State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ Senate Amendment 001 ]

90_SB0607

      15 ILCS 405/22.1          from Ch. 15, par. 222.1
      15 ILCS 405/23.7 new
      50 ILCS 310/1             from Ch. 85, par. 701
      50 ILCS 310/3             from Ch. 85, par. 703
      50 ILCS 310/4             from Ch. 85, par. 704
      55 ILCS 5/6-31003         from Ch. 34, par. 6-31003
      55 ILCS 5/6-31004         from Ch. 34, par. 6-31004
      65 ILCS 5/8-8-2           from Ch. 24, par. 8-8-2
      65 ILCS 5/8-8-4           from Ch. 24, par. 8-8-4
      70 ILCS 705/6.1           from Ch. 127 1/2, par. 26.1
          Amends the State Comptroller Act.  Provides that  of  the
      15  public  members of the State Comptroller Local Government
      Advisory Board, at least one shall be a representative of the
      Illinois Municipal  League  and  at  least  one  shall  be  a
      representative   of   the  Township  Officials  of  Illinois.
      Provides that the Comptroller shall establish and maintain  a
      registry  of  all  units  of  local  government.   Amends the
      Governmental  Account  Audit  Act,  the  Counties  Code,  the
      Illinois Municipal Code, and the Fire Protection District Act
      concerning financial reports and audits of certain  units  of
      local government.  Effective immediately.
                                                    LRB9000638MWcdB
                                              LRB9000638MWcdB
 1        AN ACT concerning local government, amending named Acts.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The  State  Comptroller  Act  is  amended  by
 5    changing Section 22.1 and adding Section 23.7 as follows:
 6        (15 ILCS 405/22.1) (from Ch. 15, par. 222.1)
 7        Sec.  22.1.  State  Comptroller Local Government Advisory
 8    Board.    The  State  Comptroller  shall  appoint   a   State
 9    Comptroller  Local Government Advisory Board consisting of 10
10    local officials,  5  certified  public  accountants,  and  15
11    public  members.  Of the 15 public members at least one shall
12    be a representative of the Illinois Municipal League  and  at
13    least one shall be a representative of the Township Officials
14    of  Illinois.  Members of the Board shall serve 3 year terms,
15    except for the initial members from each  classification  the
16    following  terms  shall  apply:  5 local officials (including
17    representatives of municipalities, counties,  and  townships)
18    will  serve  until  the first Monday in July 1994, and 5 will
19    serve until the first Monday in July 1995; 3 certified public
20    accountants will serve until the first Monday in  July  1994,
21    and  2  will  serve  until  the  first Monday in July 1995; 8
22    public members will serve until  the  first  Monday  in  July
23    1994,  and  7 will serve until the first Monday in July 1995.
24    Members shall serve until  their  respective  successors  are
25    chosen and qualified.  This board shall serve the Comptroller
26    in  an advisory capacity, but may at any time, by his request
27    or at its own  initiative,  submit  to  the  Comptroller  any
28    recommendations   concerning   the  administration  of  local
29    governmental   finances.    Members   shall   serve   without
30    compensation but shall be  reimbursed  for  their  reasonable
31    expenses incurred in the performance of their duties.
                            -2-               LRB9000638MWcdB
 1    (Source: P.A. 87-1112.)
 2        (15 ILCS 405/23.7 new)
 3        Sec.  23.7.  Comptroller; local government registry.  The
 4    Comptroller shall establish and maintain a  registry  of  all
 5    units  of  local government within the State.  Information in
 6    the registry may include, but shall not be  limited  to,  the
 7    name,  address,  and  type  of  government unit, the names of
 8    current elected or appointed office holders, and  such  other
 9    information  as  the  Comptroller may determine.  Each county
10    clerk shall notify  the  Comptroller  upon  learning  of  the
11    creation or dissolution of any unit of local government.
12        Section  10.   The  Governmental  Account  Audit  Act  is
13    amended by changing Sections 1, 3, and 4 as follows:
14        (50 ILCS 310/1) (from Ch. 85, par. 701)
15        Sec.  1.   Definitions.  As  used in this Act, unless the
16    context otherwise indicates:
17        "Governmental unit"  or  "unit"  includes  all  municipal
18    corporations in and political subdivisions of this State that
19    appropriate  more  than  $5,000  for  a fiscal year, with the
20    amount to increase or decrease by the amount of the  Consumer
21    Price  Index  (CPI)  as  reported  on January 1 of each year,
22    except the following:
23             (1)  School districts.
24             (2)  Cities,  villages,   and   incorporated   towns
25        subject  to  the  Municipal Auditing Law, as contained in
26        the Illinois Municipal Code.,  and  cities  that  file  a
27        report  with  the Comptroller under Section 3.1-35-115 of
28        the Illinois Municipal Code.
29             (3)  (Blank).  Counties   with   a   population   of
30        1,000,000 or more.
31             (4)  Counties subject to the County Auditing Law.
                            -3-               LRB9000638MWcdB
 1             (5)  Any   other   municipal   corporations   in  or
 2        political subdivisions of this  State,  the  accounts  of
 3        which  are  required by law to be audited by or under the
 4        direction  of  the  Auditor  General.  County   hospitals
 5        established under the County Hospitals Law (Division 5-37
 6        of  the  Counties  Code) are, however, governmental units
 7        subject to this Act.
 8             (6)  (Blank).  Drainage districts  that  appropriate
 9        less than $1,000  during the fiscal year.
10        "Governing  body"  means  the  board  or  other  body  or
11    officers having authority to levy taxes, make appropriations,
12    authorize  the  expenditure of public funds or approve claims
13    for any governmental unit.
14        "Comptroller" means  the  Comptroller  of  the  State  of
15    Illinois.
16        "Consumer Price Index" means the Consumer Price Index for
17    All  Urban  Consumers  for  all items published by the United
18    States Department of Labor.
19        "Licensed public accountant" means the holder of a  valid
20    certificate  as a public accountant under the Illinois Public
21    Accounting Act.
22        "Audit report" means the written report of  the  licensed
23    public  accountant  and all appended statements and schedules
24    relating to that report, presenting or recording the findings
25    of an examination or audit  of  the  financial  transactions,
26    affairs, or conditions of a governmental unit.
27        "Report"  includes  both  audit reports and reports filed
28    instead  of  an  audit  report   by   a   governmental   unit
29    appropriating  less  than $200,000 $100,000 during any fiscal
30    year to which the reports relate.
31    (Source: P.A. 87-1119.)
32        (50 ILCS 310/3) (from Ch. 85, par. 703)
33        Sec.  3.   Any  governmental  unit,   other   than   fire
                            -4-               LRB9000638MWcdB
 1    protection  districts  created  under  "An Act in relation to
 2    fire  protection   districts",   approved   July   8,   1927,
 3    appropriating  less  than $200,000 for any fiscal year shall,
 4    in lieu of complying with the requirements of Section  2  for
 5    audits  and  audit  reports,  file  with  the  Comptroller  a
 6    financial  report  containing  information  required  by  the
 7    Comptroller.   In addition, a governmental unit appropriating
 8    less than $200,000 may file with the  Comptroller  any  audit
 9    reports which may have been prepared under any other law. Any
10    governmental  unit  appropriating  $200,000  or  more for any
11    fiscal  year  shall,  in  addition  to  complying  with   the
12    requirements  of Section 2 for audits and audit reports, file
13    with the Comptroller the financial report  required  by  this
14    Section.   Such  financial  reports  shall  be  on  forms  so
15    designed  by  the  Comptroller as not to require professional
16    accounting services for its preparation.
17    (Source: P.A. 86-1023.)
18        (50 ILCS 310/4) (from Ch. 85, par. 704)
19        Sec. 4.  Overdue report.
20        (a)  If the required report for a  governmental  unit  is
21    not  filed  with the Comptroller in accordance with Section 2
22    or Section 3, whichever is applicable, within 6 months  after
23    the  close  of  the fiscal year of the governmental unit, the
24    Comptroller shall notify the governing body of that  unit  in
25    writing  that  the  report is due and may also grant a 60 day
26    extension for the filing of the audit report. If the required
27    report is not filed within the time specified in such written
28    notice, the Comptroller shall cause an audit to be made by  a
29    licensed  public  accountant, and the governmental unit shall
30    pay to the Comptroller actual compensation  and  expenses  to
31    reimburse  him  for  the cost of preparing or completing such
32    report.
33        (b)  The Comptroller may decline to order  an  audit  and
                            -5-               LRB9000638MWcdB
 1    the  preparation of an audit report if an initial examination
 2    of the books and records of the governmental  unit  indicates
 3    that  the  books  and  records  of  the governmental unit are
 4    inadequate or unavailable due to the passage of time  or  the
 5    occurrence of a natural disaster.
 6    (Source: P. A. 78-592.)
 7        Section  15.   The  Counties  Code is amended by changing
 8    Sections 6-31003 and 6-31004 as follows:
 9        (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
10        Sec. 6-31003.  Annual audits  and  reports.  In  counties
11    having a population of over 10,000 but less than 500,000, the
12    county  board  of  each county shall cause an audit of all of
13    the funds and accounts of the county to be made  annually  by
14    an accountant or accountants chosen by the county board or by
15    an  accountant or accountants retained by the Comptroller, as
16    hereinafter provided.  In  addition,  each  county  having  a
17    population   of   less  than  500,000  shall  file  with  the
18    Comptroller  a  financial   report   containing   information
19    required  by the Comptroller.  Such financial report shall be
20    on a form so designed by the Comptroller as  not  to  require
21    professional accounting services 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
25    extension of time is granted by the Comptroller  in  writing.
26    Such  extension  of  time  shall not exceed 60 days. When the
27    accountant or accountants have completed  the  audit  a  full
28    report  thereof  shall  be made and not less than 2 copies of
29    each audit report shall be submitted  to  the  county  board.
30    Each  audit  report  shall be signed by the accountant making
31    the audit  and  shall  include  only  financial  information,
32    findings  and  conclusions  that  are adequately supported by
                            -6-               LRB9000638MWcdB
 1    evidence in the auditor's working papers  to  demonstrate  or
 2    prove,  when  called upon, the basis for the matters reported
 3    and their correctness and reasonableness.  In connection with
 4    this, each county board shall retain the right of  inspection
 5    of the auditor's working papers and shall make them available
 6    to the Comptroller, or his designee, upon request.
 7        Within 60 days of receipt of an audit report, each county
 8    board  shall  file  one  copy  of  each audit report and each
 9    financial report with the  Comptroller  and  any  comment  or
10    explanation   that  the  county  board  may  desire  to  make
11    concerning such audit report  may  be  attached  thereto.  An
12    audit  report  which  fails  to meet the requirements of this
13    Division shall be rejected by the Comptroller and returned to
14    the county board for corrective action.   One  copy  of  each
15    such  report  shall  be  filed  with  the county clerk of the
16    county so audited.
17    (Source: P.A. 86-962.)
18        (55 ILCS 5/6-31004) (from Ch. 34, par. 6-31004)
19        Sec. 6-31004.  Overdue reports.
20        (a)  In the event the required reports for a  county  are
21    not  filed  with  the  Comptroller in accordance with Section
22    6-31003 within 6 months after the close of the fiscal year of
23    the county, the Comptroller shall notify the county board  in
24    writing  that  the  reports  are  due,  and may also grant an
25    extension of time of up to 60 days  for  the  filing  of  the
26    reports.   In  the  event  the required reports are not filed
27    within  the  time  specified  in  such  written  notice,  the
28    Comptroller shall cause the audit to be made  and  the  audit
29    report prepared by an accountant or accountants.
30        (b)  The  Comptroller  may  decline to order an audit and
31    the preparation of an audit report if an initial  examination
32    of  the  books and records of the governmental unit indicates
33    that the books and  records  of  the  governmental  unit  are
                            -7-               LRB9000638MWcdB
 1    inadequate  or  unavailable due to the passage of time or the
 2    occurrence of a natural disaster.
 3    (Source: P.A. 86-962; 86-1475.)
 4        Section 20.  The Illinois Municipal Code  is  amended  by
 5    changing Sections 8-8-2 and 8-8-4 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
 8    otherwise indicates, have the following meanings:
 9        (1)  "Municipality" or "municipalities" means all cities,
10    villages  and  incorporated towns having a population of less
11    than 500,000 as determined  by  the  last  preceding  Federal
12    census.
13        (2)  "Corporate   authorities"   means  a  city  council,
14    village  board  of  trustees,  library  board,   police   and
15    firemen's pension board, or any other body or officers having
16    authority  to  levy  taxes,  make  appropriations, or approve
17    claims for any municipality.
18        (3)  "Comptroller" means the Comptroller of the State  of
19    Illinois.
20        (4)  "Accountant"  or  "accountants"  means  all  persons
21    licensed to practice public accounting under the laws of this
22    State.
23        (5)  "Audit  report"  means  the  written  report  of the
24    accountant or accountants and  all  appended  statements  and
25    schedules  relating  thereto,  presenting  or  recording  the
26    findings   of  an  examination  or  audit  of  the  financial
27    transactions, affairs, or condition of a municipality.
28        (6)  "Annual report" means the statement filed,  in  lieu
29    of  an  audit  report, by the municipalities of less than 800
30    population, which do not own or operate public utilities  and
31    do not have bonded debt.
32        (7)  "Supplemental  report"  means  the  annual statement
                            -8-               LRB9000638MWcdB
 1    filed, in addition to any audit report provided  for  herein,
 2    by all municipalities, except municipalities of less than 800
 3    population  which  do not own or operate public utilities and
 4    do not have bonded debt.
 5    (Source: P.A. 81-1050.)
 6        (65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
 7        Sec. 8-8-4.  Overdue reports.
 8        (a)  In  the  event  the  required  audit  report  for  a
 9    municipality is not filed with the Comptroller in  accordance
10    with  Section  8-8-7  within  6 months after the close of the
11    fiscal year of the municipality, the Comptroller shall notify
12    the corporate authorities of  that  municipality  in  writing
13    that the audit report is due, and may also grant an extension
14    of  time  of  60 days, for the filing of the audit report. In
15    the event the required audit report is not filed  within  the
16    time  specified in such written notice, the Comptroller shall
17    cause such audit to be made by an accountant or  accountants.
18    In the event the required annual or supplemental report for a
19    municipality  is not filed within 6 months after the close of
20    the fiscal year of the municipality,  the  Comptroller  shall
21    notify  the  corporate  authorities  of  that municipality in
22    writing that the annual or supplemental report is due and may
23    grant an extension in time of 60 days for the filing of  such
24    annual or supplemental report.
25        (b)  In  the  event  the annual or supplemental report is
26    not filed within the time extended by  the  Comptroller,  the
27    Comptroller shall cause such annual or supplemental report to
28    be  prepared  or  completed and the municipality shall pay to
29    the  Comptroller  reasonable  compensation  and  expenses  to
30    reimburse him for the cost of preparing  or  completing  such
31    annual or supplemental report. Moneys paid to the Comptroller
32    pursuant  to  the  preceding sentence shall be deposited into
33    the Comptroller's Audit Expense Revolving Fund.
                            -9-               LRB9000638MWcdB
 1        (c)  The Comptroller may decline to order an audit or the
 2    completion  of  the  supplemental  report   if   an   initial
 3    examination  of  the  books  and  records of the municipality
 4    indicates that books and  records  of  the  municipality  are
 5    inadequate  or  unavailable to support the preparation of the
 6    audit report or the supplemental report due to the passage of
 7    time or the occurrence of a natural disaster.
 8    (Source: P. A. 88-280.)
 9        Section 25.  The Fire Protection District Act is  amended
10    by changing Section 6.1 as follows:
11        (70 ILCS 705/6.1) (from Ch. 127 1/2, par. 26.1)
12        Sec.   6.1.   When   an   audit  is  required  under  the
13    Governmental Account Audit Act, the  trustees  of  the  every
14    Fire  Protection District created under this Act shall employ
15    a person licensed to practice  public  accounting  under  the
16    laws of this State to annually audit the district's financial
17    statements  of  all  accounts, funds, and other moneys in the
18    care, custody, or control of the trustees.  The  audit  shall
19    be  conducted  in accordance with Generally Accepted Auditing
20    Standards and in accordance  with  the  Governmental  Account
21    Audit  Act  "An  Act in relation to audits of the accounts of
22    certain governmental units  and  to  repeal  an  Act  therein
23    named",  approved  May  10, 1967.  A fire protection district
24    appropriating less than $200,000 for the  fiscal  year  shall
25    prepare  the  financial  report  required by Section 3 of the
26    Governmental Account Audit Act.  In  addition  to  any  other
27    filing  requirements,  the  audit  report or financial report
28    shall be filed with the county clerk of the county  in  which
29    the Fire Protection District was organized as a public record
30    and  a  copy thereof shall be filed with the secretary of the
31    district as part of its corporate records.
32    (Source: P.A. 86-1023.)
                            -10-              LRB9000638MWcdB
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.

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