Full Text of SB1806 101st General Assembly
SB1806 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1806 Introduced 2/15/2019, by Sen. Dale A. Righter SYNOPSIS AS INTRODUCED: |
| 50 ILCS 310/1 | from Ch. 85, par. 701 | 50 ILCS 310/2 | from Ch. 85, par. 702 | 50 ILCS 310/4 | from Ch. 85, par. 704 | 50 ILCS 310/5 | from Ch. 85, par. 705 | 50 ILCS 310/6 | from Ch. 85, par. 706 | 55 ILCS 5/6-31002 | from Ch. 34, par. 6-31002 | 55 ILCS 5/6-31003 | from Ch. 34, par. 6-31003 | 55 ILCS 5/6-31004 | from Ch. 34, par. 6-31004 | 55 ILCS 5/6-31005 | from Ch. 34, par. 6-31005 | 55 ILCS 5/6-31006 | from Ch. 34, par. 6-31006 | 55 ILCS 5/6-31008 | from Ch. 34, par. 6-31008 | 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 | 65 ILCS 5/8-8-3.5 | | 65 ILCS 5/8-8-4 | from Ch. 24, par. 8-8-4 | 65 ILCS 5/8-8-5 | from Ch. 24, par. 8-8-5 | 65 ILCS 5/8-8-7 | from Ch. 24, par. 8-8-7 | 65 ILCS 5/8-8-8 | from Ch. 24, par. 8-8-8 |
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Amends the Governmental Account Audit Act, the Counties Code, and the Illinois Municipal Code. Removes definitions of "licensed public accountant" and "accountant". Adds a definition for "generally accepted auditing standards". Modifies the definition of "auditor" to also include a substantially-equivalent licensed CPA that operates out-of-state. Replaces references to licensed public accountants and accountants with references to auditors. Removes audit report requirements for fiscal years prior to 2019. Modifies audit report requirements for fiscal year 2019 and beyond. Changes various terminology throughout.
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| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Governmental Account Audit Act is amended by | 5 | | changing Sections 1, 2, 4, 5, and 6 as follows:
| 6 | | (50 ILCS 310/1) (from Ch. 85, par. 701)
| 7 | | Sec. 1. Definitions. As used in this Act, unless the | 8 | | context
otherwise indicates:
| 9 | | "Governmental unit" or "unit" includes all municipal | 10 | | corporations in
and political subdivisions of this State that | 11 | | appropriate more than $5,000
for a fiscal year, with the amount | 12 | | to increase or decrease by the amount of the
Consumer Price | 13 | | Index (CPI) as reported on January 1 of each year, except the
| 14 | | following:
| 15 | | (1) School districts.
| 16 | | (2) Cities, villages, and incorporated towns subject | 17 | | to the
Municipal Auditing Law, as contained in
the Illinois | 18 | | Municipal Code, and cities that file a report with the
| 19 | | Comptroller under Section 3.1-35-115 of the Illinois | 20 | | Municipal Code.
| 21 | | (3) Counties with a population of 1,000,000 or more.
| 22 | | (4) Counties subject to the County Auditing
Law.
| 23 | | (5) Any other municipal corporations in or political |
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| 1 | | subdivisions of
this State, the accounts of which are | 2 | | required by law to be audited by
or under the direction of | 3 | | the Auditor General.
| 4 | | (6) (Blank).
| 5 | | (7) A drainage district, established under the | 6 | | Illinois Drainage
Code (70 ILCS 605), that did not receive | 7 | | or expend any moneys during the
immediately preceding | 8 | | fiscal year or obtains approval for assessments and
| 9 | | expenditures through the circuit court.
| 10 | | (8) Public housing authorities that submit financial | 11 | | reports to the U.S.
Department of Housing and Urban | 12 | | Development.
| 13 | | "Governing body" means the board or other body or officers | 14 | | having
authority to levy taxes, make appropriations, authorize | 15 | | the expenditure
of public funds or approve claims for any | 16 | | governmental unit.
| 17 | | "Comptroller" means the Comptroller of the State of | 18 | | Illinois.
| 19 | | "Consumer Price Index" means the Consumer Price Index for | 20 | | All Urban
Consumers for all items published by the United | 21 | | States Department of Labor.
| 22 | | "Licensed public accountant" means the holder of a valid | 23 | | certificate
as a public accountant under the Illinois Public | 24 | | Accounting Act.
| 25 | | "Audit report" means the written report of the auditor | 26 | | licensed public
accountant and all appended statements and |
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| 1 | | schedules relating to that
report,
presenting or recording the | 2 | | findings of an examination or audit of the
financial | 3 | | transactions, affairs, or conditions of a governmental unit.
| 4 | | "Auditor" means a licensed certified public accountant, as | 5 | | that term is defined in Section 0.03 of the Illinois Public | 6 | | Accounting Act, or the substantial equivalent of a licensed | 7 | | CPA, as provided under Section 5.2 of the Illinois Public | 8 | | Accounting Act, who performs an audit of governmental unit | 9 | | financial statements and records and expresses an assurance or | 10 | | disclaims an opinion on the audited financial statements. | 11 | | "Report" includes both audit reports and reports filed | 12 | | instead of an
audit report by a governmental unit receiving | 13 | | revenue of less than $850,000
during any fiscal year to which | 14 | | the reports relate. | 15 | | "Generally accepted auditing standards" means Audit | 16 | | Standards Generally Accepted in the United States of America.
| 17 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 18 | | (50 ILCS 310/2) (from Ch. 85, par. 702)
| 19 | | Sec. 2.
Except as otherwise provided in Section 3, the | 20 | | governing body of
each governmental unit shall cause an audit | 21 | | of the accounts of the unit to be
made by an auditor or | 22 | | auditors a licensed public accountant . Such audit shall be | 23 | | performed made annually and
shall cover the immediately | 24 | | preceding fiscal year of the governmental unit.
The audit shall | 25 | | include all the accounts and funds of the governmental
unit, |
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| 1 | | including the accounts of any officer of the governmental unit | 2 | | who
receives fees or handles funds of the unit or who spends | 3 | | money of the unit.
The audit shall begin as soon as possible | 4 | | after the close of the last
fiscal year to which it pertains, | 5 | | and shall be completed and the audit
report filed with the | 6 | | Comptroller within 180 days after the close of such
fiscal year | 7 | | unless an extension of time is granted by the Comptroller in
| 8 | | writing. An audit report which fails to meet the requirements | 9 | | of this
Act shall be rejected by the Comptroller and returned | 10 | | to the governing body
of the governmental unit for corrective | 11 | | action. The auditor or auditors performing
licensed public | 12 | | accountant making the audit shall submit not
less than 3 copies | 13 | | of the audit report to the governing body of the
governmental | 14 | | unit being audited. | 15 | | All audits to be filed with the Comptroller under this | 16 | | Section must be submitted electronically and the Comptroller | 17 | | must post the audit reports on the Internet no later than 45 | 18 | | days after they are received. If the governmental unit provides | 19 | | the Comptroller's Office with sufficient evidence that the | 20 | | audit report cannot be filed electronically, the Comptroller | 21 | | may waive this requirement. The Comptroller must also post a | 22 | | list of governmental units that are not in compliance with the | 23 | | reporting requirements set forth in this Section. | 24 | | Any financial report under this Section shall include the | 25 | | name of the purchasing agent who oversees all competitively bid | 26 | | contracts. If there is no purchasing agent, the name of the |
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| 1 | | person responsible for oversight of all competitively bid | 2 | | contracts shall be listed.
| 3 | | (Source: P.A. 99-459, eff. 8-25-15.)
| 4 | | (50 ILCS 310/4) (from Ch. 85, par. 704)
| 5 | | Sec. 4. Overdue report.
| 6 | | (a) If the required report for a governmental unit is not | 7 | | filed with the
Comptroller in accordance with Section 2 or | 8 | | Section 3, whichever is
applicable, within 180 days after the | 9 | | close of the fiscal year of the
governmental unit, the | 10 | | Comptroller shall notify the governing body of that
unit in | 11 | | writing that the report is due and may also grant a 60 day
| 12 | | extension for the filing of the audit report. If the required | 13 | | report is not
filed within the time specified in such written | 14 | | notice, the Comptroller
shall cause an audit to be made by a | 15 | | auditor licensed public accountant , and the
governmental unit | 16 | | shall pay to the Comptroller actual compensation and
expenses | 17 | | to reimburse him for the cost of preparing or completing such
| 18 | | report.
| 19 | | (b) The Comptroller may decline to order an audit and the | 20 | | preparation of
an audit report (i) if an initial examination of | 21 | | the books and records of
the
governmental unit indicates that | 22 | | the books and records of the governmental unit
are inadequate | 23 | | or unavailable due to the passage of time or the occurrence of | 24 | | a
natural disaster or (ii) if the Comptroller determines that | 25 | | the cost of an
audit would impose an unreasonable financial |
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| 1 | | burden on the governmental unit.
| 2 | | (c) The State Comptroller may grant extensions for | 3 | | delinquent audits or reports. The Comptroller may charge a | 4 | | governmental unit a fee for a delinquent audit or report of $5 | 5 | | per day for the first 15 days past due, $10 per day for 16 | 6 | | through 30 days past due, $15 per day for 31 through 45 days | 7 | | past due, and $20 per day for the 46th day and every day | 8 | | thereafter. These amounts may be reduced at the Comptroller's | 9 | | discretion. All fees collected under this subsection (c) shall | 10 | | be deposited into the Comptroller's Administrative Fund. | 11 | | (Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
| 12 | | (50 ILCS 310/5) (from Ch. 85, par. 705)
| 13 | | Sec. 5.
(a) (Blank). Prior to fiscal year 2019, the audit | 14 | | report shall contain statements that conform with
generally | 15 | | accepted accounting principles or other comprehensive basis of | 16 | | accounting and that set forth the financial position and | 17 | | results of financial operations for
each fund of the | 18 | | governmental unit. Each audit report shall include only
| 19 | | financial information, findings, and conclusions that are | 20 | | adequately
supported by evidence in the auditor's working | 21 | | papers to demonstrate or
prove, when called upon, the basis for | 22 | | the matters reported and their
correctness and reasonableness. | 23 | | In connection with this, each governmental
unit shall retain | 24 | | the right of inspection of the auditor's working papers
and | 25 | | shall make them available to the Comptroller, or his or her |
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| 1 | | designee, upon
request. The audit report shall also include the
| 2 | | professional opinion of the auditor or auditors with respect to | 3 | | the
financial statements or, if an opinion cannot be expressed, | 4 | | a declaration
that he or she is unable to express such opinion | 5 | | and an explanation of the reasons
he or she cannot do so. Each | 6 | | audit report shall include the certification of
the auditor or | 7 | | auditors making the audit that the audit has been
performed in | 8 | | compliance with generally accepted auditing standards.
| 9 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 10 | | the audit report shall contain statements that set forth the | 11 | | financial position and results of financial operations for | 12 | | financial statements for governmental activities, | 13 | | business-type activities, discretely presented component | 14 | | units, and each major fund and aggregated nonmajor fund each | 15 | | fund of the governmental unit . Each audit report shall include | 16 | | only financial information, findings, and conclusions that are | 17 | | adequately supported by evidence in the auditor's working | 18 | | papers to demonstrate or prove, when called upon, the basis for | 19 | | the matters reported and their correctness and reasonableness. | 20 | | In connection with this, each governmental unit shall retain | 21 | | the right of inspection of the auditor's working papers and | 22 | | shall make them available to the Comptroller, or his or her | 23 | | designee, upon request. The audit report shall also include the | 24 | | professional opinion of the auditor or auditors with respect to | 25 | | the financial statements or, if an opinion cannot be expressed, | 26 | | a declaration that he or she is unable to express an opinion |
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| 1 | | and an explanation of the reasons he or she cannot do so. Each | 2 | | audit report shall include a representation by the | 3 | | certification of the auditor or auditors conducting making the | 4 | | audit that the audit has been performed in accordance | 5 | | compliance with generally accepted auditing standards. | 6 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 7 | | audit reports shall contain financial statements prepared in | 8 | | accordance conformity with generally accepted accounting | 9 | | principles and audited in accordance conformity with generally | 10 | | accepted auditing standards if the last audit report filed | 11 | | preceding fiscal year 2019 expressed an unmodified or modified | 12 | | opinion by the independent auditor pertaining to that the | 13 | | financial statements that were prepared presented in | 14 | | accordance conformity with generally accepted accounting | 15 | | principles. | 16 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 17 | | audit reports containing financial statements prepared in | 18 | | accordance conformity with an other comprehensive basis of | 19 | | accounting may follow the best practices and guidelines as | 20 | | outlined by the American Institute of Certified Public | 21 | | Accountants and shall be audited in accordance conformity with | 22 | | generally accepted auditing standards. If the governing body of | 23 | | a governmental unit submits an audit report containing | 24 | | financial statements prepared in accordance conformity with | 25 | | generally accepted accounting principles, thereafter all | 26 | | future audit reports shall also contain financial statements |
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| 1 | | prepared presented in accordance conformity with generally | 2 | | accepted accounting principles. | 3 | | (e) Audits may be performed made on financial statements | 4 | | prepared using either an accrual or cash basis of accounting, | 5 | | depending upon the system followed by the governmental unit, | 6 | | and audit reports shall comply with this Section. | 7 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 8 | | (50 ILCS 310/6) (from Ch. 85, par. 706)
| 9 | | Sec. 6.
When the audit
is completed the auditor licensed | 10 | | public accountant making such
audit shall make and sign at | 11 | | least 3 copies of the report of the audit and
immediately file | 12 | | them with the governmental unit audited. Governmental
units | 13 | | receiving revenue of $850,000 or more for
any fiscal year shall | 14 | | immediately
make one copy of the audit report and one copy of | 15 | | the financial report required
by Section 3 of this Act a part | 16 | | of its public record. Governmental units
receiving revenue of | 17 | | less than $850,000 shall immediately make one copy of the
audit | 18 | | report, or one copy of the report authorized by Section 3 of | 19 | | this
Act to be filed instead of the audit report, a part of its | 20 | | public record.
These copies shall be
open to public inspection. | 21 | | In addition, the governmental unit shall file
one copy of the | 22 | | report with the Comptroller and with the county clerk of
the | 23 | | county in which the principal office of the governmental unit | 24 | | is
located. A governmental unit may, in filing its audit report | 25 | | with the
Comptroller, transmit with such report any comment or |
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| 1 | | explanation that it
wishes to make concerning the report.
| 2 | | (Source: P.A. 92-582, eff. 7-1-02.)
| 3 | | Section 10. The Counties Code is amended by changing | 4 | | Sections 6-31002, 6-31003, 6-31004, 6-31005, 6-31006, and | 5 | | 6-31008 as follows:
| 6 | | (55 ILCS 5/6-31002) (from Ch. 34, par. 6-31002)
| 7 | | Sec. 6-31002. Definitions. As used in this Division, unless | 8 | | the context otherwise requires:
| 9 | | 1. "Comptroller" means the Comptroller of the State of | 10 | | Illinois;
| 11 | | 2. (Blank); "Accountant" or "accountants" means and | 12 | | includes all persons
authorized to practice public accounting | 13 | | under the laws of this State;
| 14 | | 3. "Funds and accounts" means all funds of a county derived | 15 | | from
property taxes and all funds and accounts derived from | 16 | | sources other than
property taxes, including the receipts and | 17 | | expenditures of the fee earnings
of each county fee officer;
| 18 | | 4. "Audit report" means the written report of the auditor | 19 | | or auditors accountant or
accountants and all appended | 20 | | statements and schedules relating thereto,
presenting or | 21 | | recording the findings of an examination or audit of the
| 22 | | financial transactions, affairs and condition of a county;
| 23 | | 5. "Population" means the number of persons residing in a | 24 | | county
according to the last preceding federal decennial |
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| 1 | | census; | 2 | | 6. "Auditor" means a licensed certified public accountant, | 3 | | as that term is defined in Section 0.03 of the Illinois Public | 4 | | Accounting Act, or the substantial equivalent of a licensed | 5 | | CPA, as provided under Section 5.2 of the Illinois Public | 6 | | Accounting Act, who performs an audit of county financial | 7 | | statements and records and expresses an assurance or disclaims | 8 | | an opinion on the audited financial statements; "auditor" does | 9 | | not include a county auditor elected or appointed under | 10 | | Division 3-1 of the Counties Code.
| 11 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 12 | | (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
| 13 | | Sec. 6-31003. Annual audits and reports. The county board | 14 | | of each
county shall cause an audit of all of the funds and | 15 | | accounts of the county
to be performed made annually by an | 16 | | auditor or auditors accountant
or accountants chosen by the | 17 | | county board or by an auditor or auditors accountant or | 18 | | accountants
retained by the Comptroller, as hereinafter | 19 | | provided. In addition, each
county shall file with the | 20 | | Comptroller
a financial report containing information required | 21 | | by the Comptroller.
Such financial report shall be on a form so | 22 | | designed by the Comptroller
as not to require professional | 23 | | accounting services for its preparation. All audits and reports | 24 | | to be filed with the Comptroller under this Section must be | 25 | | submitted electronically and the Comptroller must post the |
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| 1 | | audits and reports on the Internet no later than 45 days after | 2 | | they are received. If the county provides the Comptroller's | 3 | | Office with sufficient evidence that the audit or report cannot | 4 | | be filed electronically, the Comptroller may waive this | 5 | | requirement. The Comptroller must also post a list of counties | 6 | | that are not in compliance with the reporting requirements set | 7 | | forth in this Section.
| 8 | | Any financial report under this Section shall include the | 9 | | name of the purchasing agent who oversees all competitively bid | 10 | | contracts. If there is no purchasing agent, the name of the | 11 | | person responsible for oversight of all competitively bid | 12 | | contracts shall be listed. | 13 | | The audit shall commence as soon as possible after the | 14 | | close of each
fiscal year and shall be completed within 180 | 15 | | days after the close of such
fiscal year, unless an extension | 16 | | of time is granted by the Comptroller in
writing. Such | 17 | | extension of time shall not exceed 60 days. When the auditor or | 18 | | auditors accountant
or accountants have completed the audit a | 19 | | full report thereof shall be made
and not less than 2 copies of | 20 | | each audit report shall be submitted to the
county board. Each | 21 | | audit report shall be signed by the auditor performing | 22 | | accountant making
the audit and shall include only financial | 23 | | information, findings and
conclusions that are adequately | 24 | | supported by evidence in the auditor's
working papers to | 25 | | demonstrate or prove, when called upon, the basis for the
| 26 | | matters reported and their correctness and reasonableness. In |
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| 1 | | connection
with this, each county board shall retain the right | 2 | | of inspection of the
auditor's working papers and shall make | 3 | | them available to the Comptroller,
or his designee, upon | 4 | | request.
| 5 | | Within 60 days of receipt of an audit report, each county | 6 | | board shall file
one copy of each audit report and each | 7 | | financial report with the Comptroller
and any comment or | 8 | | explanation that the county board may desire to make
concerning | 9 | | such audit report may be attached thereto. An audit report
| 10 | | which fails to meet the requirements of this Division shall be
| 11 | | rejected by the Comptroller and returned to the county board | 12 | | for corrective
action. One copy of each such report shall be | 13 | | filed with the county clerk
of the county so audited.
| 14 | | This Section is a limitation under subsection (i) of | 15 | | Section 6 of Article VII of the Illinois Constitution on the | 16 | | concurrent exercise by home rule counties of powers and | 17 | | functions exercised by the State. | 18 | | (Source: P.A. 99-459, eff. 8-25-15.)
| 19 | | (55 ILCS 5/6-31004) (from Ch. 34, par. 6-31004)
| 20 | | Sec. 6-31004. Overdue reports.
| 21 | | (a) In the event the required reports for
a county are not | 22 | | filed with the Comptroller in accordance with Section 6-31003
| 23 | | within 180 days after the close of the fiscal year of the | 24 | | county, the
Comptroller shall notify the county board in | 25 | | writing that the reports are
due, and may also grant an |
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| 1 | | extension of time of up to 60 days for the
filing of the | 2 | | reports. In the event the required reports are not filed
within | 3 | | the time specified in such written notice, the Comptroller | 4 | | shall
cause the audit to be performed made and the audit report | 5 | | prepared by an auditor or auditors accountant
or accountants .
| 6 | | (b) The Comptroller may decline to order an audit and the | 7 | | preparation of
an
audit report if an initial examination of the | 8 | | books and records of the
governmental unit indicates that the | 9 | | books and records of the governmental unit
are inadequate or | 10 | | unavailable due to the passage of time or the occurrence of a
| 11 | | natural disaster.
| 12 | | (c) The State Comptroller may grant extensions for | 13 | | delinquent audits or reports. The Comptroller may charge a | 14 | | county a fee for a delinquent audit or report of $5 per day for | 15 | | the first 15 days past due, $10 per day for 16 through 30 days | 16 | | past due, $15 per day for 31 through 45 days past due, and $20 | 17 | | per day for the 46th day and every day thereafter. These | 18 | | amounts may be reduced at the Comptroller's discretion. All | 19 | | fees collected under this subsection (c) shall be deposited | 20 | | into the Comptroller's Administrative Fund. | 21 | | (Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
| 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 after the official leaves office. The audit | 5 | | shall be performed
conducted and the audit report shall be | 6 | | prepared and filed with the
Chairman of the County Board by an | 7 | | auditor a person lawfully qualified to practice
public | 8 | | accounting as regulated by "An Act to regulate the practice of
| 9 | | public accounting and to repeal certain acts therein named", | 10 | | approved 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. 99-459, eff. 8-25-15.)
| 20 | | (55 ILCS 5/6-31006) (from Ch. 34, par. 6-31006)
| 21 | | Sec. 6-31006. Audit report. | 22 | | (a) (Blank). Prior to fiscal year 2019, the audit report | 23 | | shall contain
statements that are in conformity with generally | 24 | | accepted public accounting
principles or other comprehensive | 25 | | basis of accounting and shall set forth the financial position
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| 1 | | and the results of financial operations for each fund, account, | 2 | | and office
of the county government. The audit report shall | 3 | | also include the
professional opinion of the auditor or | 4 | | auditors with respect to the
financial status and operations | 5 | | or, if an opinion cannot be expressed, a
declaration that such | 6 | | auditor is unable to express such opinion and an
explanation of | 7 | | the reasons he or she cannot do so. Each audit report shall
| 8 | | include the certification of the auditor or auditors making the | 9 | | audit
that the audit has been performed in compliance with | 10 | | generally accepted
auditing standards. Each audit report filed | 11 | | with the Comptroller shall be
accompanied by a copy of each | 12 | | official statement or other offering of
materials prepared in | 13 | | connection with the issuance of indebtedness of the
county | 14 | | since the filing of the last audit report.
| 15 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 16 | | the audit report shall contain statements that set forth the | 17 | | financial position and the results of financial operations for | 18 | | financial statements for governmental activities, | 19 | | business-type activities, discretely presented component | 20 | | units, and each major fund and aggregated nonmajor funds for | 21 | | each fund, account, and office of the county government. The | 22 | | audit report shall also include the professional opinion or | 23 | | opinions of an auditor or auditors with respect to the | 24 | | financial status and statements operations or, if an opinion | 25 | | cannot be expressed, a declaration that the auditor is unable | 26 | | to express an opinion and an explanation of the reasons he or |
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| 1 | | she cannot do so. Each auditor's audit report shall include the | 2 | | representation certification of the auditor or auditors | 3 | | conducting making the audit that the audit has been performed | 4 | | in accordance compliance with generally accepted auditing | 5 | | standards. Each audit report filed with the Comptroller shall | 6 | | be accompanied by a copy of each official statement or other | 7 | | offering of materials prepared in connection with the issuance | 8 | | of indebtedness of the county since the filing of the last | 9 | | audit report. | 10 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 11 | | audit reports shall contain financial statements prepared in | 12 | | accordance conformity with generally accepted accounting | 13 | | principles and audited in conformity with generally accepted | 14 | | auditing standards if the last audit report filed preceding | 15 | | fiscal year 2019 expressed an unmodified or modified opinion by | 16 | | the independent auditor that the financial statements were | 17 | | presented in accordance conformity with generally accepted | 18 | | accounting principles. | 19 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 20 | | audit reports containing financial statements prepared in | 21 | | accordance conformity with an other comprehensive basis of | 22 | | accounting may follow the best practices and guidelines | 23 | | outlined by the American Institute of Certified Public | 24 | | Accountants and shall be audited in accordance conformity with | 25 | | generally accepted auditing standards. If the county board of a | 26 | | county submits an audit report containing financial statements |
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| 1 | | prepared in accordance conformity with generally accepted | 2 | | accounting principles, thereafter all future audit reports | 3 | | shall also contain financial statements prepared in accordance | 4 | | presented in conformity with generally accepted accounting | 5 | | principles. | 6 | | (e) Audits may be made on financial statements prepared | 7 | | using either an accrual or cash basis of accounting, depending | 8 | | upon the system followed by the county, and audit reports shall | 9 | | comply with this Section. | 10 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 11 | | (55 ILCS 5/6-31008) (from Ch. 34, par. 6-31008)
| 12 | | Sec. 6-31008. Expenses of audit. The expenses of conducting | 13 | | the
audit and making the required audit report or financial | 14 | | statement for each
county, whether ordered by the county board | 15 | | or the Comptroller, shall be
paid by the county and the county | 16 | | board shall make provisions for such
payment. If the audit is | 17 | | made by an auditor or auditors accountant or accountants | 18 | | retained by
the Comptroller, the county, through the county | 19 | | board, shall pay to the
Comptroller reasonable compensation and | 20 | | expenses to reimburse him for the
cost of making such audit.
| 21 | | Moneys paid to the Comptroller pursuant to the preceding | 22 | | sentence shall be
deposited into the Comptroller's Audit | 23 | | Expense Revolving Fund.
| 24 | | Such expenses shall be paid from the general corporate fund | 25 | | of the
county.
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| 1 | | Contracts for the performance of audits required by this | 2 | | Division may
be entered into without competitive bidding.
| 3 | | (Source: P.A. 88-280.)
| 4 | | Section 15. The Illinois Municipal Code is amended by | 5 | | changing Sections 8-8-2, 8-8-3, 8-8-3.5, 8-8-4, 8-8-5, 8-8-7, | 6 | | and 8-8-8 as follows:
| 7 | | (65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
| 8 | | Sec. 8-8-2.
The following terms shall, unless the context | 9 | | otherwise indicates,
have the following meanings:
| 10 | | (1) "Municipality" or "municipalities" means all cities, | 11 | | villages
and incorporated towns having a population of less | 12 | | than 500,000 as
determined by the last preceding Federal | 13 | | census.
| 14 | | (2) "Corporate authorities" means a city council, village | 15 | | board of
trustees, library board, police and firemen's pension | 16 | | board, or any
other body or officers having authority to levy | 17 | | taxes, make
appropriations, or approve claims for any | 18 | | municipality.
| 19 | | (3) "Comptroller" means the Comptroller of the State of | 20 | | Illinois.
| 21 | | (4) (Blank). "Accountant" or "accountants" means all | 22 | | persons licensed to
practice public accounting under the laws | 23 | | of this State.
| 24 | | (5) "Audit report" means the written report of the auditor |
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| 1 | | or auditors accountant or
accountants and all appended | 2 | | statements and schedules relating thereto,
presenting or | 3 | | recording the findings of an examination or audit of the
| 4 | | financial transactions, affairs, or condition of a | 5 | | municipality.
| 6 | | (6) "Annual report" means the statement filed, in lieu of | 7 | | an audit
report, by the municipalities of less than 800 | 8 | | population, which do not
own or operate public utilities and do | 9 | | not have bonded debt.
| 10 | | (7) "Supplemental report" means the annual statement | 11 | | filed, in
addition to any audit report provided for herein, by | 12 | | all municipalities,
except municipalities of less than 800 | 13 | | population which do not own or
operate public utilities and do | 14 | | not have bonded debt.
| 15 | | (8) "Auditor" means a licensed certified public | 16 | | accountant, as that term is defined in Section 0.03 of the | 17 | | Illinois Public Accounting Act, or the substantial equivalent | 18 | | of a licensed CPA, as provided under Section 5.2 of the | 19 | | Illinois Public Accounting Act, who performs an audit of | 20 | | municipal financial statements and records and expresses an | 21 | | assurance or disclaims an opinion on the audited financial | 22 | | statements. | 23 | | (9) "Generally accepted auditing standards" means Audit | 24 | | Standards Generally Accepted in the United States of America. | 25 | | (Source: P.A. 100-837, eff. 8-13-18.)
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| 1 | | (65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3) | 2 | | Sec. 8-8-3. Audit requirements. | 3 | | (a) The corporate authorities of each municipality coming | 4 | | under the
provisions of this Division 8 shall cause an audit of | 5 | | the funds and
accounts of the municipality to be made by an | 6 | | auditor or auditors accountant or accountants
employed by such | 7 | | municipality or by an auditor or auditors accountant or | 8 | | accountants retained
by the Comptroller, as hereinafter | 9 | | provided. | 10 | | (b) The accounts and funds of each municipality having a | 11 | | population of 800
or more or having a bonded debt or owning or | 12 | | operating any type of public
utility shall be audited annually. | 13 | | The audit herein required shall include
all of the accounts and | 14 | | funds of the municipality. Such audit shall be
begun as soon as | 15 | | possible after the close of the fiscal year, and shall be
| 16 | | completed and the report submitted within 180 days after the | 17 | | close of such
fiscal year, unless an extension of time shall be | 18 | | granted by the
Comptroller in writing. The auditor or auditors | 19 | | perform accountant or accountants making the audit
shall submit | 20 | | not less than 2 copies of the audit report to the corporate
| 21 | | authorities of the municipality being audited. Municipalities | 22 | | not operating
utilities may cause audits of the accounts of | 23 | | municipalities to be made
more often than herein provided, by | 24 | | an auditor or auditors accountant or accountants . The audit
| 25 | | report of such audit when filed with the Comptroller together | 26 | | with an audit
report covering the remainder of the period for |
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| 1 | | which an audit is required
to be filed hereunder shall satisfy | 2 | | the requirements of this section. | 3 | | (c) Municipalities of less than 800 population which do not | 4 | | own or operate
public utilities and do not have bonded debt, | 5 | | shall file annually with the
Comptroller a financial report | 6 | | containing information required by the
Comptroller. Such | 7 | | annual financial report shall be on forms devised by the
| 8 | | Comptroller in such manner as to not require professional | 9 | | accounting
services for its preparation. | 10 | | (d) In addition to any audit report required, all | 11 | | municipalities, except
municipalities of less than 800 | 12 | | population which do not own or operate
public utilities and do | 13 | | not have bonded debt, shall file annually with the
Comptroller | 14 | | a supplemental report on forms devised and approved by the
| 15 | | Comptroller. | 16 | | (e) Notwithstanding any provision of law to the contrary, | 17 | | if a municipality (i) has a population of less than 200, (ii) | 18 | | has bonded debt in the amount of $50,000 or less, and (iii) | 19 | | owns or operates a public utility, then the municipality shall | 20 | | cause an audit of the funds and accounts of the municipality to | 21 | | be performed made by an auditor accountant employed by the | 22 | | municipality or retained by the Comptroller for fiscal year | 23 | | 2011 and every fourth fiscal year thereafter or until the | 24 | | municipality has a population of 200 or more, has bonded debt | 25 | | in excess of $50,000, or no longer owns or operates a public | 26 | | utility. Nothing in this subsection shall be construed as |
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| 1 | | limiting the municipality's duty to file an annual financial | 2 | | report with the Comptroller or to comply with the filing | 3 | | requirements concerning the county clerk. | 4 | | (f) All audits and reports to be filed with the Comptroller | 5 | | under this Section must be submitted electronically and the | 6 | | Comptroller must post the audits and reports on the Internet no | 7 | | later than 45 days after they are received. If the municipality | 8 | | provides the Comptroller's Office with sufficient evidence | 9 | | that the audit or report cannot be filed electronically, the | 10 | | Comptroller may waive this requirement. The Comptroller must | 11 | | also post a list of municipalities that are not in compliance | 12 | | with the reporting requirements set forth in this Section. | 13 | | (g) Subsection (f) of this Section is a limitation under | 14 | | subsection (i) of Section 6 of Article VII of the Illinois | 15 | | Constitution on the concurrent exercise by home rule | 16 | | municipalities of powers and functions exercised by the State. | 17 | | (h) Any financial report under this Section shall include | 18 | | the name of the purchasing agent who oversees all competitively | 19 | | bid contracts. If there is no purchasing agent, the name of the | 20 | | person responsible for oversight of all competitively bid | 21 | | contracts shall be listed. | 22 | | (Source: P.A. 99-459, eff. 8-25-15.)
| 23 | | (65 ILCS 5/8-8-3.5)
| 24 | | Sec. 8-8-3.5. Tax Increment Financing Report. The reports | 25 | | filed under
subsection (d) of Section 11-74.4-5 of the Tax |
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| 1 | | Increment Allocation
Redevelopment Act and the reports filed | 2 | | under subsection (d) of Section
11-74.6-22 of the Industrial | 3 | | Jobs Recovery Law
in the Illinois Municipal Code must be | 4 | | separate from any
other annual report filed with the | 5 | | Comptroller. The Comptroller must, in
cooperation with | 6 | | reporting municipalities, create
a format for the reporting of | 7 | | information described in paragraphs (1.5)
and (5) and
in | 8 | | subparagraph (G) of paragraph (7) of subsection (d) of Section
| 9 | | 11-74.4-5 of
the Tax Increment Allocation Redevelopment Act
and | 10 | | the information described in paragraphs (1.5) and (5) and in | 11 | | subparagraph
(G) of paragraph (7) of subsection (d) of Section | 12 | | 11-74.6-22 of the Industrial
Jobs Recovery Law
that facilitates | 13 | | consistent
reporting among the reporting municipalities. The | 14 | | Comptroller may allow these
reports to be filed electronically | 15 | | and may display the report, or portions of
the report, | 16 | | electronically via the Internet. All reports filed under this
| 17 | | Section must be made available for examination and copying by | 18 | | the public at all
reasonable times. A Tax Increment Financing | 19 | | Report must be filed electronically with the Comptroller within | 20 | | 180 days after the close of the municipal fiscal year or as | 21 | | soon thereafter as the audit for the redevelopment
project area | 22 | | for that fiscal year becomes available. If the Tax Increment | 23 | | Finance administrator provides the Comptroller's office with | 24 | | sufficient evidence that the report is in the process of being | 25 | | completed by an auditor, the Comptroller may grant an | 26 | | extension. If the required report is not filed within
the
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| 1 | | extended by the Comptroller, the Comptroller shall notify the | 2 | | corporate authorities of that municipality that the audit | 3 | | report is past due. The Comptroller may charge a municipality a | 4 | | fee of $5 per day for the first 15 days past due, $10 per day | 5 | | for 16 through 30 days past due, $15 per day for 31 through 45 | 6 | | days past due, and $20 per day for the 46th day and every day | 7 | | thereafter. These amounts may be reduced at the Comptroller's | 8 | | discretion. In the event the required audit report is not filed | 9 | | within 60 days of such notice, the Comptroller shall cause such | 10 | | audit to be made by an auditor or auditors accountant or | 11 | | accountants . The Comptroller may decline to order an audit and | 12 | | the preparation of an audit report if an initial examination of | 13 | | the books and records of the municipality indicates that books | 14 | | and records of the municipality are inadequate or unavailable | 15 | | to support the preparation of the audit report or the | 16 | | supplemental report due to the passage of time or the | 17 | | occurrence of a natural disaster. All fees collected pursuant | 18 | | to this Section shall be deposited into the Comptroller's | 19 | | Administrative Fund. In the event the Comptroller causes an | 20 | | audit to be made in accordance with the requirements of this | 21 | | Section, the municipality shall pay to the Comptroller | 22 | | reasonable compensation and expenses to reimburse her for the | 23 | | cost of preparing or completing such report. Moneys paid to the | 24 | | Comptroller pursuant to the preceding sentence shall be | 25 | | deposited into the Comptroller's Audit Expense Revolving Fund.
| 26 | | (Source: P.A. 98-497, eff. 8-16-13; 98-922, eff. 8-15-14.)
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| 1 | | (65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
| 2 | | Sec. 8-8-4. Overdue reports.
| 3 | | (a) In the event the required audit report for
a | 4 | | municipality is not filed
with the Comptroller in accordance | 5 | | with Section 8-8-7 within 180 days after
the close of the | 6 | | fiscal year of the municipality, the Comptroller shall
notify | 7 | | the corporate authorities of that municipality in writing that | 8 | | the
audit report is due, and may also grant an extension of | 9 | | time of 60 days,
for the filing of the audit report. In the | 10 | | event the required audit report
is not filed within the time | 11 | | specified in such written notice, the
Comptroller shall cause | 12 | | such audit to be made by an auditor or auditors accountant or
| 13 | | accountants . In the event the required annual or supplemental | 14 | | report for a
municipality is not filed within 6 months after | 15 | | the close of the fiscal
year of the municipality, the | 16 | | Comptroller shall notify the corporate
authorities of that | 17 | | municipality in writing that the annual or supplemental
report | 18 | | is due and may grant an extension in time of 60 days for the | 19 | | filing
of such annual or supplemental report.
| 20 | | (b) In the event the annual or supplemental report is not | 21 | | filed within
the
time extended by the Comptroller, the | 22 | | Comptroller shall cause such annual
or supplemental report to | 23 | | be prepared or completed and the municipality
shall pay to the | 24 | | Comptroller reasonable compensation and expenses to
reimburse | 25 | | him for the cost of preparing or completing such annual or
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| 1 | | supplemental report.
Moneys paid to the Comptroller pursuant to | 2 | | the preceding sentence shall be
deposited into the | 3 | | Comptroller's Audit Expense Revolving Fund.
| 4 | | (c) The Comptroller may decline to order an audit or the | 5 | | completion of the
supplemental report if an initial examination | 6 | | of the books and records of the
municipality indicates that | 7 | | books and records of the municipality are
inadequate or | 8 | | unavailable to support the preparation of the audit report or | 9 | | the
supplemental report due to the passage of time or the | 10 | | occurrence of a natural
disaster.
| 11 | | (d) The State Comptroller may grant extensions for | 12 | | delinquent audits or reports. The Comptroller may charge a | 13 | | municipality a fee for a delinquent audit or report of $5 per | 14 | | day for the first 15 days past due, $10 per day for 16 through | 15 | | 30 days past due, $15 per day for 31 through 45 days past due, | 16 | | and $20 per day for the 46th day and every day thereafter. | 17 | | These amounts may be reduced at the Comptroller's discretion. | 18 | | All fees collected under this subsection (d) shall be deposited | 19 | | into the Comptroller's Administrative Fund. | 20 | | (Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
| 21 | | (65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)
| 22 | | Sec. 8-8-5.
(a) (Blank). Prior to fiscal year 2019, the | 23 | | audit shall be made in accordance with generally accepted
| 24 | | auditing standards. Reporting on the financial position and | 25 | | results of
financial operations for each fund of the |
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| 1 | | municipality shall be in
accordance with generally accepted | 2 | | accounting principles or other comprehensive basis of | 3 | | accounting. Each audit report shall include only financial | 4 | | information,
findings, and conclusions that are adequately | 5 | | supported by evidence in the
auditor's working papers to | 6 | | demonstrate or prove, when called upon, the
basis for the | 7 | | matters reported and their correctness and reasonableness.
In | 8 | | connection with this, each municipality shall retain the right | 9 | | of
inspection of the auditor's working papers and shall make | 10 | | them available to
the Comptroller, or his or her designee, upon | 11 | | request. The audit report shall
consist of the professional | 12 | | opinion of the auditor or auditors with
respect to the | 13 | | financial statements or, if an opinion cannot be expressed,
a | 14 | | declaration that the auditor is unable to express such opinion | 15 | | and an
explanation of the reasons he or she cannot do so. | 16 | | Municipal authorities shall not
impose limitations on the scope | 17 | | of the audit to the extent that the effect
of such limitations | 18 | | will result in the qualification of the opinion of the auditor | 19 | | or auditors. Each audit report filed with the Comptroller
shall | 20 | | be accompanied by a copy of each official statement or other | 21 | | offering
of materials prepared in connection with the issuance | 22 | | of indebtedness of
the municipality since the filing of the | 23 | | last audit report.
| 24 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 25 | | the audit shall be made in accordance with generally accepted | 26 | | auditing standards. Each audit report shall include only |
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| 1 | | financial information, findings, and conclusions that are | 2 | | adequately supported by evidence in the auditor's working | 3 | | papers to demonstrate or prove, when called upon, the basis for | 4 | | the matters reported and their correctness and reasonableness. | 5 | | In connection with this, each municipality shall retain the | 6 | | right of inspection of the auditor's working papers and shall | 7 | | make them available to the Comptroller, or his or her designee, | 8 | | upon request. The audit report shall include the financial | 9 | | statements for governmental activities, business-type | 10 | | activities, discretely presented component units, and each | 11 | | major fund and aggregated nonmajor fund. The audit report shall | 12 | | also include also consist of the professional opinion or | 13 | | opinions of the an auditor or auditors with respect to the | 14 | | financial statements or, if an opinion cannot be expressed, a | 15 | | declaration that the auditor is unable to express an opinion | 16 | | and an explanation of the reasons he or she cannot do so. Each | 17 | | auditor's report shall include a representation by the auditor | 18 | | or auditors conducting the audit has been performed in | 19 | | accordance with generally accepted auditing standards. | 20 | | Municipal authorities shall not impose limitations on the scope | 21 | | of the audit to the extent that the effect of the limitations | 22 | | will result in the modification qualification of the opinion or | 23 | | opinions of the auditor or auditors. Each audit report filed | 24 | | with the Comptroller shall be accompanied by a copy of each | 25 | | official statement or other offering of materials prepared in | 26 | | connection with the issuance of indebtedness of the |
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| 1 | | municipality since the filing of the last audit report. | 2 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 3 | | audit reports shall contain financial statements prepared in | 4 | | accordance with generally accepted accounting principles and | 5 | | audited in accordance with generally accepted auditing | 6 | | standards if the last audit report filed preceding fiscal year | 7 | | 2019 expressed an unmodified or modified opinion by the | 8 | | independent auditor that the financial statements were | 9 | | prepared presented in accordance with generally accepted | 10 | | accounting principles.
| 11 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 12 | | audit reports containing financial statements prepared in | 13 | | accordance with an other comprehensive basis of accounting may | 14 | | follow the best practices and guidelines outlined by the | 15 | | American Institute of Certified Public Accountants and shall be | 16 | | audited in accordance with generally accepted auditing | 17 | | standards. If the corporate authority of a municipality submits | 18 | | an audit report containing financial statements prepared in | 19 | | accordance with generally accepted accounting principles, | 20 | | thereafter all future audit reports shall also contain | 21 | | financial statements prepared presented in accordance with | 22 | | generally accepted accounting principles. | 23 | | (e) Audits may be made on financial statements prepared | 24 | | using either an accrual or cash basis of accounting, depending | 25 | | upon the system followed by the municipality, and audit reports | 26 | | shall comply with this Section. |
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| 1 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 2 | | (65 ILCS 5/8-8-7) (from Ch. 24, par. 8-8-7)
| 3 | | Sec. 8-8-7.
When the auditor or auditors accountant or | 4 | | accountants have completed the audit,
not less than 2 copies of | 5 | | a report of the audit shall be made and signed by
the | 6 | | accountant making such audit, and shall immediately be filed | 7 | | with the
municipality audited. Each audit report shall include | 8 | | the certification
of the auditor or auditors accountant or | 9 | | accountants making the audit that the audit has been
performed | 10 | | in compliance with generally accepted auditing standards.
The | 11 | | municipality shall immediately make one copy of
the report, or | 12 | | one copy of the report authorized by this Division 8 in lieu
of | 13 | | an audit report, a part of its public records and at all times
| 14 | | thereafter this copy shall be open to public inspection. In | 15 | | addition, the
municipality shall file one copy of the report | 16 | | with the Comptroller.
An audit report which fails to meet the | 17 | | requirements of this Act shall be
rejected by the Comptroller | 18 | | and returned to the municipal authorities for
corrective | 19 | | action. Nothing in this section shall be construed as
| 20 | | preventing a municipality, in
filing its audit report with the | 21 | | Comptroller, from transmitting with such
report any comment or | 22 | | explanation that it may desire to make concerning
that report. | 23 | | The audit report filed with the Comptroller, together with any
| 24 | | accompanying comment or explanation, shall immediately become | 25 | | a part of his
public records and shall at all times thereafter |
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| 1 | | be open to public
inspection. It shall be unlawful for the | 2 | | auditor accountant to make any disclosure
of the result of any | 3 | | examination of any public account excepting as he does
so | 4 | | directly to the corporate authorities of the municipality | 5 | | audited.
| 6 | | (Source: P.A. 85-1000.)
| 7 | | (65 ILCS 5/8-8-8) (from Ch. 24, par. 8-8-8)
| 8 | | Sec. 8-8-8.
The expenses of the audit and investigation of | 9 | | public accounts
provided for in Division 8, whether ordered by | 10 | | the corporate authorities
or the Comptroller, shall be paid by | 11 | | the municipality for which the
audit is made. Payment shall be | 12 | | ordered by the corporate authorities out
of the funds of the | 13 | | municipality and it shall be the duty of such
authorities to | 14 | | make provisions for payment. Contracts for the
performance of | 15 | | audits required by this Division 8 may be entered into
without | 16 | | competitive bidding. If the audit is made by an auditor or | 17 | | auditors accountant or
accountants retained by the | 18 | | Comptroller, the municipality shall pay to
the Comptroller | 19 | | reasonable compensation and expenses to reimburse him
for the | 20 | | cost of making such audit.
| 21 | | The corporate authorities of all municipalities coming | 22 | | under the
provisions of this Division 8 shall have the power to | 23 | | annually levy a
"Municipal Auditing Tax" upon all of the | 24 | | taxable property of the
municipalities at the rate on the | 25 | | dollar which will produce an amount
which will equal a sum |
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| 1 | | sufficient to meet the cost of all auditing and
reports | 2 | | thereunder. Such municipal auditing tax shall be held in a
| 3 | | special fund and used for no other purpose than the payment of | 4 | | expenses
occasioned by this Division 8.
| 5 | | The tax authorized by this Section shall be in addition to | 6 | | taxes for
general corporate purposes authorized under Section | 7 | | 8-3-1 of this Act.
| 8 | | (Source: P.A. 81-824.)
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