State of Illinois
90th General Assembly
Legislation

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90_HB3473

      50 ILCS 310/1             from Ch. 85, par. 701
      55 ILCS 5/6-31003         from Ch. 34, par. 6-31003
      65 ILCS 5/8-8-2           from Ch. 24, par. 8-8-2
          Amends the Governmental Account Audit Act.  Provides that
      certain cities, counties with a population  of  1,000,000  or
      more,  and  county  hospitals  established  under  the County
      Hospitals Law are subject to the Act.   Amends  the  Counties
      Code.   Provides  for  annual  audits  in  counties  having a
      population of over 10,000 (now  over  10,000  but  less  than
      500,000).   Provides that each county (now each county having
      a population of less than 500,000)  shall  file  a  financial
      report  with  the Comptroller.  Amends the Illinois Municipal
      Code.  In the Division  of  the  Finance  Article  concerning
      audits  of  accounts,  provides that "municipality" means all
      cities, villages, and incorporated  towns  (now  all  cities,
      villages  and  incorporated towns having a population of less
      than 500,000 as determined  by  the  last  preceding  Federal
      census).
                                                     LRB9008004MWcd
                                               LRB9008004MWcd
 1        AN  ACT  concerning  audits of units of local government,
 2    amending named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Governmental Account Audit Act is amended
 6    by changing Section 1 as follows:
 7        (50 ILCS 310/1) (from Ch. 85, par. 701)
 8        Sec.  1.   Definitions.  As  used in this Act, unless the
 9    context otherwise indicates:
10        "Governmental unit"  or  "unit"  includes  all  municipal
11    corporations in and political subdivisions of this State that
12    appropriate  more  than  $5,000  for  a fiscal year, with the
13    amount to increase or decrease by the amount of the  Consumer
14    Price  Index  (CPI)  as  reported  on January 1 of each year,
15    except the following:
16             (1)  School districts.
17             (2)  Cities,  villages,   and   incorporated   towns
18        subject  to  the  Municipal Auditing Law, as contained in
19        the Illinois Municipal  Code,  and  cities  that  file  a
20        report  with  the Comptroller under Section 3.1-35-115 of
21        the Illinois Municipal Code.
22             (3)  (Blank).  Counties   with   a   population   of
23        1,000,000 or more.
24             (4)  Counties subject to the County Auditing Law.
25             (5)  Any   other   municipal   corporations   in  or
26        political subdivisions of this  State,  the  accounts  of
27        which  are  required by law to be audited by or under the
28        direction  of  the  Auditor  General.   County  hospitals
29        established under the County Hospitals Law (Division 5-37
30        of the Counties Code) are,  however,  governmental  units
31        subject to this Act.
                            -2-                LRB9008004MWcd
 1             (6)  (Blank).
 2        "Governing  body"  means  the  board  or  other  body  or
 3    officers having authority to levy taxes, make appropriations,
 4    authorize  the  expenditure of public funds or approve claims
 5    for any governmental unit.
 6        "Comptroller" means  the  Comptroller  of  the  State  of
 7    Illinois.
 8        "Consumer Price Index" means the Consumer Price Index for
 9    All  Urban  Consumers  for  all items published by the United
10    States Department of Labor.
11        "Licensed public accountant" means the holder of a  valid
12    certificate  as a public accountant under the Illinois Public
13    Accounting Act.
14        "Audit report" means the written report of  the  licensed
15    public  accountant  and all appended statements and schedules
16    relating to that report, presenting or recording the findings
17    of an examination or audit  of  the  financial  transactions,
18    affairs, or conditions of a governmental unit.
19        "Report"  includes  both  audit reports and reports filed
20    instead  of  an  audit  report   by   a   governmental   unit
21    appropriating  less  than  $200,000 during any fiscal year to
22    which the reports relate.
23    (Source: P.A. 90-104, eff. 7-11-97.)
24        Section 10.  The Counties Code  is  amended  by  changing
25    Section 6-31003 as follows:
26        (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
27        Sec.  6-31003.   Annual  audits  and reports. In counties
28    having a population of over 10,000 but less than 500,000, the
29    county board of each county shall cause an audit  of  all  of
30    the  funds  and accounts of the county to be made annually by
31    an accountant or accountants chosen by the county board or by
32    an accountant or accountants retained by the Comptroller,  as
                            -3-                LRB9008004MWcd
 1    hereinafter  provided.   In  addition,  each  county having a
 2    population  of  less  than  500,000  shall  file   with   the
 3    Comptroller   a   financial   report  containing  information
 4    required by the Comptroller.  Such financial report shall  be
 5    on  a  form  so designed by the Comptroller as not to require
 6    professional accounting services for its preparation.
 7        The audit shall commence as soon as  possible  after  the
 8    close  of  each  fiscal  year and shall be completed within 6
 9    months after  the  close  of  such  fiscal  year,  unless  an
10    extension  of  time is granted by the Comptroller in writing.
11    Such extension of time shall not exceed  60  days.  When  the
12    accountant  or  accountants  have  completed the audit a full
13    report thereof shall be made and not less than  2  copies  of
14    each  audit  report  shall  be submitted to the county board.
15    Each audit report shall be signed by  the  accountant  making
16    the  audit  and  shall  include  only  financial information,
17    findings and conclusions that  are  adequately  supported  by
18    evidence  in  the  auditor's working papers to demonstrate or
19    prove, when called upon, the basis for the  matters  reported
20    and their correctness and reasonableness.  In connection with
21    this,  each county board shall retain the right of inspection
22    of the auditor's working papers and shall make them available
23    to the Comptroller, or his designee, upon request.
24        Within 60 days of receipt of an audit report, each county
25    board shall file one copy  of  each  audit  report  and  each
26    financial  report  with  the  Comptroller  and any comment or
27    explanation  that  the  county  board  may  desire  to   make
28    concerning  such  audit  report  may  be attached thereto. An
29    audit report which fails to meet  the  requirements  of  this
30    Division shall be rejected by the Comptroller and returned to
31    the  county  board  for  corrective action.  One copy of each
32    such report shall be filed  with  the  county  clerk  of  the
33    county so audited.
34    (Source: P.A. 86-962.)
                            -4-                LRB9008004MWcd
 1        Section  15.   The  Illinois Municipal Code is amended by
 2    changing Section 8-8-2 as follows:
 3        (65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
 4        Sec. 8-8-2. The following terms shall, unless the context
 5    otherwise indicates, have the following meanings:
 6        (1)  "Municipality" or "municipalities" means all cities,
 7    villages and incorporated towns having a population  of  less
 8    than  500,000  as  determined  by  the last preceding Federal
 9    census.
10        (2)  "Corporate  authorities"  means  a   city   council,
11    village   board   of  trustees,  library  board,  police  and
12    firemen's pension board, or any other body or officers having
13    authority to levy  taxes,  make  appropriations,  or  approve
14    claims for any municipality.
15        (3)  "Comptroller"  means the Comptroller of the State of
16    Illinois.
17        (4)  "Accountant"  or  "accountants"  means  all  persons
18    licensed to practice public accounting under the laws of this
19    State.
20        (5)  "Audit report"  means  the  written  report  of  the
21    accountant  or  accountants  and  all appended statements and
22    schedules  relating  thereto,  presenting  or  recording  the
23    findings  of  an  examination  or  audit  of  the   financial
24    transactions, affairs, or condition of a municipality.
25        (6)  "Annual  report"  means the statement filed, in lieu
26    of an audit report, by the municipalities of  less  than  800
27    population,  which do not own or operate public utilities and
28    do not have bonded debt.
29        (7)  "Supplemental report"  means  the  annual  statement
30    filed,  in  addition to any audit report provided for herein,
31    by all municipalities, except municipalities of less than 800
32    population which do not own or operate public  utilities  and
33    do not have bonded debt.
                            -5-                LRB9008004MWcd
 1    (Source: P.A. 81-1050.)

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