Illinois General Assembly - Full Text of HB4104
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Full Text of HB4104  100th General Assembly

HB4104ham001 100TH GENERAL ASSEMBLY

Rep. Anthony DeLuca

Filed: 4/6/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4104

2    AMENDMENT NO. ______. Amend House Bill 4104 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Governmental Account Audit Act is amended
5by changing Sections 1 and 5 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 amount
12to increase or decrease by the amount of the Consumer Price
13Index (CPI) as reported on January 1 of each year, except the
14following:
15        (1) School districts.
16        (2) Cities, villages, and incorporated towns subject

 

 

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1    to the Municipal Auditing Law, as contained in the Illinois
2    Municipal Code, and cities that file a report with the
3    Comptroller under Section 3.1-35-115 of the Illinois
4    Municipal Code.
5        (3) Counties with a population of 1,000,000 or more.
6        (4) Counties subject to the County Auditing Law.
7        (5) Any other municipal corporations in or political
8    subdivisions of this State, the accounts of which are
9    required by law to be audited by or under the direction of
10    the Auditor General.
11        (6) (Blank).
12        (7) A drainage district, established under the
13    Illinois Drainage Code (70 ILCS 605), that did not receive
14    or expend any moneys during the immediately preceding
15    fiscal year or obtains approval for assessments and
16    expenditures through the circuit court.
17        (8) Public housing authorities that submit financial
18    reports to the U.S. Department of Housing and Urban
19    Development.
20    "Governing body" means the board or other body or officers
21having authority to levy taxes, make appropriations, authorize
22the expenditure of public funds or approve claims for any
23governmental unit.
24    "Comptroller" means the Comptroller of the State of
25Illinois.
26    "Consumer Price Index" means the Consumer Price Index for

 

 

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1All Urban Consumers for all items published by the United
2States Department of Labor.
3    "Licensed public accountant" means the holder of a valid
4certificate as a public accountant under the Illinois Public
5Accounting Act.
6    "Audit report" means the written report of the licensed
7public accountant and all appended statements and schedules
8relating to that report, presenting or recording the findings
9of an examination or audit of the financial transactions,
10affairs, or conditions of a governmental unit.
11    "Auditor" means a licensed certified public accountant, as
12that term is defined in Section 0.03 of the Illinois Public
13Accounting Act, who performs an audit of governmental unit
14financial statements and records and expresses an assurance or
15disclaims an opinion on the audited financial statements.
16    "Report" includes both audit reports and reports filed
17instead of an audit report by a governmental unit receiving
18revenue of less than $850,000 during any fiscal year to which
19the reports relate.
20(Source: P.A. 92-191, eff. 8-1-01; 92-582, eff. 7-1-02.)
 
21    (50 ILCS 310/5)  (from Ch. 85, par. 705)
22    Sec. 5. (a) Prior to fiscal year 2019, the The audit report
23shall contain statements that conform with generally accepted
24accounting principles or other comprehensive basis of
25accounting and that set forth, insofar as possible, the

 

 

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1financial position and results of financial operations for each
2fund of the governmental unit. Each audit report shall include
3only financial information, findings, and conclusions that are
4adequately supported by evidence in the auditor's working
5papers to demonstrate or prove, when called upon, the basis for
6the matters reported and their correctness and reasonableness.
7In connection with this, each governmental unit shall retain
8the right of inspection of the auditor's working papers and
9shall make them available to the Comptroller, or his or her
10designee, upon request. The audit report shall also include the
11professional opinion of the auditor or auditors licensed public
12accountant with respect to the financial statements or, if an
13opinion cannot be expressed, a declaration that he or she is
14unable to express such opinion and an explanation of the
15reasons he or she cannot do so. Each audit report shall include
16the certification of the auditor or auditors accountant or
17accountants making the audit that the audit has been performed
18in compliance with generally accepted auditing standards.
19    (b) For fiscal year 2019 and each fiscal year thereafter,
20the audit report shall contain statements that set forth the
21financial position and results of financial operations for each
22fund of the governmental unit. Each audit report shall include
23only financial information, findings, and conclusions that are
24adequately supported by evidence in the auditor's working
25papers to demonstrate or prove, when called upon, the basis for
26the matters reported and their correctness and reasonableness.

 

 

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1In connection with this, each governmental unit shall retain
2the right of inspection of the auditor's working papers and
3shall make them available to the Comptroller, or his or her
4designee, upon request. The audit report shall also include the
5professional opinion of the auditor or auditors with respect to
6the financial statements or, if an opinion cannot be expressed,
7a declaration that he or she is unable to express an opinion
8and an explanation of the reasons he or she cannot do so. Each
9audit report shall include the certification of the auditor or
10auditors making the audit that the audit has been performed in
11compliance with generally accepted auditing standards.
12    (c) For fiscal year 2019 and each fiscal year thereafter,
13audit reports shall contain financial statements prepared in
14conformity with generally accepted accounting principles and
15audited in conformity with generally accepted auditing
16standards if the last audit report filed preceding fiscal year
172017 expressed an unmodified or modified opinion by the
18independent auditor that the financial statements were
19presented in conformity with generally accepted accounting
20principles.
21    (d) For fiscal year 2019 and each fiscal year thereafter,
22audit reports containing financial statements prepared in
23conformity with an other comprehensive basis of accounting may
24follow the best practices and guidelines as outlined by the
25American Institute of Certified Public Accountants and shall be
26audited in conformity with generally accepted auditing

 

 

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1standards. If the governing body of a governmental unit submits
2an audit report containing financial statements prepared in
3conformity with generally accepted accounting principles,
4thereafter all future audit reports shall also contain
5financial statements presented in conformity with generally
6accepted accounting principles.
7    (e) Audits may be made on financial statements prepared
8using either an accrual or cash basis of accounting, depending
9upon the system followed by the governmental unit, and audit
10reports shall comply with this Section.
11(Source: P.A. 85-1000.)
 
12    Section 10. The Counties Code is amended by changing
13Sections 6-31002 and 6-31006 as follows:
 
14    (55 ILCS 5/6-31002)  (from Ch. 34, par. 6-31002)
15    Sec. 6-31002. Definitions. As used in this Division, unless
16the context otherwise requires:
17    1. "Comptroller" means the Comptroller of the State of
18Illinois;
19    2. "accountant" or "accountants" means and includes all
20persons authorized to practice public accounting under the laws
21of this State;
22    3. "funds and accounts" means all funds of a county derived
23from property taxes and all funds and accounts derived from
24sources other than property taxes, including the receipts and

 

 

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1expenditures of the fee earnings of each county fee officer;
2    4. "audit report" means the written report of the
3accountant or accountants and all appended statements and
4schedules relating thereto, presenting or recording the
5findings of an examination or audit of the financial
6transactions, affairs and condition of a county;
7    5. "population" means the number of persons residing in a
8county according to the last preceding federal decennial
9census; .
10    6. "auditor" means a licensed certified public accountant,
11as that term is defined in Section 0.03 of the Illinois Public
12Accounting Act, who performs an audit of county financial
13statements and records and expresses an assurance or disclaims
14an opinion on the audited financial statements.
15(Source: P.A. 86-962.)
 
16    (55 ILCS 5/6-31006)  (from Ch. 34, par. 6-31006)
17    Sec. 6-31006. Audit report.
18    (a) Prior to fiscal year 2019, the The audit report shall
19contain statements that are in conformity with generally
20accepted public accounting principles or other comprehensive
21basis of accounting and shall set forth, insofar as possible,
22the financial position and the results of financial operations
23for each fund, account, and office of the county government.
24The audit report shall also include the professional opinion of
25the auditor or auditors accountant or accountants with respect

 

 

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1to the financial status and operations or, if an opinion cannot
2be expressed, a declaration that such auditor accountant is
3unable to express such opinion and an explanation of the
4reasons he or she cannot do so. Each audit report shall include
5the certification of the auditor or auditors accountant or
6accountants making the audit that the audit has been performed
7in compliance with generally accepted auditing standards. Each
8audit report filed with the Comptroller shall be accompanied by
9a copy of each official statement or other offering of
10materials prepared in connection with the issuance of
11indebtedness of the county since the filing of the last audit
12report.
13    (b) For fiscal year 2019 and each fiscal year thereafter,
14the audit report shall contain statements that set forth the
15financial position and the results of financial operations for
16each fund, account, and office of the county government. The
17audit report shall also include the professional opinion of an
18auditor or auditors with respect to the financial status and
19operations or, if an opinion cannot be expressed, a declaration
20that the auditor is unable to express an opinion and an
21explanation of the reasons he or she cannot do so. Each audit
22report shall include the certification of the auditor or
23auditors making the audit that the audit has been performed in
24compliance with generally accepted auditing standards. Each
25audit report filed with the Comptroller shall be accompanied by
26a copy of each official statement or other offering of

 

 

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1materials prepared in connection with the issuance of
2indebtedness of the county since the filing of the last audit
3report.
4    (c) For fiscal year 2019 and each fiscal year thereafter,
5audit reports shall contain financial statements prepared in
6conformity with generally accepted accounting principles and
7audited in conformity with generally accepted auditing
8standards if the last audit report filed preceding fiscal year
92017 expressed an unmodified or modified opinion by the
10independent auditor that the financial statements were
11presented in conformity with generally accepted accounting
12principles.
13    (d) For fiscal year 2019 and each fiscal year thereafter,
14audit reports containing financial statements prepared in
15conformity with an other comprehensive basis of accounting may
16follow the best practices and guidelines outlined by the
17American Institute of Certified Public Accountants and shall be
18audited in conformity with generally accepted auditing
19standards. If the county board of a county submits an audit
20report containing financial statements prepared in conformity
21with generally accepted accounting principles, thereafter all
22future audit reports shall also contain financial statements
23presented in conformity with generally accepted accounting
24principles.
25    (e) Audits may be made on financial statements prepared
26using either an accrual or cash basis of accounting, depending

 

 

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1upon the system followed by the county, and audit reports shall
2comply with this Section.
3(Source: P.A. 86-962; 87-424.)
 
4    Section 15. The Illinois Municipal Code is amended by
5changing Sections 8-8-2 and 8-8-5 as follows:
 
6    (65 ILCS 5/8-8-2)  (from Ch. 24, par. 8-8-2)
7    Sec. 8-8-2. The following terms shall, unless the context
8otherwise indicates, have the following meanings:
9    (1) "Municipality" or "municipalities" means all cities,
10villages and incorporated towns having a population of less
11than 500,000 as determined by the last preceding Federal
12census.
13    (2) "Corporate authorities" means a city council, village
14board of trustees, library board, police and firemen's pension
15board, or any other body or officers having authority to levy
16taxes, make appropriations, or approve claims for any
17municipality.
18    (3) "Comptroller" means the Comptroller of the State of
19Illinois.
20    (4) "Accountant" or "accountants" means all persons
21licensed to practice public accounting under the laws of this
22State.
23    (5) "Audit report" means the written report of the
24accountant or accountants and all appended statements and

 

 

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1schedules relating thereto, presenting or recording the
2findings of an examination or audit of the financial
3transactions, affairs, or condition of a municipality.
4    (6) "Annual report" means the statement filed, in lieu of
5an audit report, by the municipalities of less than 800
6population, which do not own or operate public utilities and do
7not have bonded debt.
8    (7) "Supplemental report" means the annual statement
9filed, in addition to any audit report provided for herein, by
10all municipalities, except municipalities of less than 800
11population which do not own or operate public utilities and do
12not have bonded debt.
13    (8) "Auditor" means a licensed certified public
14accountant, as that term is defined in Section 0.03 of the
15Illinois Public Accounting Act, who performs an audit of
16municipal financial statements and records and expresses an
17assurance or disclaims an opinion on the audited financial
18statements.
19(Source: P.A. 81-1050.)
 
20    (65 ILCS 5/8-8-5)  (from Ch. 24, par. 8-8-5)
21    Sec. 8-8-5. (a) Prior to fiscal year 2019, the The audit
22shall be made in accordance with generally accepted auditing
23standards. Reporting on the financial position and results of
24financial operations for each fund of the municipality shall be
25in accordance with generally accepted accounting principles or

 

 

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1other comprehensive basis of accounting , insofar as possible.
2Each audit report shall include only financial information,
3findings, and conclusions that are adequately supported by
4evidence in the auditor's working papers to demonstrate or
5prove, when called upon, the basis for the matters reported and
6their correctness and reasonableness. In connection with this,
7each municipality shall retain the right of inspection of the
8auditor's working papers and shall make them available to the
9Comptroller, or his or her designee, upon request. The audit
10report shall consist of the professional opinion of the auditor
11or auditors accountant or accountants with respect to the
12financial statements or, if an opinion cannot be expressed, a
13declaration that the auditor accountant is unable to express
14such opinion and an explanation of the reasons he or she cannot
15do so. Municipal authorities shall not impose limitations on
16the scope of the audit to the extent that the effect of such
17limitations will result in the qualification of the opinion of
18the auditor or auditors accountant or accountants. Each audit
19report filed with the Comptroller shall be accompanied by a
20copy of each official statement or other offering of materials
21prepared in connection with the issuance of indebtedness of the
22municipality since the filing of the last audit report.
23    Audits under this Division may be made upon either an
24accrual or cash basis of accounting depending upon the system
25followed by each municipality.
26    (b) For fiscal year 2019 and each fiscal year thereafter,

 

 

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1the audit shall be made in accordance with generally accepted
2auditing standards. Each audit report shall include only
3financial information, findings, and conclusions that are
4adequately supported by evidence in the auditor's working
5papers to demonstrate or prove, when called upon, the basis for
6the matters reported and their correctness and reasonableness.
7In connection with this, each municipality shall retain the
8right of inspection of the auditor's working papers and shall
9make them available to the Comptroller, or his or her designee,
10upon request. The audit report shall also consist of the
11professional opinion of an auditor or auditors with respect to
12the financial statements or, if an opinion cannot be expressed,
13a declaration that the auditor is unable to express an opinion
14and an explanation of the reasons he or she cannot do so.
15Municipal authorities shall not impose limitations on the scope
16of the audit to the extent that the effect of the limitations
17will result in the qualification of the opinion of the auditor
18or auditors. Each audit report filed with the Comptroller shall
19be accompanied by a copy of each official statement or other
20offering of materials prepared in connection with the issuance
21of indebtedness of the municipality since the filing of the
22last audit report.
23    (c) For fiscal year 2019 and each fiscal year thereafter,
24audit reports shall contain financial statements prepared in
25accordance with generally accepted accounting principles and
26audited in accordance with generally accepted auditing

 

 

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1standards if the last audit report filed preceding fiscal year
22017 expressed an unmodified or modified opinion by the
3independent auditor that the financial statements were
4presented in accordance with generally accepted accounting
5principles.
6    (d) For fiscal year 2019 and each fiscal year thereafter,
7audit reports containing financial statements prepared in
8accordance with an other comprehensive basis of accounting may
9follow the best practices and guidelines outlined by the
10American Institute of Certified Public Accountants and shall be
11audited in accordance with generally accepted auditing
12standards. If the corporate authority of a municipality submits
13an audit report containing financial statements prepared in
14accordance with generally accepted accounting principles,
15thereafter all future audit reports shall also contain
16financial statements presented in accordance with generally
17accepted accounting principles.
18    (e) Audits may be made on financial statements prepared
19using either an accrual or cash basis of accounting, depending
20upon the system followed by the municipality, and audit reports
21shall comply with this Section.
22(Source: P.A. 87-433.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".