SB3508 EngrossedLRB097 18502 KMW 63733 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 3 and 4 as follows:
 
6    (50 ILCS 310/3)  (from Ch. 85, par. 703)
7    Sec. 3. Any governmental unit receiving revenue of less
8than $850,000 for any fiscal year shall, in lieu of complying
9with the requirements of Section 2 for audits and audit
10reports, file with the Comptroller a financial report
11containing information required by the Comptroller. In
12addition, a governmental unit receiving revenue of less than
13$850,000 may file with the Comptroller any audit reports which
14may have been prepared under any other law. Any governmental
15unit receiving revenue of $850,000 or more for any fiscal year
16shall, in addition to complying with the requirements of
17Section 2 for audits and audit reports, file with the
18Comptroller the financial report required by this Section. Such
19financial reports shall be on forms so designed by the
20Comptroller as not to require professional accounting services
21for its preparation. All reports to be filed with the
22Comptroller under this Section must be submitted
23electronically and the Comptroller must post the reports on the

 

 

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1Internet no later than 45 days after they are received. If the
2governmental unit provides the Comptroller's Office with
3sufficient evidence that the report cannot be filed
4electronically, the Comptroller may waive this requirement.
5The Comptroller must also post a list of municipalities that
6are not in compliance with the reporting requirements set forth
7in this Section.
8(Source: P.A. 92-582, eff. 7-1-02.)
 
9    (50 ILCS 310/4)  (from Ch. 85, par. 704)
10    Sec. 4. Overdue report.
11    (a) If the required report for a governmental unit is not
12filed with the Comptroller in accordance with Section 2 or
13Section 3, whichever is applicable, within 6 months after the
14close of the fiscal year of the governmental unit, the
15Comptroller shall notify the governing body of that unit in
16writing that the report is due and may also grant a 60 day
17extension for the filing of the audit report. If the required
18report is not filed within the time specified in such written
19notice, the Comptroller shall cause an audit to be made by a
20licensed public accountant, and the governmental unit shall pay
21to the Comptroller actual compensation and expenses to
22reimburse him for the cost of preparing or completing such
23report.
24    (b) The Comptroller may decline to order an audit and the
25preparation of an audit report (i) if an initial examination of

 

 

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1the books and records of the governmental unit indicates that
2the books and records of the governmental unit are inadequate
3or unavailable due to the passage of time or the occurrence of
4a natural disaster or (ii) if the Comptroller determines that
5the cost of an audit would impose an unreasonable financial
6burden on the governmental unit.
7    (c) The State Comptroller may grant extensions for
8delinquent reports. The Comptroller may charge a governmental
9unit a fee for a delinquent audit of $5 per day for the first 15
10days past due, $10 per day for 16 through 30 days past due, $15
11per day for 31 through 45 days past due, and $20 per day for the
1246th day and every day thereafter. All fees collected under
13this subsection (c) shall be deposited into the Comptroller's
14Administrative Fund.
15(Source: P.A. 92-191, eff. 8-1-01.)
 
16    Section 10. The Counties Code is amended by changing
17Sections 6-31003 and 6-31004 as follows:
 
18    (55 ILCS 5/6-31003)  (from Ch. 34, par. 6-31003)
19    Sec. 6-31003. Annual audits and reports. The In counties
20having a population of over 10,000 but less than 500,000, the
21county board of each county shall cause an audit of all of the
22funds and accounts of the county to be made annually by an
23accountant or accountants chosen by the county board or by an
24accountant or accountants retained by the Comptroller, as

 

 

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1hereinafter provided. In addition, each county having a
2population of less than 500,000 shall file with the Comptroller
3a financial report containing information required by the
4Comptroller. Such financial report shall be on a form so
5designed by the Comptroller as not to require professional
6accounting services for its preparation. All reports to be
7filed with the Comptroller under this Section must be submitted
8electronically and the Comptroller must post the reports on the
9Internet no later than 45 days after they are received. If the
10county provides the Comptroller's Office with sufficient
11evidence that the report cannot be filed electronically, the
12Comptroller may waive this requirement. The Comptroller must
13also post a list of counties that are not in compliance with
14the reporting requirements set forth in this Section.
15    The audit shall commence as soon as possible after the
16close of each fiscal year and shall be completed within 6
17months after the close of such fiscal year, unless an extension
18of time is granted by the Comptroller in writing. Such
19extension of time shall not exceed 60 days. When the accountant
20or accountants have completed the audit a full report thereof
21shall be made and not less than 2 copies of each audit report
22shall be submitted to the county board. Each audit report shall
23be signed by the accountant making the audit and shall include
24only financial information, findings and conclusions that are
25adequately supported by evidence in the auditor's working
26papers to demonstrate or prove, when called upon, the basis for

 

 

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1the matters reported and their correctness and reasonableness.
2In connection with this, each county board shall retain the
3right of inspection of the auditor's working papers and shall
4make them available to the Comptroller, or his designee, upon
5request.
6    Within 60 days of receipt of an audit report, each county
7board shall file one copy of each audit report and each
8financial report with the Comptroller and any comment or
9explanation that the county board may desire to make concerning
10such audit report may be attached thereto. An audit report
11which fails to meet the requirements of this Division shall be
12rejected by the Comptroller and returned to the county board
13for corrective action. One copy of each such report shall be
14filed with the county clerk of the county so audited.
15    This Section is a limitation under subsection (i) of
16Section 6 of Article VII of the Illinois Constitution on the
17concurrent exercise by home rule counties of powers and
18functions exercised by the State.
19(Source: P.A. 86-962.)
 
20    (55 ILCS 5/6-31004)  (from Ch. 34, par. 6-31004)
21    Sec. 6-31004. Overdue reports.
22    (a) In the event the required reports for a county are not
23filed with the Comptroller in accordance with Section 6-31003
24within 6 months after the close of the fiscal year of the
25county, the Comptroller shall notify the county board in

 

 

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1writing that the reports are due, and may also grant an
2extension of time of up to 60 days for the filing of the
3reports. In the event the required reports are not filed within
4the time specified in such written notice, the Comptroller
5shall cause the audit to be made and the audit report prepared
6by an accountant or accountants.
7    (b) The Comptroller may decline to order an audit and the
8preparation of an audit report if an initial examination of the
9books and records of the governmental unit indicates that the
10books and records of the governmental unit are inadequate or
11unavailable due to the passage of time or the occurrence of a
12natural disaster.
13    (c) The State Comptroller may grant extensions for
14delinquent reports. The Comptroller may charge a county a fee
15for a delinquent audit of $5 per day for the first 15 days past
16due, $10 per day for 16 through 30 days past due, $15 per day
17for 31 through 45 days past due, and $20 per day for the 46th
18day and every day thereafter. All fees collected under this
19subsection (c) shall be deposited into the Comptroller's
20Administrative Fund.
21(Source: P.A. 90-104, eff. 7-11-97.)
 
22    Section 15. The Illinois Municipal Code is amended by
23changing Sections 8-8-3 and 8-8-4 as follows:
 
24    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)

 

 

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1    Sec. 8-8-3. Audit requirements.
2    (a) The corporate authorities of each municipality coming
3under the provisions of this Division 8 shall cause an audit of
4the funds and accounts of the municipality to be made by an
5accountant or accountants employed by such municipality or by
6an accountant or accountants retained by the Comptroller, as
7hereinafter provided.
8    (b) The accounts and funds of each municipality having a
9population of 800 or more or having a bonded debt or owning or
10operating any type of public utility shall be audited annually.
11The audit herein required shall include all of the accounts and
12funds of the municipality. Such audit shall be begun as soon as
13possible after the close of the fiscal year, and shall be
14completed and the report submitted within 6 months after the
15close of such fiscal year, unless an extension of time shall be
16granted by the Comptroller in writing. The accountant or
17accountants making the audit shall submit not less than 2
18copies of the audit report to the corporate authorities of the
19municipality being audited. Municipalities not operating
20utilities may cause audits of the accounts of municipalities to
21be made more often than herein provided, by an accountant or
22accountants. The audit report of such audit when filed with the
23Comptroller together with an audit report covering the
24remainder of the period for which an audit is required to be
25filed hereunder shall satisfy the requirements of this section.
26    (c) Municipalities of less than 800 population which do not

 

 

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1own or operate public utilities and do not have bonded debt,
2shall file annually with the Comptroller a financial report
3containing information required by the Comptroller. Such
4annual financial report shall be on forms devised by the
5Comptroller in such manner as to not require professional
6accounting services for its preparation.
7    (d) In addition to any audit report required, all
8municipalities, except municipalities of less than 800
9population which do not own or operate public utilities and do
10not have bonded debt, shall file annually with the Comptroller
11a supplemental report on forms devised and approved by the
12Comptroller.
13    (e) Notwithstanding any provision of law to the contrary,
14if a municipality (i) has a population of less than 200, (ii)
15has bonded debt in the amount of $50,000 or less, and (iii)
16owns or operates a public utility, then the municipality shall
17cause an audit of the funds and accounts of the municipality to
18be made by an accountant employed by the municipality or
19retained by the Comptroller for fiscal year 2011 and every
20fourth fiscal year thereafter or until the municipality has a
21population of 200 or more, has bonded debt in excess of
22$50,000, or no longer owns or operates a public utility.
23Nothing in this subsection shall be construed as limiting the
24municipality's duty to file an annual financial report with the
25Comptroller or to comply with the filing requirements
26concerning the county clerk.

 

 

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1    (f) All reports to be filed with the Comptroller under this
2Section must be submitted electronically and the Comptroller
3must post the reports on the Internet no later than 45 days
4after they are received. If the municipality provides the
5Comptroller's Office with sufficient evidence that the report
6cannot be filed electronically, the Comptroller may waive this
7requirement. The Comptroller must also post a list of
8municipalities that are not in compliance with the reporting
9requirements set forth in this Section.
10    (g) Subsection (f) of this Section is a limitation under
11subsection (i) of Section 6 of Article VII of the Illinois
12Constitution on the concurrent exercise by home rule
13municipalities of powers and functions exercised by the State.
14(Source: P.A. 96-1309, eff. 7-27-10.)
 
15    (65 ILCS 5/8-8-4)  (from Ch. 24, par. 8-8-4)
16    Sec. 8-8-4. Overdue reports.
17    (a) In the event the required audit report for a
18municipality is not filed with the Comptroller in accordance
19with Section 8-8-7 within 6 months after the close of the
20fiscal year of the municipality, the Comptroller shall notify
21the corporate authorities of that municipality in writing that
22the audit report is due, and may also grant an extension of
23time of 60 days, for the filing of the audit report. In the
24event the required audit report is not filed within the time
25specified in such written notice, the Comptroller shall cause

 

 

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1such audit to be made by an accountant or accountants. In the
2event the required annual or supplemental report for a
3municipality is not filed within 6 months after the close of
4the fiscal year of the municipality, the Comptroller shall
5notify the corporate authorities of that municipality in
6writing that the annual or supplemental report is due and may
7grant an extension in time of 60 days for the filing of such
8annual or supplemental report.
9    (b) In the event the annual or supplemental report is not
10filed within the time extended by the Comptroller, the
11Comptroller shall cause such annual or supplemental report to
12be prepared or completed and the municipality shall pay to the
13Comptroller reasonable compensation and expenses to reimburse
14him for the cost of preparing or completing such annual or
15supplemental report. Moneys paid to the Comptroller pursuant to
16the preceding sentence shall be deposited into the
17Comptroller's Audit Expense Revolving Fund.
18    (c) The Comptroller may decline to order an audit or the
19completion of the supplemental report if an initial examination
20of the books and records of the municipality indicates that
21books and records of the municipality are inadequate or
22unavailable to support the preparation of the audit report or
23the supplemental report due to the passage of time or the
24occurrence of a natural disaster.
25    (d) The State Comptroller may grant extensions for
26delinquent reports. The Comptroller may charge a municipality a

 

 

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1fee for a delinquent audit of $5 per day for the first 15 days
2past due, $10 per day for 16 through 30 days past due, $15 per
3day for 31 through 45 days past due, and $20 per day for the
446th day and every day thereafter. All fees collected under
5this subsection (d) shall be deposited into the Comptroller's
6Administrative Fund.
7(Source: P.A. 90-104, eff. 7-11-97.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.