103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2875

 

Introduced 1/24/2024, by Sen. Doris Turner

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-8-2  from Ch. 24, par. 8-8-2
65 ILCS 5/8-8-3  from Ch. 24, par. 8-8-3

    Amends the Audit of Accounts Division of the Illinois Municipal Code. Provides that a municipality with a population of 1,000 or less may file an annual report in lieu of an audit report if an audit report has been conducted and filed with the Comptroller within the 3 preceding fiscal years and the municipality had no material findings that indicate significant errors or risks in the municipality's financial information in its last conducted audit report filed with the Comptroller. Makes conforming changes.


LRB103 35854 AWJ 65939 b

 

 

A BILL FOR

 

SB2875LRB103 35854 AWJ 65939 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 8-8-2 and 8-8-3 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
8otherwise indicates, have the following meanings:
9    (1) "Municipality" or "municipalities" means all cities,
10villages and incorporated towns having a population of less
11than 500,000 as determined by the last preceding Federal
12census.
13    (2) "Corporate authorities" means a city council, village
14board of trustees, library board, police and firemen's pension
15board, or any other body or officers having authority to levy
16taxes, make appropriations, or approve claims for any
17municipality.
18    (3) "Comptroller" means the Comptroller of the State of
19Illinois.
20    (4) (Blank).
21    (5) "Audit report" means the written report of the auditor
22or auditors and all appended statements and schedules relating
23thereto, presenting or recording the findings of an

 

 

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1examination or audit of the financial transactions, affairs,
2or condition of a municipality.
3    (6) "Annual report" means the statement filed, in lieu of
4an audit report, by a municipality the municipalities of less
5than 800 population that does , which do not own or operate
6public utilities and does do not have bonded debt or the
7statement filed, in lieu of an audit report, by a municipality
8with a population of 1,000 or less that meets the criteria
9required under subsection (i) of Section 8-8-3.
10    (7) "Supplemental report" means the annual statement
11filed, in addition to any audit report provided for herein, by
12all municipalities, except municipalities of less than 800
13population which do not own or operate public utilities and do
14not have bonded debt.
15    (8) "Auditor" means a licensed certified public
16accountant, as that term is defined in Section 0.03 of the
17Illinois Public Accounting Act, or the substantial equivalent
18of a licensed CPA, as provided under Section 5.2 of the
19Illinois Public Accounting Act, who performs an audit of
20municipal financial statements and records and expresses an
21assurance or disclaims an opinion on the audited financial
22statements.
23    (9) "Generally accepted accounting principles" means
24accounting principles generally accepted in the United States.
25    (10) "Generally accepted auditing standards" means
26auditing standards generally accepted in the United States.

 

 

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1(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
 
2    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
3    Sec. 8-8-3. Audit requirements.
4    (a) The corporate authorities of each municipality coming
5under the provisions of this Division 8 shall cause an audit of
6the funds and accounts of the municipality to be made by an
7auditor or auditors employed by such municipality or by an
8auditor or auditors retained by the Comptroller, as
9hereinafter provided.
10    (b) The accounts and funds of each municipality having a
11population of 800 or more or having a bonded debt or owning or
12operating any type of public utility shall be audited
13annually. The audit herein required shall include all of the
14accounts and funds of the municipality. Such audit shall be
15begun as soon as possible after the close of the fiscal year,
16and shall be completed and the report submitted within 180
17days after the close of such fiscal year, unless an extension
18of time shall be granted by the Comptroller in writing. The
19auditor or auditors perform the audit shall submit not less
20than 2 copies of the audit report to the corporate authorities
21of the municipality being audited. Municipalities not
22operating utilities may cause audits of the accounts of
23municipalities to be made more often than herein provided, by
24an auditor or auditors. The audit report of such audit when
25filed with the Comptroller together with an audit report

 

 

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1covering the remainder of the period for which an audit is
2required to be filed hereunder shall satisfy the requirements
3of this section.
4    (c) Municipalities of less than 800 population which do
5not own or operate public utilities and do not have bonded
6debt, shall file annually with the Comptroller a financial
7report containing information required by the Comptroller.
8Such annual financial report shall be on forms devised by the
9Comptroller in such manner as to not require professional
10accounting services for its preparation.
11    (d) In addition to any audit report required, all
12municipalities, except municipalities of less than 800
13population which do not own or operate public utilities and do
14not have bonded debt, shall file annually with the Comptroller
15a supplemental report on forms devised and approved by the
16Comptroller.
17    (e) Notwithstanding any provision of law to the contrary,
18if a municipality (i) has a population of less than 200, (ii)
19has bonded debt in the amount of $50,000 or less, and (iii)
20owns or operates a public utility, then the municipality shall
21cause an audit of the funds and accounts of the municipality to
22be performed by an auditor employed by the municipality or
23retained by the Comptroller for fiscal year 2011 and every
24fourth fiscal year thereafter or until the municipality has a
25population of 200 or more, has bonded debt in excess of
26$50,000, or no longer owns or operates a public utility.

 

 

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1Nothing in this subsection shall be construed as limiting the
2municipality's duty to file an annual financial report with
3the Comptroller or to comply with the filing requirements
4concerning the county clerk.
5    (f) All audits and reports to be filed with the
6Comptroller under this Section must be submitted
7electronically and the Comptroller must post the audits and
8reports on the Internet no later than 45 days after they are
9received. If the municipality provides the Comptroller's
10Office with sufficient evidence that the audit or report
11cannot be filed electronically, the Comptroller may waive this
12requirement. The Comptroller must also post a list of
13municipalities that are not in compliance with the reporting
14requirements set forth in this Section.
15    (g) Subsection (f) of this Section is a limitation under
16subsection (i) of Section 6 of Article VII of the Illinois
17Constitution on the concurrent exercise by home rule
18municipalities of powers and functions exercised by the State.
19    (h) Any financial report under this Section shall include
20the name of the purchasing agent who oversees all
21competitively bid contracts. If there is no purchasing agent,
22the name of the person responsible for oversight of all
23competitively bid contracts shall be listed.
24    (i) A municipality with a population of 1,000 or less may
25file an annual report in lieu of an audit report if an audit
26report has been conducted and filed with the Comptroller

 

 

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1within the 3 preceding fiscal years and the municipality had
2no material findings that indicate significant errors or risks
3in the municipality's financial information in its last
4conducted audit report filed with the Comptroller.
5(Source: P.A. 101-419, eff. 1-1-20.)