or handles funds of the | ||||||
15 | unit or who spends money of the unit.
The audit shall begin as | ||||||
16 | soon as possible after the close of the last
fiscal year to | ||||||
17 | which it pertains, and shall be completed and the audit
report | ||||||
18 | filed with the Comptroller within 180 days 6 months after the | ||||||
19 | close of such
fiscal year unless an extension of time is | ||||||
20 | granted by the Comptroller in
writing. An audit report which | ||||||
21 | fails to meet the requirements of this
Act shall be rejected by | ||||||
22 | the Comptroller and returned to the governing body
of the | ||||||
23 | governmental unit for corrective action. The
licensed public |
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1 | accountant making the audit shall submit not
less than 3 copies | ||||||
2 | of the audit report to the governing body of the
governmental | ||||||
3 | unit being audited. | ||||||
4 | All audits to be filed with the Comptroller under this | ||||||
5 | Section must be submitted electronically and the Comptroller | ||||||
6 | must post the audit reports on the Internet no later than 45 | ||||||
7 | days after they are received. If the governmental unit provides | ||||||
8 | the Comptroller's Office with sufficient evidence that the | ||||||
9 | audit report cannot be filed electronically, the Comptroller | ||||||
10 | may waive this requirement. The Comptroller must also post a | ||||||
11 | list of governmental units that are not in compliance with the | ||||||
12 | reporting requirements set forth in this Section. | ||||||
13 | Any financial report under this Section shall include the | ||||||
14 | name of the purchasing agent who oversees all competitively bid | ||||||
15 | contracts. If there is no purchasing agent, the name of the | ||||||
16 | person responsible for oversight of all competitively bid | ||||||
17 | contracts shall be listed.
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18 | (Source: P.A. 97-932, eff. 8-10-12; 97-1142, eff. 12-28-12.)
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19 | (50 ILCS 310/4) (from Ch. 85, par. 704)
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20 | Sec. 4. Overdue report.
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21 | (a) If the required report for a governmental unit is not | ||||||
22 | filed with the
Comptroller in accordance with Section 2 or | ||||||
23 | Section 3, whichever is
applicable, within 180 days 6 months | ||||||
24 | after the close of the fiscal year of the
governmental unit, | ||||||
25 | the Comptroller shall notify the governing body of that
unit in |
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1 | writing that the report is due and may also grant a 60 day
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2 | extension for the filing of the audit report. If the required | ||||||
3 | report is not
filed within the time specified in such written | ||||||
4 | notice, the Comptroller
shall cause an audit to be made by a | ||||||
5 | licensed public accountant, and the
governmental unit shall pay | ||||||
6 | to the Comptroller actual compensation and
expenses to | ||||||
7 | reimburse him for the cost of preparing or completing such
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8 | report.
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9 | (b) The Comptroller may decline to order an audit and the | ||||||
10 | preparation of
an audit report (i) if an initial examination of | ||||||
11 | the books and records of
the
governmental unit indicates that | ||||||
12 | the books and records of the governmental unit
are inadequate | ||||||
13 | or unavailable due to the passage of time or the occurrence of | ||||||
14 | a
natural disaster or (ii) if the Comptroller determines that | ||||||
15 | the cost of an
audit would impose an unreasonable financial | ||||||
16 | burden on the governmental unit.
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17 | (c) The State Comptroller may grant extensions for | ||||||
18 | delinquent audits or reports. The Comptroller may charge a | ||||||
19 | governmental unit a fee for a delinquent audit or report of $5 | ||||||
20 | per day for the first 15 days past due, $10 per day for 16 | ||||||
21 | through 30 days past due, $15 per day for 31 through 45 days | ||||||
22 | past due, and $20 per day for the 46th day and every day | ||||||
23 | thereafter. These amounts may be reduced at the Comptroller's | ||||||
24 | discretion. All fees collected under this subsection (c) shall | ||||||
25 | be deposited into the Comptroller's Administrative Fund. | ||||||
26 | (Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12; |
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1 | 98-922, eff. 8-15-14.)
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2 | Section 10. The Counties Code is amended by changing | ||||||
3 | Sections 6-31003, 6-31004, and 6-31005 as follows:
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4 | (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
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5 | Sec. 6-31003. Annual audits and reports. The county board | ||||||
6 | of each
county shall cause an audit of all of the funds and | ||||||
7 | accounts of the county
to be made annually by an accountant
or | ||||||
8 | accountants chosen by the county board or by an accountant or | ||||||
9 | accountants
retained by the Comptroller, as hereinafter | ||||||
10 | provided. In addition, each
county shall file with the | ||||||
11 | Comptroller
a financial report containing information required | ||||||
12 | by the Comptroller.
Such financial report shall be on a form so | ||||||
13 | designed by the Comptroller
as not to require professional | ||||||
14 | accounting services for its preparation. All audits and reports | ||||||
15 | to be filed with the Comptroller under this Section must be | ||||||
16 | submitted electronically and the Comptroller must post the | ||||||
17 | audits and reports on the Internet no later than 45 days after | ||||||
18 | they are received. If the county provides the Comptroller's | ||||||
19 | Office with sufficient evidence that the audit or report cannot | ||||||
20 | be filed electronically, the Comptroller may waive this | ||||||
21 | requirement. The Comptroller must also post a list of counties | ||||||
22 | that are not in compliance with the reporting requirements set | ||||||
23 | forth in this Section.
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24 | Any financial report under this Section shall include the |
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1 | name of the purchasing agent who oversees all competitively bid | ||||||
2 | contracts. If there is no purchasing agent, the name of the | ||||||
3 | person responsible for oversight of all competitively bid | ||||||
4 | contracts shall be listed. | ||||||
5 | The audit shall commence as soon as possible after the | ||||||
6 | close of each
fiscal year and shall be completed within 180 | ||||||
7 | days 6 months after the close of such
fiscal year, unless an | ||||||
8 | extension of time is granted by the Comptroller in
writing. | ||||||
9 | Such extension of time shall not exceed 60 days. When the | ||||||
10 | accountant
or accountants have completed the audit a full | ||||||
11 | report thereof shall be made
and not less than 2 copies of each | ||||||
12 | audit report shall be submitted to the
county board. Each audit | ||||||
13 | report shall be signed by the accountant making
the audit and | ||||||
14 | shall include only financial information, findings and
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15 | conclusions that are adequately supported by evidence in the | ||||||
16 | auditor's
working papers to demonstrate or prove, when called | ||||||
17 | upon, the basis for the
matters reported and their correctness | ||||||
18 | and reasonableness. In connection
with this, each county board | ||||||
19 | shall retain the right of inspection of the
auditor's working | ||||||
20 | papers and shall make them available to the Comptroller,
or his | ||||||
21 | designee, upon request.
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22 | Within 60 days of receipt of an audit report, each county | ||||||
23 | board shall file
one copy of each audit report and each | ||||||
24 | financial report with the Comptroller
and any comment or | ||||||
25 | explanation that the county board may desire to make
concerning | ||||||
26 | such audit report may be attached thereto. An audit report
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1 | which fails to meet the requirements of this Division shall be
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2 | rejected by the Comptroller and returned to the county board | ||||||
3 | for corrective
action. One copy of each such report shall be | ||||||
4 | filed with the county clerk
of the county so audited.
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5 | This Section is a limitation under subsection (i) of | ||||||
6 | Section 6 of Article VII of the Illinois Constitution on the | ||||||
7 | concurrent exercise by home rule counties of powers and | ||||||
8 | functions exercised by the State. | ||||||
9 | (Source: P.A. 97-890, eff. 8-2-12; 97-932, eff. 8-10-12; | ||||||
10 | 97-1142, eff. 12-28-12.)
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11 | (55 ILCS 5/6-31004) (from Ch. 34, par. 6-31004)
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12 | Sec. 6-31004. Overdue reports.
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13 | (a) In the event the required reports for
a county are not | ||||||
14 | filed with the Comptroller in accordance with Section 6-31003
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15 | within 180 days 6 months after the close of the fiscal year of | ||||||
16 | the county, the
Comptroller shall notify the county board in | ||||||
17 | writing that the reports are
due, and may also grant an | ||||||
18 | extension of time of up to 60 days for the
filing of the | ||||||
19 | reports. In the event the required reports are not filed
within | ||||||
20 | the time specified in such written notice, the Comptroller | ||||||
21 | shall
cause the audit to be made and the audit report prepared | ||||||
22 | by an accountant
or accountants.
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23 | (b) The Comptroller may decline to order an audit and the | ||||||
24 | preparation of
an
audit report if an initial examination of the | ||||||
25 | books and records of the
governmental unit indicates that the |
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1 | books and records of the governmental unit
are inadequate or | ||||||
2 | unavailable due to the passage of time or the occurrence of a
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3 | natural disaster.
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4 | (c) The State Comptroller may grant extensions for | ||||||
5 | delinquent audits or reports. The Comptroller may charge a | ||||||
6 | county a fee for a delinquent audit or report of $5 per day for | ||||||
7 | the first 15 days past due, $10 per day for 16 through 30 days | ||||||
8 | past due, $15 per day for 31 through 45 days past due, and $20 | ||||||
9 | per day for the 46th day and every day thereafter. These | ||||||
10 | amounts may be reduced at the Comptroller's discretion. All | ||||||
11 | fees collected under this subsection (c) shall be deposited | ||||||
12 | into the Comptroller's Administrative Fund. | ||||||
13 | (Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12; | ||||||
14 | 98-922, eff. 8-15-14.)
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15 | (55 ILCS 5/6-31005) (from Ch. 34, par. 6-31005)
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16 | Sec. 6-31005. Funds managed by county officials. In | ||||||
17 | addition to any
other audit required by this Division, the | ||||||
18 | County Board shall cause an
audit to be made of all funds and | ||||||
19 | accounts under the management or control
of a county official | ||||||
20 | as soon as possible after such official leaves office
for any | ||||||
21 | reason. The audit shall be filed with the county board not | ||||||
22 | later
than 180 days 6 months after the official leaves office. | ||||||
23 | The audit shall be
conducted and the audit report shall be | ||||||
24 | prepared and filed with the
Chairman of the County Board by a | ||||||
25 | person lawfully qualified to practice
public accounting as |
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1 | regulated by "An Act to regulate the practice of
public | ||||||
2 | accounting and to repeal certain acts therein named", approved | ||||||
3 | July
22, 1943 as amended.
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4 | As used in this Section, "county official" means any | ||||||
5 | elected county officer
or any officer appointed by the county | ||||||
6 | board who is charged with the management
or control of any | ||||||
7 | county funds; and "audit" means a post facto examination
of | ||||||
8 | books, documents, records, and other evidence relating to the | ||||||
9 | obligation,
receipt, expenditure or use of public funds of the | ||||||
10 | county, including
governmental operations relating to such | ||||||
11 | obligations, receipt, expenditure or use.
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12 | (Source: P.A. 86-962.)
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13 | Section 15. The Illinois Municipal Code is amended by | ||||||
14 | changing Sections 8-8-3 and 8-8-4 as follows:
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15 | (65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3) | ||||||
16 | Sec. 8-8-3. Audit requirements. | ||||||
17 | (a) The corporate authorities of each municipality coming | ||||||
18 | under the
provisions of this Division 8 shall cause an audit of | ||||||
19 | the funds and
accounts of the municipality to be made by an | ||||||
20 | accountant or accountants
employed by such municipality or by | ||||||
21 | an accountant or accountants retained
by the Comptroller, as | ||||||
22 | hereinafter provided. | ||||||
23 | (b) The accounts and funds of each municipality having a | ||||||
24 | population of 800
or more or having a bonded debt or owning or |
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1 | operating any type of public
utility shall be audited annually. | ||||||
2 | The audit herein required shall include
all of the accounts and | ||||||
3 | funds of the municipality. Such audit shall be
begun as soon as | ||||||
4 | possible after the close of the fiscal year, and shall be
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5 | completed and the report submitted within 180 days 6 months | ||||||
6 | after the close of such
fiscal year, unless an extension of | ||||||
7 | time shall be granted by the
Comptroller in writing. The | ||||||
8 | accountant or accountants making the audit
shall submit not | ||||||
9 | less than 2 copies of the audit report to the corporate
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10 | authorities of the municipality being audited. Municipalities | ||||||
11 | not operating
utilities may cause audits of the accounts of | ||||||
12 | municipalities to be made
more often than herein provided, by | ||||||
13 | an accountant or accountants. The audit
report of such audit | ||||||
14 | when filed with the Comptroller together with an audit
report | ||||||
15 | covering the remainder of the period for which an audit is | ||||||
16 | required
to be filed hereunder shall satisfy the requirements | ||||||
17 | of this section. | ||||||
18 | (c) Municipalities of less than 800 population which do not | ||||||
19 | own or operate
public utilities and do not have bonded debt, | ||||||
20 | shall file annually with the
Comptroller a financial report | ||||||
21 | containing information required by the
Comptroller. Such | ||||||
22 | annual financial report shall be on forms devised by the
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23 | Comptroller in such manner as to not require professional | ||||||
24 | accounting
services for its preparation. | ||||||
25 | (d) In addition to any audit report required, all | ||||||
26 | municipalities, except
municipalities of less than 800 |
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1 | population which do not own or operate
public utilities and do | ||||||
2 | not have bonded debt, shall file annually with the
Comptroller | ||||||
3 | a supplemental report on forms devised and approved by the
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4 | Comptroller. | ||||||
5 | (e) Notwithstanding any provision of law to the contrary, | ||||||
6 | if a municipality (i) has a population of less than 200, (ii) | ||||||
7 | has bonded debt in the amount of $50,000 or less, and (iii) | ||||||
8 | owns or operates a public utility, then the municipality shall | ||||||
9 | cause an audit of the funds and accounts of the municipality to | ||||||
10 | be made by an accountant employed by the municipality or | ||||||
11 | retained by the Comptroller for fiscal year 2011 and every | ||||||
12 | fourth fiscal year thereafter or until the municipality has a | ||||||
13 | population of 200 or more, has bonded debt in excess of | ||||||
14 | $50,000, or no longer owns or operates a public utility. | ||||||
15 | Nothing in this subsection shall be construed as limiting the | ||||||
16 | municipality's duty to file an annual financial report with the | ||||||
17 | Comptroller or to comply with the filing requirements | ||||||
18 | concerning the county clerk. | ||||||
19 | (f) All audits and reports to be filed with the Comptroller | ||||||
20 | under this Section must be submitted electronically and the | ||||||
21 | Comptroller must post the audits and reports on the Internet no | ||||||
22 | later than 45 days after they are received. If the municipality | ||||||
23 | provides the Comptroller's Office with sufficient evidence | ||||||
24 | that the audit or report cannot be filed electronically, the | ||||||
25 | Comptroller may waive this requirement. The Comptroller must | ||||||
26 | also post a list of municipalities that are not in compliance |
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1 | with the reporting requirements set forth in this Section. | ||||||
2 | (g) Subsection (f) of this Section is a limitation under | ||||||
3 | subsection (i) of Section 6 of Article VII of the Illinois | ||||||
4 | Constitution on the concurrent exercise by home rule | ||||||
5 | municipalities of powers and functions exercised by the State. | ||||||
6 | (h) Any financial report under this Section shall include | ||||||
7 | the name of the purchasing agent who oversees all competitively | ||||||
8 | bid contracts. If there is no purchasing agent, the name of the | ||||||
9 | person responsible for oversight of all competitively bid | ||||||
10 | contracts shall be listed. | ||||||
11 | (Source: P.A. 96-1309, eff. 7-27-10; 97-890, eff. 8-2-12; | ||||||
12 | 97-932, eff. 8-10-12; 97-1142, eff. 12-28-12.)
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13 | (65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
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14 | Sec. 8-8-4. Overdue reports.
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15 | (a) In the event the required audit report for
a | ||||||
16 | municipality is not filed
with the Comptroller in accordance | ||||||
17 | with Section 8-8-7 within 180 days 6 months after
the close of | ||||||
18 | the fiscal year of the municipality, the Comptroller shall
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19 | notify the corporate authorities of that municipality in | ||||||
20 | writing that the
audit report is due, and may also grant an | ||||||
21 | extension of time of 60 days,
for the filing of the audit | ||||||
22 | report. In the event the required audit report
is not filed | ||||||
23 | within the time specified in such written notice, the
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24 | Comptroller shall cause such audit to be made by an accountant | ||||||
25 | or
accountants. In the event the required annual or |
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1 | supplemental report for a
municipality is not filed within 6 | ||||||
2 | months after the close of the fiscal
year of the municipality, | ||||||
3 | the Comptroller shall notify the corporate
authorities of that | ||||||
4 | municipality in writing that the annual or supplemental
report | ||||||
5 | is due and may grant an extension in time of 60 days for the | ||||||
6 | filing
of such annual or supplemental report.
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7 | (b) In the event the annual or supplemental report is not | ||||||
8 | filed within
the
time extended by the Comptroller, the | ||||||
9 | Comptroller shall cause such annual
or supplemental report to | ||||||
10 | be prepared or completed and the municipality
shall pay to the | ||||||
11 | Comptroller reasonable compensation and expenses to
reimburse | ||||||
12 | him for the cost of preparing or completing such annual or
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13 | supplemental report.
Moneys paid to the Comptroller pursuant to | ||||||
14 | the preceding sentence shall be
deposited into the | ||||||
15 | Comptroller's Audit Expense Revolving Fund.
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16 | (c) The Comptroller may decline to order an audit or the | ||||||
17 | completion of the
supplemental report if an initial examination | ||||||
18 | of the books and records of the
municipality indicates that | ||||||
19 | books and records of the municipality are
inadequate or | ||||||
20 | unavailable to support the preparation of the audit report or | ||||||
21 | the
supplemental report due to the passage of time or the | ||||||
22 | occurrence of a natural
disaster.
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23 | (d) The State Comptroller may grant extensions for | ||||||
24 | delinquent audits or reports. The Comptroller may charge a | ||||||
25 | municipality a fee for a delinquent audit or report of $5 per | ||||||
26 | day for the first 15 days past due, $10 per day for 16 through |
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1 | 30 days past due, $15 per day for 31 through 45 days past due, | ||||||
2 | and $20 per day for the 46th day and every day thereafter. | ||||||
3 | These amounts may be reduced at the Comptroller's discretion. | ||||||
4 | All fees collected under this subsection (d) shall be deposited | ||||||
5 | into the Comptroller's Administrative Fund. | ||||||
6 | (Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12; | ||||||
7 | 98-922, eff. 8-15-14.)
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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