97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3323

 

Introduced 2/7/2012, by Sen. Tim Bivins

 

SYNOPSIS AS INTRODUCED:
 
50 ILCS 310/2  from Ch. 85, par. 702
50 ILCS 310/3  from Ch. 85, par. 703
55 ILCS 5/6-31003  from Ch. 34, par. 6-31003
60 ILCS 1/80-20
65 ILCS 5/8-8-3  from Ch. 24, par. 8-8-3

    Amends the Governmental Account Audit Act, the Counties Code, the Township Code, and the Illinois Municipal Code. Requires the governing board of each governmental unit, county board, township board, or corporate authorities of a municipality, as applicable, to review specified audit and financial reports and report any suspected criminal activity or fraud to the appropriate State's Attorney's office. Effective immediately.


LRB097 19784 KMW 65051 b

 

 

A BILL FOR

 

SB3323LRB097 19784 KMW 65051 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 Governmental Account Audit Act is amended by
5changing Sections 2 and 3 as follows:
 
6    (50 ILCS 310/2)  (from Ch. 85, par. 702)
7    Sec. 2. Except as otherwise provided in Section 3, the
8governing body of each governmental unit shall cause an audit
9of the accounts of the unit to be made by a licensed public
10accountant. Such audit shall be made annually and shall cover
11the immediately preceding fiscal year of the governmental unit.
12The audit shall include all the accounts and funds of the
13governmental unit, including the accounts of any officer of the
14governmental unit who receives fees or handles funds of the
15unit or who spends money of the unit. The audit shall begin as
16soon as possible after the close of the last fiscal year to
17which it pertains, and shall be completed and the audit report
18filed with the Comptroller within 6 months after the close of
19such fiscal year unless an extension of time is granted by the
20Comptroller in writing. An audit report which fails to meet the
21requirements of this Act shall be rejected by the Comptroller
22and returned to the governing body of the governmental unit for
23corrective action. The licensed public accountant making the

 

 

SB3323- 2 -LRB097 19784 KMW 65051 b

1audit shall submit not less than 3 copies of the audit report
2to the governing body of the governmental unit being audited.
3    The governing board of each governmental unit shall review
4the annual audit report prior to submission to the Comptroller
5and shall report any suspected criminal activity or fraud to
6the State's Attorney's office of the county or counties where
7the governmental unit is located.
8(Source: P.A. 85-1000.)
 
9    (50 ILCS 310/3)  (from Ch. 85, par. 703)
10    Sec. 3. Any governmental unit receiving revenue of less
11than $850,000 for any fiscal year shall, in lieu of complying
12with the requirements of Section 2 for audits and audit
13reports, file with the Comptroller a financial report
14containing information required by the Comptroller. In
15addition, a governmental unit receiving revenue of less than
16$850,000 may file with the Comptroller any audit reports which
17may have been prepared under any other law. Any governmental
18unit receiving revenue of $850,000 or more for any fiscal year
19shall, in addition to complying with the requirements of
20Section 2 for audits and audit reports, file with the
21Comptroller the financial report required by this Section. Such
22financial reports shall be on forms so designed by the
23Comptroller as not to require professional accounting services
24for its preparation.
25    The governing board of each governmental unit shall review

 

 

SB3323- 3 -LRB097 19784 KMW 65051 b

1the annual audit report or any financial reports, as the case
2may be, prior to submission to the Comptroller and shall report
3any suspected criminal activity or fraud to the State's
4Attorney's office of the county or counties where the
5governmental unit is located.
6(Source: P.A. 92-582, eff. 7-1-02.)
 
7    Section 10. The Counties Code is amended by changing
8Section 6-31003 as follows:
 
9    (55 ILCS 5/6-31003)  (from Ch. 34, par. 6-31003)
10    Sec. 6-31003. Annual audits and reports. In counties having
11a population of over 10,000 but less than 500,000, the county
12board of each county shall cause an audit of all of the funds
13and accounts of the county to be made annually by an accountant
14or accountants chosen by the county board or by an accountant
15or accountants retained by the Comptroller, as hereinafter
16provided. In addition, each county having a population of less
17than 500,000 shall file with the Comptroller a financial report
18containing information required by the Comptroller. Such
19financial report shall be on a form so designed by the
20Comptroller as not to require professional accounting services
21for its preparation.
22    The audit shall commence as soon as possible after the
23close of each fiscal year and shall be completed within 6
24months after the close of such fiscal year, unless an extension

 

 

SB3323- 4 -LRB097 19784 KMW 65051 b

1of time is granted by the Comptroller in writing. Such
2extension of time shall not exceed 60 days. When the accountant
3or accountants have completed the audit a full report thereof
4shall be made and not less than 2 copies of each audit report
5shall be submitted to the county board. Each audit report shall
6be signed by the accountant making the audit and shall include
7only financial information, findings and conclusions that are
8adequately supported by evidence in the auditor's working
9papers to demonstrate or prove, when called upon, the basis for
10the matters reported and their correctness and reasonableness.
11In connection with this, each county board shall retain the
12right of inspection of the auditor's working papers and shall
13make them available to the Comptroller, or his designee, upon
14request.
15    Within 60 days of receipt of an audit report, each county
16board shall file one copy of each audit report and each
17financial report with the Comptroller and any comment or
18explanation that the county board may desire to make concerning
19such audit report may be attached thereto. An audit report
20which fails to meet the requirements of this Division shall be
21rejected by the Comptroller and returned to the county board
22for corrective action. One copy of each such report shall be
23filed with the county clerk of the county so audited.
24    The county board shall review the annual audit report and
25each financial report prior to submission to the Comptroller
26and shall report any suspected criminal activity or fraud to

 

 

SB3323- 5 -LRB097 19784 KMW 65051 b

1the State's Attorney's office of that county.
2(Source: P.A. 86-962.)
 
3    Section 15. The Township Code is amended by changing
4Section 80-20 as follows:
 
5    (60 ILCS 1/80-20)
6    Sec. 80-20. Independent audit of accounts.
7    (a) All accounts audited under this Article (and those
8rejected, if any) shall be delivered with the certificate of
9the trustees (or a majority of them) to the township clerk, who
10shall keep them on file for the inspection of any of the
11inhabitants of the township. They shall also be produced by the
12township clerk at the next annual meeting and shall be read at
13the meeting by the clerk.
14    (b) In townships that receive revenue of $850,000 or more
15during any fiscal year, exclusive of road funds, the township
16board shall have the accounts and all records of the township
17thoroughly audited by a certified public accountant within 6
18months after the close of each fiscal year. The board shall
19have a copy of the accountant's report and recommendations
20filed with the township clerk and another copy filed with the
21county clerk for public inspection.
22    (c) In townships that receive revenue of less than $850,000
23during any fiscal year, exclusive of road funds, the township
24board shall have the accounts and all records of the township

 

 

SB3323- 6 -LRB097 19784 KMW 65051 b

1audited and inspected by an independent auditing committee
2composed of 3 township electors chosen by the board. The audit
3shall be completed within 6 months after the close of each
4fiscal year. A copy of the auditing committee's report and
5recommendations shall be filed with the township clerk and
6another copy shall be filed with the county clerk for public
7inspection. The auditing committee shall not contain any member
8of the township board or any person related to a trustee.
9Members of the auditing committee shall be proficient in
10accounting principles and practices and shall be compensated at
11a rate determined by the township board but not to exceed $50
12per day. In addition to the other audit requirements imposed by
13law, in townships subject to this subsection, the township
14board shall have the accounts and all records of the township
15thoroughly audited by a certified public accountant within 6
16months after (i) the end of each term of office of the township
17supervisor and (ii) a vacancy occurs in the office of township
18supervisor. A copy of the accountant's report and
19recommendations shall be filed with the township clerk and
20another copy shall be filed with the county clerk for public
21inspection.
22    (d) The township board shall review the annual audit report
23prior to submission to the township clerk and shall report any
24suspected criminal activity or fraud to the State's Attorney's
25office of the county where the township is located.
26(Source: P.A. 92-582, eff. 7-1-02.)
 

 

 

SB3323- 7 -LRB097 19784 KMW 65051 b

1    Section 20. The Illinois Municipal Code is amended by
2changing Section 8-8-3 as follows:
 
3    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
4    Sec. 8-8-3. Audit requirements.
5    (a) The corporate authorities of each municipality coming
6under the provisions of this Division 8 shall cause an audit of
7the funds and accounts of the municipality to be made by an
8accountant or accountants employed by such municipality or by
9an accountant or accountants retained by the Comptroller, as
10hereinafter provided.
11    (b) The accounts and funds of each municipality having a
12population of 800 or more or having a bonded debt or owning or
13operating any type of public utility shall be audited annually.
14The audit herein required shall include all of the accounts and
15funds of the municipality. Such audit shall be begun as soon as
16possible after the close of the fiscal year, and shall be
17completed and the report submitted within 6 months after the
18close of such fiscal year, unless an extension of time shall be
19granted by the Comptroller in writing. The accountant or
20accountants making the audit shall submit not less than 2
21copies of the audit report to the corporate authorities of the
22municipality being audited. Municipalities not operating
23utilities may cause audits of the accounts of municipalities to
24be made more often than herein provided, by an accountant or

 

 

SB3323- 8 -LRB097 19784 KMW 65051 b

1accountants. The audit report of such audit when filed with the
2Comptroller together with an audit report covering the
3remainder of the period for which an audit is required to be
4filed hereunder shall satisfy the requirements of this section.
5    (c) Municipalities of less than 800 population which do not
6own or operate public utilities and do not have bonded debt,
7shall file annually with the Comptroller a financial report
8containing information required by the Comptroller. Such
9annual financial report shall be on forms devised by the
10Comptroller in such manner as to not require professional
11accounting services for its preparation.
12    (d) In addition to any audit report required, all
13municipalities, except municipalities of less than 800
14population which do not own or operate public utilities and do
15not have bonded debt, shall file annually with the Comptroller
16a supplemental report on forms devised and approved by the
17Comptroller.
18    (e) Notwithstanding any provision of law to the contrary,
19if a municipality (i) has a population of less than 200, (ii)
20has bonded debt in the amount of $50,000 or less, and (iii)
21owns or operates a public utility, then the municipality shall
22cause an audit of the funds and accounts of the municipality to
23be made by an accountant employed by the municipality or
24retained by the Comptroller for fiscal year 2011 and every
25fourth fiscal year thereafter or until the municipality has a
26population of 200 or more, has bonded debt in excess of

 

 

SB3323- 9 -LRB097 19784 KMW 65051 b

1$50,000, or no longer owns or operates a public utility.
2Nothing in this subsection shall be construed as limiting the
3municipality's duty to file an annual financial report with the
4Comptroller or to comply with the filing requirements
5concerning the county clerk.
6    (f) The corporate authorities of each municipality shall
7review the annual audit report prior to submission to the
8Comptroller and shall report any suspected criminal activity or
9fraud to the State's Attorney's office of the county or
10counties where the municipality is located.
11(Source: P.A. 96-1309, eff. 7-27-10.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.