Full Text of SB3323 97th General Assembly
SB3323 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3323 Introduced 2/7/2012, by Sen. Tim Bivins SYNOPSIS AS INTRODUCED: |
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50 ILCS 310/2 | from Ch. 85, par. 702 |
50 ILCS 310/3 | from Ch. 85, par. 703 |
55 ILCS 5/6-31003 | from Ch. 34, par. 6-31003 |
60 ILCS 1/80-20 |
| 65 ILCS 5/8-8-3 | from Ch. 24, par. 8-8-3 |
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Amends the Governmental Account Audit Act, the Counties Code, the Township Code, and the Illinois Municipal Code. Requires the governing board of each governmental unit, county board, township board, or corporate authorities of a municipality, as applicable, to review specified audit and financial reports and report any suspected criminal activity or fraud to the appropriate State's Attorney's office. Effective immediately.
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| | 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 2 and 3 as follows:
| 6 | | (50 ILCS 310/2) (from Ch. 85, par. 702)
| 7 | | Sec. 2.
Except as otherwise provided in Section 3, the | 8 | | governing body of
each governmental unit shall cause an audit | 9 | | of the accounts of the unit to be
made by a licensed public | 10 | | accountant. Such audit shall be made annually and
shall cover | 11 | | the immediately preceding fiscal year of the governmental unit.
| 12 | | The audit shall include all the accounts and funds of the | 13 | | governmental
unit, including the accounts of any officer of the | 14 | | governmental unit who
receives fees or handles funds of the | 15 | | unit or who spends money of the unit.
The audit shall begin as | 16 | | soon as possible after the close of the last
fiscal year to | 17 | | which it pertains, and shall be completed and the audit
report | 18 | | filed with the Comptroller within 6 months after the close of | 19 | | such
fiscal year unless an extension of time is granted by the | 20 | | Comptroller in
writing. An audit report which fails to meet the | 21 | | requirements of this
Act shall be rejected by the Comptroller | 22 | | and returned to the governing body
of the governmental unit for | 23 | | corrective action. The
licensed public accountant making the |
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| 1 | | audit shall submit not
less than 3 copies of the audit report | 2 | | to the governing body of the
governmental unit being audited.
| 3 | | The governing board of each governmental unit shall review | 4 | | the annual audit report prior to submission to the Comptroller | 5 | | and shall report any suspected criminal activity or fraud to | 6 | | the State's Attorney's office of the county or counties where | 7 | | the governmental unit is located. | 8 | | (Source: P.A. 85-1000.)
| 9 | | (50 ILCS 310/3) (from Ch. 85, par. 703)
| 10 | | Sec. 3.
Any governmental unit receiving revenue of less | 11 | | than $850,000 for any fiscal year shall,
in lieu of complying | 12 | | with the requirements of Section 2 for audits and
audit | 13 | | reports, file with the Comptroller a financial report | 14 | | containing
information required by the Comptroller. In | 15 | | addition, a governmental unit
receiving revenue of less than | 16 | | $850,000
may file with the Comptroller any audit
reports which | 17 | | may have been prepared under any other law. Any governmental
| 18 | | unit receiving revenue of $850,000 or more for
any fiscal year | 19 | | shall, in addition
to complying with the requirements of | 20 | | Section 2 for audits and audit
reports, file with the | 21 | | Comptroller the financial report required by this
Section. Such | 22 | | financial reports shall be on forms so designed by the
| 23 | | Comptroller as not to require professional accounting services | 24 | | for its
preparation.
| 25 | | The governing board of each governmental unit shall review |
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| 1 | | the annual audit report or any financial reports, as the case | 2 | | may be, prior to submission to the Comptroller and shall report | 3 | | any suspected criminal activity or fraud to the State's | 4 | | Attorney's office of the county or counties where the | 5 | | governmental unit is located. | 6 | | (Source: P.A. 92-582, eff. 7-1-02.)
| 7 | | Section 10. The Counties Code is amended by changing | 8 | | Section 6-31003 as follows:
| 9 | | (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
| 10 | | Sec. 6-31003. Annual audits and reports. In counties having | 11 | | a
population of over 10,000 but less than 500,000, the county | 12 | | board of each
county shall cause an audit of all of the funds | 13 | | and accounts of the county
to be made annually by an accountant
| 14 | | or accountants chosen by the county board or by an accountant | 15 | | or accountants
retained by the Comptroller, as hereinafter | 16 | | provided. In addition, each
county having a population of less | 17 | | than 500,000 shall file with the Comptroller
a financial report | 18 | | containing information required by the Comptroller.
Such | 19 | | financial report shall be on a form so designed by the | 20 | | Comptroller
as not to require professional accounting services | 21 | | for its preparation.
| 22 | | The audit shall commence as soon as possible after the | 23 | | close of each
fiscal year and shall be completed within 6 | 24 | | months after the close of such
fiscal year, unless an extension |
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| 1 | | of time is granted by the Comptroller in
writing. Such | 2 | | extension of time shall not exceed 60 days. When the accountant
| 3 | | or accountants have completed the audit a full report thereof | 4 | | shall be made
and not less than 2 copies of each audit report | 5 | | shall be submitted to the
county board. Each audit report shall | 6 | | be signed by the accountant making
the audit and shall include | 7 | | only financial information, findings and
conclusions that are | 8 | | adequately supported by evidence in the auditor's
working | 9 | | papers to demonstrate or prove, when called upon, the basis for | 10 | | the
matters reported and their correctness and reasonableness. | 11 | | In connection
with this, each county board shall retain the | 12 | | right of inspection of the
auditor's working papers and shall | 13 | | make them available to the Comptroller,
or his designee, upon | 14 | | request.
| 15 | | Within 60 days of receipt of an audit report, each county | 16 | | board shall file
one copy of each audit report and each | 17 | | financial report with the Comptroller
and any comment or | 18 | | explanation that the county board may desire to make
concerning | 19 | | such audit report may be attached thereto. An audit report
| 20 | | which fails to meet the requirements of this Division shall be
| 21 | | rejected by the Comptroller and returned to the county board | 22 | | for corrective
action. One copy of each such report shall be | 23 | | filed with the county clerk
of the county so audited.
| 24 | | The county board shall review the annual audit report and | 25 | | each financial report prior to submission to the Comptroller | 26 | | and shall report any suspected criminal activity or fraud to |
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| 1 | | the State's Attorney's office of that county. | 2 | | (Source: P.A. 86-962.)
| 3 | | Section 15. The Township Code is amended by changing | 4 | | Section 80-20 as follows:
| 5 | | (60 ILCS 1/80-20)
| 6 | | Sec. 80-20. Independent audit of accounts.
| 7 | | (a) All accounts audited under this Article (and those | 8 | | rejected, if any)
shall be delivered with the certificate of | 9 | | the trustees (or a majority of
them) to the township clerk, who | 10 | | shall keep them on file for the inspection
of any of the | 11 | | inhabitants of the township. They shall also be produced by
the | 12 | | township clerk at the next annual meeting and shall be read at | 13 | | the
meeting by the clerk.
| 14 | | (b) In townships that receive revenue of $850,000 or more | 15 | | during any fiscal
year, exclusive of road funds, the township | 16 | | board shall have the
accounts and all records of the township | 17 | | thoroughly audited by a certified
public accountant within 6 | 18 | | months after the close of each fiscal year. The
board shall | 19 | | have a copy of the accountant's report and recommendations | 20 | | filed
with the township clerk and another copy filed with the | 21 | | county clerk for public
inspection.
| 22 | | (c) In townships that receive revenue of less than $850,000 | 23 | | during any fiscal
year, exclusive of road funds, the township | 24 | | board shall have the
accounts and all records of the township |
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| 1 | | audited and inspected by an
independent auditing committee | 2 | | composed of 3 township electors chosen by
the board. The audit | 3 | | shall be completed within 6 months after the close of
each | 4 | | fiscal year. A copy of the auditing committee's report and
| 5 | | recommendations shall be filed with the township clerk and | 6 | | another copy shall
be filed with the county clerk for public | 7 | | inspection. The auditing
committee shall not contain any member | 8 | | of the township board or
any person related to a trustee. | 9 | | Members of the auditing committee shall
be proficient in | 10 | | accounting principles and practices and shall be
compensated at | 11 | | a rate determined by the township board but not to exceed
$50 | 12 | | per day. In addition to the other audit requirements
imposed by | 13 | | law, in townships subject to this subsection, the township | 14 | | board
shall have the accounts and all records of the township | 15 | | thoroughly
audited by a certified public accountant within 6 | 16 | | months after (i) the end
of each term of office of the township | 17 | | supervisor and (ii) a vacancy occurs
in the office of township | 18 | | supervisor.
A copy of the accountant's report and | 19 | | recommendations shall be filed with the
township clerk and | 20 | | another copy shall be filed with the county clerk for public
| 21 | | inspection.
| 22 | | (d) The township board shall review the annual audit report | 23 | | prior to submission to the township clerk and shall report any | 24 | | suspected criminal activity or fraud to the State's Attorney's | 25 | | office of the county where the township is located. | 26 | | (Source: P.A. 92-582, eff. 7-1-02.)
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| 1 | | Section 20. The Illinois Municipal Code is amended by | 2 | | changing Section 8-8-3 as follows: | 3 | | (65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3) | 4 | | Sec. 8-8-3. Audit requirements. | 5 | | (a) The corporate authorities of each municipality coming | 6 | | under the
provisions of this Division 8 shall cause an audit of | 7 | | the funds and
accounts of the municipality to be made by an | 8 | | accountant or accountants
employed by such municipality or by | 9 | | an accountant or accountants retained
by the Comptroller, as | 10 | | hereinafter provided. | 11 | | (b) The accounts and funds of each municipality having a | 12 | | population of 800
or more or having a bonded debt or owning or | 13 | | operating any type of public
utility shall be audited annually. | 14 | | The audit herein required shall include
all of the accounts and | 15 | | funds of the municipality. Such audit shall be
begun as soon as | 16 | | possible after the close of the fiscal year, and shall be
| 17 | | completed and the report submitted within 6 months after the | 18 | | close of such
fiscal year, unless an extension of time shall be | 19 | | granted by the
Comptroller in writing. The accountant or | 20 | | accountants making the audit
shall submit not less than 2 | 21 | | copies of the audit report to the corporate
authorities of the | 22 | | municipality being audited. Municipalities not operating
| 23 | | utilities may cause audits of the accounts of municipalities to | 24 | | be made
more often than herein provided, by an accountant or |
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| 1 | | accountants. The audit
report of such audit when filed with the | 2 | | Comptroller together with an audit
report covering the | 3 | | remainder of the period for which an audit is required
to be | 4 | | filed hereunder shall satisfy the requirements of this section. | 5 | | (c) Municipalities of less than 800 population which do not | 6 | | own or operate
public utilities and do not have bonded debt, | 7 | | shall file annually with the
Comptroller a financial report | 8 | | containing information required by the
Comptroller. Such | 9 | | annual financial report shall be on forms devised by the
| 10 | | Comptroller in such manner as to not require professional | 11 | | accounting
services for its preparation. | 12 | | (d) In addition to any audit report required, all | 13 | | municipalities, except
municipalities of less than 800 | 14 | | population which do not own or operate
public utilities and do | 15 | | not have bonded debt, shall file annually with the
Comptroller | 16 | | a supplemental report on forms devised and approved by the
| 17 | | Comptroller. | 18 | | (e) Notwithstanding any provision of law to the contrary, | 19 | | if a municipality (i) has a population of less than 200, (ii) | 20 | | has bonded debt in the amount of $50,000 or less, and (iii) | 21 | | owns or operates a public utility, then the municipality shall | 22 | | cause an audit of the funds and accounts of the municipality to | 23 | | be made by an accountant employed by the municipality or | 24 | | retained by the Comptroller for fiscal year 2011 and every | 25 | | fourth fiscal year thereafter or until the municipality has a | 26 | | population of 200 or more, has bonded debt in excess of |
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| 1 | | $50,000, or no longer owns or operates a public utility. | 2 | | Nothing in this subsection shall be construed as limiting the | 3 | | municipality's duty to file an annual financial report with the | 4 | | Comptroller or to comply with the filing requirements | 5 | | concerning the county clerk. | 6 | | (f) The corporate authorities of each municipality shall | 7 | | review the annual audit report prior to submission to the | 8 | | Comptroller and shall report any suspected criminal activity or | 9 | | fraud to the State's Attorney's office of the county or | 10 | | counties where the municipality is located. | 11 | | (Source: P.A. 96-1309, eff. 7-27-10.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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