SB1806 EngrossedLRB101 10244 AWJ 55348 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Governmental Account Audit Act is amended by
5changing Sections 1, 2, 4, 5, and 6 as follows:
 
6    (50 ILCS 310/1)  (from Ch. 85, par. 701)
7    Sec. 1. Definitions. As used in this Act, unless the
8context otherwise indicates:
9    "Governmental unit" or "unit" includes all municipal
10corporations in and political subdivisions of this State that
11appropriate more than $5,000 for a fiscal year, with the amount
12to increase or decrease by the amount of the Consumer Price
13Index (CPI) as reported on January 1 of each year, except the
14following:
15        (1) School districts.
16        (2) Cities, villages, and incorporated towns subject
17    to the Municipal Auditing Law, as contained in the Illinois
18    Municipal Code, and cities that file a report with the
19    Comptroller under Section 3.1-35-115 of the Illinois
20    Municipal Code.
21        (3) Counties with a population of 1,000,000 or more.
22        (4) Counties subject to the County Auditing Law.
23        (5) Any other municipal corporations in or political

 

 

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1    subdivisions of this State, the accounts of which are
2    required by law to be audited by or under the direction of
3    the Auditor General.
4        (6) (Blank).
5        (7) A drainage district, established under the
6    Illinois Drainage Code (70 ILCS 605), that did not receive
7    or expend any moneys during the immediately preceding
8    fiscal year or obtains approval for assessments and
9    expenditures through the circuit court.
10        (8) Public housing authorities that submit financial
11    reports to the U.S. Department of Housing and Urban
12    Development.
13    "Governing body" means the board or other body or officers
14having authority to levy taxes, make appropriations, authorize
15the expenditure of public funds or approve claims for any
16governmental unit.
17    "Comptroller" means the Comptroller of the State of
18Illinois.
19    "Consumer Price Index" means the Consumer Price Index for
20All Urban Consumers for all items published by the United
21States Department of Labor.
22    "Licensed public accountant" means the holder of a valid
23certificate as a public accountant under the Illinois Public
24Accounting Act.
25    "Audit report" means the written report of the auditor
26licensed public accountant and all appended statements and

 

 

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1schedules relating to that report, presenting or recording the
2findings of an examination or audit of the financial
3transactions, affairs, or conditions of a governmental unit.
4    "Auditor" means a licensed certified public accountant, as
5that term is defined in Section 0.03 of the Illinois Public
6Accounting Act, or the substantial equivalent of a licensed
7CPA, as provided under Section 5.2 of the Illinois Public
8Accounting Act, who performs an audit of governmental unit
9financial statements and records and expresses an assurance or
10disclaims an opinion on the audited financial statements.
11    "Report" includes both audit reports and reports filed
12instead of an audit report by a governmental unit receiving
13revenue of less than $850,000 during any fiscal year to which
14the reports relate.
15    "Generally accepted accounting principles" means
16accounting principles generally accepted in the United States.
17    "Generally accepted auditing standards" means auditing
18standards generally accepted in the United States.
19(Source: P.A. 100-837, eff. 8-13-18.)
 
20    (50 ILCS 310/2)  (from Ch. 85, par. 702)
21    Sec. 2. Except as otherwise provided in Section 3, the
22governing body of each governmental unit shall cause an audit
23of the accounts of the unit to be made by an auditor or
24auditors a licensed public accountant. Such audit shall be
25performed made annually and shall cover the immediately

 

 

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1preceding fiscal year of the governmental unit. The audit shall
2include all the accounts and funds of the governmental unit,
3including the accounts of any officer of the governmental unit
4who receives fees or handles funds of the unit or who spends
5money of the unit. The audit shall begin as soon as possible
6after the close of the last fiscal year to which it pertains,
7and shall be completed and the audit report filed with the
8Comptroller within 180 days after the close of such fiscal year
9unless an extension of time is granted by the Comptroller in
10writing. An audit report which fails to meet the requirements
11of this Act shall be rejected by the Comptroller and returned
12to the governing body of the governmental unit for corrective
13action. The auditor or auditors performing licensed public
14accountant making the audit shall submit not less than 3 copies
15of the audit report to the governing body of the governmental
16unit being audited.
17    All audits to be filed with the Comptroller under this
18Section must be submitted electronically and the Comptroller
19must post the audit reports on the Internet no later than 45
20days after they are received. If the governmental unit provides
21the Comptroller's Office with sufficient evidence that the
22audit report cannot be filed electronically, the Comptroller
23may waive this requirement. The Comptroller must also post a
24list of governmental units that are not in compliance with the
25reporting requirements set forth in this Section.
26    Any financial report under this Section shall include the

 

 

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1name of the purchasing agent who oversees all competitively bid
2contracts. If there is no purchasing agent, the name of the
3person responsible for oversight of all competitively bid
4contracts shall be listed.
5(Source: P.A. 99-459, eff. 8-25-15.)
 
6    (50 ILCS 310/4)  (from Ch. 85, par. 704)
7    Sec. 4. Overdue report.
8    (a) If the required report for a governmental unit is not
9filed with the Comptroller in accordance with Section 2 or
10Section 3, whichever is applicable, within 180 days after the
11close of the fiscal year of the governmental unit, the
12Comptroller shall notify the governing body of that unit in
13writing that the report is due and may also grant a 60 day
14extension for the filing of the audit report. If the required
15report is not filed within the time specified in such written
16notice, the Comptroller shall cause an audit to be made by a
17auditor licensed public accountant, and the governmental unit
18shall pay to the Comptroller actual compensation and expenses
19to reimburse him for the cost of preparing or completing such
20report.
21    (b) The Comptroller may decline to order an audit and the
22preparation of an audit report (i) if an initial examination of
23the books and records of the governmental unit indicates that
24the books and records of the governmental unit are inadequate
25or unavailable due to the passage of time or the occurrence of

 

 

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1a natural disaster or (ii) if the Comptroller determines that
2the cost of an audit would impose an unreasonable financial
3burden on the governmental unit.
4    (c) The State Comptroller may grant extensions for
5delinquent audits or reports. The Comptroller may charge a
6governmental unit a fee for a delinquent audit or report of $5
7per day for the first 15 days past due, $10 per day for 16
8through 30 days past due, $15 per day for 31 through 45 days
9past due, and $20 per day for the 46th day and every day
10thereafter. These amounts may be reduced at the Comptroller's
11discretion. All fees collected under this subsection (c) shall
12be deposited into the Comptroller's Administrative Fund.
13(Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
 
14    (50 ILCS 310/5)  (from Ch. 85, par. 705)
15    Sec. 5. (a) Prior to fiscal year 2019, the audit report
16shall contain statements that conform with generally accepted
17accounting principles or other comprehensive basis of
18accounting and that set forth the financial position and
19results of financial operations for each fund of the
20governmental unit. Each audit report shall include only
21financial information, findings, and conclusions that are
22adequately supported by evidence in the auditor's working
23papers to demonstrate or prove, when called upon, the basis for
24the matters reported and their correctness and reasonableness.
25In connection with this, each governmental unit shall retain

 

 

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1the right of inspection of the auditor's working papers and
2shall make them available to the Comptroller, or his or her
3designee, upon request. The audit report shall also include the
4professional opinion of the auditor or auditors with respect to
5the financial statements or, if an opinion cannot be expressed,
6a declaration that he or she is unable to express such opinion
7and an explanation of the reasons he or she cannot do so. Each
8audit report shall include the certification of the auditor or
9auditors making the audit that the audit has been performed in
10compliance with generally accepted auditing standards.
11    (b) For fiscal year 2019 and each fiscal year thereafter,
12the audit report shall contain statements that set forth the
13financial position and results of financial operations for
14financial statements for governmental activities,
15business-type activities, discretely presented component
16units, and each major fund and aggregated nonmajor fund each
17fund of the governmental unit. Each audit report shall include
18only financial information, findings, and conclusions that are
19adequately supported by evidence in the auditor's working
20papers to demonstrate or prove, when called upon, the basis for
21the matters reported and their correctness and reasonableness.
22In connection with this, each governmental unit shall retain
23the right of inspection of the auditor's working papers and
24shall make them available to the Comptroller, or his or her
25designee, upon request. The audit report shall also include the
26professional opinion of the auditor or auditors with respect to

 

 

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1the financial statements or, if an opinion cannot be expressed,
2a declaration that he or she is unable to express an opinion
3and an explanation of the reasons he or she cannot do so. Each
4audit report shall include a representation by the
5certification of the auditor or auditors conducting making the
6audit that the audit has been performed in accordance
7compliance with generally accepted auditing standards.
8    (c) For fiscal year 2019 and each fiscal year thereafter,
9audit reports shall contain financial statements prepared in
10accordance conformity with generally accepted accounting
11principles and audited in accordance conformity with generally
12accepted auditing standards if the last audit report filed
13preceding fiscal year 2019 expressed an unmodified or modified
14opinion by the independent auditor pertaining to that the
15financial statements that were prepared presented in
16accordance conformity with generally accepted accounting
17principles.
18    (d) For fiscal year 2019 and each fiscal year thereafter,
19audit reports containing financial statements prepared in
20accordance conformity with an other comprehensive basis of
21accounting may follow the best practices and guidelines as
22outlined by the American Institute of Certified Public
23Accountants and shall be audited in accordance conformity with
24generally accepted auditing standards. If the governing body of
25a governmental unit submits an audit report containing
26financial statements prepared in accordance conformity with

 

 

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1generally accepted accounting principles, thereafter all
2future audit reports shall also contain financial statements
3prepared presented in accordance conformity with generally
4accepted accounting principles.
5    (e) Audits may be performed made on financial statements
6prepared using either an accrual or cash basis of accounting,
7depending upon the system followed by the governmental unit,
8and audit reports shall comply with this Section.
9(Source: P.A. 100-837, eff. 8-13-18.)
 
10    (50 ILCS 310/6)  (from Ch. 85, par. 706)
11    Sec. 6. When the audit is completed the auditor licensed
12public accountant making such audit shall make and sign at
13least 3 copies of the report of the audit and immediately file
14them with the governmental unit audited. Governmental units
15receiving revenue of $850,000 or more for any fiscal year shall
16immediately make one copy of the audit report and one copy of
17the financial report required by Section 3 of this Act a part
18of its public record. Governmental units receiving revenue of
19less than $850,000 shall immediately make one copy of the audit
20report, or one copy of the report authorized by Section 3 of
21this Act to be filed instead of the audit report, a part of its
22public record. These copies shall be open to public inspection.
23In addition, the governmental unit shall file one copy of the
24report with the Comptroller and with the county clerk of the
25county in which the principal office of the governmental unit

 

 

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1is located. A governmental unit may, in filing its audit report
2with the Comptroller, transmit with such report any comment or
3explanation that it wishes to make concerning the report.
4(Source: P.A. 92-582, eff. 7-1-02.)
 
5    Section 10. The Counties Code is amended by changing
6Sections 6-31002, 6-31003, 6-31004, 6-31005, 6-31006, and
76-31008 as follows:
 
8    (55 ILCS 5/6-31002)  (from Ch. 34, par. 6-31002)
9    Sec. 6-31002. Definitions. As used in this Division, unless
10the context otherwise requires:
11    1. "Comptroller" means the Comptroller of the State of
12Illinois;
13    2. (Blank); "Accountant" or "accountants" means and
14includes all persons authorized to practice public accounting
15under the laws of this State;
16    3. "Funds and accounts" means all funds of a county derived
17from property taxes and all funds and accounts derived from
18sources other than property taxes, including the receipts and
19expenditures of the fee earnings of each county fee officer;
20    4. "Audit report" means the written report of the auditor
21or auditors accountant or accountants and all appended
22statements and schedules relating thereto, presenting or
23recording the findings of an examination or audit of the
24financial transactions, affairs and condition of a county;

 

 

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1    5. "Population" means the number of persons residing in a
2county according to the last preceding federal decennial
3census;
4    6. "Auditor" means a licensed certified public accountant,
5as that term is defined in Section 0.03 of the Illinois Public
6Accounting Act, or the substantial equivalent of a licensed
7CPA, as provided under Section 5.2 of the Illinois Public
8Accounting Act, who performs an audit of county financial
9statements and records and expresses an assurance or disclaims
10an opinion on the audited financial statements; "auditor" does
11not include a county auditor elected or appointed under
12Division 3-1 of the Counties Code.
13    7. "Generally accepted accounting principles" means
14accounting principles generally accepted in the United States.
15    8. "Generally accepted auditing standards" means auditing
16standards generally accepted in the United States.
17(Source: P.A. 100-837, eff. 8-13-18.)
 
18    (55 ILCS 5/6-31003)  (from Ch. 34, par. 6-31003)
19    Sec. 6-31003. Annual audits and reports. The county board
20of each county shall cause an audit of all of the funds and
21accounts of the county to be performed made annually by an
22auditor or auditors accountant or accountants chosen by the
23county board or by an auditor or auditors accountant or
24accountants retained by the Comptroller, as hereinafter
25provided. In addition, each county shall file with the

 

 

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1Comptroller a financial report containing information required
2by the Comptroller. Such financial report shall be on a form so
3designed by the Comptroller as not to require professional
4accounting services for its preparation. All audits and reports
5to be filed with the Comptroller under this Section must be
6submitted electronically and the Comptroller must post the
7audits and reports on the Internet no later than 45 days after
8they are received. If the county provides the Comptroller's
9Office with sufficient evidence that the audit or report cannot
10be filed electronically, the Comptroller may waive this
11requirement. The Comptroller must also post a list of counties
12that are not in compliance with the reporting requirements set
13forth in this Section.
14    Any financial report under this Section shall include the
15name of the purchasing agent who oversees all competitively bid
16contracts. If there is no purchasing agent, the name of the
17person responsible for oversight of all competitively bid
18contracts shall be listed.
19    The audit shall commence as soon as possible after the
20close of each fiscal year and shall be completed within 180
21days after the close of such fiscal year, unless an extension
22of time is granted by the Comptroller in writing. Such
23extension of time shall not exceed 60 days. When the auditor or
24auditors accountant or accountants have completed the audit a
25full report thereof shall be made and not less than 2 copies of
26each audit report shall be submitted to the county board. Each

 

 

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1audit report shall be signed by the auditor performing
2accountant making the audit and shall include only financial
3information, findings and conclusions that are adequately
4supported by evidence in the auditor's working papers to
5demonstrate or prove, when called upon, the basis for the
6matters reported and their correctness and reasonableness. In
7connection with this, each county board shall retain the right
8of inspection of the auditor's working papers and shall make
9them available to the Comptroller, or his designee, upon
10request.
11    Within 60 days of receipt of an audit report, each county
12board shall file one copy of each audit report and each
13financial report with the Comptroller and any comment or
14explanation that the county board may desire to make concerning
15such audit report may be attached thereto. An audit report
16which fails to meet the requirements of this Division shall be
17rejected by the Comptroller and returned to the county board
18for corrective action. One copy of each such report shall be
19filed with the county clerk of the county so audited.
20    This Section is a limitation under subsection (i) of
21Section 6 of Article VII of the Illinois Constitution on the
22concurrent exercise by home rule counties of powers and
23functions exercised by the State.
24(Source: P.A. 99-459, eff. 8-25-15.)
 
25    (55 ILCS 5/6-31004)  (from Ch. 34, par. 6-31004)

 

 

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1    Sec. 6-31004. Overdue reports.
2    (a) In the event the required reports for a county are not
3filed with the Comptroller in accordance with Section 6-31003
4within 180 days after the close of the fiscal year of the
5county, the Comptroller shall notify the county board in
6writing that the reports are due, and may also grant an
7extension of time of up to 60 days for the filing of the
8reports. In the event the required reports are not filed within
9the time specified in such written notice, the Comptroller
10shall cause the audit to be performed made and the audit report
11prepared by an auditor or auditors accountant or accountants.
12    (b) The Comptroller may decline to order an audit and the
13preparation of an audit report if an initial examination of the
14books and records of the governmental unit indicates that the
15books and records of the governmental unit are inadequate or
16unavailable due to the passage of time or the occurrence of a
17natural disaster.
18    (c) The State Comptroller may grant extensions for
19delinquent audits or reports. The Comptroller may charge a
20county a fee for a delinquent audit or report of $5 per day for
21the first 15 days past due, $10 per day for 16 through 30 days
22past due, $15 per day for 31 through 45 days past due, and $20
23per day for the 46th day and every day thereafter. These
24amounts may be reduced at the Comptroller's discretion. All
25fees collected under this subsection (c) shall be deposited
26into the Comptroller's Administrative Fund.

 

 

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1(Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
 
2    (55 ILCS 5/6-31005)  (from Ch. 34, par. 6-31005)
3    Sec. 6-31005. Funds managed by county officials. In
4addition to any other audit required by this Division, the
5County Board shall cause an audit to be made of all funds and
6accounts under the management or control of a county official
7as soon as possible after such official leaves office for any
8reason. The audit shall be filed with the county board not
9later than 180 days after the official leaves office. The audit
10shall be performed conducted and the audit report shall be
11prepared and filed with the Chairman of the County Board by an
12auditor a person lawfully qualified to practice public
13accounting as regulated by "An Act to regulate the practice of
14public accounting and to repeal certain acts therein named",
15approved July 22, 1943 as amended.
16    As used in this Section, "county official" means any
17elected county officer or any officer appointed by the county
18board who is charged with the management or control of any
19county funds; and "audit" means a post facto examination of
20books, documents, records, and other evidence relating to the
21obligation, receipt, expenditure or use of public funds of the
22county, including governmental operations relating to such
23obligations, receipt, expenditure or use.
24(Source: P.A. 99-459, eff. 8-25-15.)
 

 

 

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1    (55 ILCS 5/6-31006)  (from Ch. 34, par. 6-31006)
2    Sec. 6-31006. Audit report.
3    (a) Prior to fiscal year 2019, the audit report shall
4contain statements that are in conformity with generally
5accepted public accounting principles or other comprehensive
6basis of accounting and shall set forth the financial position
7and the results of financial operations for each fund, account,
8and office of the county government. The audit report shall
9also include the professional opinion of the auditor or
10auditors with respect to the financial status and operations
11or, if an opinion cannot be expressed, a declaration that such
12auditor is unable to express such opinion and an explanation of
13the reasons he or she cannot do so. Each audit report shall
14include the certification of the auditor or auditors making the
15audit that the audit has been performed in compliance with
16generally accepted auditing standards. Each audit report filed
17with the Comptroller shall be accompanied by a copy of each
18official statement or other offering of materials prepared in
19connection with the issuance of indebtedness of the county
20since the filing of the last audit report.
21    (b) For fiscal year 2019 and each fiscal year thereafter,
22the audit report shall contain statements that set forth the
23financial position and the results of financial operations for
24financial statements for governmental activities,
25business-type activities, discretely presented component
26units, and each major fund and aggregated nonmajor funds for

 

 

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1each fund, account, and office of the county government. The
2audit report shall also include the professional opinion or
3opinions of an auditor or auditors with respect to the
4financial status and statements operations or, if an opinion
5cannot be expressed, a declaration that the auditor is unable
6to express an opinion and an explanation of the reasons he or
7she cannot do so. Each auditor's audit report shall include the
8representation certification of the auditor or auditors
9conducting making the audit that the audit has been performed
10in accordance compliance with generally accepted auditing
11standards. Each audit report filed with the Comptroller shall
12be accompanied by a copy of each official statement or other
13offering of materials prepared in connection with the issuance
14of indebtedness of the county since the filing of the last
15audit report.
16    (c) For fiscal year 2019 and each fiscal year thereafter,
17audit reports shall contain financial statements prepared in
18accordance conformity with generally accepted accounting
19principles and audited in conformity with generally accepted
20auditing standards if the last audit report filed preceding
21fiscal year 2019 expressed an unmodified or modified opinion by
22the independent auditor that the financial statements were
23presented in accordance conformity with generally accepted
24accounting principles.
25    (d) For fiscal year 2019 and each fiscal year thereafter,
26audit reports containing financial statements prepared in

 

 

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1accordance conformity with an other comprehensive basis of
2accounting may follow the best practices and guidelines
3outlined by the American Institute of Certified Public
4Accountants and shall be audited in accordance conformity with
5generally accepted auditing standards. If the county board of a
6county submits an audit report containing financial statements
7prepared in accordance conformity with generally accepted
8accounting principles, thereafter all future audit reports
9shall also contain financial statements prepared in accordance
10presented in conformity with generally accepted accounting
11principles.
12    (e) Audits may be made on financial statements prepared
13using either an accrual or cash basis of accounting, depending
14upon the system followed by the county, and audit reports shall
15comply with this Section.
16(Source: P.A. 100-837, eff. 8-13-18.)
 
17    (55 ILCS 5/6-31008)  (from Ch. 34, par. 6-31008)
18    Sec. 6-31008. Expenses of audit. The expenses of conducting
19the audit and making the required audit report or financial
20statement for each county, whether ordered by the county board
21or the Comptroller, shall be paid by the county and the county
22board shall make provisions for such payment. If the audit is
23made by an auditor or auditors accountant or accountants
24retained by the Comptroller, the county, through the county
25board, shall pay to the Comptroller reasonable compensation and

 

 

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1expenses to reimburse him for the cost of making such audit.
2Moneys paid to the Comptroller pursuant to the preceding
3sentence shall be deposited into the Comptroller's Audit
4Expense Revolving Fund.
5    Such expenses shall be paid from the general corporate fund
6of the county.
7    Contracts for the performance of audits required by this
8Division may be entered into without competitive bidding.
9(Source: P.A. 88-280.)
 
10    Section 15. The Illinois Municipal Code is amended by
11changing Sections 8-8-2, 8-8-3, 8-8-3.5, 8-8-4, 8-8-5, 8-8-7,
12and 8-8-8 as follows:
 
13    (65 ILCS 5/8-8-2)  (from Ch. 24, par. 8-8-2)
14    Sec. 8-8-2. The following terms shall, unless the context
15otherwise indicates, have the following meanings:
16    (1) "Municipality" or "municipalities" means all cities,
17villages and incorporated towns having a population of less
18than 500,000 as determined by the last preceding Federal
19census.
20    (2) "Corporate authorities" means a city council, village
21board of trustees, library board, police and firemen's pension
22board, or any other body or officers having authority to levy
23taxes, make appropriations, or approve claims for any
24municipality.

 

 

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1    (3) "Comptroller" means the Comptroller of the State of
2Illinois.
3    (4) (Blank). "Accountant" or "accountants" means all
4persons licensed to practice public accounting under the laws
5of this State.
6    (5) "Audit report" means the written report of the auditor
7or auditors accountant or accountants and all appended
8statements and schedules relating thereto, presenting or
9recording the findings of an examination or audit of the
10financial transactions, affairs, or condition of a
11municipality.
12    (6) "Annual report" means the statement filed, in lieu of
13an audit report, by the municipalities of less than 800
14population, which do not own or operate public utilities and do
15not have bonded debt.
16    (7) "Supplemental report" means the annual statement
17filed, in addition to any audit report provided for herein, by
18all municipalities, except municipalities of less than 800
19population which do not own or operate public utilities and do
20not have bonded debt.
21    (8) "Auditor" means a licensed certified public
22accountant, as that term is defined in Section 0.03 of the
23Illinois Public Accounting Act, or the substantial equivalent
24of a licensed CPA, as provided under Section 5.2 of the
25Illinois Public Accounting Act, who performs an audit of
26municipal financial statements and records and expresses an

 

 

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1assurance or disclaims an opinion on the audited financial
2statements.
3    (9) "Generally accepted accounting principles" means
4accounting principles generally accepted in the United States.
5    (10) "Generally accepted auditing standards" means
6auditing standards generally accepted in the United States.
7(Source: P.A. 100-837, eff. 8-13-18.)
 
8    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
9    Sec. 8-8-3. Audit requirements.
10    (a) The corporate authorities of each municipality coming
11under the provisions of this Division 8 shall cause an audit of
12the funds and accounts of the municipality to be made by an
13auditor or auditors accountant or accountants employed by such
14municipality or by an auditor or auditors accountant or
15accountants retained by the Comptroller, as hereinafter
16provided.
17    (b) The accounts and funds of each municipality having a
18population of 800 or more or having a bonded debt or owning or
19operating any type of public utility shall be audited annually.
20The audit herein required shall include all of the accounts and
21funds of the municipality. Such audit shall be begun as soon as
22possible after the close of the fiscal year, and shall be
23completed and the report submitted within 180 days after the
24close of such fiscal year, unless an extension of time shall be
25granted by the Comptroller in writing. The auditor or auditors

 

 

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1perform accountant or accountants making the audit shall submit
2not less than 2 copies of the audit report to the corporate
3authorities of the municipality being audited. Municipalities
4not operating utilities may cause audits of the accounts of
5municipalities to be made more often than herein provided, by
6an auditor or auditors accountant or accountants. The audit
7report of such audit when filed with the Comptroller together
8with an audit report covering the remainder of the period for
9which an audit is required to be filed hereunder shall satisfy
10the requirements of this section.
11    (c) Municipalities of less than 800 population which do not
12own or operate public utilities and do not have bonded debt,
13shall file annually with the Comptroller a financial report
14containing information required by the Comptroller. Such
15annual financial report shall be on forms devised by the
16Comptroller in such manner as to not require professional
17accounting services for its preparation.
18    (d) In addition to any audit report required, all
19municipalities, except municipalities of less than 800
20population which do not own or operate public utilities and do
21not have bonded debt, shall file annually with the Comptroller
22a supplemental report on forms devised and approved by the
23Comptroller.
24    (e) Notwithstanding any provision of law to the contrary,
25if a municipality (i) has a population of less than 200, (ii)
26has bonded debt in the amount of $50,000 or less, and (iii)

 

 

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1owns or operates a public utility, then the municipality shall
2cause an audit of the funds and accounts of the municipality to
3be performed made by an auditor accountant employed by the
4municipality or retained by the Comptroller for fiscal year
52011 and every fourth fiscal year thereafter or until the
6municipality has a population of 200 or more, has bonded debt
7in excess of $50,000, or no longer owns or operates a public
8utility. Nothing in this subsection shall be construed as
9limiting the municipality's duty to file an annual financial
10report with the Comptroller or to comply with the filing
11requirements concerning the county clerk.
12    (f) All audits and reports to be filed with the Comptroller
13under this Section must be submitted electronically and the
14Comptroller must post the audits and reports on the Internet no
15later than 45 days after they are received. If the municipality
16provides the Comptroller's Office with sufficient evidence
17that the audit or report cannot be filed electronically, the
18Comptroller may waive this requirement. The Comptroller must
19also post a list of municipalities that are not in compliance
20with the reporting requirements set forth in this Section.
21    (g) Subsection (f) of this Section is a limitation under
22subsection (i) of Section 6 of Article VII of the Illinois
23Constitution on the concurrent exercise by home rule
24municipalities of powers and functions exercised by the State.
25    (h) Any financial report under this Section shall include
26the name of the purchasing agent who oversees all competitively

 

 

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1bid contracts. If there is no purchasing agent, the name of the
2person responsible for oversight of all competitively bid
3contracts shall be listed.
4(Source: P.A. 99-459, eff. 8-25-15.)
 
5    (65 ILCS 5/8-8-3.5)
6    Sec. 8-8-3.5. Tax Increment Financing Report. The reports
7filed under subsection (d) of Section 11-74.4-5 of the Tax
8Increment Allocation Redevelopment Act and the reports filed
9under subsection (d) of Section 11-74.6-22 of the Industrial
10Jobs Recovery Law in the Illinois Municipal Code must be
11separate from any other annual report filed with the
12Comptroller. The Comptroller must, in cooperation with
13reporting municipalities, create a format for the reporting of
14information described in paragraphs (1.5) and (5) and in
15subparagraph (G) of paragraph (7) of subsection (d) of Section
1611-74.4-5 of the Tax Increment Allocation Redevelopment Act and
17the information described in paragraphs (1.5) and (5) and in
18subparagraph (G) of paragraph (7) of subsection (d) of Section
1911-74.6-22 of the Industrial Jobs Recovery Law that facilitates
20consistent reporting among the reporting municipalities. The
21Comptroller may allow these reports to be filed electronically
22and may display the report, or portions of the report,
23electronically via the Internet. All reports filed under this
24Section must be made available for examination and copying by
25the public at all reasonable times. A Tax Increment Financing

 

 

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1Report must be filed electronically with the Comptroller within
2180 days after the close of the municipal fiscal year or as
3soon thereafter as the audit for the redevelopment project area
4for that fiscal year becomes available. If the Tax Increment
5Finance administrator provides the Comptroller's office with
6sufficient evidence that the report is in the process of being
7completed by an auditor, the Comptroller may grant an
8extension. If the required report is not filed within the time
9extended by the Comptroller, the Comptroller shall notify the
10corporate authorities of that municipality that the audit
11report is past due. The Comptroller may charge a municipality a
12fee of $5 per day for the first 15 days past due, $10 per day
13for 16 through 30 days past due, $15 per day for 31 through 45
14days past due, and $20 per day for the 46th day and every day
15thereafter. These amounts may be reduced at the Comptroller's
16discretion. In the event the required audit report is not filed
17within 60 days of such notice, the Comptroller shall cause such
18audit to be made by an auditor or auditors accountant or
19accountants. The Comptroller may decline to order an audit and
20the preparation of an audit report if an initial examination of
21the books and records of the municipality indicates that books
22and records of the municipality are inadequate or unavailable
23to support the preparation of the audit report or the
24supplemental report due to the passage of time or the
25occurrence of a natural disaster. All fees collected pursuant
26to this Section shall be deposited into the Comptroller's

 

 

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1Administrative Fund. In the event the Comptroller causes an
2audit to be made in accordance with the requirements of this
3Section, the municipality shall pay to the Comptroller
4reasonable compensation and expenses to reimburse her for the
5cost of preparing or completing such report. Moneys paid to the
6Comptroller pursuant to the preceding sentence shall be
7deposited into the Comptroller's Audit Expense Revolving Fund.
8(Source: P.A. 98-497, eff. 8-16-13; 98-922, eff. 8-15-14.)
 
9    (65 ILCS 5/8-8-4)  (from Ch. 24, par. 8-8-4)
10    Sec. 8-8-4. Overdue reports.
11    (a) In the event the required audit report for a
12municipality is not filed with the Comptroller in accordance
13with Section 8-8-7 within 180 days after the close of the
14fiscal year of the municipality, the Comptroller shall notify
15the corporate authorities of that municipality in writing that
16the audit report is due, and may also grant an extension of
17time of 60 days, for the filing of the audit report. In the
18event the required audit report is not filed within the time
19specified in such written notice, the Comptroller shall cause
20such audit to be made by an auditor or auditors accountant or
21accountants. In the event the required annual or supplemental
22report for a municipality is not filed within 6 months after
23the close of the fiscal year of the municipality, the
24Comptroller shall notify the corporate authorities of that
25municipality in writing that the annual or supplemental report

 

 

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1is due and may grant an extension in time of 60 days for the
2filing of such annual or supplemental report.
3    (b) In the event the annual or supplemental report is not
4filed within the time extended by the Comptroller, the
5Comptroller shall cause such annual or supplemental report to
6be prepared or completed and the municipality shall pay to the
7Comptroller reasonable compensation and expenses to reimburse
8him for the cost of preparing or completing such annual or
9supplemental report. Moneys paid to the Comptroller pursuant to
10the preceding sentence shall be deposited into the
11Comptroller's Audit Expense Revolving Fund.
12    (c) The Comptroller may decline to order an audit or the
13completion of the supplemental report if an initial examination
14of the books and records of the municipality indicates that
15books and records of the municipality are inadequate or
16unavailable to support the preparation of the audit report or
17the supplemental report due to the passage of time or the
18occurrence of a natural disaster.
19    (d) The State Comptroller may grant extensions for
20delinquent audits or reports. The Comptroller may charge a
21municipality a fee for a delinquent audit or report of $5 per
22day for the first 15 days past due, $10 per day for 16 through
2330 days past due, $15 per day for 31 through 45 days past due,
24and $20 per day for the 46th day and every day thereafter.
25These amounts may be reduced at the Comptroller's discretion.
26All fees collected under this subsection (d) shall be deposited

 

 

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1into the Comptroller's Administrative Fund.
2(Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
 
3    (65 ILCS 5/8-8-5)  (from Ch. 24, par. 8-8-5)
4    Sec. 8-8-5. (a) Prior to fiscal year 2019, the audit shall
5be made in accordance with generally accepted auditing
6standards. Reporting on the financial position and results of
7financial operations for each fund of the municipality shall be
8in accordance with generally accepted accounting principles or
9other comprehensive basis of accounting. Each audit report
10shall include only financial information, findings, and
11conclusions that are adequately supported by evidence in the
12auditor's working papers to demonstrate or prove, when called
13upon, the basis for the matters reported and their correctness
14and reasonableness. In connection with this, each municipality
15shall retain the right of inspection of the auditor's working
16papers and shall make them available to the Comptroller, or his
17or her designee, upon request. The audit report shall consist
18of the professional opinion of the auditor or auditors with
19respect to the financial statements or, if an opinion cannot be
20expressed, a declaration that the auditor is unable to express
21such opinion and an explanation of the reasons he or she cannot
22do so. Municipal authorities shall not impose limitations on
23the scope of the audit to the extent that the effect of such
24limitations will result in the qualification of the opinion of
25the auditor or auditors. Each audit report filed with the

 

 

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1Comptroller shall be accompanied by a copy of each official
2statement or other offering of materials prepared in connection
3with the issuance of indebtedness of the municipality since the
4filing of the last audit report.
5    (b) For fiscal year 2019 and each fiscal year thereafter,
6the audit shall be made in accordance with generally accepted
7auditing standards. Each audit report shall include only
8financial information, findings, and conclusions that are
9adequately supported by evidence in the auditor's working
10papers to demonstrate or prove, when called upon, the basis for
11the matters reported and their correctness and reasonableness.
12In connection with this, each municipality shall retain the
13right of inspection of the auditor's working papers and shall
14make them available to the Comptroller, or his or her designee,
15upon request. The audit report shall include the financial
16statements for governmental activities, business-type
17activities, discretely presented component units, and each
18major fund and aggregated nonmajor fund. The audit report shall
19also include also consist of the professional opinion or
20opinions of the an auditor or auditors with respect to the
21financial statements or, if an opinion cannot be expressed, a
22declaration that the auditor is unable to express an opinion
23and an explanation of the reasons he or she cannot do so. Each
24auditor's report shall include a representation by the auditor
25or auditors conducting the audit has been performed in
26accordance with generally accepted auditing standards.

 

 

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1Municipal authorities shall not impose limitations on the scope
2of the audit to the extent that the effect of the limitations
3will result in the modification qualification of the opinion or
4opinions of the auditor or auditors. Each audit report filed
5with the Comptroller shall be accompanied by a copy of each
6official statement or other offering of materials prepared in
7connection with the issuance of indebtedness of the
8municipality since the filing of the last audit report.
9    (c) For fiscal year 2019 and each fiscal year thereafter,
10audit reports shall contain financial statements prepared in
11accordance with generally accepted accounting principles and
12audited in accordance with generally accepted auditing
13standards if the last audit report filed preceding fiscal year
142019 expressed an unmodified or modified opinion by the
15independent auditor that the financial statements were
16prepared presented in accordance with generally accepted
17accounting principles.
18    (d) For fiscal year 2019 and each fiscal year thereafter,
19audit reports containing financial statements prepared in
20accordance with an other comprehensive basis of accounting may
21follow the best practices and guidelines outlined by the
22American Institute of Certified Public Accountants and shall be
23audited in accordance with generally accepted auditing
24standards. If the corporate authority of a municipality submits
25an audit report containing financial statements prepared in
26accordance with generally accepted accounting principles,

 

 

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1thereafter all future audit reports shall also contain
2financial statements prepared presented in accordance with
3generally accepted accounting principles.
4    (e) Audits may be made on financial statements prepared
5using either an accrual or cash basis of accounting, depending
6upon the system followed by the municipality, and audit reports
7shall comply with this Section.
8(Source: P.A. 100-837, eff. 8-13-18.)
 
9    (65 ILCS 5/8-8-7)  (from Ch. 24, par. 8-8-7)
10    Sec. 8-8-7. When the auditor or auditors accountant or
11accountants have completed the audit, not less than 2 copies of
12a report of the audit shall be made and signed by the
13accountant making such audit, and shall immediately be filed
14with the municipality audited. Each audit report shall include
15the certification of the auditor or auditors accountant or
16accountants making the audit that the audit has been performed
17in compliance with generally accepted auditing standards. The
18municipality shall immediately make one copy of the report, or
19one copy of the report authorized by this Division 8 in lieu of
20an audit report, a part of its public records and at all times
21thereafter this copy shall be open to public inspection. In
22addition, the municipality shall file one copy of the report
23with the Comptroller. An audit report which fails to meet the
24requirements of this Act shall be rejected by the Comptroller
25and returned to the municipal authorities for corrective

 

 

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1action. Nothing in this section shall be construed as
2preventing a municipality, in filing its audit report with the
3Comptroller, from transmitting with such report any comment or
4explanation that it may desire to make concerning that report.
5The audit report filed with the Comptroller, together with any
6accompanying comment or explanation, shall immediately become
7a part of his public records and shall at all times thereafter
8be open to public inspection. It shall be unlawful for the
9auditor accountant to make any disclosure of the result of any
10examination of any public account excepting as he does so
11directly to the corporate authorities of the municipality
12audited.
13(Source: P.A. 85-1000.)
 
14    (65 ILCS 5/8-8-8)  (from Ch. 24, par. 8-8-8)
15    Sec. 8-8-8. The expenses of the audit and investigation of
16public accounts provided for in Division 8, whether ordered by
17the corporate authorities or the Comptroller, shall be paid by
18the municipality for which the audit is made. Payment shall be
19ordered by the corporate authorities out of the funds of the
20municipality and it shall be the duty of such authorities to
21make provisions for payment. Contracts for the performance of
22audits required by this Division 8 may be entered into without
23competitive bidding. If the audit is made by an auditor or
24auditors accountant or accountants retained by the
25Comptroller, the municipality shall pay to the Comptroller

 

 

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1reasonable compensation and expenses to reimburse him for the
2cost of making such audit.
3    The corporate authorities of all municipalities coming
4under the provisions of this Division 8 shall have the power to
5annually levy a "Municipal Auditing Tax" upon all of the
6taxable property of the municipalities at the rate on the
7dollar which will produce an amount which will equal a sum
8sufficient to meet the cost of all auditing and reports
9thereunder. Such municipal auditing tax shall be held in a
10special fund and used for no other purpose than the payment of
11expenses occasioned by this Division 8.
12    The tax authorized by this Section shall be in addition to
13taxes for general corporate purposes authorized under Section
148-3-1 of this Act.
15(Source: P.A. 81-824.)