Illinois General Assembly - Full Text of HB5011
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Full Text of HB5011  103rd General Assembly

HB5011ham001 103RD GENERAL ASSEMBLY

Rep. Bradley Fritts

Filed: 4/11/2024

 

 


 

 


 
10300HB5011ham001LRB103 38092 AWJ 71953 a

1
AMENDMENT TO HOUSE BILL 5011

2    AMENDMENT NO. ______. Amend House Bill 5011 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Governmental Account Audit Act is amended
5by changing Sections 1, 2, 3, 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
8context otherwise indicates:
9    "Governmental unit" or "unit" includes all municipal
10corporations in and political subdivisions of this State that
11appropriate more than $5,000 for a fiscal year, with the
12amount to increase or decrease by the amount of the Consumer
13Price Index (CPI) as reported on January 1 of each year, except
14the following:
15        (1) School districts.
16        (2) Cities, villages, and incorporated towns subject

 

 

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1    to the Municipal Auditing Law, as contained in the
2    Illinois Municipal Code, and cities that file a report
3    with the Comptroller under Section 3.1-35-115 of the
4    Illinois Municipal Code.
5        (3) Counties with a population of 1,000,000 or more.
6        (4) Counties subject to the County Auditing Law.
7        (5) Any other municipal corporations in or political
8    subdivisions of this State, the accounts of which are
9    required by law to be audited by or under the direction of
10    the Auditor General.
11        (6) (Blank).
12        (7) A drainage district, established under the
13    Illinois Drainage Code (70 ILCS 605), that did not receive
14    or expend any moneys during the immediately preceding
15    fiscal year or obtains approval for assessments and
16    expenditures through the circuit court.
17        (8) Public housing authorities that submit financial
18    reports to the U.S. Department of Housing and Urban
19    Development.
20    "Governing body" means the board or other body or officers
21having authority to levy taxes, make appropriations, authorize
22the expenditure of public funds or approve claims for any
23governmental unit.
24    "Comptroller" means the Comptroller of the State of
25Illinois.
26    "Consumer Price Index" means the Consumer Price Index for

 

 

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1All Urban Consumers for all items published by the United
2States Department of Labor.
3    "Audit report" means:
4        (1) for governmental unit fiscal years before fiscal
5    year 2026, the written report of the auditor and all
6    appended statements and schedules relating to that report,
7    presenting or recording the findings of an examination or
8    audit of the financial transactions, affairs, or
9    conditions of a governmental unit; and .
10        (2) for governmental unit fiscal years 2026 and after,
11    the written report of the auditor or auditors and all
12    appended statements and schedules relating thereto,
13    presenting or recording the findings of an examination or
14    audit of the financial transactions, affairs, or
15    conditions of a governmental unit that includes all of the
16    accounts and funds of a governmental unit.
17    "Auditor" means a licensed certified public accountant, as
18that term is defined in Section 0.03 of the Illinois Public
19Accounting Act, or the substantial equivalent of a licensed
20CPA, as provided under Section 5.2 of the Illinois Public
21Accounting Act, who performs an audit of governmental unit
22financial statements and records and expresses an assurance or
23disclaims an opinion on the audited financial statements.
24    "Consumer Price Index-U" means the index published by the
25Bureau of Labor Statistics of the United States Department of
26Labor that measures the average change in prices of goods and

 

 

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1services purchased by all urban consumers, United States city
2average, all items, 1982-84 = 100.
3    "Report":
4        (1) for governmental unit fiscal years before fiscal
5    year 2026, includes both audit reports and reports filed
6    instead of an audit report by a governmental unit
7    receiving revenue of less than $850,000 during any fiscal
8    year to which the reports relate; and .
9        (2) for governmental unit fiscal years 2026 and after,
10    means the statement filed in lieu of an audit report
11    containing information required by the Comptroller on
12    forms devised by the Comptroller in such manner as to not
13    require professional accounting services for its
14    preparation.
15    "Generally accepted accounting principles" means
16accounting principles generally accepted in the United States.
17    "Generally accepted auditing standards" means auditing
18standards generally accepted in the United States.
19(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
 
20    (50 ILCS 310/2)  (from Ch. 85, par. 702)
21    Sec. 2. (a) This subsection applies to governmental unit
22fiscal years before fiscal year 2026. Except as otherwise
23provided in Section 3, the governing body of each governmental
24unit shall cause an audit of the accounts of the unit to be
25made by an auditor or auditors. Such audit shall be performed

 

 

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1annually and shall cover the immediately preceding fiscal year
2of the governmental unit. The audit shall include all the
3accounts and funds of the governmental unit, including the
4accounts of any officer of the governmental unit who receives
5fees or handles funds of the unit or who spends money of the
6unit. The audit shall begin as soon as possible after the close
7of the last fiscal year to which it pertains, and shall be
8completed and the audit report filed with the Comptroller
9within 180 days after the close of such fiscal year unless an
10extension of time is granted by the Comptroller in writing. An
11audit report which fails to meet the requirements of this Act
12shall be rejected by the Comptroller and returned to the
13governing body of the governmental unit for corrective action.
14The auditor or auditors performing the audit shall submit not
15less than 3 copies of the audit report to the governing body of
16the governmental unit being audited.
17    All audits to be filed with the Comptroller under this
18Section must be submitted electronically and the Comptroller
19must post the audit reports on the Internet no later than 45
20days after they are received. If the governmental unit
21provides the Comptroller's Office with sufficient evidence
22that the audit report cannot be filed electronically, the
23Comptroller may waive this requirement. The Comptroller must
24also post a list of governmental units that are not in
25compliance with the reporting requirements set forth in this
26Section.

 

 

10300HB5011ham001- 6 -LRB103 38092 AWJ 71953 a

1    Any financial report under this Section shall include the
2name of the purchasing agent who oversees all competitively
3bid contracts. If there is no purchasing agent, the name of the
4person responsible for oversight of all competitively bid
5contracts shall be listed.
6    (b) This subsection applies to governmental unit fiscal
7years 2026 and after. Except as otherwise provided in Section
83, the governing body of each governmental unit shall cause an
9audit of the accounts of the unit to be made by an auditor or
10auditors. Such audit shall be performed once every 2 years and
11shall cover the 2 immediately preceding fiscal years of the
12governmental unit, unless the latest audit report filed with
13the Comptroller contains an adverse or disclaimer of opinion.
14If the audit report contains an adverse or disclaimer of
15opinion, then the governmental unit shall file an audit report
16annually until the audit report shows no adverse or disclaimer
17of opinion. The audit shall include all the accounts and funds
18of the governmental unit, including the accounts of any
19officer of the governmental unit who receives fees or handles
20funds of the unit or who spends money of the unit. The audit
21shall begin as soon as possible after the close of the last
22fiscal year to which it pertains, and shall be completed and
23the audit report filed with the Comptroller within 180 days
24after the close of such fiscal year unless an extension of time
25is granted by the Comptroller in writing. An audit report
26which fails to meet the requirements of this Act shall be

 

 

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1rejected by the Comptroller and returned to the governing body
2of the governmental unit for corrective action. The auditor or
3auditors performing the audit shall submit not less than 3
4copies of the audit report to the governing body of the
5governmental unit being audited.
6    All audits to be filed with the Comptroller under this
7Section must be submitted electronically and the Comptroller
8must post the audit reports on the Internet no later than 45
9days after they are received. If the governmental unit
10provides the Comptroller's Office with sufficient evidence
11that the audit report cannot be filed electronically, the
12Comptroller may waive this requirement. The Comptroller must
13also post a list of governmental units that are not in
14compliance with the reporting requirements set forth in this
15Section.
16    Any financial report under this Section shall include the
17name of the purchasing agent who oversees all competitively
18bid contracts. If there is no purchasing agent, the name of the
19person responsible for oversight of all competitively bid
20contracts shall be listed.
21(Source: P.A. 101-419, eff. 1-1-20.)
 
22    (50 ILCS 310/3)  (from Ch. 85, par. 703)
23    Sec. 3. (a) This subsection applies to governmental unit
24fiscal years before fiscal year 2026. Any governmental unit
25receiving revenue of less than $850,000 for any fiscal year

 

 

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1shall, in lieu of complying with the requirements of Section 2
2for audits and audit reports, beginning with fiscal year 2016,
3either: (i) cause an audit of the accounts of the unit to be
4made once every 4 years and file with the Comptroller an annual
5financial report containing information required by the
6Comptroller, or (ii) file with the Comptroller an annual
7financial report containing information required by the
8Comptroller, a copy of which has been provided to each member
9of that governmental unit's board of elected officials,
10presented either in person or by a live phone or web connection
11during a public meeting, and approved by a 3/5 majority vote.
12In addition, a governmental unit receiving revenue of less
13than $850,000 may file with the Comptroller any audit reports
14which may have been prepared under any other law. Any
15governmental unit receiving revenue of $850,000 or more for
16any fiscal year shall, in addition to complying with the
17requirements of Section 2 for audits and audit reports, file
18with the Comptroller the financial report required by this
19Section. Such financial reports shall be on forms so designed
20by the Comptroller as not to require professional accounting
21services for its preparation. All reports to be filed with the
22Comptroller under this Section must be submitted
23electronically and the Comptroller must post the reports on
24the Internet no later than 45 days after they are received. If
25the governmental unit provides the Comptroller's Office with
26sufficient evidence that the report cannot be filed

 

 

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1electronically, the Comptroller may waive this requirement.
2The Comptroller must also post a list of governmental units
3that are not in compliance with the reporting requirements set
4forth in this Section.
5    Any financial report under this Section shall include the
6name of the purchasing agent who oversees all competitively
7bid contracts. If there is no purchasing agent, the name of the
8person responsible for oversight of all competitively bid
9contracts shall be listed.
10    (b) This subsection applies to governmental unit fiscal
11years 2026 and after. Any governmental unit receiving revenue
12of less than $1,400,000 for any fiscal year, with the amount to
13increase or decrease by a percentage equal to the Consumer
14Price Index-U as reported on January 1 of each year, shall, in
15lieu of complying with the requirements of Section 2 either:
16(i) cause an audit of the accounts of the unit to be made once
17every 4 years and must file with the Comptroller an annual
18financial report containing information required by the
19Comptroller; or (ii) file with the Comptroller an annual
20financial report containing information required by the
21Comptroller, a copy of which has been provided to each member
22of that governmental unit's board of elected officials,
23presented either in person or by a live phone or web connection
24during a public meeting, and approved by a three-fifths
25majority vote. In addition, a governmental unit receiving
26revenue of less than $1,400,000, with the amount to increase

 

 

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1or decrease by a percentage equal to the Consumer Price
2Index-U as reported on January 1 of each year, may file with
3the Comptroller any audit reports which may have been prepared
4under any other law. Any governmental unit receiving revenue
5of $1,400,000 or more for any fiscal year, with the amount to
6increase or decrease by a percentage equal to the Consumer
7Price Index-U as reported on January 1 of each year, shall, in
8addition to complying with the requirements of Section 2 for
9audits and audit reports, file with the Comptroller the annual
10financial report required by this Section. All reports to be
11filed with the Comptroller under this Section must be
12submitted electronically and the Comptroller must post the
13reports on the Internet no later than 45 days after they are
14received. If the governmental unit provides the Comptroller's
15Office with sufficient evidence that the report cannot be
16filed electronically, the Comptroller may waive this
17requirement. The Comptroller must also post a list of
18governmental units that are not in compliance with the
19reporting requirements set forth in this Section.
20    Any financial report under this Section shall include the
21name of the purchasing agent who oversees all competitively
22bid contracts. If there is no purchasing agent, the name of the
23person responsible for oversight of all competitively bid
24contracts shall be listed.
25(Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;
2698-1019, eff. 7-1-15.)
 

 

 

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1    (50 ILCS 310/6)  (from Ch. 85, par. 706)
2    Sec. 6. (a) This subsection applies to governmental unit
3fiscal years before fiscal year 2026. When the audit is
4completed the auditor making such audit shall make and sign at
5least 3 copies of the report of the audit and immediately file
6them with the governmental unit audited. Governmental units
7receiving revenue of $850,000 or more for any fiscal year
8shall immediately make one copy of the audit report and one
9copy of the financial report required by Section 3 of this Act
10a part of its public record. Governmental units receiving
11revenue of less than $850,000 shall immediately make one copy
12of the audit report, or one copy of the report authorized by
13Section 3 of this Act to be filed instead of the audit report,
14a part of its public record. These copies shall be open to
15public inspection. In addition, the governmental unit shall
16file one copy of the report with the Comptroller and with the
17county clerk of the county in which the principal office of the
18governmental unit is located. A governmental unit may, in
19filing its audit report with the Comptroller, transmit with
20such report any comment or explanation that it wishes to make
21concerning the report.
22    (b) This subsection applies to governmental unit fiscal
23years 2026 and after. When the audit is completed, the auditor
24making such audit shall make and sign at least 3 copies of the
25report of the audit and immediately file them with the

 

 

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1governmental unit audited. Governmental units shall
2immediately make one copy of the audit report or one copy of
3the annual financial report a part of its public record as
4required by Section 3 of this Act. These copies shall be open
5to public inspection. In addition, the governmental unit shall
6file one copy of the report with the Comptroller and with the
7county clerk of the county in which the principal office of the
8governmental unit is located. A governmental unit may, in
9filing its audit report with the Comptroller, transmit with
10such report any comment or explanation that it wishes to make
11concerning the report.
12(Source: P.A. 101-419, eff. 1-1-20.)
 
13    Section 10. The Township Code is amended by changing
14Section 80-20 as follows:
 
15    (60 ILCS 1/80-20)
16    Sec. 80-20. Independent audit of accounts.
17    (a) All accounts audited under this Article (and those
18rejected, if any) shall be delivered with the certificate of
19the trustees (or a majority of them) to the township clerk, who
20shall keep them on file for the inspection of any of the
21inhabitants of the township. They shall also be produced by
22the township clerk at the next annual meeting and shall be read
23at the meeting by the clerk.
24    (b) In townships that receive revenue of more than

 

 

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1$1,400,000 for any fiscal year, with the amount to increase or
2decrease by a percentage equal to the Consumer Price Index-U
3as reported on January 1 of each year $850,000 or more during
4any fiscal year, exclusive of road funds, the township board
5shall have the accounts and all records of the township
6thoroughly audited by a certified public accountant within 6
7months after the close of each fiscal year. The board shall
8have a copy of the accountant's report and recommendations
9filed with the township clerk and another copy filed with the
10county clerk for public inspection.
11    (c) In townships that receive revenue of less than
12$1,400,000 for any fiscal year, with the amount to increase or
13decrease by a percentage equal to the Consumer Price Index-U
14as reported on January 1 of each year $850,000 during any
15fiscal year, exclusive of road funds, the township board shall
16have the accounts and all records of the township audited and
17inspected by an independent auditing committee composed of 3
18township electors chosen by the board. The audit shall be
19completed within 6 months after the close of each fiscal year.
20A copy of the auditing committee's report and recommendations
21shall be filed with the township clerk and another copy shall
22be filed with the county clerk for public inspection. The
23auditing committee shall not contain any member of the
24township board or any person related to a trustee. Members of
25the auditing committee shall be proficient in accounting
26principles and practices and shall be compensated at a rate

 

 

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1determined by the township board but not to exceed $50 per day.
2In addition to the other audit requirements imposed by law, in
3townships subject to this subsection, the township board shall
4have the accounts and all records of the township thoroughly
5audited by a certified public accountant within 6 months after
6(i) the end of each term of office of the township supervisor
7and (ii) a vacancy occurs in the office of township
8supervisor. A copy of the accountant's report and
9recommendations shall be filed with the township clerk and
10another copy shall be filed with the county clerk for public
11inspection.
12    As used in this Section, "Consumer Price Index-U" means
13the index published by the Bureau of Labor Statistics of the
14United States Department of Labor that measures the average
15change in prices of goods and services purchased by all urban
16consumers, United States city average, all items, 1982-84 =
17100.
18(Source: P.A. 92-582, eff. 7-1-02.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".