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Public Act 100-0837


 

Public Act 0837 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0837
 
SB2638 EnrolledLRB100 16888 AWJ 32029 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Governmental Account Audit Act is amended by
changing Sections 1 and 5 as follows:
 
    (50 ILCS 310/1)  (from Ch. 85, par. 701)
    Sec. 1. Definitions. As used in this Act, unless the
context otherwise indicates:
    "Governmental unit" or "unit" includes all municipal
corporations in and political subdivisions of this State that
appropriate more than $5,000 for a fiscal year, with the amount
to increase or decrease by the amount of the Consumer Price
Index (CPI) as reported on January 1 of each year, except the
following:
        (1) School districts.
        (2) Cities, villages, and incorporated towns subject
    to the Municipal Auditing Law, as contained in the Illinois
    Municipal Code, and cities that file a report with the
    Comptroller under Section 3.1-35-115 of the Illinois
    Municipal Code.
        (3) Counties with a population of 1,000,000 or more.
        (4) Counties subject to the County Auditing Law.
        (5) Any other municipal corporations in or political
    subdivisions of this State, the accounts of which are
    required by law to be audited by or under the direction of
    the Auditor General.
        (6) (Blank).
        (7) A drainage district, established under the
    Illinois Drainage Code (70 ILCS 605), that did not receive
    or expend any moneys during the immediately preceding
    fiscal year or obtains approval for assessments and
    expenditures through the circuit court.
        (8) Public housing authorities that submit financial
    reports to the U.S. Department of Housing and Urban
    Development.
    "Governing body" means the board or other body or officers
having authority to levy taxes, make appropriations, authorize
the expenditure of public funds or approve claims for any
governmental unit.
    "Comptroller" means the Comptroller of the State of
Illinois.
    "Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
    "Licensed public accountant" means the holder of a valid
certificate as a public accountant under the Illinois Public
Accounting Act.
    "Audit report" means the written report of the licensed
public accountant and all appended statements and schedules
relating to that report, presenting or recording the findings
of an examination or audit of the financial transactions,
affairs, or conditions of a governmental unit.
    "Auditor" means a licensed certified public accountant, as
that term is defined in Section 0.03 of the Illinois Public
Accounting Act, who performs an audit of governmental unit
financial statements and records and expresses an assurance or
disclaims an opinion on the audited financial statements.
    "Report" includes both audit reports and reports filed
instead of an audit report by a governmental unit receiving
revenue of less than $850,000 during any fiscal year to which
the reports relate.
(Source: P.A. 92-191, eff. 8-1-01; 92-582, eff. 7-1-02.)
 
    (50 ILCS 310/5)  (from Ch. 85, par. 705)
    Sec. 5. (a) Prior to fiscal year 2019, the The audit report
shall contain statements that conform with generally accepted
accounting principles or other comprehensive basis of
accounting and that set forth, insofar as possible, the
financial position and results of financial operations for each
fund of the governmental unit. Each audit report shall include
only financial information, findings, and conclusions that are
adequately supported by evidence in the auditor's working
papers to demonstrate or prove, when called upon, the basis for
the matters reported and their correctness and reasonableness.
In connection with this, each governmental unit shall retain
the right of inspection of the auditor's working papers and
shall make them available to the Comptroller, or his or her
designee, upon request. The audit report shall also include the
professional opinion of the auditor or auditors licensed public
accountant with respect to the financial statements or, if an
opinion cannot be expressed, a declaration that he or she is
unable to express such opinion and an explanation of the
reasons he or she cannot do so. Each audit report shall include
the certification of the auditor or auditors accountant or
accountants making the audit that the audit has been performed
in compliance with generally accepted auditing standards.
    (b) For fiscal year 2019 and each fiscal year thereafter,
the audit report shall contain statements that set forth the
financial position and results of financial operations for each
fund of the governmental unit. Each audit report shall include
only financial information, findings, and conclusions that are
adequately supported by evidence in the auditor's working
papers to demonstrate or prove, when called upon, the basis for
the matters reported and their correctness and reasonableness.
In connection with this, each governmental unit shall retain
the right of inspection of the auditor's working papers and
shall make them available to the Comptroller, or his or her
designee, upon request. The audit report shall also include the
professional opinion of the auditor or auditors with respect to
the financial statements or, if an opinion cannot be expressed,
a declaration that he or she is unable to express an opinion
and an explanation of the reasons he or she cannot do so. Each
audit report shall include the certification of the auditor or
auditors making the audit that the audit has been performed in
compliance with generally accepted auditing standards.
    (c) For fiscal year 2019 and each fiscal year thereafter,
audit reports shall contain financial statements prepared in
conformity with generally accepted accounting principles and
audited in conformity with generally accepted auditing
standards if the last audit report filed preceding fiscal year
2019 expressed an unmodified or modified opinion by the
independent auditor that the financial statements were
presented in conformity with generally accepted accounting
principles.
    (d) For fiscal year 2019 and each fiscal year thereafter,
audit reports containing financial statements prepared in
conformity with an other comprehensive basis of accounting may
follow the best practices and guidelines as outlined by the
American Institute of Certified Public Accountants and shall be
audited in conformity with generally accepted auditing
standards. If the governing body of a governmental unit submits
an audit report containing financial statements prepared in
conformity with generally accepted accounting principles,
thereafter all future audit reports shall also contain
financial statements presented in conformity with generally
accepted accounting principles.
    (e) Audits may be made on financial statements prepared
using either an accrual or cash basis of accounting, depending
upon the system followed by the governmental unit, and audit
reports shall comply with this Section.
(Source: P.A. 85-1000.)
 
    Section 10. The Counties Code is amended by changing
Sections 6-31002 and 6-31006 as follows:
 
    (55 ILCS 5/6-31002)  (from Ch. 34, par. 6-31002)
    Sec. 6-31002. Definitions. As used in this Division, unless
the context otherwise requires:
    1. "Comptroller" means the Comptroller of the State of
Illinois;
    2. "accountant" or "accountants" means and includes all
persons authorized to practice public accounting under the laws
of this State;
    3. "funds and accounts" means all funds of a county derived
from property taxes and all funds and accounts derived from
sources other than property taxes, including the receipts and
expenditures of the fee earnings of each county fee officer;
    4. "audit report" means the written report of the
accountant or accountants and all appended statements and
schedules relating thereto, presenting or recording the
findings of an examination or audit of the financial
transactions, affairs and condition of a county;
    5. "population" means the number of persons residing in a
county according to the last preceding federal decennial
census; .
    6. "auditor" means a licensed certified public accountant,
as that term is defined in Section 0.03 of the Illinois Public
Accounting Act, who performs an audit of county financial
statements and records and expresses an assurance or disclaims
an opinion on the audited financial statements; "auditor" does
not include a county auditor elected or appointed under
Division 3-1 of the Counties Code.
(Source: P.A. 86-962.)
 
    (55 ILCS 5/6-31006)  (from Ch. 34, par. 6-31006)
    Sec. 6-31006. Audit report.
    (a) Prior to fiscal year 2019, the The audit report shall
contain statements that are in conformity with generally
accepted public accounting principles or other comprehensive
basis of accounting and shall set forth, insofar as possible,
the financial position and the results of financial operations
for each fund, account, and office of the county government.
The audit report shall also include the professional opinion of
the auditor or auditors accountant or accountants with respect
to the financial status and operations or, if an opinion cannot
be expressed, a declaration that such auditor accountant is
unable to express such opinion and an explanation of the
reasons he or she cannot do so. Each audit report shall include
the certification of the auditor or auditors accountant or
accountants making the audit that the audit has been performed
in compliance with generally accepted auditing standards. Each
audit report filed with the Comptroller shall be accompanied by
a copy of each official statement or other offering of
materials prepared in connection with the issuance of
indebtedness of the county since the filing of the last audit
report.
    (b) For fiscal year 2019 and each fiscal year thereafter,
the audit report shall contain statements that set forth the
financial position and the results of financial operations for
each fund, account, and office of the county government. The
audit report shall also include the professional opinion of an
auditor or auditors with respect to the financial status and
operations or, if an opinion cannot be expressed, a declaration
that the auditor is unable to express an opinion and an
explanation of the reasons he or she cannot do so. Each audit
report shall include the certification of the auditor or
auditors making the audit that the audit has been performed in
compliance with generally accepted auditing standards. Each
audit report filed with the Comptroller shall be accompanied by
a copy of each official statement or other offering of
materials prepared in connection with the issuance of
indebtedness of the county since the filing of the last audit
report.
    (c) For fiscal year 2019 and each fiscal year thereafter,
audit reports shall contain financial statements prepared in
conformity with generally accepted accounting principles and
audited in conformity with generally accepted auditing
standards if the last audit report filed preceding fiscal year
2019 expressed an unmodified or modified opinion by the
independent auditor that the financial statements were
presented in conformity with generally accepted accounting
principles.
    (d) For fiscal year 2019 and each fiscal year thereafter,
audit reports containing financial statements prepared in
conformity with an other comprehensive basis of accounting may
follow the best practices and guidelines outlined by the
American Institute of Certified Public Accountants and shall be
audited in conformity with generally accepted auditing
standards. If the county board of a county submits an audit
report containing financial statements prepared in conformity
with generally accepted accounting principles, thereafter all
future audit reports shall also contain financial statements
presented in conformity with generally accepted accounting
principles.
    (e) Audits may be made on financial statements prepared
using either an accrual or cash basis of accounting, depending
upon the system followed by the county, and audit reports shall
comply with this Section.
(Source: P.A. 86-962; 87-424.)
 
    Section 15. The Illinois Municipal Code is amended by
changing Sections 8-8-2 and 8-8-5 as follows:
 
    (65 ILCS 5/8-8-2)  (from Ch. 24, par. 8-8-2)
    Sec. 8-8-2. The following terms shall, unless the context
otherwise indicates, have the following meanings:
    (1) "Municipality" or "municipalities" means all cities,
villages and incorporated towns having a population of less
than 500,000 as determined by the last preceding Federal
census.
    (2) "Corporate authorities" means a city council, village
board of trustees, library board, police and firemen's pension
board, or any other body or officers having authority to levy
taxes, make appropriations, or approve claims for any
municipality.
    (3) "Comptroller" means the Comptroller of the State of
Illinois.
    (4) "Accountant" or "accountants" means all persons
licensed to practice public accounting under the laws of this
State.
    (5) "Audit report" means the written report of the
accountant or accountants and all appended statements and
schedules relating thereto, presenting or recording the
findings of an examination or audit of the financial
transactions, affairs, or condition of a municipality.
    (6) "Annual report" means the statement filed, in lieu of
an audit report, by the municipalities of less than 800
population, which do not own or operate public utilities and do
not have bonded debt.
    (7) "Supplemental report" means the annual statement
filed, in addition to any audit report provided for herein, by
all municipalities, except municipalities of less than 800
population which do not own or operate public utilities and do
not have bonded debt.
    (8) "Auditor" means a licensed certified public
accountant, as that term is defined in Section 0.03 of the
Illinois Public Accounting Act, who performs an audit of
municipal financial statements and records and expresses an
assurance or disclaims an opinion on the audited financial
statements.
(Source: P.A. 81-1050.)
 
    (65 ILCS 5/8-8-5)  (from Ch. 24, par. 8-8-5)
    Sec. 8-8-5. (a) Prior to fiscal year 2019, the The audit
shall be made in accordance with generally accepted auditing
standards. Reporting on the financial position and results of
financial operations for each fund of the municipality shall be
in accordance with generally accepted accounting principles or
other comprehensive basis of accounting , insofar as possible.
Each audit report shall include only financial information,
findings, and conclusions that are adequately supported by
evidence in the auditor's working papers to demonstrate or
prove, when called upon, the basis for the matters reported and
their correctness and reasonableness. In connection with this,
each municipality shall retain the right of inspection of the
auditor's working papers and shall make them available to the
Comptroller, or his or her designee, upon request. The audit
report shall consist of the professional opinion of the auditor
or auditors accountant or accountants with respect to the
financial statements or, if an opinion cannot be expressed, a
declaration that the auditor accountant is unable to express
such opinion and an explanation of the reasons he or she cannot
do so. Municipal authorities shall not impose limitations on
the scope of the audit to the extent that the effect of such
limitations will result in the qualification of the opinion of
the auditor or auditors accountant or accountants. Each audit
report filed with the Comptroller shall be accompanied by a
copy of each official statement or other offering of materials
prepared in connection with the issuance of indebtedness of the
municipality since the filing of the last audit report.
    Audits under this Division may be made upon either an
accrual or cash basis of accounting depending upon the system
followed by each municipality.
    (b) For fiscal year 2019 and each fiscal year thereafter,
the audit shall be made in accordance with generally accepted
auditing standards. Each audit report shall include only
financial information, findings, and conclusions that are
adequately supported by evidence in the auditor's working
papers to demonstrate or prove, when called upon, the basis for
the matters reported and their correctness and reasonableness.
In connection with this, each municipality shall retain the
right of inspection of the auditor's working papers and shall
make them available to the Comptroller, or his or her designee,
upon request. The audit report shall also consist of the
professional opinion of an auditor or auditors with respect to
the financial statements or, if an opinion cannot be expressed,
a declaration that the auditor is unable to express an opinion
and an explanation of the reasons he or she cannot do so.
Municipal authorities shall not impose limitations on the scope
of the audit to the extent that the effect of the limitations
will result in the qualification of the opinion of the auditor
or auditors. Each audit report filed with the Comptroller shall
be accompanied by a copy of each official statement or other
offering of materials prepared in connection with the issuance
of indebtedness of the municipality since the filing of the
last audit report.
    (c) For fiscal year 2019 and each fiscal year thereafter,
audit reports shall contain financial statements prepared in
accordance with generally accepted accounting principles and
audited in accordance with generally accepted auditing
standards if the last audit report filed preceding fiscal year
2019 expressed an unmodified or modified opinion by the
independent auditor that the financial statements were
presented in accordance with generally accepted accounting
principles.
    (d) For fiscal year 2019 and each fiscal year thereafter,
audit reports containing financial statements prepared in
accordance with an other comprehensive basis of accounting may
follow the best practices and guidelines outlined by the
American Institute of Certified Public Accountants and shall be
audited in accordance with generally accepted auditing
standards. If the corporate authority of a municipality submits
an audit report containing financial statements prepared in
accordance with generally accepted accounting principles,
thereafter all future audit reports shall also contain
financial statements presented in accordance with generally
accepted accounting principles.
    (e) Audits may be made on financial statements prepared
using either an accrual or cash basis of accounting, depending
upon the system followed by the municipality, and audit reports
shall comply with this Section.
(Source: P.A. 87-433.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/13/2018