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| | HB3389 Enrolled | | LRB099 10967 AWJ 31321 b |
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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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