101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5636

 

Introduced , by Rep. Tony McCombie

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/2-3.17a  from Ch. 122, par. 2-3.17a

    Amends the School Code. Relative to the financial audits made annually by the Auditor General of the financial statements of all accounts, funds, and other moneys in the care, custody, or control of a regional superintendent of schools or educational service region, provides that the regional office of education or educational service center may utilize a cash basis, modified cash basis, or generally accepted accounting principles (GAAP) basis of accounting in the preparation of the financial statements. Makes changes to require audit reports to be published on the Auditor General's website and distributed in accordance with the Illinois State Auditing Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5636LRB101 18535 CMG 67988 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
52-3.17a as follows:
 
6    (105 ILCS 5/2-3.17a)  (from Ch. 122, par. 2-3.17a)
7    Sec. 2-3.17a. Financial audits by Auditor General. The
8Auditor General shall annually cause an audit to be made, as of
9June 30th of each year, of the financial statements of all
10accounts, funds and other moneys in the care, custody or
11control of the regional superintendent of schools of each
12educational service region in the State and of each educational
13service center established under Section 2-3.62 of this Code
14other than an educational service center serving a school
15district in a city having a population exceeding 500,000. The
16audit shall be conducted in accordance with Generally Accepted
17Governmental Auditing Standards and shall include an
18examination of supporting books and records and a
19representative sample of vouchers for distributions and
20expenditures. A regional office of education or educational
21service center may utilize a cash basis, modified cash basis,
22or generally accepted accounting principles (GAAP) basis of
23accounting to prepare the financial statements for the audit.

 

 

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1On February 15 of each year, the Auditor General shall notify
2the Legislative Audit Commission in writing of the completion
3or of the reasons for the noncompletion of each audit required
4by this Section to be made as of the preceding June 30. An
5audit report shall be prepared for each audit made pursuant to
6this Section, and all such audit reports shall be kept on file
7in the office of the Auditor General, published on the Auditor
8General's website, and distributed in accordance with Section
93-14 of the Illinois State Auditing Act. Within 60 days after
10each audit report required to be prepared under this Section is
11completed, the Auditor General: (i) shall furnish a copy of
12such audit report to each member of the General Assembly whose
13legislative or representative district includes any part of the
14educational service region served by the regional
15superintendent of schools with respect to whose financial
16statements that audit report was prepared or any part of the
17area served by the educational service center that is the
18subject of the audit; and (ii) shall publish in a newspaper
19published in that educational service region or area served by
20the educational service center that is the subject of the audit
21a notice that the audit report has been prepared and is
22available for inspection during regular business hours at the
23office of the regional superintendent of schools of that
24educational service region or at the administrative office of
25the educational service center. Each audit shall be made in
26such manner as to determine, and each audit report shall be

 

 

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1prepared in such manner as to state:
2        (1) The balances on hand of all accounts, funds and
3    other moneys in the care, custody or control of the
4    regional superintendent of schools or educational service
5    center at the beginning of the fiscal year being audited;
6        (2) the amount of funds received during the fiscal year
7    by source;
8        (3) the amount of funds distributed or otherwise paid
9    by the regional superintendent of schools or educational
10    service center to each school treasurer in his or her
11    educational service region or area, including the purpose
12    of such distribution or payment and the fund or account
13    from which such distribution or payment is made;
14        (4) the amounts paid or otherwise disbursed by the
15    regional superintendent of schools or educational service
16    center -- other than the amounts distributed or paid by the
17    regional superintendent of schools or educational service
18    center to school treasurers as described in paragraph (3)
19    above -- for all other purposes and expenditures, including
20    the fund or account from which such payments or
21    disbursements are made and the purpose thereof; and
22        (5) the balances on hand of all accounts, funds and
23    other moneys in the care, custody or control of the
24    regional superintendent of schools or educational service
25    center at the end of the fiscal year being audited.
26    The Auditor General shall adopt rules and regulations

 

 

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1relative to the time and manner by which the regional
2superintendent of schools or educational service center shall
3present for inspection or make available to the Auditor
4General, or to the agents designated by the Auditor General to
5make an audit and prepare an audit report pursuant to this
6Section, all financial statements, books, records, vouchers
7for distributions and expenditures, and records of accounts,
8funds and other moneys in the care, custody or control of the
9regional superintendent of schools or educational service
10center and required for purposes of making such audit and
11preparing an audit and preparing an audit report. All rules and
12regulations adopted by the State Board of Education under this
13Section before the effective date of this amendatory Act of the
1492nd General Assembly shall continue in effect as the rules and
15regulations of the Auditor General, until they are modified or
16abolished by the Auditor General.
17    The Auditor General shall require the regional
18superintendent of schools of each educational service region or
19administrator of each educational service center to promptly
20implement all recommendations based on audit findings
21resulting from a violation of law made in audits prepared
22pursuant to this Section, unless the Auditor General, upon
23review, determines, with regard to any such finding, that
24implementation of the recommendation is not appropriate.
25(Source: P.A. 92-544, eff. 6-12-02.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.