Full Text of HB4104 100th General Assembly
HB4104ham001 100TH GENERAL ASSEMBLY | Rep. Anthony DeLuca Filed: 4/6/2018
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| 1 | | AMENDMENT TO HOUSE BILL 4104
| 2 | | AMENDMENT NO. ______. Amend House Bill 4104 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Governmental Account Audit Act is amended | 5 | | by changing 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 | 8 | | context
otherwise indicates:
| 9 | | "Governmental unit" or "unit" includes all municipal | 10 | | corporations in
and political subdivisions of this State that | 11 | | appropriate more than $5,000
for a fiscal year, with the amount | 12 | | to increase or decrease by the amount of the
Consumer Price | 13 | | Index (CPI) as reported on January 1 of each year, except the
| 14 | | following:
| 15 | | (1) School districts.
| 16 | | (2) Cities, villages, and incorporated towns subject |
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| 1 | | to the
Municipal Auditing Law, as contained in
the Illinois | 2 | | Municipal Code, and cities that file a report with the
| 3 | | Comptroller under Section 3.1-35-115 of the Illinois | 4 | | Municipal Code.
| 5 | | (3) Counties with a population of 1,000,000 or more.
| 6 | | (4) Counties subject to the County Auditing
Law.
| 7 | | (5) Any other municipal corporations in or political | 8 | | subdivisions of
this State, the accounts of which are | 9 | | required by law to be audited by
or under the direction of | 10 | | the Auditor General.
| 11 | | (6) (Blank).
| 12 | | (7) A drainage district, established under the | 13 | | Illinois Drainage
Code (70 ILCS 605), that did not receive | 14 | | or expend any moneys during the
immediately preceding | 15 | | fiscal year or obtains approval for assessments and
| 16 | | expenditures through the circuit court.
| 17 | | (8) Public housing authorities that submit financial | 18 | | reports to the U.S.
Department of Housing and Urban | 19 | | Development.
| 20 | | "Governing body" means the board or other body or officers | 21 | | having
authority to levy taxes, make appropriations, authorize | 22 | | the expenditure
of public funds or approve claims for any | 23 | | governmental unit.
| 24 | | "Comptroller" means the Comptroller of the State of | 25 | | Illinois.
| 26 | | "Consumer Price Index" means the Consumer Price Index for |
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| 1 | | All Urban
Consumers for all items published by the United | 2 | | States Department of Labor.
| 3 | | "Licensed public accountant" means the holder of a valid | 4 | | certificate
as a public accountant under the Illinois Public | 5 | | Accounting Act.
| 6 | | "Audit report" means the written report of the licensed | 7 | | public
accountant and all appended statements and schedules | 8 | | relating to that
report,
presenting or recording the findings | 9 | | of an examination or audit of the
financial transactions, | 10 | | affairs, or conditions of a governmental unit.
| 11 | | "Auditor" means a licensed certified public accountant, as | 12 | | that term is defined in Section 0.03 of the Illinois Public | 13 | | Accounting Act, who performs an audit of governmental unit | 14 | | financial statements and records and expresses an assurance or | 15 | | disclaims an opinion on the audited financial statements. | 16 | | "Report" includes both audit reports and reports filed | 17 | | instead of an
audit report by a governmental unit receiving | 18 | | revenue of less than $850,000
during any fiscal year to which | 19 | | the reports relate.
| 20 | | (Source: P.A. 92-191, eff. 8-1-01; 92-582, eff. 7-1-02.)
| 21 | | (50 ILCS 310/5) (from Ch. 85, par. 705)
| 22 | | Sec. 5.
(a) Prior to fiscal year 2019, the The audit report | 23 | | shall contain statements that conform with
generally accepted | 24 | | accounting principles or other comprehensive basis of | 25 | | accounting and that set forth , insofar as
possible, the |
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| 1 | | financial position and results of financial operations for
each | 2 | | fund of the governmental unit. Each audit report shall include | 3 | | only
financial information, findings , and conclusions that are | 4 | | adequately
supported by evidence in the auditor's working | 5 | | papers to demonstrate or
prove, when called upon, the basis for | 6 | | the matters reported and their
correctness and reasonableness. | 7 | | In connection with this, each governmental
unit shall retain | 8 | | the right of inspection of the auditor's working papers
and | 9 | | shall make them available to the Comptroller, or his or her | 10 | | designee, upon
request. The audit report shall also include the
| 11 | | professional opinion of the auditor or auditors licensed public | 12 | | accountant with respect to the
financial statements or, if an | 13 | | opinion cannot be expressed, a declaration
that he or she is | 14 | | unable to express such opinion and an explanation of the | 15 | | reasons
he or she cannot do so. Each audit report shall include | 16 | | the certification of
the auditor or auditors accountant or | 17 | | accountants making the audit that the audit has been
performed | 18 | | in compliance with generally accepted auditing standards.
| 19 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 20 | | the audit report shall contain statements that set forth the | 21 | | financial position and results of financial operations for each | 22 | | fund of the governmental unit. Each audit report shall include | 23 | | only financial information, findings, and conclusions that are | 24 | | adequately supported by evidence in the auditor's working | 25 | | papers to demonstrate or prove, when called upon, the basis for | 26 | | the matters reported and their correctness and reasonableness. |
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| 1 | | In connection with this, each governmental unit shall retain | 2 | | the right of inspection of the auditor's working papers and | 3 | | shall make them available to the Comptroller, or his or her | 4 | | designee, upon request. The audit report shall also include the | 5 | | professional opinion of the auditor or auditors with respect to | 6 | | the financial statements or, if an opinion cannot be expressed, | 7 | | a declaration that he or she is unable to express an opinion | 8 | | and an explanation of the reasons he or she cannot do so. Each | 9 | | audit report shall include the certification of the auditor or | 10 | | auditors making the audit that the audit has been performed in | 11 | | compliance with generally accepted auditing standards. | 12 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 13 | | audit reports shall contain financial statements prepared in | 14 | | conformity with generally accepted accounting principles and | 15 | | audited in conformity with generally accepted auditing | 16 | | standards if the last audit report filed preceding fiscal year | 17 | | 2017 expressed an unmodified or modified opinion by the | 18 | | independent auditor that the financial statements were | 19 | | presented in conformity with generally accepted accounting | 20 | | principles. | 21 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 22 | | audit reports containing financial statements prepared in | 23 | | conformity with an other comprehensive basis of accounting may | 24 | | follow the best practices and guidelines as outlined by the | 25 | | American Institute of Certified Public Accountants and shall be | 26 | | audited in conformity with generally accepted auditing |
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| 1 | | standards. If the governing body of a governmental unit submits | 2 | | an audit report containing financial statements prepared in | 3 | | conformity with generally accepted accounting principles, | 4 | | thereafter all future audit reports shall also contain | 5 | | financial statements presented in conformity with generally | 6 | | accepted accounting principles. | 7 | | (e) Audits may be made on financial statements prepared | 8 | | using either an accrual or cash basis of accounting, depending | 9 | | upon the system followed by the governmental unit, and audit | 10 | | reports shall comply with this Section. | 11 | | (Source: P.A. 85-1000.)
| 12 | | Section 10. The Counties Code is amended by changing | 13 | | Sections 6-31002 and 6-31006 as follows:
| 14 | | (55 ILCS 5/6-31002) (from Ch. 34, par. 6-31002)
| 15 | | Sec. 6-31002. Definitions. As used in this Division, unless | 16 | | the context otherwise requires:
| 17 | | 1. "Comptroller" means the Comptroller of the State of | 18 | | Illinois;
| 19 | | 2. "accountant" or "accountants" means and includes all | 20 | | persons
authorized to practice public accounting under the laws | 21 | | of this State;
| 22 | | 3. "funds and accounts" means all funds of a county derived | 23 | | from
property taxes and all funds and accounts derived from | 24 | | sources other than
property taxes, including the receipts and |
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| 1 | | expenditures of the fee earnings
of each county fee officer;
| 2 | | 4. "audit report" means the written report of the | 3 | | accountant or
accountants and all appended statements and | 4 | | schedules relating thereto,
presenting or recording the | 5 | | findings of an examination or audit of the
financial | 6 | | transactions, affairs and condition of a county;
| 7 | | 5. "population" means the number of persons residing in a | 8 | | county
according to the last preceding federal decennial | 9 | | census ; . | 10 | | 6. "auditor" means a licensed certified public accountant, | 11 | | as that term is defined in Section 0.03 of the Illinois Public | 12 | | Accounting Act, who performs an audit of county financial | 13 | | statements and records and expresses an assurance or disclaims | 14 | | an opinion on the audited financial statements.
| 15 | | (Source: P.A. 86-962.)
| 16 | | (55 ILCS 5/6-31006) (from Ch. 34, par. 6-31006)
| 17 | | Sec. 6-31006. Audit report. | 18 | | (a) Prior to fiscal year 2019, the The audit report shall | 19 | | contain
statements that are in conformity with generally | 20 | | accepted public accounting
principles or other comprehensive | 21 | | basis of accounting and shall set forth , insofar as possible, | 22 | | the financial position
and the results of financial operations | 23 | | for each fund, account , and office
of the county government. | 24 | | The audit report shall also include the
professional opinion of | 25 | | the auditor or auditors accountant or accountants with respect |
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| 1 | | to the
financial status and operations or, if an opinion cannot | 2 | | be expressed, a
declaration that such auditor accountant is | 3 | | unable to express such opinion and an
explanation of the | 4 | | reasons he or she cannot do so. Each audit report shall
include | 5 | | the certification of the auditor or auditors accountant or | 6 | | accountants making the audit
that the audit has been performed | 7 | | in compliance with generally accepted
auditing standards. Each | 8 | | audit report filed with the Comptroller shall be
accompanied by | 9 | | a copy of each official statement or other offering of
| 10 | | materials prepared in connection with the issuance of | 11 | | indebtedness of the
county since the filing of the last audit | 12 | | report.
| 13 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 14 | | the audit report shall contain statements that set forth the | 15 | | financial position and the results of financial operations for | 16 | | each fund, account, and office of the county government. The | 17 | | audit report shall also include the professional opinion of an | 18 | | auditor or auditors with respect to the financial status and | 19 | | operations or, if an opinion cannot be expressed, a declaration | 20 | | that the auditor is unable to express an opinion and an | 21 | | explanation of the reasons he or she cannot do so. Each audit | 22 | | report shall include the certification of the auditor or | 23 | | auditors making the audit that the audit has been performed in | 24 | | compliance with generally accepted auditing standards. Each | 25 | | audit report filed with the Comptroller shall be accompanied by | 26 | | a copy of each official statement or other offering of |
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| 1 | | materials prepared in connection with the issuance of | 2 | | indebtedness of the county since the filing of the last audit | 3 | | report. | 4 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 5 | | audit reports shall contain financial statements prepared in | 6 | | conformity with generally accepted accounting principles and | 7 | | audited in conformity with generally accepted auditing | 8 | | standards if the last audit report filed preceding fiscal year | 9 | | 2017 expressed an unmodified or modified opinion by the | 10 | | independent auditor that the financial statements were | 11 | | presented in conformity with generally accepted accounting | 12 | | principles. | 13 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 14 | | audit reports containing financial statements prepared in | 15 | | conformity with an other comprehensive basis of accounting may | 16 | | follow the best practices and guidelines outlined by the | 17 | | American Institute of Certified Public Accountants and shall be | 18 | | audited in conformity with generally accepted auditing | 19 | | standards. If the county board of a county submits an audit | 20 | | report containing financial statements prepared in conformity | 21 | | with generally accepted accounting principles, thereafter all | 22 | | future audit reports shall also contain financial statements | 23 | | presented in conformity with generally accepted accounting | 24 | | principles. | 25 | | (e) Audits may be made on financial statements prepared | 26 | | using either an accrual or cash basis of accounting, depending |
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| 1 | | upon the system followed by the county, and audit reports shall | 2 | | comply with this Section. | 3 | | (Source: P.A. 86-962; 87-424.)
| 4 | | Section 15. The Illinois Municipal Code is amended by | 5 | | changing Sections 8-8-2 and 8-8-5 as follows:
| 6 | | (65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
| 7 | | Sec. 8-8-2.
The following terms shall, unless the context | 8 | | otherwise indicates,
have the following meanings:
| 9 | | (1) "Municipality" or "municipalities" means all cities, | 10 | | villages
and incorporated towns having a population of less | 11 | | than 500,000 as
determined by the last preceding Federal | 12 | | census.
| 13 | | (2) "Corporate authorities" means a city council, village | 14 | | board of
trustees, library board, police and firemen's pension | 15 | | board, or any
other body or officers having authority to levy | 16 | | taxes, make
appropriations, or approve claims for any | 17 | | municipality.
| 18 | | (3) "Comptroller" means the Comptroller of the State of | 19 | | Illinois.
| 20 | | (4) "Accountant" or "accountants" means all persons | 21 | | licensed to
practice public accounting under the laws of this | 22 | | State.
| 23 | | (5) "Audit report" means the written report of the | 24 | | accountant or
accountants and all appended statements and |
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| 1 | | schedules relating thereto,
presenting or recording the | 2 | | findings of an examination or audit of the
financial | 3 | | transactions, affairs, or condition of a municipality.
| 4 | | (6) "Annual report" means the statement filed, in lieu of | 5 | | an audit
report, by the municipalities of less than 800 | 6 | | population, which do not
own or operate public utilities and do | 7 | | not have bonded debt.
| 8 | | (7) "Supplemental report" means the annual statement | 9 | | filed, in
addition to any audit report provided for herein, by | 10 | | all municipalities,
except municipalities of less than 800 | 11 | | population which do not own or
operate public utilities and do | 12 | | not have bonded debt.
| 13 | | (8) "Auditor" means a licensed certified public | 14 | | accountant, as that term is defined in Section 0.03 of the | 15 | | Illinois Public Accounting Act, who performs an audit of | 16 | | municipal financial statements and records and expresses an | 17 | | assurance or disclaims an opinion on the audited financial | 18 | | statements. | 19 | | (Source: P.A. 81-1050.)
| 20 | | (65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)
| 21 | | Sec. 8-8-5.
(a) Prior to fiscal year 2019, the The audit | 22 | | shall be made in accordance with generally accepted
auditing | 23 | | standards. Reporting on the financial position and results of
| 24 | | financial operations for each fund of the municipality shall be | 25 | | in
accordance with generally accepted accounting principles or |
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| 1 | | other comprehensive basis of accounting , insofar as
possible . | 2 | | Each audit report shall include only financial information,
| 3 | | findings , and conclusions that are adequately supported by | 4 | | evidence in the
auditor's working papers to demonstrate or | 5 | | prove, when called upon, the
basis for the matters reported and | 6 | | their correctness and reasonableness.
In connection with this, | 7 | | each municipality shall retain the right of
inspection of the | 8 | | auditor's working papers and shall make them available to
the | 9 | | Comptroller, or his or her designee, upon request. The audit | 10 | | report shall
consist of the professional opinion of the auditor | 11 | | or auditors accountant or accountants with
respect to the | 12 | | financial statements or, if an opinion cannot be expressed,
a | 13 | | declaration that the auditor accountant is unable to express | 14 | | such opinion and an
explanation of the reasons he or she cannot | 15 | | do so. Municipal authorities shall not
impose limitations on | 16 | | the scope of the audit to the extent that the effect
of such | 17 | | limitations will result in the qualification of the opinion of | 18 | | the auditor or auditors
accountant or accountants . Each audit | 19 | | report filed with the Comptroller
shall be accompanied by a | 20 | | copy of each official statement or other offering
of materials | 21 | | prepared in connection with the issuance of indebtedness of
the | 22 | | municipality since the filing of the last audit report.
| 23 | | Audits under this Division may be made upon either an | 24 | | accrual or cash
basis of accounting depending upon the system | 25 | | followed by each
municipality. | 26 | | (b) For fiscal year 2019 and each fiscal year thereafter, |
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| 1 | | the audit shall be made in accordance with generally accepted | 2 | | auditing standards. Each audit report shall include only | 3 | | financial information, findings, and conclusions that are | 4 | | adequately supported by evidence in the auditor's working | 5 | | papers to demonstrate or prove, when called upon, the basis for | 6 | | the matters reported and their correctness and reasonableness. | 7 | | In connection with this, each municipality shall retain the | 8 | | right of inspection of the auditor's working papers and shall | 9 | | make them available to the Comptroller, or his or her designee, | 10 | | upon request. The audit report shall also consist of the | 11 | | professional opinion of an auditor or auditors with respect to | 12 | | the financial statements or, if an opinion cannot be expressed, | 13 | | a declaration that the auditor is unable to express an opinion | 14 | | and an explanation of the reasons he or she cannot do so. | 15 | | Municipal authorities shall not impose limitations on the scope | 16 | | of the audit to the extent that the effect of the limitations | 17 | | will result in the qualification of the opinion of the auditor | 18 | | or auditors. Each audit report filed with the Comptroller shall | 19 | | be accompanied by a copy of each official statement or other | 20 | | offering of materials prepared in connection with the issuance | 21 | | of indebtedness of the municipality since the filing of the | 22 | | last audit report. | 23 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 24 | | audit reports shall contain financial statements prepared in | 25 | | accordance with generally accepted accounting principles and | 26 | | audited in accordance with generally accepted auditing |
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| 1 | | standards if the last audit report filed preceding fiscal year | 2 | | 2017 expressed an unmodified or modified opinion by the | 3 | | independent auditor that the financial statements were | 4 | | presented in accordance with generally accepted accounting | 5 | | principles.
| 6 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 7 | | audit reports containing financial statements prepared in | 8 | | accordance with an other comprehensive basis of accounting may | 9 | | follow the best practices and guidelines outlined by the | 10 | | American Institute of Certified Public Accountants and shall be | 11 | | audited in accordance with generally accepted auditing | 12 | | standards. If the corporate authority of a municipality submits | 13 | | an audit report containing financial statements prepared in | 14 | | accordance with generally accepted accounting principles, | 15 | | thereafter all future audit reports shall also contain | 16 | | financial statements presented in accordance with generally | 17 | | accepted accounting principles. | 18 | | (e) Audits may be made on financial statements prepared | 19 | | using either an accrual or cash basis of accounting, depending | 20 | | upon the system followed by the municipality, and audit reports | 21 | | shall comply with this Section. | 22 | | (Source: P.A. 87-433.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.".
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