HB4104 100TH GENERAL ASSEMBLY

  
  
 

 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4104
 
Introduced , by Rep. Anthony DeLuca
 
SYNOPSIS AS INTRODUCED:
 

 
  
65 ILCS 5/8-8-5  from Ch. 24, par. 8-8-5

     Amends the Illinois Municipal Auditing Law of the Illinois Municipal Code. Provides that audit reports reporting on the financial position and results of financial operations for each fund of the municipality shall be consistent with either the accrual or cash basis of accounting depending upon the system followed by each municipality and shall otherwise be in accordance with generally accepted accounting principles (currently, shall be in accordance with generally accepted accounting principles, insofar as possible).
  


LRB100 14828 AWJ 29649 b

 
 
A BILL FOR
 

  
HB4104LRB100 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 Illinois Municipal Code is amended  by 
5changing Section 8-8-5 as follows:
 



6    (65 ILCS 5/8-8-5)  (from Ch. 24, par. 8-8-5)



7    Sec. 8-8-5. 
The audit shall be made in accordance with 
8generally accepted
auditing standards. Reporting on the 
9financial position and results of
financial operations for each 
10fund of the municipality shall be consistent with either the 
11accrual or cash basis of accounting depending upon the system 
12followed by each municipality and shall otherwise be in

13accordance with generally accepted accounting principles, 
14insofar as
possible.  Each audit report shall include only 
15financial information,
findings and conclusions that are 
16adequately supported by evidence in the
auditor's working 
17papers to demonstrate or prove, when called upon, the
basis for 
18the matters reported and their correctness and reasonableness.

19In connection with this, each municipality shall retain the 
20right of
inspection of the auditor's working papers and shall 
21make them available to
the Comptroller, or his designee, upon 
22request.  The audit report shall
consist of the professional 
23opinion of the accountant or accountants with
respect to the 
 
 
HB4104- 2 -LRB100 14828 AWJ 29649 b

1financial statements or, if an opinion cannot be expressed,
a 
2declaration that the accountant is unable to express such 
3opinion and an
explanation of the reasons he cannot do so. 
4Municipal authorities shall not
impose limitations on the scope 
5of the audit to the extent that the effect
of such limitations 
6will result in the qualification of the opinion of the

7accountant or accountants. Each audit report filed with the 
8Comptroller
shall be accompanied by a copy of each official 
9statement or other offering
of materials prepared in connection 
10with the issuance of indebtedness of
the municipality since the 
11filing of the last audit report.

12    Audits under this Division may be made upon either an 
13accrual or cash
basis of accounting depending upon the system 
14followed by each
municipality.

15(Source: P.A. 87-433.)