Public Act 100-0837
 
SB2638 EnrolledLRB100 16888 AWJ 32029 b


  
    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 and 5 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 
    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.

    "Licensed public accountant" means the holder of a valid 
certificate
as a public accountant under the Illinois Public 
Accounting Act.

    "Audit report" means the written report of the licensed 
public
accountant 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.

    "Auditor" means a licensed certified public accountant, as 
that term is defined in Section 0.03 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 $850,000
during any fiscal year to which 
the reports relate.

(Source: P.A. 92-191, eff. 8-1-01; 92-582, eff. 7-1-02.)

 



    (50 ILCS 310/5)  (from Ch. 85, par. 705)



    Sec. 5. 
(a) Prior to fiscal year 2019, the The audit report 
shall contain statements that conform with
generally accepted 
accounting principles or other comprehensive basis of 
accounting and that set forth, insofar as
possible, the 
financial position and results of financial operations for
each 
fund of the governmental unit. 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 governmental
unit 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 also include the

professional opinion of the auditor or auditors licensed public 
accountant with respect to the
financial statements or, if an 
opinion cannot be expressed, a declaration
that he or she is 
unable to express such opinion and an explanation of the 
reasons
he or she cannot do so.  Each audit report shall include 
the certification of
the auditor or auditors accountant or 
accountants making the audit that the audit has been
performed 
in compliance with generally accepted auditing standards.

    (b) For fiscal year 2019 and each fiscal year thereafter, 
the audit report shall contain statements that set forth the 
financial position and results of financial operations for each 
fund of the governmental unit. 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 governmental unit 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 also include the 
professional opinion of the auditor or auditors with respect to 
the financial statements or, if an opinion cannot be expressed, 
a declaration that he or she  is unable to express an opinion 
and an explanation of the reasons he or she  cannot do so. 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.
    (c) For fiscal year 2019 and each fiscal year thereafter, 
audit reports shall contain financial statements prepared in 
conformity with generally accepted accounting principles and 
audited in conformity with generally accepted auditing 
standards if the last audit report filed preceding fiscal year 
2019 expressed an unmodified or modified opinion by the 
independent auditor that the financial statements were 
presented in conformity with generally accepted accounting 
principles. 
    (d) For fiscal year 2019 and each fiscal year thereafter, 
audit reports containing financial statements prepared in 
conformity with an other comprehensive basis of accounting may 
follow the best practices and guidelines as outlined by the 
American Institute of Certified Public Accountants and shall be 
audited in conformity with generally accepted auditing 
standards. If the governing body of a governmental unit submits 
an audit report containing financial statements prepared in 
conformity with generally accepted accounting principles, 
thereafter all future audit reports shall also contain 
financial statements presented in conformity 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 governmental unit, and audit 
reports shall comply with this Section.
(Source: P.A. 85-1000.)

 
    Section 10. The Counties Code is amended  by changing 
Sections 6-31002 and  6-31006 as follows:
 



    (55 ILCS 5/6-31002)  (from Ch. 34, par. 6-31002)



    Sec. 6-31002. Definitions. As used in this Division, unless 
the context otherwise requires:

    1.  "Comptroller" means the Comptroller of the State of 
Illinois;

    2.  "accountant" or "accountants" means and includes all 
persons
authorized to practice public accounting under the laws 
of this State;

    3.  "funds and accounts" means all funds of a county derived 
from
property taxes and all funds and accounts derived from 
sources other than
property taxes, including the receipts and 
expenditures of the fee earnings
of each county fee officer;

    4.  "audit report" means the written report of the 
accountant or
accountants and all appended statements and 
schedules relating thereto,
presenting or recording the 
findings of an examination or audit of the
financial 
transactions, affairs and condition of a county;

    5. "population" means the number of persons residing in a 
county
according to the last preceding federal decennial 
census; .
    6. "auditor" means a licensed certified public accountant, 
as that term is defined in Section 0.03 of the Illinois Public 
Accounting Act, who performs an audit of county financial 
statements and records and expresses an assurance or disclaims 
an opinion on the audited financial statements; "auditor" does 
not include a county auditor elected or appointed under 
Division 3-1 of the Counties Code.

(Source: P.A. 86-962.)

 



    (55 ILCS 5/6-31006)  (from Ch. 34, par. 6-31006)



    Sec. 6-31006. Audit report. 
    (a) Prior to fiscal year 2019, the The audit report shall 
contain
statements that are in conformity with generally 
accepted public accounting
principles or other comprehensive 
basis of accounting and shall set forth, insofar as possible, 
the financial position
and the results of financial operations 
for each fund, account, and office
of the county government. 
The audit report shall also include the
professional opinion of 
the auditor or auditors accountant or accountants with respect 
to the
financial status and operations or, if an opinion cannot 
be expressed, a
declaration that such auditor accountant is 
unable to express such opinion and an
explanation of the 
reasons he or she cannot do so.  Each audit report shall
include 
the certification of the auditor or auditors accountant or 
accountants making the audit
that the audit has been performed 
in compliance with generally accepted
auditing standards. 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
county since the filing of the last audit 
report.

    (b) For fiscal year 2019 and each fiscal year thereafter, 
the audit report shall contain statements that set forth the 
financial position and the results of financial operations for 
each fund, account, and office of the county government. The 
audit report shall also include the professional opinion of an 
auditor or auditors with respect to the financial status and 
operations 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 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. 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 county 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 
conformity with generally accepted accounting principles and 
audited in conformity with generally accepted auditing 
standards if the last audit report filed preceding fiscal year 
2019 expressed an unmodified or modified opinion by the 
independent auditor that the financial statements were 
presented in conformity with generally accepted accounting 
principles. 
    (d) For fiscal year 2019 and each fiscal year thereafter, 
audit reports containing financial statements prepared in 
conformity 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 conformity with generally accepted auditing 
standards.  If the county board of a county submits an audit 
report containing financial statements prepared in conformity 
with generally accepted accounting principles, thereafter  all 
future audit reports shall also contain financial statements 
presented in conformity 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 county, and audit reports shall 
comply with this Section.
(Source: P.A. 86-962; 87-424.)

 
    Section 15. The Illinois Municipal Code is amended  by 
changing Sections  8-8-2 and 8-8-5 as follows:
 



    (65 ILCS 5/8-8-2)  (from Ch. 24, par. 8-8-2)



    Sec. 8-8-2. 
The following terms shall, unless the context 
otherwise indicates,
have the following meanings:

    (1) "Municipality" or "municipalities" means all cities, 
villages
and incorporated towns having a population of less 
than 500,000 as
determined by the last preceding Federal 
census.

    (2) "Corporate authorities" means a city council, village 
board of
trustees, library board, police and firemen's pension 
board, or any
other body or officers having authority to levy 
taxes, make
appropriations, or approve claims for any 
municipality.

    (3) "Comptroller" means the Comptroller of the State of 
Illinois.

    (4) "Accountant" or "accountants" means all persons 
licensed to
practice public accounting under the laws of this 
State.

    (5) "Audit report" means the written report of the 
accountant or
accountants and all appended statements and 
schedules relating thereto,
presenting or recording the 
findings of an examination or audit of the
financial 
transactions, affairs, or condition of a municipality.

    (6) "Annual report" means the statement filed, in lieu of 
an audit
report, by the municipalities of less than 800 
population, which do not
own or operate public utilities and do 
not have bonded debt.

    (7) "Supplemental report" means the annual statement 
filed, in
addition to any audit report provided for herein, by 
all municipalities,
except municipalities of less than 800 
population which do not own or
operate public utilities and do 
not have bonded debt.

    (8) "Auditor" means a licensed certified public 
accountant, as that term is defined in Section 0.03 of the 
Illinois Public Accounting Act, who performs an audit of 
municipal financial statements and records and expresses an 
assurance or disclaims an opinion on the audited financial 
statements.
(Source: P.A. 81-1050.)

 



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



    Sec. 8-8-5. 
(a) Prior to fiscal year 2019, the 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 , insofar as
possible.  
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 accountant or accountants with
respect to the 
financial statements or, if an opinion cannot be expressed,
a 
declaration that the auditor accountant 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
accountant or accountants. 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.

    Audits under this Division may be made upon either an 
accrual or cash
basis of accounting depending upon the system 
followed by each
municipality.
    (b) For fiscal year 2019 and each fiscal year thereafter, 
the audit shall be made in accordance with generally accepted 
auditing standards. 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 also consist of the 
professional opinion of an 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. 
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 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.
    (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 
independent auditor that the financial statements were 
presented 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 presented 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. 87-433.)

 

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