Bill Text: IL HB4601 | 2011-2012 | 97th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Comptroller's Records Act. Removes a provision requiring certificates of destruction to be signed by 2 witnesses. Amends the State Finance Act. Provides that, upon written approval by the office of the Comptroller, a State agency may maintain an original voucher for travel expenses at the office of the State agency. Provides that a State agency that maintains an original travel voucher at its office is not exempt from submitting a detailed travel voucher as prescribed by the office of the Comptroller. Provides that interest penalties payable under the State Prompt Payment Act associated with a voucher for which payment is issued after June 30 may be paid out of the next year's appropriation. Provides that the Comptroller may issue payments against outstanding liabilities that were received prior to the lapse period deadline, until all liabilities are paid. Amends the Illinois Procurement Code. Provides that whenever certain grants or contract liabilities exceeding $20,000 (now, $10,000) are incurred by any State agency, a copy of the contract or grant shall be filed with the Comptroller within 30 days (now, 15 days) thereafter. Provides that the Comptroller may require these copies to be filed electronically. Provides that any cancellation or modification to any such contract liability shall be filed with the Comptroller within 30 days (now, 15 days) after its execution. Amends the Governmental Account Audit Act, the Counties Code, and the Illinois Municipal Code. Provides that any financial report of a governmental unit under the jurisdiction of one of those Acts shall include the name of the purchasing agent who oversees all competitively bid contracts for that unit. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2012-08-10 - Public Act . . . . . . . . . 97-0932 [HB4601 Detail]

Download: Illinois-2011-HB4601-Engrossed.html

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AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Records Act is amended by changing
Section 9 as follows:
(5 ILCS 160/9) (from Ch. 116, par. 43.12)
Sec. 9. The head of each agency shall establish, and
maintain an active, continuing program for the economical and
efficient management of the records of the agency.
Such program:
(1) shall provide for effective controls over the creation,
maintenance, and use of records in the conduct of current
business and shall ensure that agency electronic records, as
specified in Section 5-135 of the Electronic Commerce Security
Act, are retained in a trustworthy manner so that the records,
and the information contained in the records, are accessible
and usable for reference for the duration of the retention
period; all computer tape or disk maintenance and preservation
procedures must be fully applied and, if equipment or programs
providing access to the records are updated or replaced, the
existing data must remain accessible in the successor format
for the duration of the approved retention period;
(2) shall provide for cooperation with the Secretary in

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appointing a records officer and in applying standards,
procedures, and techniques to improve the management of
records, promote the maintenance and security of records deemed
appropriate for preservation, and facilitate the segregation
and disposal of records of temporary value; and
(3) shall provide for compliance with the provisions of
this Act and the rules and regulations issued thereunder.
If an agency has delegated its authority to retain records
to another agency, then the delegate agency shall maintain the
same, or a more diligent, record retention methodology and
record retention period as the original agency's program. If
the delegate is from the legislative or judicial branch, then
the delegate may use the same record retention methodology and
record retention period that the delegate uses for similar
records.
(Source: P.A. 92-866, eff. 1-3-03.)
Section 10. The Comptroller's Records Act is amended by
changing Section 7 as follows:
(15 ILCS 415/7) (from Ch. 15, par. 31)
Sec. 7. Certificate of destruction. Before the destruction
of any warrants or records pursuant to this Act, the State
Comptroller shall have prepared a certificate setting forth by
summary description the warrants or records and the manner,
time and place of their destruction. The certificate shall be

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signed by at least 2 witnesses of such destruction and shall be
kept in the permanent files of the Comptroller.
(Source: P.A. 78-592.)
Section 15. The State Finance Act is amended by changing
Sections 12 and 25 as follows:
(30 ILCS 105/12) (from Ch. 127, par. 148)
Sec. 12. Each voucher for traveling expenses shall indicate
the purpose of the travel as required by applicable travel
regulations, shall be itemized and shall be accompanied by all
receipts specified in the applicable travel regulations and by
a certificate, signed by the person incurring such expense,
certifying that the amount is correct and just; that the
detailed items charged for subsistence were actually paid; that
the expenses were occasioned by official business or
unavoidable delays requiring the stay of such person at hotels
for the time specified; that the journey was performed with all
practicable dispatch by the shortest route usually traveled in
the customary reasonable manner; and that such person has not
been furnished with transportation or money in lieu thereof;
for any part of the journey therein charged for.
Upon written approval by the office of the Comptroller, a
State agency may maintain the original travel voucher, the
receipts, and the proof of the traveler's signature on the
traveler's certification statement at the office of the State

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agency. However, nothing in this Section shall be construed to
exempt a State agency from submitting a detailed travel voucher
as prescribed by the office of the Comptroller.
An information copy of each voucher covering a claim by a
person subject to the official travel regulations promulgated
under Section 12-2 for travel reimbursement involving an
exception to the general restrictions of such travel
regulations shall be filed with the applicable travel control
board which shall consider these vouchers, or a report thereof,
for approval. Amounts disbursed for travel reimbursement
claims which are disapproved by the applicable travel control
board shall be refunded by the traveler and deposited in the
fund or account from which payment was made.
(Source: P.A. 84-345.)
(30 ILCS 105/25) (from Ch. 127, par. 161)
Sec. 25. Fiscal year limitations.
(a) All appropriations shall be available for expenditure
for the fiscal year or for a lesser period if the Act making
that appropriation so specifies. A deficiency or emergency
appropriation shall be available for expenditure only through
June 30 of the year when the Act making that appropriation is
enacted unless that Act otherwise provides.
(b) Outstanding liabilities as of June 30, payable from
appropriations which have otherwise expired, may be paid out of
the expiring appropriations during the 2-month period ending at

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the close of business on August 31. Any service involving
professional or artistic skills or any personal services by an
employee whose compensation is subject to income tax
withholding must be performed as of June 30 of the fiscal year
in order to be considered an "outstanding liability as of June
30" that is thereby eligible for payment out of the expiring
appropriation.
(b-1) However, payment of tuition reimbursement claims
under Section 14-7.03 or 18-3 of the School Code may be made by
the State Board of Education from its appropriations for those
respective purposes for any fiscal year, even though the claims
reimbursed by the payment may be claims attributable to a prior
fiscal year, and payments may be made at the direction of the
State Superintendent of Education from the fund from which the
appropriation is made without regard to any fiscal year
limitations, except as required by subsection (j) of this
Section. Beginning on June 30, 2021, payment of tuition
reimbursement claims under Section 14-7.03 or 18-3 of the
School Code as of June 30, payable from appropriations that
have otherwise expired, may be paid out of the expiring
appropriation during the 4-month period ending at the close of
business on October 31.
(b-2) All outstanding liabilities as of June 30, 2010,
payable from appropriations that would otherwise expire at the
conclusion of the lapse period for fiscal year 2010, and
interest penalties payable on those liabilities under the State

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Prompt Payment Act, may be paid out of the expiring
appropriations until December 31, 2010, without regard to the
fiscal year in which the payment is made, as long as vouchers
for the liabilities are received by the Comptroller no later
than August 31, 2010.
(b-2.5) All outstanding liabilities as of June 30, 2011,
payable from appropriations that would otherwise expire at the
conclusion of the lapse period for fiscal year 2011, and
interest penalties payable on those liabilities under the State
Prompt Payment Act, may be paid out of the expiring
appropriations until December 31, 2011, without regard to the
fiscal year in which the payment is made, as long as vouchers
for the liabilities are received by the Comptroller no later
than August 31, 2011.
(b-2.6) For fiscal years 2012 and 2013, interest penalties
payable under the State Prompt Payment Act associated with a
voucher for which payment is issued after June 30 may be paid
out of the next fiscal year's appropriation. The future year
appropriation must be for the same purpose and from the same
fund as the original payment. An interest penalty voucher
submitted against a future year appropriation must be submitted
within 60 days after the issuance of the associated voucher,
and the Comptroller must issue the interest payment within 60
days after acceptance of the interest voucher.
(b-3) Medical payments may be made by the Department of
Veterans' Affairs from its appropriations for those purposes

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for any fiscal year, without regard to the fact that the
medical services being compensated for by such payment may have
been rendered in a prior fiscal year, except as required by
subsection (j) of this Section. Beginning on June 30, 2021,
medical payments payable from appropriations that have
otherwise expired may be paid out of the expiring appropriation
during the 4-month period ending at the close of business on
October 31.
(b-4) Medical payments may be made by the Department of
Healthcare and Family Services and medical payments and child
care payments may be made by the Department of Human Services
(as successor to the Department of Public Aid) from
appropriations for those purposes for any fiscal year, without
regard to the fact that the medical or child care services
being compensated for by such payment may have been rendered in
a prior fiscal year; and payments may be made at the direction
of the Department of Healthcare and Family Services from the
Health Insurance Reserve Fund and the Local Government Health
Insurance Reserve Fund without regard to any fiscal year
limitations, except as required by subsection (j) of this
Section. Beginning on June 30, 2021, medical payments made by
the Department of Healthcare and Family Services, child care
payments made by the Department of Human Services, and payments
made at the discretion of the Department of Healthcare and
Family Services from the Health Insurance Reserve Fund and the
Local Government Health Insurance Reserve Fund payable from

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appropriations that have otherwise expired may be paid out of
the expiring appropriation during the 4-month period ending at
the close of business on October 31.
(b-5) Medical payments may be made by the Department of
Human Services from its appropriations relating to substance
abuse treatment services for any fiscal year, without regard to
the fact that the medical services being compensated for by
such payment may have been rendered in a prior fiscal year,
provided the payments are made on a fee-for-service basis
consistent with requirements established for Medicaid
reimbursement by the Department of Healthcare and Family
Services, except as required by subsection (j) of this Section.
Beginning on June 30, 2021, medical payments made by the
Department of Human Services relating to substance abuse
treatment services payable from appropriations that have
otherwise expired may be paid out of the expiring appropriation
during the 4-month period ending at the close of business on
October 31.
(b-6) Additionally, payments may be made by the Department
of Human Services from its appropriations, or any other State
agency from its appropriations with the approval of the
Department of Human Services, from the Immigration Reform and
Control Fund for purposes authorized pursuant to the
Immigration Reform and Control Act of 1986, without regard to
any fiscal year limitations, except as required by subsection
(j) of this Section. Beginning on June 30, 2021, payments made

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by the Department of Human Services from the Immigration Reform
and Control Fund for purposes authorized pursuant to the
Immigration Reform and Control Act of 1986 payable from
appropriations that have otherwise expired may be paid out of
the expiring appropriation during the 4-month period ending at
the close of business on October 31.
(b-7) Payments may be made in accordance with a plan
authorized by paragraph (11) or (12) of Section 405-105 of the
Department of Central Management Services Law from
appropriations for those payments without regard to fiscal year
limitations.
(c) Further, payments may be made by the Department of
Public Health, the Department of Human Services (acting as
successor to the Department of Public Health under the
Department of Human Services Act), and the Department of
Healthcare and Family Services from their respective
appropriations for grants for medical care to or on behalf of
persons suffering from chronic renal disease, persons
suffering from hemophilia, rape victims, and premature and
high-mortality risk infants and their mothers and for grants
for supplemental food supplies provided under the United States
Department of Agriculture Women, Infants and Children
Nutrition Program, for any fiscal year without regard to the
fact that the services being compensated for by such payment
may have been rendered in a prior fiscal year, except as
required by subsection (j) of this Section. Beginning on June

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30, 2021, payments made by the Department of Public Health, the
Department of Human Services, and the Department of Healthcare
and Family Services from their respective appropriations for
grants for medical care to or on behalf of persons suffering
from chronic renal disease, persons suffering from hemophilia,
rape victims, and premature and high-mortality risk infants and
their mothers and for grants for supplemental food supplies
provided under the United States Department of Agriculture
Women, Infants and Children Nutrition Program payable from
appropriations that have otherwise expired may be paid out of
the expiring appropriations during the 4-month period ending at
the close of business on October 31.
(d) The Department of Public Health and the Department of
Human Services (acting as successor to the Department of Public
Health under the Department of Human Services Act) shall each
annually submit to the State Comptroller, Senate President,
Senate Minority Leader, Speaker of the House, House Minority
Leader, and the respective Chairmen and Minority Spokesmen of
the Appropriations Committees of the Senate and the House, on
or before December 31, a report of fiscal year funds used to
pay for services provided in any prior fiscal year. This report
shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
(e) The Department of Healthcare and Family Services, the
Department of Human Services (acting as successor to the

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Department of Public Aid), and the Department of Human Services
making fee-for-service payments relating to substance abuse
treatment services provided during a previous fiscal year shall
each annually submit to the State Comptroller, Senate
President, Senate Minority Leader, Speaker of the House, House
Minority Leader, the respective Chairmen and Minority
Spokesmen of the Appropriations Committees of the Senate and
the House, on or before November 30, a report that shall
document by program or service category those expenditures from
the most recently completed fiscal year used to pay for (i)
services provided in prior fiscal years and (ii) services for
which claims were received in prior fiscal years.
(f) The Department of Human Services (as successor to the
Department of Public Aid) shall annually submit to the State
Comptroller, Senate President, Senate Minority Leader, Speaker
of the House, House Minority Leader, and the respective
Chairmen and Minority Spokesmen of the Appropriations
Committees of the Senate and the House, on or before December
31, a report of fiscal year funds used to pay for services
(other than medical care) provided in any prior fiscal year.
This report shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
(g) In addition, each annual report required to be
submitted by the Department of Healthcare and Family Services
under subsection (e) shall include the following information

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with respect to the State's Medicaid program:
(1) Explanations of the exact causes of the variance
between the previous year's estimated and actual
liabilities.
(2) Factors affecting the Department of Healthcare and
Family Services' liabilities, including but not limited to
numbers of aid recipients, levels of medical service
utilization by aid recipients, and inflation in the cost of
medical services.
(3) The results of the Department's efforts to combat
fraud and abuse.
(h) As provided in Section 4 of the General Assembly
Compensation Act, any utility bill for service provided to a
General Assembly member's district office for a period
including portions of 2 consecutive fiscal years may be paid
from funds appropriated for such expenditure in either fiscal
year.
(i) An agency which administers a fund classified by the
Comptroller as an internal service fund may issue rules for:
(1) billing user agencies in advance for payments or
authorized inter-fund transfers based on estimated charges
for goods or services;
(2) issuing credits, refunding through inter-fund
transfers, or reducing future inter-fund transfers during
the subsequent fiscal year for all user agency payments or
authorized inter-fund transfers received during the prior

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fiscal year which were in excess of the final amounts owed
by the user agency for that period; and
(3) issuing catch-up billings to user agencies during
the subsequent fiscal year for amounts remaining due when
payments or authorized inter-fund transfers received from
the user agency during the prior fiscal year were less than
the total amount owed for that period.
User agencies are authorized to reimburse internal service
funds for catch-up billings by vouchers drawn against their
respective appropriations for the fiscal year in which the
catch-up billing was issued or by increasing an authorized
inter-fund transfer during the current fiscal year. For the
purposes of this Act, "inter-fund transfers" means transfers
without the use of the voucher-warrant process, as authorized
by Section 9.01 of the State Comptroller Act.
(i-1) Beginning on July 1, 2021, all outstanding
liabilities, not payable during the 4-month lapse period as
described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
(c) of this Section, that are made from appropriations for that
purpose for any fiscal year, without regard to the fact that
the services being compensated for by those payments may have
been rendered in a prior fiscal year, are limited to only those
claims that have been incurred but for which a proper bill or
invoice as defined by the State Prompt Payment Act has not been
received by September 30th following the end of the fiscal year
in which the service was rendered.

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(j) Notwithstanding any other provision of this Act, the
aggregate amount of payments to be made without regard for
fiscal year limitations as contained in subsections (b-1),
(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
determined by using Generally Accepted Accounting Principles,
shall not exceed the following amounts:
(1) $6,000,000,000 for outstanding liabilities related
to fiscal year 2012;
(2) $5,300,000,000 for outstanding liabilities related
to fiscal year 2013;
(3) $4,600,000,000 for outstanding liabilities related
to fiscal year 2014;
(4) $4,000,000,000 for outstanding liabilities related
to fiscal year 2015;
(5) $3,300,000,000 for outstanding liabilities related
to fiscal year 2016;
(6) $2,600,000,000 for outstanding liabilities related
to fiscal year 2017;
(7) $2,000,000,000 for outstanding liabilities related
to fiscal year 2018;
(8) $1,300,000,000 for outstanding liabilities related
to fiscal year 2019;
(9) $600,000,000 for outstanding liabilities related
to fiscal year 2020; and
(10) $0 for outstanding liabilities related to fiscal
year 2021 and fiscal years thereafter.

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(k) The Comptroller must issue payments against
outstanding liabilities that were received prior to the lapse
period deadlines set forth in this Section as soon thereafter
as practical, but no payment may be issued after the 4 months
following the lapse period deadline without the signed
authorization of the Comptroller and the Governor.
(Source: P.A. 96-928, eff. 6-15-10; 96-958, eff. 7-1-10;
96-1501, eff. 1-25-11; 97-75, eff. 6-30-11; 97-333, eff.
8-12-11.)
Section 20. The Illinois Procurement Code is amended by
changing Section 20-80 as follows:
(30 ILCS 500/20-80)
Sec. 20-80. Contract files.
(a) Written determinations. All written determinations
required under this Article shall be placed in the contract
file maintained by the chief procurement officer.
(b) Filing with Comptroller. Whenever a grant, defined
pursuant to accounting standards established by the
Comptroller, or a contract liability, except for: (1) contracts
paid from personal services, or (2) contracts between the State
and its employees to defer compensation in accordance with
Article 24 of the Illinois Pension Code, exceeding $20,000
$10,000 is incurred by any State agency, a copy of the
contract, purchase order, grant, or lease shall be filed with

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the Comptroller within 30 15 days thereafter. The Comptroller
may require that grants and contracts that must be filed with
the Comptroller under this Section shall be filed
electronically. For each State contract for goods, supplies, or
services awarded on or after July 1, 2010, the contracting
agency shall provide the applicable rate and unit of
measurement of the goods, supplies, or services on the contract
obligation document as required by the Comptroller. If the
contract obligation document that is submitted to the
Comptroller contains the rate and unit of measurement of the
goods, supplies, or services, the Comptroller shall provide
that information on his or her official website. Any
cancellation or modification to any such contract liability
shall be filed with the Comptroller within 30 15 days of its
execution.
(c) Late filing affidavit. When a contract, purchase order,
grant, or lease required to be filed by this Section has not
been filed within 30 days of execution, the Comptroller shall
refuse to issue a warrant for payment thereunder until the
agency files with the Comptroller the contract, purchase order,
grant, or lease and an affidavit, signed by the chief executive
officer of the agency or his or her designee, setting forth an
explanation of why the contract liability was not filed within
30 days of execution. A copy of this affidavit shall be filed
with the Auditor General.
(d) Timely execution of contracts. No voucher shall be

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submitted to the Comptroller for a warrant to be drawn for the
payment of money from the State treasury or from other funds
held by the State Treasurer on account of any contract unless
the contract is reduced to writing before the services are
performed and filed with the Comptroller. Vendors shall not be
paid for any goods that were received or services that were
rendered before the contract was reduced to writing and signed
by all necessary parties. A chief procurement officer may
request an exception to this subsection by submitting a written
statement to the Comptroller and Treasurer setting forth the
circumstances and reasons why the contract could not be reduced
to writing before the supplies were received or services were
performed. A waiver of this subsection must be approved by the
Comptroller and Treasurer. This Section shall not apply to
emergency purchases if notice of the emergency purchase is
filed with the Procurement Policy Board and published in the
Bulletin as required by this Code.
(e) Method of source selection. When a contract is filed
with the Comptroller under this Section, the Comptroller's file
shall identify the method of source selection used in obtaining
the contract.
(Source: P.A. 96-794, eff. 1-1-10; 96-795, eff. 7-1-10 (see
Section 5 of P.A. 96-793 for the effective date of changes made
by P.A. 96-795); 96-1000, eff. 7-2-10.)
Section 25. The State Prompt Payment Act is amended by

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changing Section 3-2 as follows:
(30 ILCS 540/3-2)
Sec. 3-2. Beginning July 1, 1993, in any instance where a
State official or agency is late in payment of a vendor's bill
or invoice for goods or services furnished to the State, as
defined in Section 1, properly approved in accordance with
rules promulgated under Section 3-3, the State official or
agency shall pay interest to the vendor in accordance with the
following:
(1) Any bill, except a bill submitted under Article V
of the Illinois Public Aid Code and except as provided
under paragraph (1.05) of this Section, approved for
payment under this Section must be paid or the payment
issued to the payee within 60 days of receipt of a proper
bill or invoice. If payment is not issued to the payee
within this 60-day period, an interest penalty of 1.0% of
any amount approved and unpaid shall be added for each
month or fraction thereof after the end of this 60-day
period, until final payment is made. Any bill, except a
bill for pharmacy or nursing facility services or goods,
and except as provided under paragraph (1.05) 1.05 of this
Section, submitted under Article V of the Illinois Public
Aid Code approved for payment under this Section must be
paid or the payment issued to the payee within 60 days
after receipt of a proper bill or invoice, and, if payment

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is not issued to the payee within this 60-day period, an
interest penalty of 2.0% of any amount approved and unpaid
shall be added for each month or fraction thereof after the
end of this 60-day period, until final payment is made. Any
bill for pharmacy or nursing facility services or goods
submitted under Article V of the Illinois Public Aid Code,
except as provided under paragraph (1.05) of this Section,
and approved for payment under this Section must be paid or
the payment issued to the payee within 60 days of receipt
of a proper bill or invoice. If payment is not issued to
the payee within this 60-day period, an interest penalty of
1.0% of any amount approved and unpaid shall be added for
each month or fraction thereof after the end of this 60-day
period, until final payment is made.
(1.05) For State fiscal year 2012 and future fiscal
years, any bill approved for payment under this Section
must be paid or the payment issued to the payee within 90
days of receipt of a proper bill or invoice. If payment is
not issued to the payee within this 90-day period, an
interest penalty of 1.0% of any amount approved and unpaid
shall be added for each month, or 00.0033% (1/30%) of any
amount approved and unpaid for each day, fraction thereof
after the end of this 90-day period, until final payment is
made.
(1.1) A State agency shall review in a timely manner
each bill or invoice after its receipt. If the State agency

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determines that the bill or invoice contains a defect
making it unable to process the payment request, the agency
shall notify the vendor requesting payment as soon as
possible after discovering the defect pursuant to rules
promulgated under Section 3-3; provided, however, that the
notice for construction related bills or invoices must be
given not later than 30 days after the bill or invoice was
first submitted. The notice shall identify the defect and
any additional information necessary to correct the
defect. If one or more items on a construction related bill
or invoice are disapproved, but not the entire bill or
invoice, then the portion that is not disapproved shall be
paid.
(2) Where a State official or agency is late in payment
of a vendor's bill or invoice properly approved in
accordance with this Act, and different late payment terms
are not reduced to writing as a contractual agreement, the
State official or agency shall automatically pay interest
penalties required by this Section amounting to $50 or more
to the appropriate vendor. Each agency shall be responsible
for determining whether an interest penalty is owed and for
paying the interest to the vendor. Except as provided in
paragraph (4), an individual interest payment amounting to
$5 or less shall not be paid by the State. Interest due to
a vendor that amounts to greater than $5 and less than $50
shall not be paid but shall be accrued until all interest

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due the vendor for all similar warrants exceeds $50, at
which time the accrued interest shall be payable and
interest will begin accruing again, except that interest
accrued as of the end of the fiscal year that does not
exceed $50 shall be payable at that time. In the event an
individual has paid a vendor for services in advance, the
provisions of this Section shall apply until payment is
made to that individual.
(3) The provisions of Public Act 96-1501 reducing the
interest rate on pharmacy claims under Article V of the
Illinois Public Aid Code to 1.0% per month shall apply to
any pharmacy bills for services and goods under Article V
of the Illinois Public Aid Code received on or after the
date 60 days before January 25, 2011 (the effective date of
Public Act 96-1501) except as provided under paragraph
(1.05) of this Section.
(4) Interest amounting to less than $5 shall not be
paid by the State, except for claims (i) to the Department
of Healthcare and Family Services or the Department of
Human Services, (ii) pursuant to Article V of the Illinois
Public Aid Code, the Covering ALL KIDS Health Insurance
Act, or the Children's Health Insurance Program Act, and
(iii) made (A) by pharmacies for prescriptive services or
(B) by any federally qualified health center for
prescriptive services or any other services.
(Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;

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96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff.
6-30-11; 97-348, eff. 8-12-11; revised 9-7-11.)
Section 30. The Governmental Account Audit Act is amended
by changing Section 2 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 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

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to the governing body of the governmental unit being audited.
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. 85-1000.)
Section 35. The Counties Code is amended by changing
Section 6-31003 as follows:
(55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
Sec. 6-31003. Annual audits and reports. In counties having
a population of over 10,000 but less than 500,000, 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 having a population of less
than 500,000 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.
Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively bid

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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 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

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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.
(Source: P.A. 86-962.)
Section 40. The Illinois Municipal Code is amended by
changing Section 8-8-3 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 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

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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

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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) 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.)
Section 99. Effective date. This Act takes effect upon
becoming law.