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| Public Act 100-0837 | ||||
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Governmental Account Audit Act is amended by | ||||
changing Sections 1 and 5 as follows:
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(50 ILCS 310/1) (from Ch. 85, par. 701)
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Sec. 1. Definitions. As used in this Act, unless the | ||||
context
otherwise indicates:
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"Governmental unit" or "unit" includes all municipal | ||||
corporations in
and political subdivisions of this State that | ||||
appropriate more than $5,000
for a fiscal year, with the amount | ||||
to increase or decrease by the amount of the
Consumer Price | ||||
Index (CPI) as reported on January 1 of each year, except the
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following:
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(1) School districts.
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(2) Cities, villages, and incorporated towns subject | ||||
to the
Municipal Auditing Law, as contained in
the Illinois | ||||
Municipal Code, and cities that file a report with the
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Comptroller under Section 3.1-35-115 of the Illinois | ||||
Municipal Code.
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(3) Counties with a population of 1,000,000 or more.
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(4) Counties subject to the County Auditing
Law.
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(5) Any other municipal corporations in or political | ||||
subdivisions of
this State, the accounts of which are | ||
required by law to be audited by
or under the direction of | ||
the Auditor General.
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(6) (Blank).
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(7) A drainage district, established under the | ||
Illinois Drainage
Code (70 ILCS 605), that did not receive | ||
or expend any moneys during the
immediately preceding | ||
fiscal year or obtains approval for assessments and
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expenditures through the circuit court.
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(8) Public housing authorities that submit financial | ||
reports to the U.S.
Department of Housing and Urban | ||
Development.
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"Governing body" means the board or other body or officers | ||
having
authority to levy taxes, make appropriations, authorize | ||
the expenditure
of public funds or approve claims for any | ||
governmental unit.
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"Comptroller" means the Comptroller of the State of | ||
Illinois.
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"Consumer Price Index" means the Consumer Price Index for | ||
All Urban
Consumers for all items published by the United | ||
States Department of Labor.
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"Licensed public accountant" means the holder of a valid | ||
certificate
as a public accountant under the Illinois Public | ||
Accounting Act.
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"Audit report" means the written report of the licensed | ||
public
accountant and all appended statements and schedules | ||
relating to that
report,
presenting or recording the findings | ||
of an examination or audit of the
financial transactions, | ||
affairs, or conditions of a governmental unit.
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"Auditor" means a licensed certified public accountant, as | ||
that term is defined in Section 0.03 of the Illinois Public | ||
Accounting Act, who performs an audit of governmental unit | ||
financial statements and records and expresses an assurance or | ||
disclaims an opinion on the audited financial statements. | ||
"Report" includes both audit reports and reports filed | ||
instead of an
audit report by a governmental unit receiving | ||
revenue of less than $850,000
during any fiscal year to which | ||
the reports relate.
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(Source: P.A. 92-191, eff. 8-1-01; 92-582, eff. 7-1-02.)
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(50 ILCS 310/5) (from Ch. 85, par. 705)
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Sec. 5.
(a) Prior to fiscal year 2019, the The audit report | ||
shall contain statements that conform with
generally accepted | ||
accounting principles or other comprehensive basis of | ||
accounting and that set forth, insofar as
possible, the | ||
financial position and results of financial operations for
each | ||
fund of the governmental unit. Each audit report shall include | ||
only
financial information, findings, and conclusions that are | ||
adequately
supported by evidence in the auditor's working | ||
papers to demonstrate or
prove, when called upon, the basis for | ||
the matters reported and their
correctness and reasonableness. | ||
In connection with this, each governmental
unit shall retain | ||
the right of inspection of the auditor's working papers
and | ||
shall make them available to the Comptroller, or his or her | ||
designee, upon
request. The audit report shall also include the
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professional opinion of the auditor or auditors licensed public | ||
accountant with respect to the
financial statements or, if an | ||
opinion cannot be expressed, a declaration
that he or she is | ||
unable to express such opinion and an explanation of the | ||
reasons
he or she cannot do so. Each audit report shall include | ||
the certification of
the auditor or auditors accountant or | ||
accountants making the audit that the audit has been
performed | ||
in compliance with generally accepted auditing standards.
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(b) For fiscal year 2019 and each fiscal year thereafter, | ||
the audit report shall contain statements that set forth the | ||
financial position and results of financial operations for each | ||
fund of the governmental unit. Each audit report shall include | ||
only financial information, findings, and conclusions that are | ||
adequately supported by evidence in the auditor's working | ||
papers to demonstrate or prove, when called upon, the basis for | ||
the matters reported and their correctness and reasonableness. | ||
In connection with this, each governmental unit shall retain | ||
the right of inspection of the auditor's working papers and | ||
shall make them available to the Comptroller, or his or her | ||
designee, upon request. The audit report shall also include the | ||
professional opinion of the auditor or auditors with respect to | ||
the financial statements or, if an opinion cannot be expressed, | ||
a declaration that he or she is unable to express an opinion | ||
and an explanation of the reasons he or she cannot do so. Each | ||
audit report shall include the certification of the auditor or | ||
auditors making the audit that the audit has been performed in | ||
compliance with generally accepted auditing standards. | ||
(c) For fiscal year 2019 and each fiscal year thereafter, | ||
audit reports shall contain financial statements prepared in | ||
conformity with generally accepted accounting principles and | ||
audited in conformity with generally accepted auditing | ||
standards if the last audit report filed preceding fiscal year | ||
2019 expressed an unmodified or modified opinion by the | ||
independent auditor that the financial statements were | ||
presented in conformity with generally accepted accounting | ||
principles. | ||
(d) For fiscal year 2019 and each fiscal year thereafter, | ||
audit reports containing financial statements prepared in | ||
conformity with an other comprehensive basis of accounting may | ||
follow the best practices and guidelines as outlined by the | ||
American Institute of Certified Public Accountants and shall be | ||
audited in conformity with generally accepted auditing | ||
standards. If the governing body of a governmental unit submits | ||
an audit report containing financial statements prepared in | ||
conformity with generally accepted accounting principles, | ||
thereafter all future audit reports shall also contain | ||
financial statements presented in conformity with generally | ||
accepted accounting principles. | ||
(e) Audits may be made on financial statements prepared | ||
using either an accrual or cash basis of accounting, depending | ||
upon the system followed by the governmental unit, and audit | ||
reports shall comply with this Section. | ||
(Source: P.A. 85-1000.)
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Section 10. The Counties Code is amended by changing | ||
Sections 6-31002 and 6-31006 as follows:
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(55 ILCS 5/6-31002) (from Ch. 34, par. 6-31002)
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Sec. 6-31002. Definitions. As used in this Division, unless | ||
the context otherwise requires:
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1. "Comptroller" means the Comptroller of the State of | ||
Illinois;
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2. "accountant" or "accountants" means and includes all | ||
persons
authorized to practice public accounting under the laws | ||
of this State;
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3. "funds and accounts" means all funds of a county derived | ||
from
property taxes and all funds and accounts derived from | ||
sources other than
property taxes, including the receipts and | ||
expenditures of the fee earnings
of each county fee officer;
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4. "audit report" means the written report of the | ||
accountant or
accountants and all appended statements and | ||
schedules relating thereto,
presenting or recording the | ||
findings of an examination or audit of the
financial | ||
transactions, affairs and condition of a county;
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5. "population" means the number of persons residing in a | ||
county
according to the last preceding federal decennial | ||
census; . | ||
6. "auditor" means a licensed certified public accountant, | ||
as that term is defined in Section 0.03 of the Illinois Public | ||
Accounting Act, who performs an audit of county financial | ||
statements and records and expresses an assurance or disclaims | ||
an opinion on the audited financial statements; "auditor" does | ||
not include a county auditor elected or appointed under | ||
Division 3-1 of the Counties Code.
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(Source: P.A. 86-962.)
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(55 ILCS 5/6-31006) (from Ch. 34, par. 6-31006)
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Sec. 6-31006. Audit report. | ||
(a) Prior to fiscal year 2019, the The audit report shall | ||
contain
statements that are in conformity with generally | ||
accepted public accounting
principles or other comprehensive | ||
basis of accounting and shall set forth, insofar as possible, | ||
the financial position
and the results of financial operations | ||
for each fund, account, and office
of the county government. | ||
The audit report shall also include the
professional opinion of | ||
the auditor or auditors accountant or accountants with respect | ||
to the
financial status and operations or, if an opinion cannot | ||
be expressed, a
declaration that such auditor accountant is | ||
unable to express such opinion and an
explanation of the | ||
reasons he or she cannot do so. Each audit report shall
include | ||
the certification of the auditor or auditors accountant or | ||
accountants making the audit
that the audit has been performed | ||
in compliance with generally accepted
auditing standards. Each | ||
audit report filed with the Comptroller shall be
accompanied by | ||
a copy of each official statement or other offering of
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materials prepared in connection with the issuance of | ||
indebtedness of the
county since the filing of the last audit | ||
report.
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(b) For fiscal year 2019 and each fiscal year thereafter, | ||
the audit report shall contain statements that set forth the | ||
financial position and the results of financial operations for | ||
each fund, account, and office of the county government. The | ||
audit report shall also include the professional opinion of an | ||
auditor or auditors with respect to the financial status and | ||
operations or, if an opinion cannot be expressed, a declaration | ||
that the auditor is unable to express an opinion and an | ||
explanation of the reasons he or she cannot do so. Each audit | ||
report shall include the certification of the auditor or | ||
auditors making the audit that the audit has been performed in | ||
compliance with generally accepted auditing standards. Each | ||
audit report filed with the Comptroller shall be accompanied by | ||
a copy of each official statement or other offering of | ||
materials prepared in connection with the issuance of | ||
indebtedness of the county since the filing of the last audit | ||
report. | ||
(c) For fiscal year 2019 and each fiscal year thereafter, | ||
audit reports shall contain financial statements prepared in | ||
conformity with generally accepted accounting principles and | ||
audited in conformity with generally accepted auditing | ||
standards if the last audit report filed preceding fiscal year | ||
2019 expressed an unmodified or modified opinion by the | ||
independent auditor that the financial statements were | ||
presented in conformity with generally accepted accounting | ||
principles. | ||
(d) For fiscal year 2019 and each fiscal year thereafter, | ||
audit reports containing financial statements prepared in | ||
conformity with an other comprehensive basis of accounting may | ||
follow the best practices and guidelines outlined by the | ||
American Institute of Certified Public Accountants and shall be | ||
audited in conformity with generally accepted auditing | ||
standards. If the county board of a county submits an audit | ||
report containing financial statements prepared in conformity | ||
with generally accepted accounting principles, thereafter all | ||
future audit reports shall also contain financial statements | ||
presented in conformity with generally accepted accounting | ||
principles. | ||
(e) Audits may be made on financial statements prepared | ||
using either an accrual or cash basis of accounting, depending | ||
upon the system followed by the county, and audit reports shall | ||
comply with this Section. | ||
(Source: P.A. 86-962; 87-424.)
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Section 15. The Illinois Municipal Code is amended by | ||
changing Sections 8-8-2 and 8-8-5 as follows:
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(65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
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Sec. 8-8-2.
The following terms shall, unless the context | ||
otherwise indicates,
have the following meanings:
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(1) "Municipality" or "municipalities" means all cities, | ||
villages
and incorporated towns having a population of less | ||
than 500,000 as
determined by the last preceding Federal | ||
census.
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(2) "Corporate authorities" means a city council, village | ||
board of
trustees, library board, police and firemen's pension | ||
board, or any
other body or officers having authority to levy | ||
taxes, make
appropriations, or approve claims for any | ||
municipality.
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(3) "Comptroller" means the Comptroller of the State of | ||
Illinois.
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(4) "Accountant" or "accountants" means all persons | ||
licensed to
practice public accounting under the laws of this | ||
State.
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(5) "Audit report" means the written report of the | ||
accountant or
accountants and all appended statements and | ||
schedules relating thereto,
presenting or recording the | ||
findings of an examination or audit of the
financial | ||
transactions, affairs, or condition of a municipality.
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(6) "Annual report" means the statement filed, in lieu of | ||
an audit
report, by the municipalities of less than 800 | ||
population, which do not
own or operate public utilities and do | ||
not have bonded debt.
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(7) "Supplemental report" means the annual statement | ||
filed, in
addition to any audit report provided for herein, by | ||
all municipalities,
except municipalities of less than 800 | ||
population which do not own or
operate public utilities and do | ||
not have bonded debt.
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(8) "Auditor" means a licensed certified public | ||
accountant, as that term is defined in Section 0.03 of the | ||
Illinois Public Accounting Act, who performs an audit of | ||
municipal financial statements and records and expresses an | ||
assurance or disclaims an opinion on the audited financial | ||
statements. | ||
(Source: P.A. 81-1050.)
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(65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)
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Sec. 8-8-5.
(a) Prior to fiscal year 2019, the The audit | ||
shall be made in accordance with generally accepted
auditing | ||
standards. Reporting on the financial position and results of
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financial operations for each fund of the municipality shall be | ||
in
accordance with generally accepted accounting principles or | ||
other comprehensive basis of accounting , insofar as
possible. | ||
Each audit report shall include only financial information,
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findings, and conclusions that are adequately supported by | ||
evidence in the
auditor's working papers to demonstrate or | ||
prove, when called upon, the
basis for the matters reported and | ||
their correctness and reasonableness.
In connection with this, | ||
each municipality shall retain the right of
inspection of the | ||
auditor's working papers and shall make them available to
the | ||
Comptroller, or his or her designee, upon request. The audit | ||
report shall
consist of the professional opinion of the auditor | ||
or auditors accountant or accountants with
respect to the | ||
financial statements or, if an opinion cannot be expressed,
a | ||
declaration that the auditor accountant is unable to express | ||
such opinion and an
explanation of the reasons he or she cannot | ||
do so. Municipal authorities shall not
impose limitations on | ||
the scope of the audit to the extent that the effect
of such | ||
limitations will result in the qualification of the opinion of | ||
the auditor or auditors
accountant or accountants. Each audit | ||
report filed with the Comptroller
shall be accompanied by a | ||
copy of each official statement or other offering
of materials | ||
prepared in connection with the issuance of indebtedness of
the | ||
municipality since the filing of the last audit report.
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Audits under this Division may be made upon either an | ||
accrual or cash
basis of accounting depending upon the system | ||
followed by each
municipality. | ||
(b) For fiscal year 2019 and each fiscal year thereafter, | ||
the audit shall be made in accordance with generally accepted | ||
auditing standards. Each audit report shall include only | ||
financial information, findings, and conclusions that are | ||
adequately supported by evidence in the auditor's working | ||
papers to demonstrate or prove, when called upon, the basis for | ||
the matters reported and their correctness and reasonableness. | ||
In connection with this, each municipality shall retain the | ||
right of inspection of the auditor's working papers and shall | ||
make them available to the Comptroller, or his or her designee, | ||
upon request. The audit report shall also consist of the | ||
professional opinion of an auditor or auditors with respect to | ||
the financial statements or, if an opinion cannot be expressed, | ||
a declaration that the auditor is unable to express an opinion | ||
and an explanation of the reasons he or she cannot do so. | ||
Municipal authorities shall not impose limitations on the scope | ||
of the audit to the extent that the effect of the limitations | ||
will result in the qualification of the opinion of the auditor | ||
or auditors. Each audit report filed with the Comptroller shall | ||
be accompanied by a copy of each official statement or other | ||
offering of materials prepared in connection with the issuance | ||
of indebtedness of the municipality since the filing of the | ||
last audit report. | ||
(c) For fiscal year 2019 and each fiscal year thereafter, | ||
audit reports shall contain financial statements prepared in | ||
accordance with generally accepted accounting principles and | ||
audited in accordance with generally accepted auditing | ||
standards if the last audit report filed preceding fiscal year | ||
2019 expressed an unmodified or modified opinion by the | ||
independent auditor that the financial statements were | ||
presented in accordance with generally accepted accounting | ||
principles.
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(d) For fiscal year 2019 and each fiscal year thereafter, | ||
audit reports containing financial statements prepared in | ||
accordance with an other comprehensive basis of accounting may | ||
follow the best practices and guidelines outlined by the | ||
American Institute of Certified Public Accountants and shall be | ||
audited in accordance with generally accepted auditing | ||
standards. If the corporate authority of a municipality submits | ||
an audit report containing financial statements prepared in | ||
accordance with generally accepted accounting principles, | ||
thereafter all future audit reports shall also contain | ||
financial statements presented in accordance with generally | ||
accepted accounting principles. | ||
(e) Audits may be made on financial statements prepared | ||
using either an accrual or cash basis of accounting, depending | ||
upon the system followed by the municipality, and audit reports | ||
shall comply with this Section. | ||
(Source: P.A. 87-433.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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