Public Act 097-0890
 
SB3508 EnrolledLRB097 18502 KMW 63733 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Governmental Account Audit Act is amended by
changing Sections 3 and 4 as follows:
 
    (50 ILCS 310/3)  (from Ch. 85, par. 703)
    Sec. 3. Any governmental unit receiving revenue of less
than $850,000 for any fiscal year shall, in lieu of complying
with the requirements of Section 2 for audits and audit
reports, file with the Comptroller a financial report
containing information required by the Comptroller. In
addition, a governmental unit receiving revenue of less than
$850,000 may file with the Comptroller any audit reports which
may have been prepared under any other law. Any governmental
unit receiving revenue of $850,000 or more for any fiscal year
shall, in addition to complying with the requirements of
Section 2 for audits and audit reports, file with the
Comptroller the financial report required by this Section. Such
financial reports shall be on forms so designed by the
Comptroller as not to require professional accounting services
for its preparation. All reports to be filed with the
Comptroller under this Section must be submitted
electronically and the Comptroller must post the reports on the
Internet no later than 45 days after they are received. If the
governmental unit provides the Comptroller's Office with
sufficient evidence that the report cannot be filed
electronically, the Comptroller may waive this requirement.
The Comptroller must also post a list of municipalities that
are not in compliance with the reporting requirements set forth
in this Section.
(Source: P.A. 92-582, eff. 7-1-02.)
 
    (50 ILCS 310/4)  (from Ch. 85, par. 704)
    Sec. 4. Overdue report.
    (a) If the required report for a governmental unit is not
filed with the Comptroller in accordance with Section 2 or
Section 3, whichever is applicable, within 6 months after the
close of the fiscal year of the governmental unit, the
Comptroller shall notify the governing body of that unit in
writing that the report is due and may also grant a 60 day
extension for the filing of the audit report. If the required
report is not filed within the time specified in such written
notice, the Comptroller shall cause an audit to be made by a
licensed public accountant, and the governmental unit shall pay
to the Comptroller actual compensation and expenses to
reimburse him for the cost of preparing or completing such
report.
    (b) The Comptroller may decline to order an audit and the
preparation of an audit report (i) if an initial examination of
the books and records of the governmental unit indicates that
the books and records of the governmental unit are inadequate
or unavailable due to the passage of time or the occurrence of
a natural disaster or (ii) if the Comptroller determines that
the cost of an audit would impose an unreasonable financial
burden on the governmental unit.
    (c) The State Comptroller may grant extensions for
delinquent reports. The Comptroller may charge a governmental
unit a fee for a delinquent audit of $5 per day for the first 15
days past due, $10 per day for 16 through 30 days past due, $15
per day for 31 through 45 days past due, and $20 per day for the
46th day and every day thereafter. All fees collected under
this subsection (c) shall be deposited into the Comptroller's
Administrative Fund.
(Source: P.A. 92-191, eff. 8-1-01.)
 
    Section 10. The Counties Code is amended by changing
Sections 6-31003 and 6-31004 as follows:
 
    (55 ILCS 5/6-31003)  (from Ch. 34, par. 6-31003)
    Sec. 6-31003. Annual audits and reports. The In counties
having a population of over 10,000 but less than 500,000, the
county board of each county shall cause an audit of all of the
funds and accounts of the county to be made annually by an
accountant or accountants chosen by the county board or by an
accountant or accountants retained by the Comptroller, as
hereinafter provided. In addition, each county having a
population of less than 500,000 shall file with the Comptroller
a financial report containing information required by the
Comptroller. Such financial report shall be on a form so
designed by the Comptroller as not to require professional
accounting services for its preparation. All reports to be
filed with the Comptroller under this Section must be submitted
electronically and the Comptroller must post the reports on the
Internet no later than 45 days after they are received. If the
county provides the Comptroller's Office with sufficient
evidence that the report cannot be filed electronically, the
Comptroller may waive this requirement. The Comptroller must
also post a list of counties that are not in compliance with
the reporting requirements set forth in this Section.
    The audit shall commence as soon as possible after the
close of each fiscal year and shall be completed within 6
months after the close of such fiscal year, unless an extension
of time is granted by the Comptroller in writing. Such
extension of time shall not exceed 60 days. When the accountant
or accountants have completed the audit a full report thereof
shall be made and not less than 2 copies of each audit report
shall be submitted to the county board. Each audit report shall
be signed by the accountant making the audit and 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 county board shall retain the
right of inspection of the auditor's working papers and shall
make them available to the Comptroller, or his designee, upon
request.
    Within 60 days of receipt of an audit report, each county
board shall file one copy of each audit report and each
financial report with the Comptroller and any comment or
explanation that the county board may desire to make concerning
such audit report may be attached thereto. An audit report
which fails to meet the requirements of this Division shall be
rejected by the Comptroller and returned to the county board
for corrective action. One copy of each such report shall be
filed with the county clerk of the county so audited.
    This Section is a limitation under subsection (i) of
Section 6 of Article VII of the Illinois Constitution on the
concurrent exercise by home rule counties of powers and
functions exercised by the State.
(Source: P.A. 86-962.)
 
    (55 ILCS 5/6-31004)  (from Ch. 34, par. 6-31004)
    Sec. 6-31004. Overdue reports.
    (a) In the event the required reports for a county are not
filed with the Comptroller in accordance with Section 6-31003
within 6 months after the close of the fiscal year of the
county, the Comptroller shall notify the county board in
writing that the reports are due, and may also grant an
extension of time of up to 60 days for the filing of the
reports. In the event the required reports are not filed within
the time specified in such written notice, the Comptroller
shall cause the audit to be made and the audit report prepared
by an accountant or accountants.
    (b) The Comptroller may decline to order an audit and the
preparation of an audit report if an initial examination of the
books and records of the governmental unit indicates that the
books and records of the governmental unit are inadequate or
unavailable due to the passage of time or the occurrence of a
natural disaster.
    (c) The State Comptroller may grant extensions for
delinquent reports. The Comptroller may charge a county a fee
for a delinquent audit of $5 per day for the first 15 days past
due, $10 per day for 16 through 30 days past due, $15 per day
for 31 through 45 days past due, and $20 per day for the 46th
day and every day thereafter. All fees collected under this
subsection (c) shall be deposited into the Comptroller's
Administrative Fund.
(Source: P.A. 90-104, eff. 7-11-97.)
 
    Section 15. The Illinois Municipal Code is amended by
changing Sections 8-8-3 and 8-8-4 as follows:
 
    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
    Sec. 8-8-3. Audit requirements.
    (a) The corporate authorities of each municipality coming
under the provisions of this Division 8 shall cause an audit of
the funds and accounts of the municipality to be made by an
accountant or accountants employed by such municipality or by
an accountant or accountants retained by the Comptroller, as
hereinafter provided.
    (b) The accounts and funds of each municipality having a
population of 800 or more or having a bonded debt or owning or
operating any type of public utility shall be audited annually.
The audit herein required shall include all of the accounts and
funds of the municipality. Such audit shall be begun as soon as
possible after the close of the fiscal year, and shall be
completed and the report submitted within 6 months after the
close of such fiscal year, unless an extension of time shall be
granted by the Comptroller in writing. The accountant or
accountants making the audit shall submit not less than 2
copies of the audit report to the corporate authorities of the
municipality being audited. Municipalities not operating
utilities may cause audits of the accounts of municipalities to
be made more often than herein provided, by an accountant or
accountants. The audit report of such audit when filed with the
Comptroller together with an audit report covering the
remainder of the period for which an audit is required to be
filed hereunder shall satisfy the requirements of this section.
    (c) Municipalities of less than 800 population which do not
own or operate public utilities and do not have bonded debt,
shall file annually with the Comptroller a financial report
containing information required by the Comptroller. Such
annual financial report shall be on forms devised by the
Comptroller in such manner as to not require professional
accounting services for its preparation.
    (d) In addition to any audit report required, all
municipalities, except municipalities of less than 800
population which do not own or operate public utilities and do
not have bonded debt, shall file annually with the Comptroller
a supplemental report on forms devised and approved by the
Comptroller.
    (e) Notwithstanding any provision of law to the contrary,
if a municipality (i) has a population of less than 200, (ii)
has bonded debt in the amount of $50,000 or less, and (iii)
owns or operates a public utility, then the municipality shall
cause an audit of the funds and accounts of the municipality to
be made by an accountant employed by the municipality or
retained by the Comptroller for fiscal year 2011 and every
fourth fiscal year thereafter or until the municipality has a
population of 200 or more, has bonded debt in excess of
$50,000, or no longer owns or operates a public utility.
Nothing in this subsection shall be construed as limiting the
municipality's duty to file an annual financial report with the
Comptroller or to comply with the filing requirements
concerning the county clerk.
    (f) All reports to be filed with the Comptroller under this
Section must be submitted electronically and the Comptroller
must post the reports on the Internet no later than 45 days
after they are received. If the municipality provides the
Comptroller's Office with sufficient evidence that the report
cannot be filed electronically, the Comptroller may waive this
requirement. The Comptroller must also post a list of
municipalities that are not in compliance with the reporting
requirements set forth in this Section.
    (g) Subsection (f) of this Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule
municipalities of powers and functions exercised by the State.
(Source: P.A. 96-1309, eff. 7-27-10.)
 
    (65 ILCS 5/8-8-4)  (from Ch. 24, par. 8-8-4)
    Sec. 8-8-4. Overdue reports.
    (a) In the event the required audit report for a
municipality is not filed with the Comptroller in accordance
with Section 8-8-7 within 6 months after the close of the
fiscal year of the municipality, the Comptroller shall notify
the corporate authorities of that municipality in writing that
the audit report is due, and may also grant an extension of
time of 60 days, for the filing of the audit report. In the
event the required audit report is not filed within the time
specified in such written notice, the Comptroller shall cause
such audit to be made by an accountant or accountants. In the
event the required annual or supplemental report for a
municipality is not filed within 6 months after the close of
the fiscal year of the municipality, the Comptroller shall
notify the corporate authorities of that municipality in
writing that the annual or supplemental report is due and may
grant an extension in time of 60 days for the filing of such
annual or supplemental report.
    (b) In the event the annual or supplemental report is not
filed within the time extended by the Comptroller, the
Comptroller shall cause such annual or supplemental report to
be prepared or completed and the municipality shall pay to the
Comptroller reasonable compensation and expenses to reimburse
him for the cost of preparing or completing such annual or
supplemental report. Moneys paid to the Comptroller pursuant to
the preceding sentence shall be deposited into the
Comptroller's Audit Expense Revolving Fund.
    (c) The Comptroller may decline to order an audit or the
completion of the supplemental report if an initial examination
of the books and records of the municipality indicates that
books and records of the municipality are inadequate or
unavailable to support the preparation of the audit report or
the supplemental report due to the passage of time or the
occurrence of a natural disaster.
    (d) The State Comptroller may grant extensions for
delinquent reports. The Comptroller may charge a municipality a
fee for a delinquent audit of $5 per day for the first 15 days
past due, $10 per day for 16 through 30 days past due, $15 per
day for 31 through 45 days past due, and $20 per day for the
46th day and every day thereafter. All fees collected under
this subsection (d) shall be deposited into the Comptroller's
Administrative Fund.
(Source: P.A. 90-104, eff. 7-11-97.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.