SB3675 102ND GENERAL ASSEMBLY

LRB102 24205 RJF 33434 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3675

Introduced 1/21/2022, by Sen. Chapin Rose

SYNOPSIS AS INTRODUCED:

15 ILCS 20/50-45 new
30 ILCS 5/3-25 new

Amends the State Budget Law of the Civil Administrative Code of Illinois. Provides that in any year in which a public university has a repeated material audit finding reported in any audit conducted by the Auditor General, the Auditor General shall specially report the repeated material audit finding to the Governor and the General Assembly. Provides that any such public university to which the report applies shall have 5% of the funds to be appropriated to the public university during the fiscal year in which the Auditor General's report was issued withheld by the State Comptroller until the public university rectifies the deficiencies found in the material audit findings. Provides that if the public university has been allotted more than 95% of its appropriated funding at the time of the Auditor General's report, the public university shall, within 90 days after issuance of the Auditor General's report, remit 5% of the allotted funding for that fiscal year to a trust fund held outside of the State treasury, with the State Treasurer as custodian, to be held until the public university rectifies the deficiencies found in the material audit findings. Provides that upon request of a public university, the Auditor General shall determine whether a material finding has been rectified, and shall certify the same to the State Comptroller and the State Treasurer without regard to any other scheduled audit. Provides that upon a determination that the deficiency found in the material audit findings has been rectified, the 5% of appropriated funds that were either withheld from or remitted by the public university shall be released to the public university within 10 business days. Amends the Illinois State Auditing Act. Provides requirements concerning public university material audit findings reports. Defines "public university". Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Budget Law of the Civil Administrative Code of Illinois is amended by adding Section 50-45 as follows:

(15 ILCS 20/50-45 new)

Sec. 50-45. Public university audit compliance; funding withheld.

(a) Notwithstanding any other provision of law to the contrary, in any year in which a public university has a repeated material audit finding reported in any audit conducted by the Auditor General, in addition to the regular report of the audit findings made by the Auditor General, the Auditor General shall specially report the repeated material audit finding concerning that public university to the Governor and the General Assembly.

(b) Upon a repeated material finding and report issued by the Auditor General under subsection (a), any such public university to which the report applies shall have 5% of the funds to be appropriated to the public university during the fiscal year in which the Auditor General's report was issued withheld by the State Comptroller until the public university rectifies the deficiencies found in the material audit findings, as provided under subsection (d).

(c) If the public university has been allotted more than 95% of its appropriated funding at the time of the Auditor General's report, the public university shall, within 90 days after issuance of the Auditor General's report, remit 5% of the allotted funding for that fiscal year to a trust fund held outside of the State treasury, with the State Treasurer as custodian. The amount remitted shall remain in the trust fund until the public university rectifies the deficiencies found in the material audit findings, as provided under subsection (d).

(d) Upon request of a public university, the Auditor General shall determine whether a material finding has been rectified, and shall as soon as reasonably practicable certify the same to the State Comptroller and the State Treasurer without regard to any other scheduled audit. Upon a determination that the deficiency found in the material audit findings has been rectified, the 5% of appropriated funds that were either withheld from or remitted by the public university shall be released to the public university within 10 business days.

(e) For the purposes of this Section, "public university" means Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Southern Illinois University, Western Illinois University, the University of Illinois, or any other public university established or authorized by the General Assembly.

Section 10. The Illinois State Auditing Act is amended by adding Section 3-25 as follows:

(30 ILCS 5/3-25 new)

Sec. 3-25. Public university material audit findings reports. For the purposes of Section 50-45 of the State Budget Law of the Civil Administrative Code of Illinois, in any year in which a public university has a repeated material audit finding reported in any audit conducted by the Auditor General, in addition to the regular report of the audit findings made by the Auditor General, the Auditor General shall specially report the repeated material audit finding concerning that public university to the Governor and the General Assembly. Upon request of a public university, the Auditor General shall determine whether a material finding has been rectified, and shall certify the same to the State Comptroller and the State Treasurer without regard to any other scheduled audit.

Section 99. Effective date. This Act takes effect upon becoming law.