Full Text of SB2884 99th General Assembly
SB2884ham001 99TH GENERAL ASSEMBLY | Rep. William Davis Filed: 11/28/2016
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| 1 | | AMENDMENT TO SENATE BILL 2884
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2884 as follows: | 3 | | by deleting line 19 on page 255 through line 1 on page 264; and | 4 | | on page 378, line 12, by deleting "605-825,"; and | 5 | | by deleting line 8 on page 378; and | 6 | | by deleting line 14 on page 378 through line 11 on page 379; | 7 | | and | 8 | | by replacing line 2 on page 381 through line 12 on page 384 | 9 | | with the following:
| 10 | | "(205 ILCS 635/3-2) (from Ch. 17, par. 2323-2)
| 11 | | Sec. 3-2. Annual audit.
| 12 | | (a) At the licensee's fiscal year-end, but in no
case more |
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| 1 | | than 12 months after the last audit conducted pursuant to this
| 2 | | Section, except as otherwise provided in this Section, it shall | 3 | | be
mandatory for each residential mortgage licensee to
cause | 4 | | its books and accounts to be audited by a certified public | 5 | | accountant
not connected with such licensee. The books and | 6 | | records of all licensees
under this Act shall be maintained on | 7 | | an accrual basis. The audit must be
sufficiently comprehensive | 8 | | in scope to permit
the expression of an opinion on the | 9 | | financial statements, which must be
prepared in accordance with | 10 | | generally accepted accounting principles, and
must be | 11 | | performed in accordance with generally accepted auditing | 12 | | standards. Notwithstanding
the requirements of this | 13 | | subsection, a licensee that is a subsidiary
may submit audited | 14 | | consolidated financial statements of its parent, intermediary | 15 | | parent, or ultimate parent as long as
the consolidated | 16 | | statements are supported by consolidating statements which | 17 | | include the licensee's financial statement. If the | 18 | | consolidating statements are unaudited, the
licensee's chief | 19 | | financial officer shall attest to the licensee's financial
| 20 | | statements disclosed in the consolidating statements.
| 21 | | (b) As used herein, the term "expression of opinion" | 22 | | includes either
(1) an unqualified opinion, (2) a qualified | 23 | | opinion, (3) a disclaimer of
opinion, or (4) an adverse | 24 | | opinion.
| 25 | | (c) If a qualified or adverse opinion is expressed or if an | 26 | | opinion is
disclaimed, the reasons therefore must be fully |
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| 1 | | explained. An opinion,
qualified as to a scope limitation, | 2 | | shall not be acceptable.
| 3 | | (d) The most recent audit report shall be filed with the
| 4 | | Commissioner within 90 days after the end of the licensee's | 5 | | fiscal year, or with the Nationwide Mortgage Licensing System | 6 | | and Registry, if applicable, pursuant to Mortgage Call Report | 7 | | requirements. The report
filed with the Commissioner shall be | 8 | | certified by the certified public
accountant conducting the | 9 | | audit. The Commissioner may promulgate rules
regarding late | 10 | | audit reports.
| 11 | | (e) (Blank). If any licensee required to make an audit | 12 | | shall fail to cause an
audit to be made, the Commissioner shall | 13 | | cause the same to be made by a
certified public accountant at | 14 | | the licensee's expense. The Commissioner
shall select such | 15 | | certified public accountant by advertising for bids or
by such | 16 | | other fair and impartial means as he or she establishes by | 17 | | regulation.
| 18 | | (f) In lieu of the audit or compilation financial statement
| 19 | | required by this Section, a licensee shall submit and the | 20 | | Commissioner may
accept any audit made in conformance with the | 21 | | audit
requirements of the U.S. Department of Housing and Urban | 22 | | Development.
| 23 | | (g) With respect to licensees who solely broker residential | 24 | | mortgage
loans as defined in subsection (o) of Section 1-4, | 25 | | instead of the audit
required by this Section, the Commissioner | 26 | | may
accept
compilation financial statements prepared at least |
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| 1 | | every 12 months, and
the compilation financial statement must | 2 | | be submitted within 90 days after the end of
the licensee's | 3 | | fiscal year, or with the Nationwide Mortgage Licensing System | 4 | | and Registry, if applicable, pursuant to Mortgage Call Report | 5 | | requirements. If a
licensee
under this Section fails to file a | 6 | | compilation as required, the Commissioner
shall cause an audit | 7 | | of the licensee's books and accounts to be made by a
certified | 8 | | public accountant at the licensee's expense. The Commissioner | 9 | | shall
select the certified public accountant by advertising for | 10 | | bids or by such other
fair and impartial means as he or she | 11 | | establishes by rule. A licensee who
files false or misleading | 12 | | compilation financial statements is guilty of a
business | 13 | | offense and shall be fined not less than $5,000.
| 14 | | (h) The workpapers of the certified public accountants | 15 | | employed
by each
licensee for purposes of this Section are to | 16 | | be made available to the
Commissioner or the Commissioner's | 17 | | designee upon request and may be
reproduced by the Commissioner | 18 | | or the Commissioner's designee to enable to
the Commissioner to | 19 | | carry out the purposes of this Act.
| 20 | | (i) Notwithstanding any other provision of this Section, if | 21 | | a licensee
relying on subsection (g) of this Section causes its | 22 | | books to be audited at any
other time or causes its financial | 23 | | statements to be reviewed, a complete copy
of the audited or | 24 | | reviewed financial statements shall be delivered to the
| 25 | | Commissioner at the time of the annual license renewal payment | 26 | | following
receipt by the licensee of the audited or reviewed |
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| 1 | | financial statements. All workpapers shall be made available to | 2 | | the
Commissioner upon request. The financial statements and | 3 | | workpapers may be
reproduced by the Commissioner or the | 4 | | Commissioner's designee to carry out the
purposes of this Act.
| 5 | | (Source: P.A. 97-813, eff. 7-13-12; 97-891, eff. 8-3-12; | 6 | | 98-463, eff. 8-16-13; 98-1081, eff. 1-1-15 .)"; and
| 7 | | by deleting line 16 on page 385 through line 18 on page 388; | 8 | | and | 9 | | by deleting line 23 on page 388 through line 1 on page 389; and | 10 | | on page 389, by deleting lines 5 through 11; and | 11 | | by deleting line 15 on page 389 through line 7 on page 390; and | 12 | | on page 405, by deleting lines 5 through 7.
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