Bill Text: IL SB1408 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Governmental Account Audit Act. Provides that any governmental unit receiving revenue of less than $1,500,000 (rather than $850,000) for any fiscal year shall, in lieu of causing an annual audit of the accounts of the unit to be made, either (i) cause an audit of the accounts of the unit to be made once every 4 years and file with the Comptroller an annual financial report containing information required by the Comptroller or (ii) file with the Comptroller an annual financial report containing information required by the Comptroller, a copy of which has been provided to each member of that governmental unit's board of elected officials, presented either in person or by a live phone or web connection during a public meeting, and approved by a 3/5 majority vote. Makes conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-31 - Referred to Assignments [SB1408 Detail]

Download: Illinois-2025-SB1408-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1408 Introduced 1/31/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
50 ILCS 310/1 from Ch. 85, par. 701
50 ILCS 310/3 from Ch. 85, par. 703
50 ILCS 310/6 from Ch. 85, par. 706
Amends the Governmental Account Audit Act. Provides that any governmental unit receiving revenue of less than $1,500,000 (rather than $850,000) for any fiscal year shall, in lieu of causing an annual audit of the accounts of the unit to be made, either (i) cause an audit of the accounts of the unit to be made once every 4 years and file with the Comptroller an annual financial report containing information required by the Comptroller or (ii) file with the Comptroller an annual financial report containing information required by the Comptroller, a copy of which has been provided to each member of that governmental unit's board of elected officials, presented either in person or by a live phone or web connection during a public meeting, and approved by a 3/5 majority vote. Makes conforming changes. Effective immediately.
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A BILL FOR
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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 1, 3, and 6 as follows:
(50 ILCS 310/1) (from Ch. 85, par. 701)
Sec. 1. Definitions. As used in this Act, unless the
context otherwise indicates:
"Governmental unit" or "unit" includes all municipal
corporations in and political subdivisions of this State that
appropriate more than $5,000 for a fiscal year, with the
amount to increase or decrease by the amount of the Consumer
Price Index (CPI) as reported on January 1 of each year, except
the following:
(1) School districts.
(2) Cities, villages, and incorporated towns subject
to the Municipal Auditing Law, as contained in the
Illinois Municipal Code, and cities that file a report
with the Comptroller under Section 3.1-35-115 of the
Illinois Municipal Code.
(3) Counties with a population of 1,000,000 or more.
(4) Counties subject to the County Auditing Law.
(5) Any other municipal corporations in or political

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subdivisions of this State, the accounts of which are
required by law to be audited by or under the direction of
the Auditor General.
(6) (Blank).
(7) A drainage district, established under the
Illinois Drainage Code (70 ILCS 605), that did not receive
or expend any moneys during the immediately preceding
fiscal year or obtains approval for assessments and
expenditures through the circuit court.
(8) Public housing authorities that submit financial
reports to the U.S. Department of Housing and Urban
Development.
"Governing body" means the board or other body or officers
having authority to levy taxes, make appropriations, authorize
the expenditure of public funds or approve claims for any
governmental unit.
"Comptroller" means the Comptroller of the State of
Illinois.
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Audit report" means the written report of the auditor and
all appended statements and schedules relating to that report,
presenting or recording the findings of an examination or
audit of the financial transactions, affairs, or conditions of
a governmental unit.

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"Auditor" means a licensed certified public accountant, as
that term is defined in Section 0.03 of the Illinois Public
Accounting Act, or the substantial equivalent of a licensed
CPA, as provided under Section 5.2 of the Illinois Public
Accounting Act, who performs an audit of governmental unit
financial statements and records and expresses an assurance or
disclaims an opinion on the audited financial statements.
"Report" includes both audit reports and reports filed
instead of an audit report by a governmental unit receiving
revenue of less than $1,500,000 $850,000 during any fiscal
year to which the reports relate.
"Generally accepted accounting principles" means
accounting principles generally accepted in the United States.
"Generally accepted auditing standards" means auditing
standards generally accepted in the United States.
(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
(50 ILCS 310/3) (from Ch. 85, par. 703)
Sec. 3. Any governmental unit receiving revenue of less
than $1,500,000 $850,000 for any fiscal year shall, in lieu of
complying with the requirements of Section 2 for audits and
audit reports, beginning with fiscal year 2016, either: (i)
cause an audit of the accounts of the unit to be made once
every 4 years and file with the Comptroller an annual
financial report containing information required by the
Comptroller, or (ii) file with the Comptroller an annual

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financial report containing information required by the
Comptroller, a copy of which has been provided to each member
of that governmental unit's board of elected officials,
presented either in person or by a live phone or web connection
during a public meeting, and approved by a 3/5 majority vote.
In addition, a governmental unit receiving revenue of less
than $1,500,000 $850,000 may file with the Comptroller any
audit reports which may have been prepared under any other
law. Any governmental unit receiving revenue of $1,500,000
$850,000 or more for any fiscal year shall, in addition to
complying with the requirements of Section 2 for audits and
audit reports, file with the Comptroller the financial report
required by this Section. Such financial reports shall be on
forms so designed by the Comptroller as not to require
professional accounting services for its preparation. All
reports to be filed with the Comptroller under this Section
must be submitted electronically and the Comptroller must post
the 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 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

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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. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;
98-1019, eff. 7-1-15.)
(50 ILCS 310/6) (from Ch. 85, par. 706)
Sec. 6. When the audit is completed the auditor making
such audit shall make and sign at least 3 copies of the report
of the audit and immediately file them with the governmental
unit audited. Governmental units receiving revenue of
$1,500,000 $850,000 or more for any fiscal year shall
immediately make one copy of the audit report and one copy of
the financial report required by Section 3 of this Act a part
of its public record. Governmental units receiving revenue of
less than $1,500,000 $850,000 shall immediately make one copy
of the audit report, or one copy of the report authorized by
Section 3 of this Act to be filed instead of the audit report,
a part of its public record. These copies shall be open to
public inspection. In addition, the governmental unit shall
file one copy of the report with the Comptroller and with the
county clerk of the county in which the principal office of the
governmental unit is located. A governmental unit may, in
filing its audit report with the Comptroller, transmit with
such report any comment or explanation that it wishes to make
concerning the report.

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(Source: P.A. 101-419, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect upon
becoming law.