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90_HB0039
50 ILCS 310/5 from Ch. 85, par. 705
55 ILCS 5/6-31006 from Ch. 34, par. 6-31006
55 ILCS 5/6-31006.5 new
65 ILCS 5/3.1-35-115 from Ch. 24, par. 3.1-35-115
65 ILCS 5/8-8-5 from Ch. 24, par. 8-8-5
105 ILCS 5/10-17.5 new
105 ILCS 5/34-21.10 new
Amends the Governmental Account Audit Act, the Counties
Code, the Illinois Municipal Code, and the School Code.
Requires units of local government and school districts,
either as part of currently required reports to the State
Comptroller or as independent reports, to report annually to
the State Comptroller upon the identity and amount of their
investments.
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1 AN ACT concerning investments of units of local
2 government and school districts, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Governmental Account Audit Act is amended
6 by changing Section 5 as follows:
7 (50 ILCS 310/5) (from Ch. 85, par. 705)
8 Sec. 5. The audit report shall contain statements that
9 conform with generally accepted accounting principles and
10 that set forth, insofar as possible, the financial position
11 and results of financial operations for each fund of the
12 governmental unit. Each audit report shall include only
13 financial information, findings and conclusions that are
14 adequately supported by evidence in the auditor's working
15 papers to demonstrate or prove, when called upon, the basis
16 for the matters reported and their correctness and
17 reasonableness. In connection with this, each governmental
18 unit shall retain the right of inspection of the auditor's
19 working papers and shall make them available to the
20 Comptroller, or his designee, upon request. The audit report
21 shall also include the professional opinion of the licensed
22 public accountant with respect to the financial statements
23 or, if an opinion cannot be expressed, a declaration that he
24 is unable to express such opinion and an explanation of the
25 reasons he cannot do so. Each audit report shall include the
26 certification of the accountant or accountants making the
27 audit that the audit has been performed in compliance with
28 generally accepted auditing standards.
29 The annual audit report submitted to the State
30 Comptroller shall include a portion prepared by the chief
31 financial officer containing an accounting of all investments
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1 made or held by the unit during the reporting period.
2 "Investment" means the purchase of an equity interest, debt
3 instrument, or any other type of security or derivative
4 instrument, as well as an investment in savings, money market
5 accounts, certificates of deposit, or other types of accounts
6 not insured by the State or federal government. The
7 accounting shall identify each financial instrument and its
8 amount and date of purchase or sale. Deposits into or
9 withdrawals from accounts or certificates of deposit that are
10 fully insured by the State or federal government shall not be
11 included in the accounting.
12 (Source: P.A. 85-1000.)
13 Section 10. The Counties Code is amended by changing
14 Section 6-31006 and adding Section 6-31006.5 as follows:
15 (55 ILCS 5/6-31006) (from Ch. 34, par. 6-31006)
16 Sec. 6-31006. Audit report. The audit report shall
17 contain statements that are in conformity with generally
18 accepted public accounting principles and shall set forth,
19 insofar as possible, the financial position and the results
20 of financial operations for each fund, account and office of
21 the county government. The audit report shall also include
22 the professional opinion of the accountant or accountants
23 with respect to the financial status and operations or, if an
24 opinion cannot be expressed, a declaration that such
25 accountant is unable to express such opinion and an
26 explanation of the reasons he cannot do so. Each audit
27 report shall include the certification of the accountant or
28 accountants making the audit that the audit has been
29 performed in compliance with generally accepted auditing
30 standards. Each audit report filed with the Comptroller shall
31 be accompanied by a copy of each official statement or other
32 offering of materials prepared in connection with the
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1 issuance of indebtedness of the county since the filing of
2 the last audit report.
3 The annual audit report submitted to the State
4 Comptroller shall include a portion prepared by the chief
5 financial officer containing an accounting of all investments
6 made or held by the county during the reporting period.
7 "Investment" means the purchase of an equity interest, debt
8 instrument, or any other type of security or derivative
9 instrument, as well as an investment in savings, money market
10 accounts, certificates of deposit, or other types of accounts
11 not insured by the State or federal government. The
12 accounting shall identify each financial instrument and its
13 amount and date of purchase or sale. Deposits into or
14 withdrawals from accounts or certificates of deposit that are
15 fully insured by the State or federal government shall not be
16 included in the accounting.
17 (Source: P.A. 86-962; 87-424.)
18 (55 ILCS 5/6-31006.5 new)
19 Sec. 6-31006.5. Annual investment accounting. Each
20 county of 500,000 or more inhabitants shall submit annually
21 to the State Comptroller an accounting of its investments.
22 The accounting shall be prepared by the chief financial
23 officer and contain an accounting of all investments made or
24 held by the county during the preceding 12 months.
25 "Investment" means the purchase of an equity interest, debt
26 instrument, or any other type of security or derivative
27 instrument, as well as an investment in savings, money market
28 accounts, certificates of deposit, or other types of accounts
29 not insured by the State or federal government. The
30 accounting shall identify each financial instrument and its
31 amount and date of purchase or sale. Deposits into or
32 withdrawals from accounts or certificates of deposit that are
33 fully insured by the State or federal government shall not be
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1 included in the accounting.
2 Section 15. The Illinois Municipal Code is amended by
3 changing Sections 3.1-35-115 and 8-8-5 as follows:
4 (65 ILCS 5/3.1-35-115) (from Ch. 24, par. 3.1-35-115)
5 Sec. 3.1-35-115. Comptroller; duties.
6 (a) The comptroller, if one is elected or appointed in a
7 municipality (and if not, then the municipal clerk), shall
8 exercise a general supervision over all the officers of the
9 municipality charged in any manner with the receipt,
10 collection, or disbursement of the municipal revenue, or with
11 the collection and return of the municipal revenue, or with
12 the collection and return of the municipal revenue into the
13 treasury.
14 (b) The comptroller shall have custody and control of
15 all municipal documents, books, and papers designated by the
16 corporate authorities.
17 (c) On or before May 15 of each year, and before the
18 annual appropriation ordinance is prepared by the corporate
19 authorities, the comptroller shall submit to the corporate
20 authorities a report of the comptroller's estimate, as nearly
21 as may be, of the money necessary to defray the expenses of
22 the municipality during the current fiscal year. For the
23 purpose of making this report, the comptroller is authorized
24 to require all officers to submit statements of the condition
25 and expenses of their respective offices or departments, with
26 any proposed municipal improvements and the probable expense
27 of those improvements, all unperformed contracts, and the
28 amount of all unexpended appropriations of the preceding
29 year.
30 (d) In this report, the comptroller shall (i) classify
31 the different objects and purposes of expenditure, giving, as
32 nearly as may be, the amount required for each, (ii) show the
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1 aggregate income of the preceding fiscal year, from all
2 sources, (iii) show the amount of liabilities upon which
3 interest is to be paid, (iv) show the bonds and debts payable
4 during the year, when due and payable, and (v) give all other
5 information to the corporate authorities the comptroller
6 deems necessary, so that the corporate authorities may fully
7 understand the demands upon the municipality for the current
8 fiscal year.
9 (e) In municipalities of 500,000 or more inhabitants,
10 the preparation of the report required by this Section and
11 its form and substance, including the classification of the
12 different objects and purposes of expenditures, shall be
13 performed by the budget director of the municipality. In
14 those municipalities the comptroller shall prepare an annual
15 post-audit of all funds for the preceding year which shall be
16 known as the "comptroller's report", a copy of which shall be
17 sent by the municipal comptroller to the State Comptroller.
18 The comptroller's report submitted to the State
19 Comptroller shall include a portion prepared by the
20 comptroller containing an accounting of all investments made
21 or held by the municipality during the reporting period.
22 "Investment" means the purchase of an equity interest, debt
23 instrument, or any other type of security or derivative
24 instrument, as well as an investment in savings, money market
25 accounts, certificates of deposit, or other types of accounts
26 not insured by the State or federal government. The
27 accounting shall identify each financial instrument and its
28 amount and date of purchase or sale. Deposits into or
29 withdrawals from accounts or certificates of deposit that are
30 fully insured by the State or federal government shall not be
31 included in the accounting.
32 (Source: P.A. 87-1119.)
33 (65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)
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1 Sec. 8-8-5. The audit shall be made in accordance with
2 generally accepted auditing standards. Reporting on the
3 financial position and results of financial operations for
4 each fund of the municipality shall be in accordance with
5 generally accepted accounting principles, insofar as
6 possible. Each audit report shall include only financial
7 information, findings and conclusions that are adequately
8 supported by evidence in the auditor's working papers to
9 demonstrate or prove, when called upon, the basis for the
10 matters reported and their correctness and reasonableness.
11 In connection with this, each municipality 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. The audit report shall consist of the professional
15 opinion of the accountant or accountants with respect to the
16 financial statements or, if an opinion cannot be expressed, a
17 declaration that the accountant is unable to express such
18 opinion and an explanation of the reasons he cannot do so.
19 Municipal authorities shall not impose limitations on the
20 scope of the audit to the extent that the effect of such
21 limitations will result in the qualification of the opinion
22 of the accountant or accountants. Each audit report filed
23 with the Comptroller shall be accompanied by a copy of each
24 official statement or other offering of materials prepared in
25 connection with the issuance of indebtedness of the
26 municipality since the filing of the last audit report.
27 Audits under this Division may be made upon either an
28 accrual or cash basis of accounting depending upon the system
29 followed by each municipality.
30 The annual audit report submitted to the State
31 Comptroller shall include a portion prepared by the chief
32 financial officer containing an accounting of all investments
33 made or held by the municipality during the reporting period.
34 "Investment" means the purchase of an equity interest, debt
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1 instrument, or any other type of security or derivative
2 instrument, as well as an investment in savings, money market
3 accounts, certificates of deposit, or other types of accounts
4 not insured by the State or federal government. The
5 accounting shall identify each financial instrument and its
6 amount and date of purchase or sale. Deposits into or
7 withdrawals from accounts or certificates of deposit that are
8 fully insured by the State or federal government shall not be
9 included in the accounting.
10 (Source: P.A. 87-433.)
11 Section 20. The School Code is amended by adding
12 Sections 10-17.5 and 34-21.10 as follows:
13 (105 ILCS 5/10-17.5 new)
14 Sec. 10-17.5. Annual investment accounting. Each
15 district shall submit annually to the State Comptroller an
16 accounting of its investments. The accounting shall be
17 prepared by the chief financial officer and contain an
18 accounting of all investments made or held by the district
19 during the preceding 12 months. "Investment" means the
20 purchase of an equity interest, debt instrument, or any other
21 type of security or derivative instrument, as well as an
22 investment in savings, money market accounts, certificates of
23 deposit, or other types of accounts not insured by the State
24 or federal government. The accounting shall identify each
25 financial instrument and its amount and date of purchase or
26 sale. Deposits into or withdrawals from accounts or
27 certificates of deposit that are fully insured by the State
28 or federal government shall not be included in the
29 accounting.
30 (105 ILCS 5/34-21.10 new)
31 Sec. 34-21.10. Annual investment accounting. The
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1 district shall submit annually to the State Comptroller an
2 accounting of its investments. The accounting shall be
3 prepared by the chief financial officer and contain an
4 accounting of all investments made or held by the district
5 during the preceding 12 months. "Investment" means the
6 purchase of an equity interest, debt instrument, or any other
7 type of security or derivative instrument, as well as an
8 investment in savings, money market accounts, certificates of
9 deposit, or other types of accounts not insured by the State
10 or federal government. The accounting shall identify each
11 financial instrument and its amount and date of purchase or
12 sale. Deposits into or withdrawals from accounts or
13 certificates of deposit that are fully insured by the State
14 or federal government shall not be included in the
15 accounting.