Full Text of HB5044 97th General Assembly
HB5044 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5044 Introduced 2/7/2012, by Rep. Jack D. Franks SYNOPSIS AS INTRODUCED: |
| 50 ILCS 310/3 | from Ch. 85, par. 703 | 50 ILCS 310/4 | from Ch. 85, par. 704 | 55 ILCS 5/6-31003 | from Ch. 34, par. 6-31003 | 55 ILCS 5/6-31004 | from Ch. 34, par. 6-31004 | 65 ILCS 5/8-8-3 | from Ch. 24, par. 8-8-3 | 65 ILCS 5/8-8-4 | from Ch. 24, par. 8-8-4 |
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Amends the Governmental Account Audit Act, Counties Code, and Illinois Municipal Code. Provides that all specified governmental units, counties, and municipalities must submit specified reports with the Comptroller electronically, and the Comptroller must post the reports on the internet no later than 45 days after they are received. Provides that the county board of any county (now, counties having a population of over 10,000 but less than 500,000) shall be required to perform an annual audit on funds and accounts of the county, which shall be filed with the Office of the Comptroller. Provides that the requirement concerning electronic filing may be waived if sufficient evidence is provided to the Comptroller that the report cannot be filed electronically. Sets forth posting requirements and penalties for delinquent reports. Limits the concurrent exercise of home rule units. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOME RULE NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Governmental Account Audit Act is amended by | 5 | | changing 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 | 8 | | than $850,000 for any fiscal year shall,
in lieu of complying | 9 | | with the requirements of Section 2 for audits and
audit | 10 | | reports, file with the Comptroller a financial report | 11 | | containing
information required by the Comptroller. In | 12 | | addition, a governmental unit
receiving revenue of less than | 13 | | $850,000
may file with the Comptroller any audit
reports which | 14 | | may have been prepared under any other law. Any governmental
| 15 | | unit receiving revenue of $850,000 or more for
any fiscal year | 16 | | shall, in addition
to complying with the requirements of | 17 | | Section 2 for audits and audit
reports, file with the | 18 | | Comptroller the financial report required by this
Section. Such | 19 | | financial reports shall be on forms so designed by the
| 20 | | Comptroller as not to require professional accounting services | 21 | | for its
preparation. All reports to be filed with the | 22 | | Comptroller under this Section must be submitted | 23 | | electronically and the Comptroller must post the reports on the |
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| 1 | | internet no later than 45 days after they are received. If the | 2 | | governmental unit provides the Comptroller's Office with | 3 | | sufficient evidence that the report cannot be filed | 4 | | electronically, the Comptroller may waive this requirement. | 5 | | The Comptroller must also post a list of municipalities that | 6 | | are not in compliance with the reporting requirements set forth | 7 | | in 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 | 12 | | filed with the
Comptroller in accordance with Section 2 or | 13 | | Section 3, whichever is
applicable, within 6 months after the | 14 | | close of the fiscal year of the
governmental unit, the | 15 | | Comptroller shall notify the governing body of that
unit in | 16 | | writing that the report is due and may also grant a 60 day
| 17 | | extension for the filing of the audit report. If the required | 18 | | report is not
filed within the time specified in such written | 19 | | notice, the Comptroller
shall cause an audit to be made by a | 20 | | licensed public accountant, and the
governmental unit shall pay | 21 | | to the Comptroller actual compensation and
expenses to | 22 | | reimburse him for the cost of preparing or completing such
| 23 | | report.
| 24 | | (b) The Comptroller may decline to order an audit and the | 25 | | preparation of
an audit report (i) if an initial examination of |
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| 1 | | the books and records of
the
governmental unit indicates that | 2 | | the books and records of the governmental unit
are inadequate | 3 | | or unavailable due to the passage of time or the occurrence of | 4 | | a
natural disaster or (ii) if the Comptroller determines that | 5 | | the cost of an
audit would impose an unreasonable financial | 6 | | burden on the governmental unit.
| 7 | | (c) The State Comptroller may grant extensions for | 8 | | delinquent reports. The Comptroller may charge a governmental | 9 | | unit a fee for a delinquent audit of $5 per day for the first 15 | 10 | | days past due, $10 per day for 16 through 30 days past due, $15 | 11 | | per day for 31 through 45 days past due, and $20 per day for the | 12 | | 46th day and every day thereafter. All fees collected under | 13 | | this subsection (c) shall be deposited into the Comptroller's | 14 | | Administrative Fund. | 15 | | (Source: P.A. 92-191, eff. 8-1-01.)
| 16 | | Section 10. The Counties Code is amended by changing | 17 | | Sections 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 | 20 | | having a
population of over 10,000 but less than 500,000, the | 21 | | county board of each
county shall cause an audit of all of the | 22 | | funds and accounts of the county
to be made annually by an | 23 | | accountant
or accountants chosen by the county board or by an | 24 | | accountant or accountants
retained by the Comptroller, as |
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| 1 | | hereinafter provided. In addition, each
county having a | 2 | | population of less than 500,000 shall file with the Comptroller
| 3 | | a financial report containing information required by the | 4 | | Comptroller.
Such financial report shall be on a form so | 5 | | designed by the Comptroller
as not to require professional | 6 | | accounting services for its preparation. All reports to be | 7 | | filed with the Comptroller under this Section must be submitted | 8 | | electronically and the Comptroller must post the reports on the | 9 | | internet no later than 45 days after they are received. If the | 10 | | county provides the Comptroller's Office with sufficient | 11 | | evidence that the report cannot be filed electronically, the | 12 | | Comptroller may waive this requirement. The Comptroller must | 13 | | also post a list of counties that are not in compliance with | 14 | | the reporting requirements set forth in this Section.
| 15 | | The audit shall commence as soon as possible after the | 16 | | close of each
fiscal year and shall be completed within 6 | 17 | | months after the close of such
fiscal year, unless an extension | 18 | | of time is granted by the Comptroller in
writing. Such | 19 | | extension of time shall not exceed 60 days. When the accountant
| 20 | | or accountants have completed the audit a full report thereof | 21 | | shall be made
and not less than 2 copies of each audit report | 22 | | shall be submitted to the
county board. Each audit report shall | 23 | | be signed by the accountant making
the audit and shall include | 24 | | only financial information, findings and
conclusions that are | 25 | | adequately supported by evidence in the auditor's
working | 26 | | papers to demonstrate or prove, when called upon, the basis for |
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| 1 | | the
matters reported and their correctness and reasonableness. | 2 | | In connection
with this, each county board shall retain the | 3 | | right of inspection of the
auditor's working papers and shall | 4 | | make them available to the Comptroller,
or his designee, upon | 5 | | request.
| 6 | | Within 60 days of receipt of an audit report, each county | 7 | | board shall file
one copy of each audit report and each | 8 | | financial report with the Comptroller
and any comment or | 9 | | explanation that the county board may desire to make
concerning | 10 | | such audit report may be attached thereto. An audit report
| 11 | | which fails to meet the requirements of this Division shall be
| 12 | | rejected by the Comptroller and returned to the county board | 13 | | for corrective
action. One copy of each such report shall be | 14 | | filed with the county clerk
of the county so audited.
| 15 | | This Section is a limitation under subsection (i) of | 16 | | Section 6 of Article VII of the Illinois Constitution on the | 17 | | concurrent exercise by home rule counties of powers and | 18 | | functions 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 | 23 | | filed with the Comptroller in accordance with Section 6-31003
| 24 | | within 6 months after the close of the fiscal year of the | 25 | | county, the
Comptroller shall notify the county board in |
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| 1 | | writing that the reports are
due, and may also grant an | 2 | | extension of time of up to 60 days for the
filing of the | 3 | | reports. In the event the required reports are not filed
within | 4 | | the time specified in such written notice, the Comptroller | 5 | | shall
cause the audit to be made and the audit report prepared | 6 | | by an accountant
or accountants.
| 7 | | (b) The Comptroller may decline to order an audit and the | 8 | | preparation of
an
audit report if an initial examination of the | 9 | | books and records of the
governmental unit indicates that the | 10 | | books and records of the governmental unit
are inadequate or | 11 | | unavailable due to the passage of time or the occurrence of a
| 12 | | natural disaster.
| 13 | | (c) The State Comptroller may grant extensions for | 14 | | delinquent reports. The Comptroller may charge a county a fee | 15 | | for a delinquent audit of $5 per day for the first 15 days past | 16 | | due, $10 per day for 16 through 30 days past due, $15 per day | 17 | | for 31 through 45 days past due, and $20 per day for the 46th | 18 | | day and every day thereafter. All fees collected under this | 19 | | subsection (c) shall be deposited into the Comptroller's | 20 | | Administrative Fund. | 21 | | (Source: P.A. 90-104, eff. 7-11-97.)
| 22 | | Section 15. The Illinois Municipal Code is amended by | 23 | | changing 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 | 3 | | under the
provisions of this Division 8 shall cause an audit of | 4 | | the funds and
accounts of the municipality to be made by an | 5 | | accountant or accountants
employed by such municipality or by | 6 | | an accountant or accountants retained
by the Comptroller, as | 7 | | hereinafter provided. | 8 | | (b) The accounts and funds of each municipality having a | 9 | | population of 800
or more or having a bonded debt or owning or | 10 | | operating any type of public
utility shall be audited annually. | 11 | | The audit herein required shall include
all of the accounts and | 12 | | funds of the municipality. Such audit shall be
begun as soon as | 13 | | possible after the close of the fiscal year, and shall be
| 14 | | completed and the report submitted within 6 months after the | 15 | | close of such
fiscal year, unless an extension of time shall be | 16 | | granted by the
Comptroller in writing. The accountant or | 17 | | accountants making the audit
shall submit not less than 2 | 18 | | copies of the audit report to the corporate
authorities of the | 19 | | municipality being audited. Municipalities not operating
| 20 | | utilities may cause audits of the accounts of municipalities to | 21 | | be made
more often than herein provided, by an accountant or | 22 | | accountants. The audit
report of such audit when filed with the | 23 | | Comptroller together with an audit
report covering the | 24 | | remainder of the period for which an audit is required
to be | 25 | | filed hereunder shall satisfy the requirements of this section. | 26 | | (c) Municipalities of less than 800 population which do not |
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| 1 | | own or operate
public utilities and do not have bonded debt, | 2 | | shall file annually with the
Comptroller a financial report | 3 | | containing information required by the
Comptroller. Such | 4 | | annual financial report shall be on forms devised by the
| 5 | | Comptroller in such manner as to not require professional | 6 | | accounting
services for its preparation. | 7 | | (d) In addition to any audit report required, all | 8 | | municipalities, except
municipalities of less than 800 | 9 | | population which do not own or operate
public utilities and do | 10 | | not have bonded debt, shall file annually with the
Comptroller | 11 | | a supplemental report on forms devised and approved by the
| 12 | | Comptroller. | 13 | | (e) Notwithstanding any provision of law to the contrary, | 14 | | if a municipality (i) has a population of less than 200, (ii) | 15 | | has bonded debt in the amount of $50,000 or less, and (iii) | 16 | | owns or operates a public utility, then the municipality shall | 17 | | cause an audit of the funds and accounts of the municipality to | 18 | | be made by an accountant employed by the municipality or | 19 | | retained by the Comptroller for fiscal year 2011 and every | 20 | | fourth fiscal year thereafter or until the municipality has a | 21 | | population of 200 or more, has bonded debt in excess of | 22 | | $50,000, or no longer owns or operates a public utility. | 23 | | Nothing in this subsection shall be construed as limiting the | 24 | | municipality's duty to file an annual financial report with the | 25 | | Comptroller or to comply with the filing requirements | 26 | | concerning the county clerk. |
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| 1 | | (f) All reports to be filed with the Comptroller under this | 2 | | Section must be submitted electronically and the Comptroller | 3 | | must post the reports on the internet no later than 45 days | 4 | | after they are received. If the municipality provides the | 5 | | Comptroller's Office with sufficient evidence that the report | 6 | | cannot be filed electronically, the Comptroller may waive this | 7 | | requirement. The Comptroller must also post a list of | 8 | | municipalities that are not in compliance with the reporting | 9 | | requirements set forth in this Section. | 10 | | (g) Subsection (f) of this Section is a limitation under | 11 | | subsection (i) of Section 6 of Article VII of the Illinois | 12 | | Constitution on the concurrent exercise by home rule | 13 | | municipalities 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 | 18 | | municipality is not filed
with the Comptroller in accordance | 19 | | with Section 8-8-7 within 6 months after
the close of the | 20 | | fiscal year of the municipality, the Comptroller shall
notify | 21 | | the corporate authorities of that municipality in writing that | 22 | | the
audit report is due, and may also grant an extension of | 23 | | time of 60 days,
for the filing of the audit report. In the | 24 | | event the required audit report
is not filed within the time | 25 | | specified in such written notice, the
Comptroller shall cause |
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| 1 | | such audit to be made by an accountant or
accountants. In the | 2 | | event the required annual or supplemental report for a
| 3 | | municipality is not filed within 6 months after the close of | 4 | | the fiscal
year of the municipality, the Comptroller shall | 5 | | notify the corporate
authorities of that municipality in | 6 | | writing that the annual or supplemental
report is due and may | 7 | | grant an extension in time of 60 days for the filing
of such | 8 | | annual or supplemental report.
| 9 | | (b) In the event the annual or supplemental report is not | 10 | | filed within
the
time extended by the Comptroller, the | 11 | | Comptroller shall cause such annual
or supplemental report to | 12 | | be prepared or completed and the municipality
shall pay to the | 13 | | Comptroller reasonable compensation and expenses to
reimburse | 14 | | him for the cost of preparing or completing such annual or
| 15 | | supplemental report.
Moneys paid to the Comptroller pursuant to | 16 | | the preceding sentence shall be
deposited into the | 17 | | Comptroller's Audit Expense Revolving Fund.
| 18 | | (c) The Comptroller may decline to order an audit or the | 19 | | completion of the
supplemental report if an initial examination | 20 | | of the books and records of the
municipality indicates that | 21 | | books and records of the municipality are
inadequate or | 22 | | unavailable to support the preparation of the audit report or | 23 | | the
supplemental report due to the passage of time or the | 24 | | occurrence of a natural
disaster.
| 25 | | (d) The State Comptroller may grant extensions for | 26 | | delinquent reports. The Comptroller may charge a municipality a |
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| 1 | | fee for a delinquent audit of $5 per day for the first 15 days | 2 | | past due, $10 per day for 16 through 30 days past due, $15 per | 3 | | day for 31 through 45 days past due, and $20 per day for the | 4 | | 46th day and every day thereafter. All fees collected under | 5 | | this subsection (d) shall be deposited into the Comptroller's | 6 | | Administrative Fund. | 7 | | (Source: P.A. 90-104, eff. 7-11-97.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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