(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor General has
jurisdiction over all State agencies to make post audits and investigations
authorized by or under this Act or the Constitution.
The Auditor General has jurisdiction over local government agencies
and private agencies only:
(a) to make such post audits authorized by or under |
| this Act as are necessary and incidental to a post audit of a State agency or of a program administered by a State agency involving public funds of the State, but this jurisdiction does not include any authority to review local governmental agencies in the obligation, receipt, expenditure or use of public funds of the State that are granted without limitation or condition imposed by law, other than the general limitation that such funds be used for public purposes;
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(b) to make investigations authorized by or under
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| this Act or the Constitution; and
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(c) to make audits of the records of local government
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| agencies to verify actual costs of state-mandated programs when directed to do so by the Legislative Audit Commission at the request of the State Board of Appeals under the State Mandates Act.
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In addition to the foregoing, the Auditor General may conduct an
audit of the Metropolitan Pier and Exposition Authority, the
Regional Transportation Authority, the Suburban Bus Division, the Commuter
Rail Division and the Chicago Transit Authority and any other subsidized
carrier when authorized by the Legislative Audit Commission. Such audit
may be a financial, management or program audit, or any combination thereof.
The audit shall determine whether they are operating in accordance with
all applicable laws and regulations. Subject to the limitations of this
Act, the Legislative Audit Commission may by resolution specify additional
determinations to be included in the scope of the audit.
In addition to the foregoing, the Auditor General must also conduct a
financial audit of
the Illinois Sports Facilities Authority's expenditures of public funds in
connection with the reconstruction, renovation, remodeling, extension, or
improvement of all or substantially all of any existing "facility", as that
term is defined in the Illinois Sports Facilities Authority Act.
The Auditor General may also conduct an audit, when authorized by
the Legislative Audit Commission, of any hospital which receives 10% or
more of its gross revenues from payments from the State of Illinois,
Department of Healthcare and Family Services (formerly Department of Public Aid), Medical Assistance Program.
The Auditor General is authorized to conduct financial and compliance
audits of the Illinois Distance Learning Foundation and the Illinois
Conservation Foundation.
As soon as practical after the effective date of this amendatory Act of
1995, the Auditor General shall conduct a compliance and management audit of
the City of
Chicago and any other entity with regard to the operation of Chicago O'Hare
International Airport, Chicago Midway Airport and Merrill C. Meigs Field. The
audit shall include, but not be limited to, an examination of revenues,
expenses, and transfers of funds; purchasing and contracting policies and
practices; staffing levels; and hiring practices and procedures. When
completed, the audit required by this paragraph shall be distributed in
accordance with Section 3-14.
The Auditor General shall conduct a financial and compliance and program
audit of distributions from the Municipal Economic Development Fund
during the immediately preceding calendar year pursuant to Section 8-403.1 of
the Public Utilities Act at no cost to the city, village, or incorporated town
that received the distributions.
The Auditor General must conduct an audit of the Health Facilities and Services Review Board pursuant to Section 19.5 of the Illinois Health Facilities Planning
Act.
The Auditor General of the State of Illinois shall annually conduct or
cause to be conducted a financial and compliance audit of the books and records
of any county water commission organized pursuant to the Water Commission Act
of 1985 and shall file a copy of the report of that audit with the Governor and
the Legislative Audit Commission. The filed audit shall be open to the public
for inspection. The cost of the audit shall be charged to the county water
commission in accordance with Section 6z-27 of the State Finance Act. The
county water commission shall make available to the Auditor General its books
and records and any other documentation, whether in the possession of its
trustees or other parties, necessary to conduct the audit required. These
audit requirements apply only through July 1, 2007.
The Auditor General must conduct audits of the Rend Lake Conservancy
District as provided in Section 25.5 of the River Conservancy Districts Act.
The Auditor General must conduct financial audits of the Southeastern Illinois Economic Development Authority as provided in Section 70 of the Southeastern Illinois Economic Development Authority Act.
The Auditor General shall conduct a compliance audit in accordance with subsections (d) and (f) of Section 30 of the Innovation Development and Economy Act.
(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09; 96-939, eff. 6-24-10.)
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(30 ILCS 5/3-2) (from Ch. 15, par. 303-2)
Sec. 3-2. Mandatory and directed post audits. The Auditor General
shall conduct a financial audit, a compliance audit, or other attestation
engagement, as is appropriate to the agency's operations under generally
accepted
government auditing standards, of each State agency except the Auditor
General or his office at least once
during every biennium, except as is otherwise provided in regulations
adopted under Section 3-8. The general direction and supervision of the
financial audit program may be delegated only to an individual who is a
Certified Public Accountant and a payroll employee of the Office of the
Auditor General. In the conduct of financial audits, compliance audits, and
other attestation engagements, the
Auditor General may inquire into and report upon matters properly within
the scope of a performance audit, provided that
such inquiry
shall be limited to matters arising during the ordinary course of the
financial audit.
In any year the Auditor General shall conduct any special audits as may
be necessary to form an opinion on the financial statements of
this State, as
prepared by the Comptroller, and to certify that this presentation is in
accordance with generally accepted accounting principles for government.
Simultaneously with the biennial compliance audit of the
Department of
Human Services, the
Auditor General shall
conduct a program audit of each facility under the jurisdiction of that
Department that is described in Section 4 of the
Mental Health
and Developmental Disabilities Administrative Act. The program audit
shall include an examination of the records of each facility concerning
(i) reports of suspected abuse or neglect of any patient or resident of the
facility and (ii) reports of violent acts against facility staff by patients or residents. The Auditor General shall report the findings of the program
audit to the Governor and the General Assembly, including findings
concerning patterns or trends relating to (i) abuse or neglect of facility
patients and residents or (ii) violent acts against facility staff by patients or residents. However, for any year for which the Inspector
General submits a report to the Governor and General Assembly as required under
Section 6.7 of the Abused and Neglected Long Term Care Facility Residents
Reporting Act, the Auditor General need not conduct the program audit otherwise
required under this paragraph.
The Auditor General shall conduct a performance
audit of a
State agency when so directed by the Commission, or by either house of
the General Assembly, in a resolution identifying the subject, parties
and scope. Such a directing resolution may:
(a) require the Auditor General to examine and report |
| upon specific management efficiencies or cost effectiveness proposals specified therein;
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(b) in the case of a program audit, set forth
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| specific program objectives, responsibilities or duties or may specify the program performance standards or program evaluation standards to be the basis of the program audit;
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(c) be directed at particular procedures or functions
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| established by statute, by administrative regulation or by precedent; and
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(d) require the Auditor General to examine and report
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| upon specific proposals relating to state programs specified in the resolution.
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The Commission may by resolution clarify, further direct, or limit
the scope of any audit directed by a resolution of the House or Senate,
provided that any such action by the Commission must be consistent with
the terms of the directing resolution.
(Source: P.A. 93-630, eff. 12-23-03; 94-347, eff. 7-28-05.)
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(30 ILCS 5/3-2.3) Sec. 3-2.3. Report on Chicago Transit Authority. (a) No less than 60 days prior to the issuance of bonds or notes by the Chicago Transit Authority (referred to as the "Authority" in this Section) pursuant to Section 12c of the Metropolitan Transit Authority Act, the following documentation shall be submitted to the Auditor General and the Regional Transportation Authority: (1) Retirement Plan Documentation. The Authority |
| shall submit a certification that:
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(A) it is legally authorized to issue the bonds
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(B) scheduled annual payments of principal and
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| interest on the bonds and notes to be issued meet the requirements of Section 12c(b)(5) of the Metropolitan Transit Authority Act;
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(C) no bond or note shall mature later than
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(D) after payment of costs of issuance and
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| necessary deposits to funds and accounts established with respect to debt service on the bonds or notes, the net bond and note proceeds (exclusive of any proceeds to be used to refund outstanding bonds or notes) will be deposited in the Retirement Plan for Chicago Transit Authority Employees and used only for the purposes required by Section 22-101 of the Illinois Pension Code; and
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(E) it has entered into an intergovernmental
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| agreement with the City of Chicago under which the City of Chicago will provide financial assistance to the Authority in an amount equal to the net receipts, after fees for costs of collection, from a tax on the privilege of transferring title to real estate in the City of Chicago in an amount up to $1.50 per $500 of value or fraction thereof under the provisions of Section 8-3-19 of the Illinois Municipal Code, which agreement shall be for a term expiring no earlier than the final maturity of bonds or notes that it proposes to issue under Section 12c of the Metropolitan Transit Authority Act.
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(2) The Board of Trustees of the Retirement Plan for
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| Chicago Transit Authority Employees shall submit a certification that the Retirement Plan for Chicago Transit Authority Employees is operating in accordance with all applicable legal and contractual requirements, including the following:
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(A) the members of a new Board of Trustees have
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| been appointed according to the requirements of Section 22-101(b) of the Illinois Pension Code; and
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(B) contribution levels for employees and the
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| Authority have been established according to the requirements of Section 22-101(d) of the Illinois Pension Code.
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(3) Actuarial Report. The Board of Trustees of the
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| Retirement Plan for Chicago Transit Authority Employees shall submit an actuarial report prepared by an enrolled actuary setting forth:
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(A) the method of valuation and the underlying
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(B) a comparison of the debt service schedules of
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| the bonds or notes proposed to be issued to the Retirement Plan's current unfunded actuarial accrued liability amortization schedule, as required by Section 22-101(e) of the Illinois Pension Code, using the projected interest cost of the bond or note issue as the discount rate to calculate the estimated net present value savings;
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(C) the amount of the estimated net present value
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| savings comparing the true interest cost of the bonds or notes with the actuarial investment return assumption of the Retirement Plan; and
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(D) a certification that the net proceeds of the
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| bonds or notes, together with anticipated earnings on contributions and deposits, will be sufficient to reasonably conclude on an actuarial basis that the total retirement assets of the Retirement Plan will not be less than 90% of its liabilities by the end of fiscal year 2059.
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(4) The Authority shall submit a financial analysis
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| prepared by an independent advisor. The financial analysis must include a determination that the issuance of bonds is in the best interest of the Retirement Plan for Chicago Transit Authority Employees and the Chicago Transit Authority. The independent advisor shall not act as underwriter or receive a legal, consulting, or other fee related to the issuance of any bond or notes issued by the Authority pursuant to Section 12c of the Metropolitan Transit Authority Act except compensation due for the preparation of the financial analysis.
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(5) Retiree Health Care Trust Documentation. The
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| Authority shall submit a certification that:
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(A) it is legally authorized to issue the bonds
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(B) scheduled annual payments of principal and
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| interest on the bonds and notes to be issued meets the requirements of Section 12c(b)(5) of the Metropolitan Transit Authority Act;
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(C) no bond or note shall mature later than
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(D) after payment of costs of issuance and
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| necessary deposits to funds and accounts established with respect to debt service on the bonds or notes, the net bond and note proceeds (exclusive of any proceeds to be used to refund outstanding bonds or notes) will be deposited in the Retiree Health Care Trust and used only for the purposes required by Section 22-101B of the Illinois Pension Code; and
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(E) it has entered into an intergovernmental
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| agreement with the City of Chicago under which the City of Chicago will provide financial assistance to the Authority in an amount equal to the net receipts, after fees for costs of collection, from a tax on the privilege of transferring title to real estate in the City of Chicago in an amount up to $1.50 per $500 of value or fraction thereof under the provisions of Section 8-3-19 of the Illinois Municipal Code, which agreement shall be for a term expiring no earlier than the final maturity of bonds or notes that it proposes to issue under Section 12c of the Metropolitan Transit Authority Act.
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(6) The Board of Trustees of the Retiree Health Care
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| Trust shall submit a certification that the Retiree Health Care Trust has been established in accordance with all applicable legal requirements, including the following:
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(A) the Retiree Health Care Trust has been
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| established and a Trust document is in effect to govern the Retiree Health Care Trust;
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(B) the members of the Board of Trustees of the
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| Retiree Health Care Trust have been appointed according to the requirements of Section 22-101B(b)(1) of the Illinois Pension Code;
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(C) a health care benefit program for eligible
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| retirees and their dependents and survivors has been established by the Board of Trustees according to the requirements of Section 22-101B(b)(2) of the Illinois Pension Code;
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(D) contribution levels have been established for
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| retirees, dependents and survivors according to the requirements of Section 22-101B(b)(5) of the Illinois Pension Code; and
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(E) contribution levels have been established for
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| employees of the Authority according to the requirements of Section 22-101B(b)(6) of the Illinois Pension Code.
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(7) Actuarial Report. The Board of Trustees of the
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| Retiree Health Care Trust shall submit an actuarial report prepared by an enrolled actuary setting forth:
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(A) the method of valuation and the underlying
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(B) a comparison of the projected interest cost
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| of the bonds or notes proposed to be issued with the actuarial investment return assumption of the Retiree Health Care Trust; and
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(C) a certification that the net proceeds of the
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| bonds or notes, together with anticipated earnings on contributions and deposits, will be sufficient to adequately fund the actuarial present value of projected benefits expected to be paid under the Retiree Health Care Trust, or a certification of the increases in contribution levels and decreases in benefit levels that would be required in order to cure any funding shortfall over a period of not more than 10 years.
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(8) The Authority shall submit a financial analysis
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| prepared by an independent advisor. The financial analysis must include a determination that the issuance of bonds is in the best interest of the Retiree Health Care Trust and the Chicago Transit Authority. The independent advisor shall not act as underwriter or receive a legal, consulting, or other fee related to the issuance of any bond or notes issued by the Authority pursuant to Section 12c of the Metropolitan Transit Authority Act except compensation due for the preparation of the financial analysis.
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(b) The Auditor General shall examine the information submitted pursuant to Section 3-2.3(a)(1) through (4) and submit a report to the General Assembly, the Legislative Audit Commission, the Governor, the Regional Transportation Authority and the Authority indicating whether (i) the required certifications by the Authority and the Board of Trustees of the Retirement Plan have been made, and (ii) the actuarial reports have been provided, the reports include all required information, the assumptions underlying those reports are not unreasonable in the aggregate, and the reports appear to comply with all pertinent professional standards, including those issued by the Actuarial Standards Board. The Auditor General shall submit such report no later than 60 days after receiving the information required to be submitted by the Authority and the Board of Trustees of the Retirement Plan. Any bonds or notes issued by the Authority under item (1) of subsection (b) of Section 12c of the Metropolitan Transit Authority Act shall be issued within 120 days after receiving such report from the Auditor General. The Authority may not issue bonds or notes until it receives the report from the Auditor General indicating the above requirements have been met.
(c) The Auditor General shall examine the information submitted pursuant to Section 3-2.3(a)(5) through (8) and submit a report to the General Assembly, the Legislative Audit Commission, the Governor, the Regional Transportation Authority and the Authority indicating whether (i) the required certifications by the Authority and the Board of Trustees of the Retiree Health Care Trust have been made, and (ii) the actuarial reports have been provided, the reports include all required information, the assumptions underlying those reports are not unreasonable in the aggregate, and the reports appear to comply with all pertinent professional standards, including those issued by the Actuarial Standards Board. The Auditor General shall submit such report no later than 60 days after receiving the information required to be submitted by the Authority and the Board of Trustees of the Retiree Health Care Trust. Any bonds or notes issued by the Authority under item (2) of subsection (b) of Section 12c of the Metropolitan Transit Authority Act shall be issued within 120 days after receiving such report from the Auditor General. The Authority may not issue bonds or notes until it receives a report from the Auditor General indicating the above requirements have been met.
(d) In fulfilling this duty, after receiving the information submitted pursuant to Section 3-2.3(a), the Auditor General may request additional information and support pertaining to the data and conclusions contained in the submitted documents and the Authority, the Board of Trustees of the Retirement Plan and the Board of Trustees of the Retiree Health Care Trust shall cooperate with the Auditor General and provide additional information as requested in a timely manner. The Auditor General may also request from the Regional Transportation Authority an analysis of the information submitted by the Authority relating to the sources of funds to be utilized for payment of the proposed bonds or notes of the Authority. The Auditor General's report shall not be in the nature of a post-audit or examination and shall not lead to the issuance of an opinion as that term is defined in generally accepted government auditing standards.
(e) Annual Retirement Plan Submission to Auditor General. The Board of Trustees of the Retirement Plan for Chicago Transit Authority Employees established by Section 22-101 of the Illinois Pension Code shall provide the following documents to the Auditor General annually no later than September 30:
(1) the most recent audit or examination of the
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(2) an annual statement containing the information
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| specified in Section 1A-109 of the Illinois Pension Code; and
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(3) a complete actuarial statement applicable to the
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| prior plan year, which may be the annual report of an enrolled actuary retained by the Retirement Plan specified in Section 22-101(e) of the Illinois Pension Code.
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The Auditor General shall annually examine the information provided pursuant to this subsection and shall submit a report of the analysis thereof to the General Assembly, including the report specified in Section 22-101(e) of the Illinois Pension Code.
(f) The Auditor General shall annually examine the information submitted pursuant to Section 22-101B(b)(3)(iii) of the Illinois Pension Code and shall prepare the determination specified in Section 22-101B(b)(3)(iv) of the Illinois Pension Code.
(g) In fulfilling the duties under Sections 3-2.3(e) and (f), the Auditor General may request additional information and support pertaining to the data and conclusions contained in the submitted documents, and the Authority, the Board of Trustees of the Retirement Plan, and the Board of Trustees of the Retiree Health Care Trust shall cooperate with the Auditor General and provide additional information as requested in a timely manner. The Auditor General's review shall not be in the nature of a post-audit or examination and shall not lead to the issuance of an opinion as that term is defined in generally accepted government auditing standards. Upon request of the Auditor General, the Commission on Government Forecasting and Accountability and the Public Pension Division of the Department of Insurance shall cooperate with and assist the Auditor General in the conduct of his review.
(h) The Auditor General shall submit a bill to the Authority for costs associated with the examinations and reports specified in subsections (b) and (c) of this Section 3-2.3, which the Authority shall reimburse in a timely manner. The costs associated with the examinations and reports which are reimbursed by the Authority shall constitute a cost of issuance of the bonds or notes under Section 12c(b)(1) and (2) of the Metropolitan Transit Authority Act. The amount received shall be deposited into the fund or funds from which such costs were paid by the Auditor General. The Auditor General shall submit a bill to the Retirement Plan for Chicago Transit Authority Employees for costs associated with the examinations and reports specified in subsection (e) of this Section, which the Retirement Plan for Chicago Transit Authority Employees shall reimburse in a timely manner. The amount received shall be deposited into the fund or funds from which such costs were paid by the Auditor General. The Auditor General shall submit a bill to the Retiree Health Care Trust for costs associated with the determination specified in subsection (f) of this Section, which the Retiree Health Care Trust shall reimburse in a timely manner. The amount received shall be deposited into the fund or funds from which such costs were paid by the Auditor General.
(Source: P.A. 103-605, eff. 7-1-24.)
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