Full Text of HB5044 97th General Assembly
HB5044eng 97TH GENERAL ASSEMBLY |
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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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