Full Text of SB1806 101st General Assembly
SB1806enr 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Governmental Account Audit Act is amended by | 5 | | changing Sections 1, 2, 4, 5, and 6 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 | 17 | | to the
Municipal Auditing Law, as contained in
the Illinois | 18 | | Municipal Code, and cities that file a report with the
| 19 | | Comptroller under Section 3.1-35-115 of the Illinois | 20 | | Municipal Code.
| 21 | | (3) Counties with a population of 1,000,000 or more.
| 22 | | (4) Counties subject to the County Auditing
Law.
| 23 | | (5) Any other municipal corporations in or political |
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| 1 | | subdivisions of
this State, the accounts of which are | 2 | | required by law to be audited by
or under the direction of | 3 | | the Auditor General.
| 4 | | (6) (Blank).
| 5 | | (7) A drainage district, established under the | 6 | | Illinois Drainage
Code (70 ILCS 605), that did not receive | 7 | | or expend any moneys during the
immediately preceding | 8 | | fiscal year or obtains approval for assessments and
| 9 | | expenditures through the circuit court.
| 10 | | (8) Public housing authorities that submit financial | 11 | | reports to the U.S.
Department of Housing and Urban | 12 | | Development.
| 13 | | "Governing body" means the board or other body or officers | 14 | | having
authority to levy taxes, make appropriations, authorize | 15 | | the expenditure
of public funds or approve claims for any | 16 | | governmental unit.
| 17 | | "Comptroller" means the Comptroller of the State of | 18 | | Illinois.
| 19 | | "Consumer Price Index" means the Consumer Price Index for | 20 | | All Urban
Consumers for all items published by the United | 21 | | States Department of Labor.
| 22 | | "Licensed public accountant" means the holder of a valid | 23 | | certificate
as a public accountant under the Illinois Public | 24 | | Accounting Act.
| 25 | | "Audit report" means the written report of the auditor | 26 | | licensed public
accountant and all appended statements and |
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| 1 | | schedules relating to that
report,
presenting or recording the | 2 | | findings of an examination or audit of the
financial | 3 | | transactions, affairs, or conditions of a governmental unit.
| 4 | | "Auditor" means a licensed certified public accountant, as | 5 | | that term is defined in Section 0.03 of the Illinois Public | 6 | | Accounting Act, or the substantial equivalent of a licensed | 7 | | CPA, as provided under Section 5.2 of the Illinois Public | 8 | | Accounting Act, who performs an audit of governmental unit | 9 | | financial statements and records and expresses an assurance or | 10 | | disclaims an opinion on the audited financial statements. | 11 | | "Report" includes both audit reports and reports filed | 12 | | instead of an
audit report by a governmental unit receiving | 13 | | revenue of less than $850,000
during any fiscal year to which | 14 | | the reports relate. | 15 | | "Generally accepted accounting principles" means | 16 | | accounting principles generally accepted in the United States.
| 17 | | "Generally accepted auditing standards" means auditing | 18 | | standards generally accepted in the United States. | 19 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 20 | | (50 ILCS 310/2) (from Ch. 85, par. 702)
| 21 | | Sec. 2.
Except as otherwise provided in Section 3, the | 22 | | governing body of
each governmental unit shall cause an audit | 23 | | of the accounts of the unit to be
made by an auditor or | 24 | | auditors a licensed public accountant . Such audit shall be | 25 | | performed made annually and
shall cover the immediately |
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| 1 | | preceding fiscal year of the governmental unit.
The audit shall | 2 | | include all the accounts and funds of the governmental
unit, | 3 | | including the accounts of any officer of the governmental unit | 4 | | who
receives fees or handles funds of the unit or who spends | 5 | | money of the unit.
The audit shall begin as soon as possible | 6 | | after the close of the last
fiscal year to which it pertains, | 7 | | and shall be completed and the audit
report filed with the | 8 | | Comptroller within 180 days after the close of such
fiscal year | 9 | | unless an extension of time is granted by the Comptroller in
| 10 | | writing. An audit report which fails to meet the requirements | 11 | | of this
Act shall be rejected by the Comptroller and returned | 12 | | to the governing body
of the governmental unit for corrective | 13 | | action. The auditor or auditors performing
licensed public | 14 | | accountant making the audit shall submit not
less than 3 copies | 15 | | of the audit report to the governing body of the
governmental | 16 | | unit being audited. | 17 | | All audits to be filed with the Comptroller under this | 18 | | Section must be submitted electronically and the Comptroller | 19 | | must post the audit reports on the Internet no later than 45 | 20 | | days after they are received. If the governmental unit provides | 21 | | the Comptroller's Office with sufficient evidence that the | 22 | | audit report cannot be filed electronically, the Comptroller | 23 | | may waive this requirement. The Comptroller must also post a | 24 | | list of governmental units that are not in compliance with the | 25 | | reporting requirements set forth in this Section. | 26 | | Any financial report under this Section shall include the |
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| 1 | | name of the purchasing agent who oversees all competitively bid | 2 | | contracts. If there is no purchasing agent, the name of the | 3 | | person responsible for oversight of all competitively bid | 4 | | contracts shall be listed.
| 5 | | (Source: P.A. 99-459, eff. 8-25-15.)
| 6 | | (50 ILCS 310/4) (from Ch. 85, par. 704)
| 7 | | Sec. 4. Overdue report.
| 8 | | (a) If the required report for a governmental unit is not | 9 | | filed with the
Comptroller in accordance with Section 2 or | 10 | | Section 3, whichever is
applicable, within 180 days after the | 11 | | close of the fiscal year of the
governmental unit, the | 12 | | Comptroller shall notify the governing body of that
unit in | 13 | | writing that the report is due and may also grant a 60 day
| 14 | | extension for the filing of the audit report. If the required | 15 | | report is not
filed within the time specified in such written | 16 | | notice, the Comptroller
shall cause an audit to be made by a | 17 | | auditor licensed public accountant , and the
governmental unit | 18 | | shall pay to the Comptroller actual compensation and
expenses | 19 | | to reimburse him for the cost of preparing or completing such
| 20 | | report.
| 21 | | (b) The Comptroller may decline to order an audit and the | 22 | | preparation of
an audit report (i) if an initial examination of | 23 | | the books and records of
the
governmental unit indicates that | 24 | | the books and records of the governmental unit
are inadequate | 25 | | or unavailable due to the passage of time or the occurrence of |
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| 1 | | a
natural disaster or (ii) if the Comptroller determines that | 2 | | the cost of an
audit would impose an unreasonable financial | 3 | | burden on the governmental unit.
| 4 | | (c) The State Comptroller may grant extensions for | 5 | | delinquent audits or reports. The Comptroller may charge a | 6 | | governmental unit a fee for a delinquent audit or report of $5 | 7 | | per day for the first 15 days past due, $10 per day for 16 | 8 | | through 30 days past due, $15 per day for 31 through 45 days | 9 | | past due, and $20 per day for the 46th day and every day | 10 | | thereafter. These amounts may be reduced at the Comptroller's | 11 | | discretion. All fees collected under this subsection (c) shall | 12 | | be deposited into the Comptroller's Administrative Fund. | 13 | | (Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
| 14 | | (50 ILCS 310/5) (from Ch. 85, par. 705)
| 15 | | Sec. 5.
(a) Prior to fiscal year 2019, the audit report | 16 | | shall contain statements that conform with
generally accepted | 17 | | accounting principles or other comprehensive basis of | 18 | | accounting and that set forth the financial position and | 19 | | results of financial operations for
each fund of the | 20 | | governmental unit. Each audit report shall include only
| 21 | | financial information, findings, and conclusions that are | 22 | | adequately
supported by evidence in the auditor's working | 23 | | papers to demonstrate or
prove, when called upon, the basis for | 24 | | the matters reported and their
correctness and reasonableness. | 25 | | In connection with this, each governmental
unit shall retain |
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| 1 | | the right of inspection of the auditor's working papers
and | 2 | | shall make them available to the Comptroller, or his or her | 3 | | designee, upon
request. The audit report shall also include the
| 4 | | professional opinion of the auditor or auditors with respect to | 5 | | the
financial statements or, if an opinion cannot be expressed, | 6 | | a declaration
that he or she is unable to express such opinion | 7 | | and an explanation of the reasons
he or she cannot do so. Each | 8 | | audit report shall include the certification of
the auditor or | 9 | | auditors making the audit that the audit has been
performed in | 10 | | compliance with generally accepted auditing standards.
| 11 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 12 | | the audit report shall contain statements that set forth the | 13 | | financial position and results of financial operations for | 14 | | financial statements for governmental activities, | 15 | | business-type activities, discretely presented component | 16 | | units, and each major fund and aggregated nonmajor fund each | 17 | | fund of the governmental unit . Each audit report shall include | 18 | | only financial information, findings, and conclusions that are | 19 | | adequately supported by evidence in the auditor's working | 20 | | papers to demonstrate or prove, when called upon, the basis for | 21 | | the matters reported and their correctness and reasonableness. | 22 | | In connection with this, each governmental unit shall retain | 23 | | the right of inspection of the auditor's working papers and | 24 | | shall make them available to the Comptroller, or his or her | 25 | | designee, upon request. The audit report shall also include the | 26 | | professional opinion of the auditor or auditors with respect to |
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| 1 | | the financial statements or, if an opinion cannot be expressed, | 2 | | a declaration that he or she is unable to express an opinion | 3 | | and an explanation of the reasons he or she cannot do so. Each | 4 | | audit report shall include a representation by the | 5 | | certification of the auditor or auditors conducting making the | 6 | | audit that the audit has been performed in accordance | 7 | | compliance with generally accepted auditing standards. | 8 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 9 | | audit reports shall contain financial statements prepared in | 10 | | accordance conformity with generally accepted accounting | 11 | | principles and audited in accordance conformity with generally | 12 | | accepted auditing standards if the last audit report filed | 13 | | preceding fiscal year 2019 expressed an unmodified or modified | 14 | | opinion by the independent auditor pertaining to that the | 15 | | financial statements that were prepared presented in | 16 | | accordance conformity with generally accepted accounting | 17 | | principles. | 18 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 19 | | audit reports containing financial statements prepared in | 20 | | accordance conformity with an other comprehensive basis of | 21 | | accounting may follow the best practices and guidelines as | 22 | | outlined by the American Institute of Certified Public | 23 | | Accountants and shall be audited in accordance conformity with | 24 | | generally accepted auditing standards. If the governing body of | 25 | | a governmental unit submits an audit report containing | 26 | | financial statements prepared in accordance conformity with |
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| 1 | | generally accepted accounting principles, thereafter all | 2 | | future audit reports shall also contain financial statements | 3 | | prepared presented in accordance conformity with generally | 4 | | accepted accounting principles. | 5 | | (e) Audits may be performed made on financial statements | 6 | | prepared using either an accrual or cash basis of accounting, | 7 | | depending upon the system followed by the governmental unit, | 8 | | and audit reports shall comply with this Section. | 9 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 10 | | (50 ILCS 310/6) (from Ch. 85, par. 706)
| 11 | | Sec. 6.
When the audit
is completed the auditor licensed | 12 | | public accountant making such
audit shall make and sign at | 13 | | least 3 copies of the report of the audit and
immediately file | 14 | | them with the governmental unit audited. Governmental
units | 15 | | receiving revenue of $850,000 or more for
any fiscal year shall | 16 | | immediately
make one copy of the audit report and one copy of | 17 | | the financial report required
by Section 3 of this Act a part | 18 | | of its public record. Governmental units
receiving revenue of | 19 | | less than $850,000 shall immediately make one copy of the
audit | 20 | | report, or one copy of the report authorized by Section 3 of | 21 | | this
Act to be filed instead of the audit report, a part of its | 22 | | public record.
These copies shall be
open to public inspection. | 23 | | In addition, the governmental unit shall file
one copy of the | 24 | | report with the Comptroller and with the county clerk of
the | 25 | | county in which the principal office of the governmental unit |
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| 1 | | is
located. A governmental unit may, in filing its audit report | 2 | | with the
Comptroller, transmit with such report any comment or | 3 | | explanation that it
wishes to make concerning the report.
| 4 | | (Source: P.A. 92-582, eff. 7-1-02.)
| 5 | | Section 10. The Counties Code is amended by changing | 6 | | Sections 6-31002, 6-31003, 6-31004, 6-31005, 6-31006, and | 7 | | 6-31008 as follows:
| 8 | | (55 ILCS 5/6-31002) (from Ch. 34, par. 6-31002)
| 9 | | Sec. 6-31002. Definitions. As used in this Division, unless | 10 | | the context otherwise requires:
| 11 | | 1. "Comptroller" means the Comptroller of the State of | 12 | | Illinois;
| 13 | | 2. (Blank); "Accountant" or "accountants" means and | 14 | | includes all persons
authorized to practice public accounting | 15 | | under the laws of this State;
| 16 | | 3. "Funds and accounts" means all funds of a county derived | 17 | | from
property taxes and all funds and accounts derived from | 18 | | sources other than
property taxes, including the receipts and | 19 | | expenditures of the fee earnings
of each county fee officer;
| 20 | | 4. "Audit report" means the written report of the auditor | 21 | | or auditors accountant or
accountants and all appended | 22 | | statements and schedules relating thereto,
presenting or | 23 | | recording the findings of an examination or audit of the
| 24 | | financial transactions, affairs and condition of a county;
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| 1 | | 5. "Population" means the number of persons residing in a | 2 | | county
according to the last preceding federal decennial | 3 | | census; | 4 | | 6. "Auditor" means a licensed certified public accountant, | 5 | | as that term is defined in Section 0.03 of the Illinois Public | 6 | | Accounting Act, or the substantial equivalent of a licensed | 7 | | CPA, as provided under Section 5.2 of the Illinois Public | 8 | | Accounting Act, who performs an audit of county financial | 9 | | statements and records and expresses an assurance or disclaims | 10 | | an opinion on the audited financial statements; "auditor" does | 11 | | not include a county auditor elected or appointed under | 12 | | Division 3-1 of the Counties Code.
| 13 | | 7. "Generally accepted accounting principles" means | 14 | | accounting principles generally accepted in the United States. | 15 | | 8. "Generally accepted auditing standards" means auditing | 16 | | standards generally accepted in the United States. | 17 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 18 | | (55 ILCS 5/6-31003) (from Ch. 34, par. 6-31003)
| 19 | | Sec. 6-31003. Annual audits and reports. The county board | 20 | | of each
county shall cause an audit of all of the funds and | 21 | | accounts of the county
to be performed made annually by an | 22 | | auditor or auditors accountant
or accountants chosen by the | 23 | | county board or by an auditor or auditors accountant or | 24 | | accountants
retained by the Comptroller, as hereinafter | 25 | | provided. In addition, each
county shall file with the |
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| 1 | | Comptroller
a financial report containing information required | 2 | | by the Comptroller.
Such financial report shall be on a form so | 3 | | designed by the Comptroller
as not to require professional | 4 | | accounting services for its preparation. All audits and reports | 5 | | to be filed with the Comptroller under this Section must be | 6 | | submitted electronically and the Comptroller must post the | 7 | | audits and reports on the Internet no later than 45 days after | 8 | | they are received. If the county provides the Comptroller's | 9 | | Office with sufficient evidence that the audit or report cannot | 10 | | be filed electronically, the Comptroller may waive this | 11 | | requirement. The Comptroller must also post a list of counties | 12 | | that are not in compliance with the reporting requirements set | 13 | | forth in this Section.
| 14 | | Any financial report under this Section shall include the | 15 | | name of the purchasing agent who oversees all competitively bid | 16 | | contracts. If there is no purchasing agent, the name of the | 17 | | person responsible for oversight of all competitively bid | 18 | | contracts shall be listed. | 19 | | The audit shall commence as soon as possible after the | 20 | | close of each
fiscal year and shall be completed within 180 | 21 | | days after the close of such
fiscal year, unless an extension | 22 | | of time is granted by the Comptroller in
writing. Such | 23 | | extension of time shall not exceed 60 days. When the auditor or | 24 | | auditors accountant
or accountants have completed the audit a | 25 | | full report thereof shall be made
and not less than 2 copies of | 26 | | each audit report shall be submitted to the
county board. Each |
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| 1 | | audit report shall be signed by the auditor performing | 2 | | accountant making
the audit and shall include only financial | 3 | | information, findings and
conclusions that are adequately | 4 | | supported by evidence in the auditor's
working papers to | 5 | | demonstrate or prove, when called upon, the basis for the
| 6 | | matters reported and their correctness and reasonableness. In | 7 | | connection
with this, each county board shall retain the right | 8 | | of inspection of the
auditor's working papers and shall make | 9 | | them available to the Comptroller,
or his designee, upon | 10 | | request.
| 11 | | Within 60 days of receipt of an audit report, each county | 12 | | board shall file
one copy of each audit report and each | 13 | | financial report with the Comptroller
and any comment or | 14 | | explanation that the county board may desire to make
concerning | 15 | | such audit report may be attached thereto. An audit report
| 16 | | which fails to meet the requirements of this Division shall be
| 17 | | rejected by the Comptroller and returned to the county board | 18 | | for corrective
action. One copy of each such report shall be | 19 | | filed with the county clerk
of the county so audited.
| 20 | | This Section is a limitation under subsection (i) of | 21 | | Section 6 of Article VII of the Illinois Constitution on the | 22 | | concurrent exercise by home rule counties of powers and | 23 | | functions exercised by the State. | 24 | | (Source: P.A. 99-459, eff. 8-25-15.)
| 25 | | (55 ILCS 5/6-31004) (from Ch. 34, par. 6-31004)
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| 1 | | Sec. 6-31004. Overdue reports.
| 2 | | (a) In the event the required reports for
a county are not | 3 | | filed with the Comptroller in accordance with Section 6-31003
| 4 | | within 180 days after the close of the fiscal year of the | 5 | | county, the
Comptroller shall notify the county board in | 6 | | writing that the reports are
due, and may also grant an | 7 | | extension of time of up to 60 days for the
filing of the | 8 | | reports. In the event the required reports are not filed
within | 9 | | the time specified in such written notice, the Comptroller | 10 | | shall
cause the audit to be performed made and the audit report | 11 | | prepared by an auditor or auditors accountant
or accountants .
| 12 | | (b) The Comptroller may decline to order an audit and the | 13 | | preparation of
an
audit report if an initial examination of the | 14 | | books and records of the
governmental unit indicates that the | 15 | | books and records of the governmental unit
are inadequate or | 16 | | unavailable due to the passage of time or the occurrence of a
| 17 | | natural disaster.
| 18 | | (c) The State Comptroller may grant extensions for | 19 | | delinquent audits or reports. The Comptroller may charge a | 20 | | county a fee for a delinquent audit or report of $5 per day for | 21 | | the first 15 days past due, $10 per day for 16 through 30 days | 22 | | past due, $15 per day for 31 through 45 days past due, and $20 | 23 | | per day for the 46th day and every day thereafter. These | 24 | | amounts may be reduced at the Comptroller's discretion. All | 25 | | fees collected under this subsection (c) shall be deposited | 26 | | into the Comptroller's Administrative Fund. |
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| 1 | | (Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
| 2 | | (55 ILCS 5/6-31005) (from Ch. 34, par. 6-31005)
| 3 | | Sec. 6-31005. Funds managed by county officials. In | 4 | | addition to any
other audit required by this Division, the | 5 | | County Board shall cause an
audit to be made of all funds and | 6 | | accounts under the management or control
of a county official | 7 | | as soon as possible after such official leaves office
for any | 8 | | reason. The audit shall be filed with the county board not | 9 | | later
than 180 days after the official leaves office. The audit | 10 | | shall be performed
conducted and the audit report shall be | 11 | | prepared and filed with the
Chairman of the County Board by an | 12 | | auditor a person lawfully qualified to practice
public | 13 | | accounting as regulated by "An Act to regulate the practice of
| 14 | | public accounting and to repeal certain acts therein named", | 15 | | approved July
22, 1943 as amended .
| 16 | | As used in this Section, "county official" means any | 17 | | elected county officer
or any officer appointed by the county | 18 | | board who is charged with the management
or control of any | 19 | | county funds; and "audit" means a post facto examination
of | 20 | | books, documents, records, and other evidence relating to the | 21 | | obligation,
receipt, expenditure or use of public funds of the | 22 | | county, including
governmental operations relating to such | 23 | | obligations, receipt, expenditure or use.
| 24 | | (Source: P.A. 99-459, eff. 8-25-15.)
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| 1 | | (55 ILCS 5/6-31006) (from Ch. 34, par. 6-31006)
| 2 | | Sec. 6-31006. Audit report. | 3 | | (a) Prior to fiscal year 2019, the audit report shall | 4 | | contain
statements that are in conformity with generally | 5 | | accepted public accounting
principles or other comprehensive | 6 | | basis of accounting and shall set forth the financial position
| 7 | | and the results of financial operations for each fund, account, | 8 | | and office
of the county government. The audit report shall | 9 | | also include the
professional opinion of the auditor or | 10 | | auditors with respect to the
financial status and operations | 11 | | or, if an opinion cannot be expressed, a
declaration that such | 12 | | auditor is unable to express such opinion and an
explanation of | 13 | | the reasons he or she cannot do so. Each audit report shall
| 14 | | include the certification of the auditor or auditors making the | 15 | | audit
that the audit has been performed in compliance with | 16 | | generally accepted
auditing standards. Each audit report filed | 17 | | with the Comptroller shall be
accompanied by a copy of each | 18 | | official statement or other offering of
materials prepared in | 19 | | connection with the issuance of indebtedness of the
county | 20 | | since the filing of the last audit report.
| 21 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 22 | | the audit report shall contain statements that set forth the | 23 | | financial position and the results of financial operations for | 24 | | financial statements for governmental activities, | 25 | | business-type activities, discretely presented component | 26 | | units, and each major fund and aggregated nonmajor funds for |
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| 1 | | each fund, account, and office of the county government. The | 2 | | audit report shall also include the professional opinion or | 3 | | opinions of an auditor or auditors with respect to the | 4 | | financial status and statements operations or, if an opinion | 5 | | cannot be expressed, a declaration that the auditor is unable | 6 | | to express an opinion and an explanation of the reasons he or | 7 | | she cannot do so. Each auditor's audit report shall include the | 8 | | representation certification of the auditor or auditors | 9 | | conducting making the audit that the audit has been performed | 10 | | in accordance compliance with generally accepted auditing | 11 | | standards. Each audit report filed with the Comptroller shall | 12 | | be accompanied by a copy of each official statement or other | 13 | | offering of materials prepared in connection with the issuance | 14 | | of indebtedness of the county since the filing of the last | 15 | | audit report. | 16 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 17 | | audit reports shall contain financial statements prepared in | 18 | | accordance conformity with generally accepted accounting | 19 | | principles and audited in conformity with generally accepted | 20 | | auditing standards if the last audit report filed preceding | 21 | | fiscal year 2019 expressed an unmodified or modified opinion by | 22 | | the independent auditor that the financial statements were | 23 | | presented in accordance conformity with generally accepted | 24 | | accounting principles. | 25 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 26 | | audit reports containing financial statements prepared in |
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| 1 | | accordance conformity with an other comprehensive basis of | 2 | | accounting may follow the best practices and guidelines | 3 | | outlined by the American Institute of Certified Public | 4 | | Accountants and shall be audited in accordance conformity with | 5 | | generally accepted auditing standards. If the county board of a | 6 | | county submits an audit report containing financial statements | 7 | | prepared in accordance conformity with generally accepted | 8 | | accounting principles, thereafter all future audit reports | 9 | | shall also contain financial statements prepared in accordance | 10 | | presented in conformity with generally accepted accounting | 11 | | principles. | 12 | | (e) Audits may be made on financial statements prepared | 13 | | using either an accrual or cash basis of accounting, depending | 14 | | upon the system followed by the county, and audit reports shall | 15 | | comply with this Section. | 16 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 17 | | (55 ILCS 5/6-31008) (from Ch. 34, par. 6-31008)
| 18 | | Sec. 6-31008. Expenses of audit. The expenses of conducting | 19 | | the
audit and making the required audit report or financial | 20 | | statement for each
county, whether ordered by the county board | 21 | | or the Comptroller, shall be
paid by the county and the county | 22 | | board shall make provisions for such
payment. If the audit is | 23 | | made by an auditor or auditors accountant or accountants | 24 | | retained by
the Comptroller, the county, through the county | 25 | | board, shall pay to the
Comptroller reasonable compensation and |
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| 1 | | expenses to reimburse him for the
cost of making such audit.
| 2 | | Moneys paid to the Comptroller pursuant to the preceding | 3 | | sentence shall be
deposited into the Comptroller's Audit | 4 | | Expense Revolving Fund.
| 5 | | Such expenses shall be paid from the general corporate fund | 6 | | of the
county.
| 7 | | Contracts for the performance of audits required by this | 8 | | Division may
be entered into without competitive bidding.
| 9 | | (Source: P.A. 88-280.)
| 10 | | Section 15. The Illinois Municipal Code is amended by | 11 | | changing Sections 8-8-2, 8-8-3, 8-8-3.5, 8-8-4, 8-8-5, 8-8-7, | 12 | | and 8-8-8 as follows:
| 13 | | (65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
| 14 | | Sec. 8-8-2.
The following terms shall, unless the context | 15 | | otherwise indicates,
have the following meanings:
| 16 | | (1) "Municipality" or "municipalities" means all cities, | 17 | | villages
and incorporated towns having a population of less | 18 | | than 500,000 as
determined by the last preceding Federal | 19 | | census.
| 20 | | (2) "Corporate authorities" means a city council, village | 21 | | board of
trustees, library board, police and firemen's pension | 22 | | board, or any
other body or officers having authority to levy | 23 | | taxes, make
appropriations, or approve claims for any | 24 | | municipality.
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| 1 | | (3) "Comptroller" means the Comptroller of the State of | 2 | | Illinois.
| 3 | | (4) (Blank). "Accountant" or "accountants" means all | 4 | | persons licensed to
practice public accounting under the laws | 5 | | of this State.
| 6 | | (5) "Audit report" means the written report of the auditor | 7 | | or auditors accountant or
accountants and all appended | 8 | | statements and schedules relating thereto,
presenting or | 9 | | recording the findings of an examination or audit of the
| 10 | | financial transactions, affairs, or condition of a | 11 | | municipality.
| 12 | | (6) "Annual report" means the statement filed, in lieu of | 13 | | an audit
report, by the municipalities of less than 800 | 14 | | population, which do not
own or operate public utilities and do | 15 | | not have bonded debt.
| 16 | | (7) "Supplemental report" means the annual statement | 17 | | filed, in
addition to any audit report provided for herein, by | 18 | | all municipalities,
except municipalities of less than 800 | 19 | | population which do not own or
operate public utilities and do | 20 | | not have bonded debt.
| 21 | | (8) "Auditor" means a licensed certified public | 22 | | accountant, as that term is defined in Section 0.03 of the | 23 | | Illinois Public Accounting Act, or the substantial equivalent | 24 | | of a licensed CPA, as provided under Section 5.2 of the | 25 | | Illinois Public Accounting Act, who performs an audit of | 26 | | municipal financial statements and records and expresses an |
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| 1 | | assurance or disclaims an opinion on the audited financial | 2 | | statements. | 3 | | (9) "Generally accepted accounting principles" means | 4 | | accounting principles generally accepted in the United States. | 5 | | (10) "Generally accepted auditing standards" means | 6 | | auditing standards generally accepted in the United States. | 7 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 8 | | (65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3) | 9 | | Sec. 8-8-3. Audit requirements. | 10 | | (a) The corporate authorities of each municipality coming | 11 | | under the
provisions of this Division 8 shall cause an audit of | 12 | | the funds and
accounts of the municipality to be made by an | 13 | | auditor or auditors accountant or accountants
employed by such | 14 | | municipality or by an auditor or auditors accountant or | 15 | | accountants retained
by the Comptroller, as hereinafter | 16 | | provided. | 17 | | (b) The accounts and funds of each municipality having a | 18 | | population of 800
or more or having a bonded debt or owning or | 19 | | operating any type of public
utility shall be audited annually. | 20 | | The audit herein required shall include
all of the accounts and | 21 | | funds of the municipality. Such audit shall be
begun as soon as | 22 | | possible after the close of the fiscal year, and shall be
| 23 | | completed and the report submitted within 180 days after the | 24 | | close of such
fiscal year, unless an extension of time shall be | 25 | | granted by the
Comptroller in writing. The auditor or auditors |
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| 1 | | perform accountant or accountants making the audit
shall submit | 2 | | not less than 2 copies of the audit report to the corporate
| 3 | | authorities of the municipality being audited. Municipalities | 4 | | not operating
utilities may cause audits of the accounts of | 5 | | municipalities to be made
more often than herein provided, by | 6 | | an auditor or auditors accountant or accountants . The audit
| 7 | | report of such audit when filed with the Comptroller together | 8 | | with an audit
report covering the remainder of the period for | 9 | | which an audit is required
to be filed hereunder shall satisfy | 10 | | the requirements of this section. | 11 | | (c) Municipalities of less than 800 population which do not | 12 | | own or operate
public utilities and do not have bonded debt, | 13 | | shall file annually with the
Comptroller a financial report | 14 | | containing information required by the
Comptroller. Such | 15 | | annual financial report shall be on forms devised by the
| 16 | | Comptroller in such manner as to not require professional | 17 | | accounting
services for its preparation. | 18 | | (d) In addition to any audit report required, all | 19 | | municipalities, except
municipalities of less than 800 | 20 | | population which do not own or operate
public utilities and do | 21 | | not have bonded debt, shall file annually with the
Comptroller | 22 | | a supplemental report on forms devised and approved by the
| 23 | | Comptroller. | 24 | | (e) Notwithstanding any provision of law to the contrary, | 25 | | if a municipality (i) has a population of less than 200, (ii) | 26 | | has bonded debt in the amount of $50,000 or less, and (iii) |
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| 1 | | owns or operates a public utility, then the municipality shall | 2 | | cause an audit of the funds and accounts of the municipality to | 3 | | be performed made by an auditor accountant employed by the | 4 | | municipality or retained by the Comptroller for fiscal year | 5 | | 2011 and every fourth fiscal year thereafter or until the | 6 | | municipality has a population of 200 or more, has bonded debt | 7 | | in excess of $50,000, or no longer owns or operates a public | 8 | | utility. Nothing in this subsection shall be construed as | 9 | | limiting the municipality's duty to file an annual financial | 10 | | report with the Comptroller or to comply with the filing | 11 | | requirements concerning the county clerk. | 12 | | (f) All audits and reports to be filed with the Comptroller | 13 | | under this Section must be submitted electronically and the | 14 | | Comptroller must post the audits and reports on the Internet no | 15 | | later than 45 days after they are received. If the municipality | 16 | | provides the Comptroller's Office with sufficient evidence | 17 | | that the audit or report cannot be filed electronically, the | 18 | | Comptroller may waive this requirement. The Comptroller must | 19 | | also post a list of municipalities that are not in compliance | 20 | | with the reporting requirements set forth in this Section. | 21 | | (g) Subsection (f) of this Section is a limitation under | 22 | | subsection (i) of Section 6 of Article VII of the Illinois | 23 | | Constitution on the concurrent exercise by home rule | 24 | | municipalities of powers and functions exercised by the State. | 25 | | (h) Any financial report under this Section shall include | 26 | | the name of the purchasing agent who oversees all competitively |
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| 1 | | bid contracts. If there is no purchasing agent, the name of the | 2 | | person responsible for oversight of all competitively bid | 3 | | contracts shall be listed. | 4 | | (Source: P.A. 99-459, eff. 8-25-15.)
| 5 | | (65 ILCS 5/8-8-3.5)
| 6 | | Sec. 8-8-3.5. Tax Increment Financing Report. The reports | 7 | | filed under
subsection (d) of Section 11-74.4-5 of the Tax | 8 | | Increment Allocation
Redevelopment Act and the reports filed | 9 | | under subsection (d) of Section
11-74.6-22 of the Industrial | 10 | | Jobs Recovery Law
in the Illinois Municipal Code must be | 11 | | separate from any
other annual report filed with the | 12 | | Comptroller. The Comptroller must, in
cooperation with | 13 | | reporting municipalities, create
a format for the reporting of | 14 | | information described in paragraphs (1.5)
and (5) and
in | 15 | | subparagraph (G) of paragraph (7) of subsection (d) of Section
| 16 | | 11-74.4-5 of
the Tax Increment Allocation Redevelopment Act
and | 17 | | the information described in paragraphs (1.5) and (5) and in | 18 | | subparagraph
(G) of paragraph (7) of subsection (d) of Section | 19 | | 11-74.6-22 of the Industrial
Jobs Recovery Law
that facilitates | 20 | | consistent
reporting among the reporting municipalities. The | 21 | | Comptroller may allow these
reports to be filed electronically | 22 | | and may display the report, or portions of
the report, | 23 | | electronically via the Internet. All reports filed under this
| 24 | | Section must be made available for examination and copying by | 25 | | the public at all
reasonable times. A Tax Increment Financing |
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| 1 | | Report must be filed electronically with the Comptroller within | 2 | | 180 days after the close of the municipal fiscal year or as | 3 | | soon thereafter as the audit for the redevelopment
project area | 4 | | for that fiscal year becomes available. If the Tax Increment | 5 | | Finance administrator provides the Comptroller's office with | 6 | | sufficient evidence that the report is in the process of being | 7 | | completed by an auditor, the Comptroller may grant an | 8 | | extension. If the required report is not filed within
the
time | 9 | | extended by the Comptroller, the Comptroller shall notify the | 10 | | corporate authorities of that municipality that the audit | 11 | | report is past due. The Comptroller may charge a municipality a | 12 | | fee of $5 per day for the first 15 days past due, $10 per day | 13 | | for 16 through 30 days past due, $15 per day for 31 through 45 | 14 | | days past due, and $20 per day for the 46th day and every day | 15 | | thereafter. These amounts may be reduced at the Comptroller's | 16 | | discretion. In the event the required audit report is not filed | 17 | | within 60 days of such notice, the Comptroller shall cause such | 18 | | audit to be made by an auditor or auditors accountant or | 19 | | accountants . The Comptroller may decline to order an audit and | 20 | | the preparation of an audit report if an initial examination of | 21 | | the books and records of the municipality indicates that books | 22 | | and records of the municipality are inadequate or unavailable | 23 | | to support the preparation of the audit report or the | 24 | | supplemental report due to the passage of time or the | 25 | | occurrence of a natural disaster. All fees collected pursuant | 26 | | to this Section shall be deposited into the Comptroller's |
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| 1 | | Administrative Fund. In the event the Comptroller causes an | 2 | | audit to be made in accordance with the requirements of this | 3 | | Section, the municipality shall pay to the Comptroller | 4 | | reasonable compensation and expenses to reimburse her for the | 5 | | cost of preparing or completing such report. Moneys paid to the | 6 | | Comptroller pursuant to the preceding sentence shall be | 7 | | deposited into the Comptroller's Audit Expense Revolving Fund.
| 8 | | (Source: P.A. 98-497, eff. 8-16-13; 98-922, eff. 8-15-14.)
| 9 | | (65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
| 10 | | Sec. 8-8-4. Overdue reports.
| 11 | | (a) In the event the required audit report for
a | 12 | | municipality is not filed
with the Comptroller in accordance | 13 | | with Section 8-8-7 within 180 days after
the close of the | 14 | | fiscal year of the municipality, the Comptroller shall
notify | 15 | | the corporate authorities of that municipality in writing that | 16 | | the
audit report is due, and may also grant an extension of | 17 | | time of 60 days,
for the filing of the audit report. In the | 18 | | event the required audit report
is not filed within the time | 19 | | specified in such written notice, the
Comptroller shall cause | 20 | | such audit to be made by an auditor or auditors accountant or
| 21 | | accountants . In the event the required annual or supplemental | 22 | | report for a
municipality is not filed within 6 months after | 23 | | the close of the fiscal
year of the municipality, the | 24 | | Comptroller shall notify the corporate
authorities of that | 25 | | municipality in writing that the annual or supplemental
report |
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| 1 | | is due and may grant an extension in time of 60 days for the | 2 | | filing
of such annual or supplemental report.
| 3 | | (b) In the event the annual or supplemental report is not | 4 | | filed within
the
time extended by the Comptroller, the | 5 | | Comptroller shall cause such annual
or supplemental report to | 6 | | be prepared or completed and the municipality
shall pay to the | 7 | | Comptroller reasonable compensation and expenses to
reimburse | 8 | | him for the cost of preparing or completing such annual or
| 9 | | supplemental report.
Moneys paid to the Comptroller pursuant to | 10 | | the preceding sentence shall be
deposited into the | 11 | | Comptroller's Audit Expense Revolving Fund.
| 12 | | (c) The Comptroller may decline to order an audit or the | 13 | | completion of the
supplemental report if an initial examination | 14 | | of the books and records of the
municipality indicates that | 15 | | books and records of the municipality are
inadequate or | 16 | | unavailable to support the preparation of the audit report or | 17 | | the
supplemental report due to the passage of time or the | 18 | | occurrence of a natural
disaster.
| 19 | | (d) The State Comptroller may grant extensions for | 20 | | delinquent audits or reports. The Comptroller may charge a | 21 | | municipality a fee for a delinquent audit or report of $5 per | 22 | | day for the first 15 days past due, $10 per day for 16 through | 23 | | 30 days past due, $15 per day for 31 through 45 days past due, | 24 | | and $20 per day for the 46th day and every day thereafter. | 25 | | These amounts may be reduced at the Comptroller's discretion. | 26 | | All fees collected under this subsection (d) shall be deposited |
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| 1 | | into the Comptroller's Administrative Fund. | 2 | | (Source: P.A. 98-922, eff. 8-15-14; 99-459, eff. 8-25-15.)
| 3 | | (65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)
| 4 | | Sec. 8-8-5.
(a) Prior to fiscal year 2019, the audit shall | 5 | | be made in accordance with generally accepted
auditing | 6 | | standards. Reporting on the financial position and results of
| 7 | | financial operations for each fund of the municipality shall be | 8 | | in
accordance with generally accepted accounting principles or | 9 | | other comprehensive basis of accounting. Each audit report | 10 | | shall include only financial information,
findings, and | 11 | | conclusions that are adequately supported by evidence in the
| 12 | | auditor's working papers to demonstrate or prove, when called | 13 | | upon, the
basis for the matters reported and their correctness | 14 | | and reasonableness.
In connection with this, each municipality | 15 | | shall retain the right of
inspection of the auditor's working | 16 | | papers and shall make them available to
the Comptroller, or his | 17 | | or her designee, upon request. The audit report shall
consist | 18 | | of the professional opinion of the auditor or auditors with
| 19 | | respect to the financial statements or, if an opinion cannot be | 20 | | expressed,
a declaration that the auditor is unable to express | 21 | | such opinion and an
explanation of the reasons he or she cannot | 22 | | do so. Municipal authorities shall not
impose limitations on | 23 | | the scope of the audit to the extent that the effect
of such | 24 | | limitations will result in the qualification of the opinion of | 25 | | the auditor or auditors. Each audit report filed with the |
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| 1 | | Comptroller
shall be accompanied by a copy of each official | 2 | | statement or other offering
of materials prepared in connection | 3 | | with the issuance of indebtedness of
the municipality since the | 4 | | filing of the last audit report.
| 5 | | (b) For fiscal year 2019 and each fiscal year thereafter, | 6 | | the audit shall be made in accordance with generally accepted | 7 | | auditing standards. Each audit report shall include only | 8 | | financial information, findings, and conclusions that are | 9 | | adequately supported by evidence in the auditor's working | 10 | | papers to demonstrate or prove, when called upon, the basis for | 11 | | the matters reported and their correctness and reasonableness. | 12 | | In connection with this, each municipality shall retain the | 13 | | right of inspection of the auditor's working papers and shall | 14 | | make them available to the Comptroller, or his or her designee, | 15 | | upon request. The audit report shall include the financial | 16 | | statements for governmental activities, business-type | 17 | | activities, discretely presented component units, and each | 18 | | major fund and aggregated nonmajor fund. The audit report shall | 19 | | also include also consist of the professional opinion or | 20 | | opinions of the an auditor or auditors with respect to the | 21 | | financial statements or, if an opinion cannot be expressed, a | 22 | | declaration that the auditor is unable to express an opinion | 23 | | and an explanation of the reasons he or she cannot do so. Each | 24 | | auditor's report shall include a representation by the auditor | 25 | | or auditors conducting the audit has been performed in | 26 | | accordance with generally accepted auditing standards. |
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| 1 | | Municipal authorities shall not impose limitations on the scope | 2 | | of the audit to the extent that the effect of the limitations | 3 | | will result in the modification qualification of the opinion or | 4 | | opinions of the auditor or auditors. Each audit report filed | 5 | | with the Comptroller shall be accompanied by a copy of each | 6 | | official statement or other offering of materials prepared in | 7 | | connection with the issuance of indebtedness of the | 8 | | municipality since the filing of the last audit report. | 9 | | (c) For fiscal year 2019 and each fiscal year thereafter, | 10 | | audit reports shall contain financial statements prepared in | 11 | | accordance with generally accepted accounting principles and | 12 | | audited in accordance with generally accepted auditing | 13 | | standards if the last audit report filed preceding fiscal year | 14 | | 2019 expressed an unmodified or modified opinion by the | 15 | | independent auditor that the financial statements were | 16 | | prepared presented in accordance with generally accepted | 17 | | accounting principles.
| 18 | | (d) For fiscal year 2019 and each fiscal year thereafter, | 19 | | audit reports containing financial statements prepared in | 20 | | accordance with an other comprehensive basis of accounting may | 21 | | follow the best practices and guidelines outlined by the | 22 | | American Institute of Certified Public Accountants and shall be | 23 | | audited in accordance with generally accepted auditing | 24 | | standards. If the corporate authority of a municipality submits | 25 | | an audit report containing financial statements prepared in | 26 | | accordance with generally accepted accounting principles, |
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| 1 | | thereafter all future audit reports shall also contain | 2 | | financial statements prepared presented in accordance with | 3 | | generally accepted accounting principles. | 4 | | (e) Audits may be made on financial statements prepared | 5 | | using either an accrual or cash basis of accounting, depending | 6 | | upon the system followed by the municipality, and audit reports | 7 | | shall comply with this Section. | 8 | | (Source: P.A. 100-837, eff. 8-13-18.)
| 9 | | (65 ILCS 5/8-8-7) (from Ch. 24, par. 8-8-7)
| 10 | | Sec. 8-8-7.
When the auditor or auditors accountant or | 11 | | accountants have completed the audit,
not less than 2 copies of | 12 | | a report of the audit shall be made and signed by
the | 13 | | accountant making such audit, and shall immediately be filed | 14 | | with the
municipality audited. Each audit report shall include | 15 | | the certification
of the auditor or auditors accountant or | 16 | | accountants making the audit that the audit has been
performed | 17 | | in compliance with generally accepted auditing standards.
The | 18 | | municipality shall immediately make one copy of
the report, or | 19 | | one copy of the report authorized by this Division 8 in lieu
of | 20 | | an audit report, a part of its public records and at all times
| 21 | | thereafter this copy shall be open to public inspection. In | 22 | | addition, the
municipality shall file one copy of the report | 23 | | with the Comptroller.
An audit report which fails to meet the | 24 | | requirements of this Act shall be
rejected by the Comptroller | 25 | | and returned to the municipal authorities for
corrective |
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| 1 | | action. Nothing in this section shall be construed as
| 2 | | preventing a municipality, in
filing its audit report with the | 3 | | Comptroller, from transmitting with such
report any comment or | 4 | | explanation that it may desire to make concerning
that report. | 5 | | The audit report filed with the Comptroller, together with any
| 6 | | accompanying comment or explanation, shall immediately become | 7 | | a part of his
public records and shall at all times thereafter | 8 | | be open to public
inspection. It shall be unlawful for the | 9 | | auditor accountant to make any disclosure
of the result of any | 10 | | examination of any public account excepting as he does
so | 11 | | directly to the corporate authorities of the municipality | 12 | | audited.
| 13 | | (Source: P.A. 85-1000.)
| 14 | | (65 ILCS 5/8-8-8) (from Ch. 24, par. 8-8-8)
| 15 | | Sec. 8-8-8.
The expenses of the audit and investigation of | 16 | | public accounts
provided for in Division 8, whether ordered by | 17 | | the corporate authorities
or the Comptroller, shall be paid by | 18 | | the municipality for which the
audit is made. Payment shall be | 19 | | ordered by the corporate authorities out
of the funds of the | 20 | | municipality and it shall be the duty of such
authorities to | 21 | | make provisions for payment. Contracts for the
performance of | 22 | | audits required by this Division 8 may be entered into
without | 23 | | competitive bidding. If the audit is made by an auditor or | 24 | | auditors accountant or
accountants retained by the | 25 | | Comptroller, the municipality shall pay to
the Comptroller |
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| 1 | | reasonable compensation and expenses to reimburse him
for the | 2 | | cost of making such audit.
| 3 | | The corporate authorities of all municipalities coming | 4 | | under the
provisions of this Division 8 shall have the power to | 5 | | annually levy a
"Municipal Auditing Tax" upon all of the | 6 | | taxable property of the
municipalities at the rate on the | 7 | | dollar which will produce an amount
which will equal a sum | 8 | | sufficient to meet the cost of all auditing and
reports | 9 | | thereunder. Such municipal auditing tax shall be held in a
| 10 | | special fund and used for no other purpose than the payment of | 11 | | expenses
occasioned by this Division 8.
| 12 | | The tax authorized by this Section shall be in addition to | 13 | | taxes for
general corporate purposes authorized under Section | 14 | | 8-3-1 of this Act.
| 15 | | (Source: P.A. 81-824.)
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