Public Act 097-1142
 
SB3245 EnrolledLRB097 18348 PJG 63574 b

    AN ACT concerning government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Comptroller Act is amended by changing
Section 9 as follows:
 
    (15 ILCS 405/9)  (from Ch. 15, par. 209)
    Sec. 9. Warrants; vouchers; preaudit.
    (a) No payment may be made from public funds held by the
State Treasurer in or outside of the State treasury, except by
warrant drawn by the Comptroller and presented by him to the
treasurer to be countersigned except for payments made pursuant
to Section 9.03 or 9.05 of this Act.
    (b) No warrant for the payment of money by the State
Treasurer may be drawn by the Comptroller without the
presentation of itemized vouchers indicating that the
obligation or expenditure is pursuant to law and authorized,
and authorizing the Comptroller to order payment.
    (b-1) An itemized voucher for under $5 that is presented to
the Comptroller for payment shall not be paid except through
electronic funds transfer. This subsection (b-1) does not apply
to (i) vouchers presented by the legislative branch of State
government or (ii) vouchers presented by the State Treasurer's
Office for the payment of unclaimed property claims authorized
under the Uniform Disposition of Unclaimed Property Act.
    (c) The Comptroller shall examine each voucher required by
law to be filed with him and determine whether unencumbered
appropriations or unencumbered obligational or expenditure
authority other than by appropriation are legally available to
incur the obligation or to make the expenditure of public
funds. If he determines that unencumbered appropriations or
other obligational or expenditure authority are not available
from which to incur the obligation or make the expenditure, the
Comptroller shall refuse to draw a warrant.
    (d) The Comptroller shall examine each voucher and all
other documentation required to accompany the voucher, and
shall ascertain whether the voucher and documentation meet all
requirements established by or pursuant to law. If the
Comptroller determines that the voucher and documentation do
not meet applicable requirements established by or pursuant to
law, he shall refuse to draw a warrant. As used in this
Section, "requirements established by or pursuant to law"
includes statutory enactments and requirements established by
rules and regulations adopted pursuant to this Act.
    (e) Prior to drawing a warrant, the Comptroller may review
the voucher, any documentation accompanying the voucher, and
any other documentation related to the transaction on file with
him, and determine if the transaction is in accordance with the
law. If based on his review the Comptroller has reason to
believe that such transaction is not in accordance with the
law, he shall refuse to draw a warrant.
    (f) Where the Comptroller refuses to draw a warrant
pursuant to this Section, he shall maintain separate records of
such transactions.
    (g) State agencies shall have the principal responsibility
for the preaudit of their encumbrances, expenditures, and other
transactions as otherwise required by law.
(Source: P.A. 97-969, eff. 8-16-12.)
 
    Section 10. The State Prompt Payment Act is amended by
changing Section 3-2 as follows:
 
    (30 ILCS 540/3-2)
    Sec. 3-2. Beginning July 1, 1993, in any instance where a
State official or agency is late in payment of a vendor's bill
or invoice for goods or services furnished to the State, as
defined in Section 1, properly approved in accordance with
rules promulgated under Section 3-3, the State official or
agency shall pay interest to the vendor in accordance with the
following:
        (1) Any bill, except a bill submitted under Article V
    of the Illinois Public Aid Code and except as provided
    under paragraph (1.05) of this Section, approved for
    payment under this Section must be paid or the payment
    issued to the payee within 60 days of receipt of a proper
    bill or invoice. If payment is not issued to the payee
    within this 60-day period, an interest penalty of 1.0% of
    any amount approved and unpaid shall be added for each
    month or fraction thereof after the end of this 60-day
    period, until final payment is made. Any bill, except a
    bill for pharmacy or nursing facility services or goods,
    and except as provided under paragraph (1.05) of this
    Section, submitted under Article V of the Illinois Public
    Aid Code approved for payment under this Section must be
    paid or the payment issued to the payee within 60 days
    after receipt of a proper bill or invoice, and, if payment
    is not issued to the payee within this 60-day period, an
    interest penalty of 2.0% of any amount approved and unpaid
    shall be added for each month or fraction thereof after the
    end of this 60-day period, until final payment is made. Any
    bill for pharmacy or nursing facility services or goods
    submitted under Article V of the Illinois Public Aid Code,
    except as provided under paragraph (1.05) of this Section,
    and approved for payment under this Section must be paid or
    the payment issued to the payee within 60 days of receipt
    of a proper bill or invoice. If payment is not issued to
    the payee within this 60-day period, an interest penalty of
    1.0% of any amount approved and unpaid shall be added for
    each month or fraction thereof after the end of this 60-day
    period, until final payment is made.
        (1.05) For State fiscal year 2012 and future fiscal
    years, any bill approved for payment under this Section
    must be paid or the payment issued to the payee within 90
    days of receipt of a proper bill or invoice. If payment is
    not issued to the payee within this 90-day period, an
    interest penalty of 1.0% of any amount approved and unpaid
    shall be added for each month, or 0.033% (one-thirtieth of
    one percent) 00.0033% (1/30%) of any amount approved and
    unpaid for each day, after the end of this 90-day period,
    until final payment is made.
        (1.1) A State agency shall review in a timely manner
    each bill or invoice after its receipt. If the State agency
    determines that the bill or invoice contains a defect
    making it unable to process the payment request, the agency
    shall notify the vendor requesting payment as soon as
    possible after discovering the defect pursuant to rules
    promulgated under Section 3-3; provided, however, that the
    notice for construction related bills or invoices must be
    given not later than 30 days after the bill or invoice was
    first submitted. The notice shall identify the defect and
    any additional information necessary to correct the
    defect. If one or more items on a construction related bill
    or invoice are disapproved, but not the entire bill or
    invoice, then the portion that is not disapproved shall be
    paid.
        (2) Where a State official or agency is late in payment
    of a vendor's bill or invoice properly approved in
    accordance with this Act, and different late payment terms
    are not reduced to writing as a contractual agreement, the
    State official or agency shall automatically pay interest
    penalties required by this Section amounting to $50 or more
    to the appropriate vendor. Each agency shall be responsible
    for determining whether an interest penalty is owed and for
    paying the interest to the vendor. Except as provided in
    paragraph (4), an individual interest payment amounting to
    $5 or less shall not be paid by the State. Interest due to
    a vendor that amounts to greater than $5 and less than $50
    shall not be paid but shall be accrued until all interest
    due the vendor for all similar warrants exceeds $50, at
    which time the accrued interest shall be payable and
    interest will begin accruing again, except that interest
    accrued as of the end of the fiscal year that does not
    exceed $50 shall be payable at that time. In the event an
    individual has paid a vendor for services in advance, the
    provisions of this Section shall apply until payment is
    made to that individual.
        (3) The provisions of Public Act 96-1501 reducing the
    interest rate on pharmacy claims under Article V of the
    Illinois Public Aid Code to 1.0% per month shall apply to
    any pharmacy bills for services and goods under Article V
    of the Illinois Public Aid Code received on or after the
    date 60 days before January 25, 2011 (the effective date of
    Public Act 96-1501) except as provided under paragraph
    (1.05) of this Section.
        (4) Interest amounting to less than $5 shall not be
    paid by the State, except for claims (i) to the Department
    of Healthcare and Family Services or the Department of
    Human Services, (ii) pursuant to Article V of the Illinois
    Public Aid Code, the Covering ALL KIDS Health Insurance
    Act, or the Children's Health Insurance Program Act, and
    (iii) made (A) by pharmacies for prescriptive services or
    (B) by any federally qualified health center for
    prescriptive services or any other services.    
    (Source: P.A. 96-555, eff. 8-18-09; 96-802, eff. 1-1-10;
96-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1501, eff.
1-25-11; 96-1530, eff. 2-16-11; 97-72, eff. 7-1-11; 97-74, eff.
6-30-11; 97-348, eff. 8-12-11; 97-813, eff. 7-13-12; 97-932,
eff. 8-10-12.)
 
    Section 15. The Governmental Account Audit Act is amended
by changing Sections 2, 3, and 4 as follows:
 
    (50 ILCS 310/2)  (from Ch. 85, par. 702)
    Sec. 2. Except as otherwise provided in Section 3, the
governing body of each governmental unit shall cause an audit
of the accounts of the unit to be made by a licensed public
accountant. Such audit shall be made annually and shall cover
the immediately preceding fiscal year of the governmental unit.
The audit shall include all the accounts and funds of the
governmental unit, including the accounts of any officer of the
governmental unit who receives fees or handles funds of the
unit or who spends money of the unit. The audit shall begin as
soon as possible after the close of the last fiscal year to
which it pertains, and shall be completed and the audit report
filed with the Comptroller within 6 months after the close of
such fiscal year unless an extension of time is granted by the
Comptroller in writing. An audit report which fails to meet the
requirements of this Act shall be rejected by the Comptroller
and returned to the governing body of the governmental unit for
corrective action. The licensed public accountant making the
audit shall submit not less than 3 copies of the audit report
to the governing body of the governmental unit being audited.
    All audits to be filed with the Comptroller under this
Section must be submitted electronically and the Comptroller
must post the audit 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
audit report cannot be filed electronically, the Comptroller
may waive this requirement. The Comptroller must also post a
list of governmental units that are not in compliance with the
reporting requirements set forth in this Section.
    Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively bid
contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(Source: P.A. 97-932, eff. 8-10-12.)
 
    (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 governmental units
municipalities that are not in compliance with the reporting
requirements set forth in this Section.
    Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively bid
contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(Source: P.A. 97-890, eff. 8-2-12.)
 
    (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 audits or reports. The Comptroller may charge a
governmental unit a fee for a delinquent audit or report 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. 97-890, eff. 8-2-12.)
 
    Section 20. 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 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 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 audits and reports
to be filed with the Comptroller under this Section must be
submitted electronically and the Comptroller must post the
audits and 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 audit or 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.
    Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively bid
contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
    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. 97-890, eff. 8-2-12; 97-932, eff. 8-10-12;
revised 8-23-12.)
 
    (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 audits or reports. The Comptroller may charge a
county a fee for a delinquent audit or report 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. 97-890, eff. 8-2-12.)
 
    Section 25. 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 audits and reports to be filed with the Comptroller
under this Section must be submitted electronically and the
Comptroller must post the audits and 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 audit or 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.
    (h) (f) Any financial report under this Section shall
include the name of the purchasing agent who oversees all
competitively bid contracts. If there is no purchasing agent,
the name of the person responsible for oversight of all
competitively bid contracts shall be listed.
(Source: P.A. 96-1309, eff. 7-27-10; 97-890, eff. 8-2-12;
97-932, eff. 8-10-12; revised 8-23-12.)
 
    (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 audits or reports. The Comptroller may charge a
municipality a fee for a delinquent audit or report 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. 97-890, eff. 8-2-12.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.