65 ILCS 5/ Illinois Municipal Code.

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65 ILCS 5/8-8-4

(65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)

Sec. 8-8-4. Overdue reports.

(a) In the event the required audit report for
a municipality is not filed
with the Comptroller in accordance with Section 8-8-7 within 180 days after
the close of the fiscal year of the municipality, the Comptroller shall
notify the corporate authorities of that municipality in writing that the
audit report is due, and may also grant an extension of time of 60 days,
for the filing of the audit report. In the event the required audit report
is not filed within the time specified in such written notice, the
Comptroller shall cause such audit to be made by an auditor or auditors. In the event the required annual or supplemental report for a
municipality is not filed within 6 months after the close of the fiscal
year of the municipality, the Comptroller shall notify the corporate
authorities of that municipality in writing that the annual or supplemental
report is due and may grant an extension in time of 60 days for the filing
of such annual or supplemental report.

(b) In the event the annual or supplemental report is not filed within
the
time extended by the Comptroller, the Comptroller shall cause such annual
or supplemental report to be prepared or completed and the municipality
shall pay to the Comptroller reasonable compensation and expenses to
reimburse him for the cost of preparing or completing such annual or
supplemental report.
Moneys paid to the Comptroller pursuant to the preceding sentence shall be
deposited into the Comptroller's Audit Expense Revolving Fund.

(c) The Comptroller may decline to order an audit or the completion of the
supplemental report if an initial examination of the books and records of the
municipality indicates that books and records of the municipality are
inadequate or unavailable to support the preparation of the audit report or the
supplemental report due to the passage of time or the occurrence of a natural
disaster.

(d) The State Comptroller may grant extensions for delinquent audits or reports.  The Comptroller may charge a municipality a fee for a delinquent audit or report of $5 per day for the first 15 days past due, $10 per day for 16 through 30 days past due, $15 per day for 31 through 45 days past due, and $20 per day for the 46th day and every day thereafter. These amounts may be reduced at the Comptroller's discretion.  All fees collected under this subsection (d) shall be deposited into the Comptroller's Administrative Fund.

(Source: P.A. 101-419, eff. 1-1-20.)

65 ILCS 5/8-8-5

(65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)

Sec. 8-8-5.

(a) Prior to fiscal year 2019, the audit shall be made in accordance with generally accepted
auditing standards. Reporting on the financial position and results of
financial operations for each fund of the municipality shall be in
accordance with generally accepted accounting principles or other comprehensive basis of accounting.  Each audit report 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 municipality shall retain the right of
inspection of the auditor's working papers and shall make them available to
the Comptroller, or his or her designee, upon request.  The audit report shall
consist of the professional opinion of the auditor or auditors with
respect to the financial statements or, if an opinion cannot be expressed,
a declaration that the auditor is unable to express such opinion and an
explanation of the reasons he or she cannot do so. Municipal authorities shall not
impose limitations on the scope of the audit to the extent that the effect
of such limitations will result in the qualification of the opinion of the auditor or auditors. Each audit report filed with the Comptroller
shall be accompanied by a copy of each official statement or other offering
of materials prepared in connection with the issuance of indebtedness of
the municipality since the filing of the last audit report.

(b) For fiscal year 2019 and each fiscal year thereafter, the audit report shall include the financial statements for governmental activities, business-type activities, discretely presented component units, and each major fund and aggregated nonmajor fund. The audit report shall also include the professional opinion or opinions of the auditor or auditors with respect to the financial statements or, if an opinion cannot be expressed, a declaration that the auditor is unable to express an opinion and an explanation of the reasons he or she cannot do so. Each auditor's report shall include a representation by the auditor or auditors conducting the audit has been performed in accordance with generally accepted auditing standards. Municipal authorities shall not impose limitations on the scope of the audit to the extent that the effect of the limitations will result in the modification of the opinion or opinions of the auditor or auditors. Each audit report filed with the Comptroller shall be accompanied by a copy of each official statement or other offering of materials prepared in connection with the issuance of indebtedness of the municipality since the filing of the last audit report.

(c) For fiscal year 2019 and each fiscal year thereafter, audit reports shall contain financial statements prepared in accordance with generally accepted accounting principles and audited in accordance with generally accepted auditing standards if the last audit report filed preceding fiscal year 2019 expressed an unmodified or modified opinion by the auditor that the financial statements were prepared in accordance with generally accepted accounting principles.

(d) For fiscal year 2019 and each fiscal year thereafter, audit reports containing financial statements prepared in accordance with an other comprehensive basis of accounting may follow the best practices and guidelines outlined by the American Institute of Certified Public Accountants and shall be audited in accordance with generally accepted auditing standards. If the corporate authority of a municipality submits an audit report containing financial statements prepared in accordance with generally accepted accounting principles, thereafter all future audit reports shall also contain financial statements prepared in accordance with generally accepted accounting principles.

(e) Audits may be made on financial statements prepared using either an accrual or cash basis of accounting, depending upon the system followed by the municipality, and audit reports shall comply with this Section.

(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)

65 ILCS 5/8-8-7

(65 ILCS 5/8-8-7) (from Ch. 24, par. 8-8-7)

Sec. 8-8-7.

When the auditor or auditors have completed the audit,
not less than 2 copies of a report of the audit shall be made and signed by
the making such audit, and shall immediately be filed with the
municipality audited.  Each audit report shall include the certification
of the auditor or auditors making the audit that the audit has been
performed in compliance with generally accepted auditing standards.
The municipality shall immediately make one copy of
the report, or one copy of the report authorized by this Division 8 in lieu
of an audit report, a part of its public records and at all times
thereafter this copy shall be open to public inspection. In addition, the
municipality shall file one copy of the report with the Comptroller.
An audit report which fails to meet the requirements of this Act shall be
rejected by the Comptroller and returned to the municipal authorities for
corrective action.  Nothing in this Section shall be construed as
preventing a municipality, in
filing its audit report with the Comptroller, from transmitting with such
report any comment or explanation that it may desire to make concerning
that report. The audit report filed with the Comptroller, together with any
accompanying comment or explanation, shall immediately become a part of his
public records and shall at all times thereafter be open to public
inspection. It shall be unlawful for the auditor to make any disclosure
of the result of any examination of any public account excepting as he does
so directly to the corporate authorities of the municipality audited.

(Source: P.A. 101-419, eff. 1-1-20.)

65 ILCS 5/8-8-8

(65 ILCS 5/8-8-8) (from Ch. 24, par. 8-8-8)

Sec. 8-8-8.

The expenses of the audit and investigation of public accounts
provided for in Division 8, whether ordered by the corporate authorities
or the Comptroller, shall be paid by the municipality for which the
audit is made. Payment shall be ordered by the corporate authorities out
of the funds of the municipality and it shall be the duty of such
authorities to make provisions for payment. Contracts for the
performance of audits required by this Division 8 may be entered into
without competitive bidding. If the audit is made by an auditor or auditors retained by the Comptroller, the municipality shall pay to
the Comptroller reasonable compensation and expenses to reimburse him
for the cost of making such audit.

The corporate authorities of all municipalities coming under the
provisions of this Division 8 shall have the power to annually levy a
"Municipal Auditing Tax" upon all of the taxable property of the
municipalities at the rate on the dollar which will produce an amount
which will equal a sum sufficient to meet the cost of all auditing and
reports thereunder. Such municipal auditing tax shall be held in a
special fund and used for no other purpose than the payment of expenses
occasioned by this Division 8.

The tax authorized by this Section shall be in addition to taxes for
general corporate purposes authorized under Section 8-3-1 of this Act.

(Source: P.A. 101-419, eff. 1-1-20.)

65 ILCS 5/8-8-9

(65 ILCS 5/8-8-9) (from Ch. 24, par. 8-8-9)

Sec. 8-8-9.

The provisions of the Division 8 shall not be construed
to relieve any officer of any duties now required by law of him with
relation to the auditing of public accounts or the disbursement of
public funds.  Failure of the corporate authorities of any municipality
to comply with any of the provisions of this Division 8 shall not affect
the legality of taxes levied for any of the funds of such municipality.

Notwithstanding any provision to the contrary, any municipality which
files audits or audit reports with the Comptroller in compliance with
this Act shall not be required to file any additional audits or audit
reports with any state governmental agency providing motor fuel tax
funds to such municipality.  Any such state governmental agency may
obtain copies of all audits and audit reports from the Comptroller.

(Source: P.A. 80-423.)