Full Text of HB3389 99th General Assembly
HB3389sam001 99TH GENERAL ASSEMBLY | Sen. Andy Manar Filed: 5/11/2015
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| 1 | | AMENDMENT TO HOUSE BILL 3389
| 2 | | AMENDMENT NO. ______. Amend House Bill 3389 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Governmental Account Audit Act is amended | 5 | | by changing Sections 2 and 4 as follows:
| 6 | | (50 ILCS 310/2) (from Ch. 85, par. 702)
| 7 | | Sec. 2.
Except as otherwise provided in Section 3, the | 8 | | governing body of
each governmental unit shall cause an audit | 9 | | of the accounts of the unit to be
made by a licensed public | 10 | | accountant. Such audit shall be made annually and
shall cover | 11 | | the immediately preceding fiscal year of the governmental unit.
| 12 | | The audit shall include all the accounts and funds of the | 13 | | governmental
unit, including the accounts of any officer of the | 14 | | governmental unit who
receives fees or handles funds of the | 15 | | unit or who spends money of the unit.
The audit shall begin as | 16 | | soon as possible after the close of the last
fiscal year to |
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| 1 | | which it pertains, and shall be completed and the audit
report | 2 | | filed with the Comptroller within 180 days 6 months after the | 3 | | close of such
fiscal year unless an extension of time is | 4 | | granted by the Comptroller in
writing. An audit report which | 5 | | fails to meet the requirements of this
Act shall be rejected by | 6 | | the Comptroller and returned to the governing body
of the | 7 | | governmental unit for corrective action. The
licensed public | 8 | | accountant making the audit shall submit not
less than 3 copies | 9 | | of the audit report to the governing body of the
governmental | 10 | | unit being audited. | 11 | | All audits to be filed with the Comptroller under this | 12 | | Section must be submitted electronically and the Comptroller | 13 | | must post the audit reports on the Internet no later than 45 | 14 | | days after they are received. If the governmental unit provides | 15 | | the Comptroller's Office with sufficient evidence that the | 16 | | audit report cannot be filed electronically, the Comptroller | 17 | | may waive this requirement. The Comptroller must also post a | 18 | | list of governmental units that are not in compliance with the | 19 | | reporting requirements set forth in this Section. | 20 | | Any financial report under this Section shall include the | 21 | | name of the purchasing agent who oversees all competitively bid | 22 | | contracts. If there is no purchasing agent, the name of the | 23 | | person responsible for oversight of all competitively bid | 24 | | contracts shall be listed.
| 25 | | (Source: P.A. 97-932, eff. 8-10-12; 97-1142, eff. 12-28-12.)
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| 1 | | (50 ILCS 310/4) (from Ch. 85, par. 704)
| 2 | | Sec. 4. Overdue report.
| 3 | | (a) If the required report for a governmental unit is not | 4 | | filed with the
Comptroller in accordance with Section 2 or | 5 | | Section 3, whichever is
applicable, within 180 days 6 months | 6 | | after the close of the fiscal year of the
governmental unit, | 7 | | the Comptroller shall notify the governing body of that
unit in | 8 | | writing that the report is due and may also grant a 60 day
| 9 | | extension for the filing of the audit report. If the required | 10 | | report is not
filed within the time specified in such written | 11 | | notice, the Comptroller
shall cause an audit to be made by a | 12 | | licensed public accountant, and the
governmental unit shall pay | 13 | | to the Comptroller actual compensation and
expenses to | 14 | | reimburse him for the cost of preparing or completing such
| 15 | | report.
| 16 | | (b) The Comptroller may decline to order an audit and the | 17 | | preparation of
an audit report (i) if an initial examination of | 18 | | the books and records of
the
governmental unit indicates that | 19 | | the books and records of the governmental unit
are inadequate | 20 | | or unavailable due to the passage of time or the occurrence of | 21 | | a
natural disaster or (ii) if the Comptroller determines that | 22 | | the cost of an
audit would impose an unreasonable financial | 23 | | burden on the governmental unit.
| 24 | | (c) The State Comptroller may grant extensions for | 25 | | delinquent audits or reports. The Comptroller may charge a | 26 | | governmental unit a fee for a delinquent audit or report of $5 |
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| 1 | | per day for the first 15 days past due, $10 per day for 16 | 2 | | through 30 days past due, $15 per day for 31 through 45 days | 3 | | past due, and $20 per day for the 46th day and every day | 4 | | thereafter. These amounts may be reduced at the Comptroller's | 5 | | discretion. All fees collected under this subsection (c) shall | 6 | | be deposited into the Comptroller's Administrative Fund. | 7 | | (Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12; | 8 | | 98-922, eff. 8-15-14.)
| 9 | | Section 10. The Counties Code is amended by changing | 10 | | Sections 6-31003, 6-31004, and 6-31005 as follows:
| 11 | | (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
| 12 | | Sec. 6-31003. Annual audits and reports. The county board | 13 | | of each
county shall cause an audit of all of the funds and | 14 | | accounts of the county
to be made annually by an accountant
or | 15 | | accountants chosen by the county board or by an accountant or | 16 | | accountants
retained by the Comptroller, as hereinafter | 17 | | provided. In addition, each
county shall file with the | 18 | | Comptroller
a financial report containing information required | 19 | | by the Comptroller.
Such financial report shall be on a form so | 20 | | designed by the Comptroller
as not to require professional | 21 | | accounting services for its preparation. All audits and reports | 22 | | to be filed with the Comptroller under this Section must be | 23 | | submitted electronically and the Comptroller must post the | 24 | | audits and reports on the Internet no later than 45 days after |
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| 1 | | they are received. If the county provides the Comptroller's | 2 | | Office with sufficient evidence that the audit or report cannot | 3 | | be filed electronically, the Comptroller may waive this | 4 | | requirement. The Comptroller must also post a list of counties | 5 | | that are not in compliance with the reporting requirements set | 6 | | forth in this Section.
| 7 | | Any financial report under this Section shall include the | 8 | | name of the purchasing agent who oversees all competitively bid | 9 | | contracts. If there is no purchasing agent, the name of the | 10 | | person responsible for oversight of all competitively bid | 11 | | contracts shall be listed. | 12 | | The audit shall commence as soon as possible after the | 13 | | close of each
fiscal year and shall be completed within 180 | 14 | | days 6 months after the close of such
fiscal year, unless an | 15 | | extension of time is granted by the Comptroller in
writing. | 16 | | Such extension of time shall not exceed 60 days. When the | 17 | | accountant
or accountants have completed the audit a full | 18 | | report thereof shall be made
and not less than 2 copies of each | 19 | | audit report shall be submitted to the
county board. Each audit | 20 | | report shall be signed by the accountant making
the audit and | 21 | | shall include only financial information, findings and
| 22 | | conclusions that are adequately supported by evidence in the | 23 | | auditor's
working papers to demonstrate or prove, when called | 24 | | upon, the basis for the
matters reported and their correctness | 25 | | and reasonableness. In connection
with this, each county board | 26 | | shall retain the right of inspection of the
auditor's working |
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| 1 | | papers and shall make them available to the Comptroller,
or his | 2 | | designee, upon request.
| 3 | | Within 60 days of receipt of an audit report, each county | 4 | | board shall file
one copy of each audit report and each | 5 | | financial report with the Comptroller
and any comment or | 6 | | explanation that the county board may desire to make
concerning | 7 | | such audit report may be attached thereto. An audit report
| 8 | | which fails to meet the requirements of this Division shall be
| 9 | | rejected by the Comptroller and returned to the county board | 10 | | for corrective
action. One copy of each such report shall be | 11 | | filed with the county clerk
of the county so audited.
| 12 | | This Section is a limitation under subsection (i) of | 13 | | Section 6 of Article VII of the Illinois Constitution on the | 14 | | concurrent exercise by home rule counties of powers and | 15 | | functions exercised by the State. | 16 | | (Source: P.A. 97-890, eff. 8-2-12; 97-932, eff. 8-10-12; | 17 | | 97-1142, eff. 12-28-12.)
| 18 | | (55 ILCS 5/6-31004) (from Ch. 34, par. 6-31004)
| 19 | | Sec. 6-31004. Overdue reports.
| 20 | | (a) In the event the required reports for
a county are not | 21 | | filed with the Comptroller in accordance with Section 6-31003
| 22 | | within 180 days 6 months after the close of the fiscal year of | 23 | | the county, the
Comptroller shall notify the county board in | 24 | | writing that the reports are
due, and may also grant an | 25 | | extension of time of up to 60 days for the
filing of the |
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| 1 | | reports. In the event the required reports are not filed
within | 2 | | the time specified in such written notice, the Comptroller | 3 | | shall
cause the audit to be made and the audit report prepared | 4 | | by an accountant
or accountants.
| 5 | | (b) The Comptroller may decline to order an audit and the | 6 | | preparation of
an
audit report if an initial examination of the | 7 | | books and records of the
governmental unit indicates that the | 8 | | books and records of the governmental unit
are inadequate or | 9 | | unavailable due to the passage of time or the occurrence of a
| 10 | | natural disaster.
| 11 | | (c) The State Comptroller may grant extensions for | 12 | | delinquent audits or reports. The Comptroller may charge a | 13 | | county a fee for a delinquent audit or report of $5 per day for | 14 | | the first 15 days past due, $10 per day for 16 through 30 days | 15 | | past due, $15 per day for 31 through 45 days past due, and $20 | 16 | | per day for the 46th day and every day thereafter. These | 17 | | amounts may be reduced at the Comptroller's discretion. All | 18 | | fees collected under this subsection (c) shall be deposited | 19 | | into the Comptroller's Administrative Fund. | 20 | | (Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12; | 21 | | 98-922, eff. 8-15-14.)
| 22 | | (55 ILCS 5/6-31005) (from Ch. 34, par. 6-31005)
| 23 | | Sec. 6-31005. Funds managed by county officials. In | 24 | | addition to any
other audit required by this Division, the | 25 | | County Board shall cause an
audit to be made of all funds and |
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| 1 | | accounts under the management or control
of a county official | 2 | | as soon as possible after such official leaves office
for any | 3 | | reason. The audit shall be filed with the county board not | 4 | | later
than 180 days 6 months after the official leaves office. | 5 | | The audit shall be
conducted and the audit report shall be | 6 | | prepared and filed with the
Chairman of the County Board by a | 7 | | person lawfully qualified to practice
public accounting as | 8 | | regulated by "An Act to regulate the practice of
public | 9 | | accounting and to repeal certain acts therein named", approved | 10 | | July
22, 1943 as amended.
| 11 | | As used in this Section, "county official" means any | 12 | | elected county officer
or any officer appointed by the county | 13 | | board who is charged with the management
or control of any | 14 | | county funds; and "audit" means a post facto examination
of | 15 | | books, documents, records, and other evidence relating to the | 16 | | obligation,
receipt, expenditure or use of public funds of the | 17 | | county, including
governmental operations relating to such | 18 | | obligations, receipt, expenditure or use.
| 19 | | (Source: P.A. 86-962.)
| 20 | | Section 15. The Illinois Municipal Code is amended by | 21 | | changing Sections 8-8-3 and 8-8-4 as follows: | 22 | | (65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3) | 23 | | Sec. 8-8-3. Audit requirements. | 24 | | (a) The corporate authorities of each municipality coming |
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| 1 | | under the
provisions of this Division 8 shall cause an audit of | 2 | | the funds and
accounts of the municipality to be made by an | 3 | | accountant or accountants
employed by such municipality or by | 4 | | an accountant or accountants retained
by the Comptroller, as | 5 | | hereinafter provided. | 6 | | (b) The accounts and funds of each municipality having a | 7 | | population of 800
or more or having a bonded debt or owning or | 8 | | operating any type of public
utility shall be audited annually. | 9 | | The audit herein required shall include
all of the accounts and | 10 | | funds of the municipality. Such audit shall be
begun as soon as | 11 | | possible after the close of the fiscal year, and shall be
| 12 | | completed and the report submitted within 180 days 6 months | 13 | | after the close of such
fiscal year, unless an extension of | 14 | | time shall be granted by the
Comptroller in writing. The | 15 | | accountant or accountants making the audit
shall submit not | 16 | | less than 2 copies of the audit report to the corporate
| 17 | | authorities of the municipality being audited. Municipalities | 18 | | not operating
utilities may cause audits of the accounts of | 19 | | municipalities to be made
more often than herein provided, by | 20 | | an accountant or accountants. The audit
report of such audit | 21 | | when filed with the Comptroller together with an audit
report | 22 | | covering the remainder of the period for which an audit is | 23 | | required
to be filed hereunder shall satisfy the requirements | 24 | | of this section. | 25 | | (c) Municipalities of less than 800 population which do not | 26 | | own or operate
public utilities and do not have bonded debt, |
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| 1 | | shall file annually with the
Comptroller a financial report | 2 | | containing information required by the
Comptroller. Such | 3 | | annual financial report shall be on forms devised by the
| 4 | | Comptroller in such manner as to not require professional | 5 | | accounting
services for its preparation. | 6 | | (d) In addition to any audit report required, all | 7 | | municipalities, except
municipalities of less than 800 | 8 | | population which do not own or operate
public utilities and do | 9 | | not have bonded debt, shall file annually with the
Comptroller | 10 | | a supplemental report on forms devised and approved by the
| 11 | | Comptroller. | 12 | | (e) Notwithstanding any provision of law to the contrary, | 13 | | if a municipality (i) has a population of less than 200, (ii) | 14 | | has bonded debt in the amount of $50,000 or less, and (iii) | 15 | | owns or operates a public utility, then the municipality shall | 16 | | cause an audit of the funds and accounts of the municipality to | 17 | | be made by an accountant employed by the municipality or | 18 | | retained by the Comptroller for fiscal year 2011 and every | 19 | | fourth fiscal year thereafter or until the municipality has a | 20 | | population of 200 or more, has bonded debt in excess of | 21 | | $50,000, or no longer owns or operates a public utility. | 22 | | Nothing in this subsection shall be construed as limiting the | 23 | | municipality's duty to file an annual financial report with the | 24 | | Comptroller or to comply with the filing requirements | 25 | | concerning the county clerk. | 26 | | (f) All audits and reports to be filed with the Comptroller |
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| 1 | | under this Section must be submitted electronically and the | 2 | | Comptroller must post the audits and reports on the Internet no | 3 | | later than 45 days after they are received. If the municipality | 4 | | provides the Comptroller's Office with sufficient evidence | 5 | | that the audit or report cannot be filed electronically, the | 6 | | Comptroller may waive this requirement. The Comptroller must | 7 | | also post a list of municipalities that are not in compliance | 8 | | with the reporting requirements set forth in this Section. | 9 | | (g) Subsection (f) of this Section is a limitation under | 10 | | subsection (i) of Section 6 of Article VII of the Illinois | 11 | | Constitution on the concurrent exercise by home rule | 12 | | municipalities of powers and functions exercised by the State. | 13 | | (h) Any financial report under this Section shall include | 14 | | the name of the purchasing agent who oversees all competitively | 15 | | bid contracts. If there is no purchasing agent, the name of the | 16 | | person responsible for oversight of all competitively bid | 17 | | contracts shall be listed. | 18 | | (Source: P.A. 96-1309, eff. 7-27-10; 97-890, eff. 8-2-12; | 19 | | 97-932, eff. 8-10-12; 97-1142, eff. 12-28-12.)
| 20 | | (65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
| 21 | | Sec. 8-8-4. Overdue reports.
| 22 | | (a) In the event the required audit report for
a | 23 | | municipality is not filed
with the Comptroller in accordance | 24 | | with Section 8-8-7 within 180 days 6 months after
the close of | 25 | | the fiscal year of the municipality, the Comptroller shall
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| 1 | | notify the corporate authorities of that municipality in | 2 | | writing that the
audit report is due, and may also grant an | 3 | | extension of time of 60 days,
for the filing of the audit | 4 | | report. In the event the required audit report
is not filed | 5 | | within the time specified in such written notice, the
| 6 | | Comptroller shall cause such audit to be made by an accountant | 7 | | or
accountants. In the event the required annual or | 8 | | supplemental report for a
municipality is not filed within 6 | 9 | | months after the close of the fiscal
year of the municipality, | 10 | | the Comptroller shall notify the corporate
authorities of that | 11 | | municipality in writing that the annual or supplemental
report | 12 | | is due and may grant an extension in time of 60 days for the | 13 | | filing
of such annual or supplemental report.
| 14 | | (b) In the event the annual or supplemental report is not | 15 | | filed within
the
time extended by the Comptroller, the | 16 | | Comptroller shall cause such annual
or supplemental report to | 17 | | be prepared or completed and the municipality
shall pay to the | 18 | | Comptroller reasonable compensation and expenses to
reimburse | 19 | | him for the cost of preparing or completing such annual or
| 20 | | supplemental report.
Moneys paid to the Comptroller pursuant to | 21 | | the preceding sentence shall be
deposited into the | 22 | | Comptroller's Audit Expense Revolving Fund.
| 23 | | (c) The Comptroller may decline to order an audit or the | 24 | | completion of the
supplemental report if an initial examination | 25 | | of the books and records of the
municipality indicates that | 26 | | books and records of the municipality are
inadequate or |
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| 1 | | unavailable to support the preparation of the audit report or | 2 | | the
supplemental report due to the passage of time or the | 3 | | occurrence of a natural
disaster.
| 4 | | (d) The State Comptroller may grant extensions for | 5 | | delinquent audits or reports. The Comptroller may charge a | 6 | | municipality a fee for a delinquent audit or report of $5 per | 7 | | day for the first 15 days past due, $10 per day for 16 through | 8 | | 30 days past due, $15 per day for 31 through 45 days past due, | 9 | | and $20 per day for the 46th day and every day thereafter. | 10 | | These amounts may be reduced at the Comptroller's discretion. | 11 | | All fees collected under this subsection (d) shall be deposited | 12 | | into the Comptroller's Administrative Fund. | 13 | | (Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12; | 14 | | 98-922, eff. 8-15-14.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.".
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