Illinois General Assembly - Full Text of HB4104
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB4104  100th General Assembly

HB4104eng 100TH GENERAL ASSEMBLY

  
  
  

 


 
HB4104 EngrossedLRB100 14828 AWJ 29649 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Governmental Account Audit Act is amended by
5changing Sections 1 and 5 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 amount
12to increase or decrease by the amount of the Consumer Price
13Index (CPI) as reported on January 1 of each year, except the
14following:
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

 

 

HB4104 Engrossed- 2 -LRB100 14828 AWJ 29649 b

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
14having authority to levy taxes, make appropriations, authorize
15the expenditure of public funds or approve claims for any
16governmental unit.
17    "Comptroller" means the Comptroller of the State of
18Illinois.
19    "Consumer Price Index" means the Consumer Price Index for
20All Urban Consumers for all items published by the United
21States Department of Labor.
22    "Licensed public accountant" means the holder of a valid
23certificate as a public accountant under the Illinois Public
24Accounting Act.
25    "Audit report" means the written report of the licensed
26public accountant and all appended statements and schedules

 

 

HB4104 Engrossed- 3 -LRB100 14828 AWJ 29649 b

1relating to that report, presenting or recording the findings
2of an examination or audit of the financial transactions,
3affairs, or conditions of a governmental unit.
4    "Auditor" means a licensed certified public accountant, as
5that term is defined in Section 0.03 of the Illinois Public
6Accounting Act, who performs an audit of governmental unit
7financial statements and records and expresses an assurance or
8disclaims an opinion on the audited financial statements.
9    "Report" includes both audit reports and reports filed
10instead of an audit report by a governmental unit receiving
11revenue of less than $850,000 during any fiscal year to which
12the reports relate.
13(Source: P.A. 92-191, eff. 8-1-01; 92-582, eff. 7-1-02.)
 
14    (50 ILCS 310/5)  (from Ch. 85, par. 705)
15    Sec. 5. (a) Prior to fiscal year 2019, the The audit report
16shall contain statements that conform with generally accepted
17accounting principles or other comprehensive basis of
18accounting and that set forth, insofar as possible, the
19financial position and results of financial operations for each
20fund of the governmental unit. Each audit report shall include
21only financial information, findings, and conclusions that are
22adequately supported by evidence in the auditor's working
23papers to demonstrate or prove, when called upon, the basis for
24the matters reported and their correctness and reasonableness.
25In connection with this, each governmental unit shall retain

 

 

HB4104 Engrossed- 4 -LRB100 14828 AWJ 29649 b

1the right of inspection of the auditor's working papers and
2shall make them available to the Comptroller, or his or her
3designee, upon request. The audit report shall also include the
4professional opinion of the auditor or auditors licensed public
5accountant with respect to the financial statements or, if an
6opinion cannot be expressed, a declaration that he or she is
7unable to express such opinion and an explanation of the
8reasons he or she cannot do so. Each audit report shall include
9the certification of the auditor or auditors accountant or
10accountants making the audit that the audit has been performed
11in compliance with generally accepted auditing standards.
12    (b) For fiscal year 2019 and each fiscal year thereafter,
13the audit report shall contain statements that set forth the
14financial position and results of financial operations for each
15fund of the governmental unit. Each audit report shall include
16only financial information, findings, and conclusions that are
17adequately supported by evidence in the auditor's working
18papers to demonstrate or prove, when called upon, the basis for
19the matters reported and their correctness and reasonableness.
20In connection with this, each governmental unit shall retain
21the right of inspection of the auditor's working papers and
22shall make them available to the Comptroller, or his or her
23designee, upon request. The audit report shall also include the
24professional opinion of the auditor or auditors with respect to
25the financial statements or, if an opinion cannot be expressed,
26a declaration that he or she is unable to express an opinion

 

 

HB4104 Engrossed- 5 -LRB100 14828 AWJ 29649 b

1and an explanation of the reasons he or she cannot do so. Each
2audit report shall include the certification of the auditor or
3auditors making the audit that the audit has been performed in
4compliance with generally accepted auditing standards.
5    (c) For fiscal year 2019 and each fiscal year thereafter,
6audit reports shall contain financial statements prepared in
7conformity with generally accepted accounting principles and
8audited in conformity with generally accepted auditing
9standards if the last audit report filed preceding fiscal year
102017 expressed an unmodified or modified opinion by the
11independent auditor that the financial statements were
12presented in conformity with generally accepted accounting
13principles.
14    (d) For fiscal year 2019 and each fiscal year thereafter,
15audit reports containing financial statements prepared in
16conformity with an other comprehensive basis of accounting may
17follow the best practices and guidelines as outlined by the
18American Institute of Certified Public Accountants and shall be
19audited in conformity with generally accepted auditing
20standards. If the governing body of a governmental unit submits
21an audit report containing financial statements prepared in
22conformity with generally accepted accounting principles,
23thereafter all future audit reports shall also contain
24financial statements presented in conformity with generally
25accepted accounting principles.
26    (e) Audits may be made on financial statements prepared

 

 

HB4104 Engrossed- 6 -LRB100 14828 AWJ 29649 b

1using either an accrual or cash basis of accounting, depending
2upon the system followed by the governmental unit, and audit
3reports shall comply with this Section.
4(Source: P.A. 85-1000.)
 
5    Section 10. The Counties Code is amended by changing
6Sections 6-31002 and 6-31006 as follows:
 
7    (55 ILCS 5/6-31002)  (from Ch. 34, par. 6-31002)
8    Sec. 6-31002. Definitions. As used in this Division, unless
9the context otherwise requires:
10    1. "Comptroller" means the Comptroller of the State of
11Illinois;
12    2. "accountant" or "accountants" means and includes all
13persons authorized to practice public accounting under the laws
14of this State;
15    3. "funds and accounts" means all funds of a county derived
16from property taxes and all funds and accounts derived from
17sources other than property taxes, including the receipts and
18expenditures of the fee earnings of each county fee officer;
19    4. "audit report" means the written report of the
20accountant or accountants and all appended statements and
21schedules relating thereto, presenting or recording the
22findings of an examination or audit of the financial
23transactions, affairs and condition of a county;
24    5. "population" means the number of persons residing in a

 

 

HB4104 Engrossed- 7 -LRB100 14828 AWJ 29649 b

1county according to the last preceding federal decennial
2census; .
3    6. "auditor" means a licensed certified public accountant,
4as that term is defined in Section 0.03 of the Illinois Public
5Accounting Act, who performs an audit of county financial
6statements and records and expresses an assurance or disclaims
7an opinion on the audited financial statements.
8(Source: P.A. 86-962.)
 
9    (55 ILCS 5/6-31006)  (from Ch. 34, par. 6-31006)
10    Sec. 6-31006. Audit report.
11    (a) Prior to fiscal year 2019, the The audit report shall
12contain statements that are in conformity with generally
13accepted public accounting principles or other comprehensive
14basis of accounting and shall set forth, insofar as possible,
15the financial position and the results of financial operations
16for each fund, account, and office of the county government.
17The audit report shall also include the professional opinion of
18the auditor or auditors accountant or accountants with respect
19to the financial status and operations or, if an opinion cannot
20be expressed, a declaration that such auditor accountant is
21unable to express such opinion and an explanation of the
22reasons he or she cannot do so. Each audit report shall include
23the certification of the auditor or auditors accountant or
24accountants making the audit that the audit has been performed
25in compliance with generally accepted auditing standards. Each

 

 

HB4104 Engrossed- 8 -LRB100 14828 AWJ 29649 b

1audit report filed with the Comptroller shall be accompanied by
2a copy of each official statement or other offering of
3materials prepared in connection with the issuance of
4indebtedness of the county since the filing of the last audit
5report.
6    (b) For fiscal year 2019 and each fiscal year thereafter,
7the audit report shall contain statements that set forth the
8financial position and the results of financial operations for
9each fund, account, and office of the county government. The
10audit report shall also include the professional opinion of an
11auditor or auditors with respect to the financial status and
12operations or, if an opinion cannot be expressed, a declaration
13that the auditor is unable to express an opinion and an
14explanation of the reasons he or she cannot do so. Each audit
15report shall include the certification of the auditor or
16auditors making the audit that the audit has been performed in
17compliance with generally accepted auditing standards. Each
18audit report filed with the Comptroller shall be accompanied by
19a copy of each official statement or other offering of
20materials prepared in connection with the issuance of
21indebtedness of the county since the filing of the last audit
22report.
23    (c) For fiscal year 2019 and each fiscal year thereafter,
24audit reports shall contain financial statements prepared in
25conformity with generally accepted accounting principles and
26audited in conformity with generally accepted auditing

 

 

HB4104 Engrossed- 9 -LRB100 14828 AWJ 29649 b

1standards if the last audit report filed preceding fiscal year
22017 expressed an unmodified or modified opinion by the
3independent auditor that the financial statements were
4presented in conformity with generally accepted accounting
5principles.
6    (d) For fiscal year 2019 and each fiscal year thereafter,
7audit reports containing financial statements prepared in
8conformity with an other comprehensive basis of accounting may
9follow the best practices and guidelines outlined by the
10American Institute of Certified Public Accountants and shall be
11audited in conformity with generally accepted auditing
12standards. If the county board of a county submits an audit
13report containing financial statements prepared in conformity
14with generally accepted accounting principles, thereafter all
15future audit reports shall also contain financial statements
16presented in conformity with generally accepted accounting
17principles.
18    (e) Audits may be made on financial statements prepared
19using either an accrual or cash basis of accounting, depending
20upon the system followed by the county, and audit reports shall
21comply with this Section.
22(Source: P.A. 86-962; 87-424.)
 
23    Section 15. The Illinois Municipal Code is amended by
24changing Sections 8-8-2 and 8-8-5 as follows:
 

 

 

HB4104 Engrossed- 10 -LRB100 14828 AWJ 29649 b

1    (65 ILCS 5/8-8-2)  (from Ch. 24, par. 8-8-2)
2    Sec. 8-8-2. The following terms shall, unless the context
3otherwise indicates, have the following meanings:
4    (1) "Municipality" or "municipalities" means all cities,
5villages and incorporated towns having a population of less
6than 500,000 as determined by the last preceding Federal
7census.
8    (2) "Corporate authorities" means a city council, village
9board of trustees, library board, police and firemen's pension
10board, or any other body or officers having authority to levy
11taxes, make appropriations, or approve claims for any
12municipality.
13    (3) "Comptroller" means the Comptroller of the State of
14Illinois.
15    (4) "Accountant" or "accountants" means all persons
16licensed to practice public accounting under the laws of this
17State.
18    (5) "Audit report" means the written report of the
19accountant or accountants and all appended statements and
20schedules relating thereto, presenting or recording the
21findings of an examination or audit of the financial
22transactions, affairs, or condition of a municipality.
23    (6) "Annual report" means the statement filed, in lieu of
24an audit report, by the municipalities of less than 800
25population, which do not own or operate public utilities and do
26not have bonded debt.

 

 

HB4104 Engrossed- 11 -LRB100 14828 AWJ 29649 b

1    (7) "Supplemental report" means the annual statement
2filed, in addition to any audit report provided for herein, by
3all municipalities, except municipalities of less than 800
4population which do not own or operate public utilities and do
5not have bonded debt.
6    (8) "Auditor" means a licensed certified public
7accountant, as that term is defined in Section 0.03 of the
8Illinois Public Accounting Act, who performs an audit of
9municipal financial statements and records and expresses an
10assurance or disclaims an opinion on the audited financial
11statements.
12(Source: P.A. 81-1050.)
 
13    (65 ILCS 5/8-8-5)  (from Ch. 24, par. 8-8-5)
14    Sec. 8-8-5. (a) Prior to fiscal year 2019, the The audit
15shall be made in accordance with generally accepted auditing
16standards. Reporting on the financial position and results of
17financial operations for each fund of the municipality shall be
18in accordance with generally accepted accounting principles or
19other comprehensive basis of accounting , insofar as possible.
20Each audit report shall include only financial information,
21findings, and conclusions that are adequately supported by
22evidence in the auditor's working papers to demonstrate or
23prove, when called upon, the basis for the matters reported and
24their correctness and reasonableness. In connection with this,
25each municipality shall retain the right of inspection of the

 

 

HB4104 Engrossed- 12 -LRB100 14828 AWJ 29649 b

1auditor's working papers and shall make them available to the
2Comptroller, or his or her designee, upon request. The audit
3report shall consist of the professional opinion of the auditor
4or auditors accountant or accountants with respect to the
5financial statements or, if an opinion cannot be expressed, a
6declaration that the auditor accountant is unable to express
7such opinion and an explanation of the reasons he or she cannot
8do so. Municipal authorities shall not impose limitations on
9the scope of the audit to the extent that the effect of such
10limitations will result in the qualification of the opinion of
11the auditor or auditors accountant or accountants. Each audit
12report filed with the Comptroller shall be accompanied by a
13copy of each official statement or other offering of materials
14prepared in connection with the issuance of indebtedness of the
15municipality since the filing of the last audit report.
16    Audits under this Division may be made upon either an
17accrual or cash basis of accounting depending upon the system
18followed by each municipality.
19    (b) For fiscal year 2019 and each fiscal year thereafter,
20the audit shall be made in accordance with generally accepted
21auditing standards. Each audit report shall include only
22financial information, findings, and conclusions that are
23adequately supported by evidence in the auditor's working
24papers to demonstrate or prove, when called upon, the basis for
25the matters reported and their correctness and reasonableness.
26In connection with this, each municipality shall retain the

 

 

HB4104 Engrossed- 13 -LRB100 14828 AWJ 29649 b

1right of inspection of the auditor's working papers and shall
2make them available to the Comptroller, or his or her designee,
3upon request. The audit report shall also consist of the
4professional opinion of an auditor or auditors with respect to
5the financial statements or, if an opinion cannot be expressed,
6a declaration that the auditor is unable to express an opinion
7and an explanation of the reasons he or she cannot do so.
8Municipal authorities shall not impose limitations on the scope
9of the audit to the extent that the effect of the limitations
10will result in the qualification of the opinion of the auditor
11or auditors. Each audit report filed with the Comptroller shall
12be accompanied by a copy of each official statement or other
13offering of materials prepared in connection with the issuance
14of indebtedness of the municipality since the filing of the
15last audit report.
16    (c) For fiscal year 2019 and each fiscal year thereafter,
17audit reports shall contain financial statements prepared in
18accordance with generally accepted accounting principles and
19audited in accordance with generally accepted auditing
20standards if the last audit report filed preceding fiscal year
212017 expressed an unmodified or modified opinion by the
22independent auditor that the financial statements were
23presented in accordance with generally accepted accounting
24principles.
25    (d) For fiscal year 2019 and each fiscal year thereafter,
26audit reports containing financial statements prepared in

 

 

HB4104 Engrossed- 14 -LRB100 14828 AWJ 29649 b

1accordance with an other comprehensive basis of accounting may
2follow the best practices and guidelines outlined by the
3American Institute of Certified Public Accountants and shall be
4audited in accordance with generally accepted auditing
5standards. If the corporate authority of a municipality submits
6an audit report containing financial statements prepared in
7accordance with generally accepted accounting principles,
8thereafter all future audit reports shall also contain
9financial statements presented in accordance with generally
10accepted accounting principles.
11    (e) Audits may be made on financial statements prepared
12using either an accrual or cash basis of accounting, depending
13upon the system followed by the municipality, and audit reports
14shall comply with this Section.
15(Source: P.A. 87-433.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.