Illinois General Assembly - Full Text of HB5011
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Full Text of HB5011  103rd General Assembly

HB5011eng 103RD GENERAL ASSEMBLY

 


 
HB5011 EngrossedLRB103 38092 AWJ 68224 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
5by changing Sections 1, 2, 3, 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
12amount to increase or decrease by the amount of the Consumer
13Price Index (CPI) as reported on January 1 of each year, except
14the following:
15        (1) School districts.
16        (2) Cities, villages, and incorporated towns subject
17    to the Municipal Auditing Law, as contained in the
18    Illinois Municipal Code, and cities that file a report
19    with the Comptroller under Section 3.1-35-115 of the
20    Illinois 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    "Annual financial report" means, for governmental unit
23fiscal years 2026 and after, the statement filed in lieu of an
24audit report containing information required by the
25Comptroller on forms devised by the Comptroller in such manner
26as to not require professional accounting services for its

 

 

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1preparation.
2    "Audit report" means:
3        (1) for governmental unit fiscal years before fiscal
4    year 2026, the written report of the auditor and all
5    appended statements and schedules relating to that report,
6    presenting or recording the findings of an examination or
7    audit of the financial transactions, affairs, or
8    conditions of a governmental unit; and .
9        (2) for governmental unit fiscal years 2026 and after,
10    the written report of the auditor or auditors and all
11    appended statements and schedules relating thereto,
12    presenting or recording the findings of an examination or
13    audit of the financial transactions, affairs, or
14    conditions of a governmental unit, which includes all of
15    the accounts and funds of a governmental unit.
16    "Auditor" means a licensed certified public accountant, as
17that term is defined in Section 0.03 of the Illinois Public
18Accounting Act, or the substantial equivalent of a licensed
19CPA, as provided under Section 5.2 of the Illinois Public
20Accounting Act, who performs an audit of governmental unit
21financial statements and records and expresses an assurance or
22disclaims an opinion on the audited financial statements.
23    "Consumer Price Index-U" means the index published by the
24Bureau of Labor Statistics of the United States Department of
25Labor that measures the average change in prices of goods and
26services purchased by all urban consumers, United States city

 

 

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1average, all items, 1982-84 = 100.
2    "Report" includes, for governmental unit fiscal years
3before fiscal year 2026, both audit reports and reports filed
4instead of an audit report by a governmental unit receiving
5revenue of less than $850,000 during any fiscal year to which
6the reports relate.
7    "Generally accepted accounting principles" means
8accounting principles generally accepted in the United States.
9    "Generally accepted auditing standards" means auditing
10standards generally accepted in the United States.
11(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
 
12    (50 ILCS 310/2)  (from Ch. 85, par. 702)
13    Sec. 2. (a) This subsection applies to governmental unit
14fiscal years before fiscal year 2026. Except as otherwise
15provided in Section 3, the governing body of each governmental
16unit shall cause an audit of the accounts of the unit to be
17made by an auditor or auditors. Such audit shall be performed
18annually and shall cover the immediately preceding fiscal year
19of the governmental unit. The audit shall include all the
20accounts and funds of the governmental unit, including the
21accounts of any officer of the governmental unit who receives
22fees or handles funds of the unit or who spends money of the
23unit. The audit shall begin as soon as possible after the close
24of the last fiscal year to which it pertains, and shall be
25completed and the audit report filed with the Comptroller

 

 

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1within 180 days after the close of such fiscal year unless an
2extension of time is granted by the Comptroller in writing. An
3audit report which fails to meet the requirements of this Act
4shall be rejected by the Comptroller and returned to the
5governing body of the governmental unit for corrective action.
6The auditor or auditors performing the audit shall submit not
7less than 3 copies of the audit report to the governing body of
8the governmental unit being audited.
9    All audits to be filed with the Comptroller under this
10Section must be submitted electronically and the Comptroller
11must post the audit reports on the Internet no later than 45
12days after they are received. If the governmental unit
13provides the Comptroller's Office with sufficient evidence
14that the audit report cannot be filed electronically, the
15Comptroller may waive this requirement. The Comptroller must
16also post a list of governmental units that are not in
17compliance with the reporting requirements set forth in this
18Section.
19    Any financial report under this Section shall include the
20name of the purchasing agent who oversees all competitively
21bid contracts. If there is no purchasing agent, the name of the
22person responsible for oversight of all competitively bid
23contracts shall be listed.
24    (b) This subsection applies to governmental unit fiscal
25years 2026 and after. Except as otherwise provided in Section
263, the governing body of each governmental unit shall cause an

 

 

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1audit of the accounts of the unit to be made by an auditor or
2auditors. Such audit shall be performed once every 2 years and
3shall cover the 2 immediately preceding fiscal years of the
4governmental unit, unless the latest audit report filed with
5the Comptroller contains an adverse or disclaimer of opinion.
6If the audit report contains an adverse or disclaimer of
7opinion, then the governmental unit shall file an audit report
8annually until the audit report shows no adverse or disclaimer
9of opinion. The audit shall include all the accounts and funds
10of the governmental unit, including the accounts of any
11officer of the governmental unit who receives fees or handles
12funds of the unit or who spends money of the unit. The audit
13shall begin as soon as possible after the close of the last
14fiscal year to which it pertains, and shall be completed and
15the audit report filed with the Comptroller within 180 days
16after the close of such fiscal year unless an extension of time
17is granted by the Comptroller in writing. An audit report
18which fails to meet the requirements of this Act shall be
19rejected by the Comptroller and returned to the governing body
20of the governmental unit for corrective action. The auditor or
21auditors performing the audit shall submit not less than 3
22copies of the audit report to the governing body of the
23governmental unit being audited.
24    All audits to be filed with the Comptroller under this
25Section must be submitted electronically and the Comptroller
26must post the audit reports on the Internet no later than 45

 

 

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1days after they are received. If the governmental unit
2provides the Comptroller's Office with sufficient evidence
3that the audit report cannot be filed electronically, the
4Comptroller may waive this requirement. The Comptroller must
5also post a list of governmental units that are not in
6compliance with the reporting requirements set forth in this
7Section.
8    Any financial report under this Section shall include the
9name of the purchasing agent who oversees all competitively
10bid contracts. If there is no purchasing agent, the name of the
11person responsible for oversight of all competitively bid
12contracts shall be listed.
13(Source: P.A. 101-419, eff. 1-1-20.)
 
14    (50 ILCS 310/3)  (from Ch. 85, par. 703)
15    Sec. 3. (a) This subsection applies to governmental unit
16fiscal years before fiscal year 2026. Any governmental unit
17receiving revenue of less than $850,000 for any fiscal year
18shall, in lieu of complying with the requirements of Section 2
19for audits and audit reports, beginning with fiscal year 2016,
20either: (i) cause an audit of the accounts of the unit to be
21made once every 4 years and file with the Comptroller an annual
22financial report containing information required by the
23Comptroller, or (ii) file with the Comptroller an annual
24financial report containing information required by the
25Comptroller, a copy of which has been provided to each member

 

 

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1of that governmental unit's board of elected officials,
2presented either in person or by a live phone or web connection
3during a public meeting, and approved by a 3/5 majority vote.
4In addition, a governmental unit receiving revenue of less
5than $850,000 may file with the Comptroller any audit reports
6which may have been prepared under any other law. Any
7governmental unit receiving revenue of $850,000 or more for
8any fiscal year shall, in addition to complying with the
9requirements of Section 2 for audits and audit reports, file
10with the Comptroller the annual financial report required by
11this Section. Such annual financial reports shall be on forms
12so designed by the Comptroller as not to require professional
13accounting services for its preparation. All reports to be
14filed with the Comptroller under this Section must be
15submitted electronically and the Comptroller must post the
16reports on the Internet no later than 45 days after they are
17received. If the governmental unit provides the Comptroller's
18Office with sufficient evidence that the report cannot be
19filed electronically, the Comptroller may waive this
20requirement. The Comptroller must also post a list of
21governmental units that are not in compliance with the
22reporting requirements set forth in this Section.
23    Any financial report under this Section shall include the
24name of the purchasing agent who oversees all competitively
25bid contracts. If there is no purchasing agent, the name of the
26person responsible for oversight of all competitively bid

 

 

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1contracts shall be listed.
2    (b) This subsection applies to governmental unit fiscal
3years 2026 and after. Any governmental unit receiving revenue
4of less than $1,400,000 for any fiscal year, with the amount to
5increase or decrease by a percentage equal to the Consumer
6Price Index-U as reported on January 1 of each year, shall, in
7lieu of complying with the requirements of Section 2 either:
8(i) cause an audit of the accounts of the unit to be made once
9every 4 years and must file with the Comptroller an annual
10financial report containing information required by the
11Comptroller; or (ii) file with the Comptroller an annual
12financial report containing information required by the
13Comptroller, a copy of which has been provided to each member
14of that governmental unit's board of elected officials,
15presented either in person or by a live phone or web connection
16during a public meeting, and approved by a three-fifths
17majority vote. In addition, a governmental unit receiving
18revenue of less than $1,400,000, with the amount to increase
19or decrease by a percentage equal to the Consumer Price
20Index-U as reported on January 1 of each year, may file with
21the Comptroller any audit reports which may have been prepared
22under any other law. Any governmental unit receiving revenue
23of $1,400,000 or more for any fiscal year, with the amount to
24increase or decrease by a percentage equal to the Consumer
25Price Index-U as reported on January 1 of each year, shall, in
26addition to complying with the requirements of Section 2 for

 

 

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1audits and audit reports, file with the Comptroller the annual
2financial report required by this Section. All reports to be
3filed with the Comptroller under this Section must be
4submitted electronically and the Comptroller must post the
5reports on the Internet no later than 45 days after they are
6received. If the governmental unit provides the Comptroller's
7Office with sufficient evidence that the report cannot be
8filed electronically, the Comptroller may waive this
9requirement. The Comptroller must also post a list of
10governmental units that are not in compliance with the
11reporting requirements set forth in this Section.
12    Any financial report under this Section shall include the
13name of the purchasing agent who oversees all competitively
14bid contracts. If there is no purchasing agent, the name of the
15person responsible for oversight of all competitively bid
16contracts shall be listed.
17(Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;
1898-1019, eff. 7-1-15.)
 
19    (50 ILCS 310/6)  (from Ch. 85, par. 706)
20    Sec. 6. (a) This subsection applies to governmental unit
21fiscal years before fiscal year 2026. When the audit is
22completed the auditor making such audit shall make and sign at
23least 3 copies of the report of the audit and immediately file
24them with the governmental unit audited. Governmental units
25receiving revenue of $850,000 or more for any fiscal year

 

 

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1shall immediately make one copy of the audit report and one
2copy of the financial report required by Section 3 of this Act
3a part of its public record. Governmental units receiving
4revenue of less than $850,000 shall immediately make one copy
5of the audit report, or one copy of the report authorized by
6Section 3 of this Act to be filed instead of the audit report,
7a part of its public record. These copies shall be open to
8public inspection. In addition, the governmental unit shall
9file one copy of the report with the Comptroller and with the
10county clerk of the county in which the principal office of the
11governmental unit is located. A governmental unit may, in
12filing its audit report with the Comptroller, transmit with
13such report any comment or explanation that it wishes to make
14concerning the report.
15    (b) This subsection applies to governmental unit fiscal
16years 2026 and after. When the audit is completed, the auditor
17making such audit shall make and sign at least 3 copies of the
18report of the audit and immediately file them with the
19governmental unit audited. Governmental units shall
20immediately make one copy of the audit report or one copy of
21the annual financial report a part of its public record as
22required by Section 3 of this Act. These copies shall be open
23to public inspection. In addition, the governmental unit shall
24file one copy of the report with the Comptroller and with the
25county clerk of the county in which the principal office of the
26governmental unit is located. A governmental unit may, in

 

 

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1filing its audit report with the Comptroller, transmit with
2such report any comment or explanation that it wishes to make
3concerning the report.
4(Source: P.A. 101-419, eff. 1-1-20.)
 
5    Section 10. The Township Code is amended by changing
6Section 80-20 as follows:
 
7    (60 ILCS 1/80-20)
8    Sec. 80-20. Independent audit of accounts.
9    (a) All accounts audited under this Article (and those
10rejected, if any) shall be delivered with the certificate of
11the trustees (or a majority of them) to the township clerk, who
12shall keep them on file for the inspection of any of the
13inhabitants of the township. They shall also be produced by
14the township clerk at the next annual meeting and shall be read
15at the meeting by the clerk.
16    (b) In townships that receive revenue of more than
17$1,400,000 for any fiscal year, with the amount to increase or
18decrease by a percentage equal to the Consumer Price Index-U
19as reported on January 1 of each year $850,000 or more during
20any fiscal year, exclusive of road funds, the township board
21shall have the accounts and all records of the township
22thoroughly audited by a certified public accountant within 6
23months after the close of each fiscal year. The board shall
24have a copy of the accountant's report and recommendations

 

 

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1filed with the township clerk and another copy filed with the
2county clerk for public inspection.
3    (c) In townships that receive revenue of less than
4$1,400,000 for any fiscal year, with the amount to increase or
5decrease by a percentage equal to the Consumer Price Index-U
6as reported on January 1 of each year $850,000 during any
7fiscal year, exclusive of road funds, the township board shall
8have the accounts and all records of the township audited and
9inspected by an independent auditing committee composed of 3
10township electors chosen by the board. The audit shall be
11completed within 6 months after the close of each fiscal year.
12A copy of the auditing committee's report and recommendations
13shall be filed with the township clerk and another copy shall
14be filed with the county clerk for public inspection. The
15auditing committee shall not contain any member of the
16township board or any person related to a trustee. Members of
17the auditing committee shall be proficient in accounting
18principles and practices and shall be compensated at a rate
19determined by the township board but not to exceed $50 per day.
20In addition to the other audit requirements imposed by law, in
21townships subject to this subsection, the township board shall
22have the accounts and all records of the township thoroughly
23audited by a certified public accountant within 6 months after
24(i) the end of each term of office of the township supervisor
25and (ii) a vacancy occurs in the office of township
26supervisor. A copy of the accountant's report and

 

 

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1recommendations shall be filed with the township clerk and
2another copy shall be filed with the county clerk for public
3inspection.
4    As used in this Section, "Consumer Price Index-U" means
5the index published by the Bureau of Labor Statistics of the
6United States Department of Labor that measures the average
7change in prices of goods and services purchased by all urban
8consumers, United States city average, all items, 1982-84 =
9100.
10(Source: P.A. 92-582, eff. 7-1-02.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.