Bill Text: IL HB5011 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Governmental Account Audit Act. Modifies the audit procedures for governmental units under the Act for the governmental units fiscal years 2026 and after, including: (1) modifying the definitions of "audit report" and "report"; (2) requiring the governing body of each governmental unit to conduct an audit every 2 years (rather than annually) of the accounts of the unit to be made by an auditor or auditors, and modifying the requirements of the audits; (3) allowing an exception for a governmental unit receiving revenue of less than $1,400,000 for any fiscal year, with the amount to increase or decrease by a percentage equal to the Consumer Price Index-U as reported on January 1 of each year, to provide a 4-year audit report and annual financial report or annual financial report under specified requirements (rather than a governmental unit receiving revenue of less than $850,000 for any fiscal year providing a 4-year audit report and annual financial report or annual financial report under specified requirements); and (4) modifying the requirements for signing, copying, and filing completed reports. Amends the Township Code to make conforming changes. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 19-10)

Status: (Engrossed) 2024-04-19 - Referred to Assignments [HB5011 Detail]

Download: Illinois-2023-HB5011-Engrossed.html

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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, 2, 3, and 6 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

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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.
"Annual financial report" means, for governmental unit
fiscal years 2026 and after, the statement filed in lieu of an
audit report containing information required by the
Comptroller on forms devised by the Comptroller in such manner
as to not require professional accounting services for its

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preparation.
"Audit report" means:
(1) for governmental unit fiscal years before fiscal
year 2026, the written report of the auditor 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; and .
(2) for governmental unit fiscal years 2026 and after,
the written report of the auditor or auditors and all
appended statements and schedules relating thereto,
presenting or recording the findings of an examination or
audit of the financial transactions, affairs, or
conditions of a governmental unit, which includes all of
the accounts and funds 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, or the substantial equivalent of a licensed
CPA, as provided under Section 5.2 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.
"Consumer Price Index-U" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city

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average, all items, 1982-84 = 100.
"Report" includes, for governmental unit fiscal years
before fiscal year 2026, 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.
"Generally accepted accounting principles" means
accounting principles generally accepted in the United States.
"Generally accepted auditing standards" means auditing
standards generally accepted in the United States.
(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
(50 ILCS 310/2) (from Ch. 85, par. 702)
Sec. 2. (a) This subsection applies to governmental unit
fiscal years before fiscal year 2026. Except as otherwise
provided in Section 3, the governing body of each governmental
unit shall cause an audit of the accounts of the unit to be
made by an auditor or auditors. Such audit shall be performed
annually and shall cover the immediately preceding fiscal year
of the governmental unit. The audit shall include all the
accounts and funds of the governmental unit, including the
accounts of any officer of the governmental unit who receives
fees or handles funds of the unit or who spends money of the
unit. The audit shall begin as soon as possible after the close
of the last fiscal year to which it pertains, and shall be
completed and the audit report filed with the Comptroller

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within 180 days after the close of such fiscal year unless an
extension of time is granted by the Comptroller in writing. An
audit report which fails to meet the requirements of this Act
shall be rejected by the Comptroller and returned to the
governing body of the governmental unit for corrective action.
The auditor or auditors performing the audit shall submit not
less than 3 copies of the audit report to the governing body of
the governmental unit being audited.
All audits to be filed with the Comptroller under this
Section must be submitted electronically and the Comptroller
must post the audit reports on the Internet no later than 45
days after they are received. If the governmental unit
provides the Comptroller's Office with sufficient evidence
that the audit report cannot be filed electronically, the
Comptroller may waive this requirement. The Comptroller must
also post a list of governmental units that are not in
compliance with the reporting requirements set forth in this
Section.
Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively
bid contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(b) This subsection applies to governmental unit fiscal
years 2026 and after. Except as otherwise provided in Section
3, the governing body of each governmental unit shall cause an

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audit of the accounts of the unit to be made by an auditor or
auditors. Such audit shall be performed once every 2 years and
shall cover the 2 immediately preceding fiscal years of the
governmental unit, unless the latest audit report filed with
the Comptroller contains an adverse or disclaimer of opinion.
If the audit report contains an adverse or disclaimer of
opinion, then the governmental unit shall file an audit report
annually until the audit report shows no adverse or disclaimer
of opinion. The audit shall include all the accounts and funds
of the governmental unit, including the accounts of any
officer of the governmental unit who receives fees or handles
funds of the unit or who spends money of the unit. The audit
shall begin as soon as possible after the close of the last
fiscal year to which it pertains, and shall be completed and
the audit report filed with the Comptroller within 180 days
after the close of such fiscal year unless an extension of time
is granted by the Comptroller in writing. An audit report
which fails to meet the requirements of this Act shall be
rejected by the Comptroller and returned to the governing body
of the governmental unit for corrective action. The auditor or
auditors performing the audit shall submit not less than 3
copies of the audit report to the governing body of the
governmental unit being audited.
All audits to be filed with the Comptroller under this
Section must be submitted electronically and the Comptroller
must post the audit reports on the Internet no later than 45

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days after they are received. If the governmental unit
provides the Comptroller's Office with sufficient evidence
that the audit report cannot be filed electronically, the
Comptroller may waive this requirement. The Comptroller must
also post a list of governmental units that are not in
compliance with the reporting requirements set forth in this
Section.
Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively
bid contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(Source: P.A. 101-419, eff. 1-1-20.)
(50 ILCS 310/3) (from Ch. 85, par. 703)
Sec. 3. (a) This subsection applies to governmental unit
fiscal years before fiscal year 2026. Any governmental unit
receiving revenue of less than $850,000 for any fiscal year
shall, in lieu of complying with the requirements of Section 2
for audits and audit reports, beginning with fiscal year 2016,
either: (i) cause an audit of the accounts of the unit to be
made once every 4 years and file with the Comptroller an annual
financial report containing information required by the
Comptroller, or (ii) file with the Comptroller an annual
financial report containing information required by the
Comptroller, a copy of which has been provided to each member

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of that governmental unit's board of elected officials,
presented either in person or by a live phone or web connection
during a public meeting, and approved by a 3/5 majority vote.
In addition, a governmental unit receiving revenue of less
than $850,000 may file with the Comptroller any audit reports
which may have been prepared under any other law. Any
governmental unit receiving revenue of $850,000 or more for
any fiscal year shall, in addition to complying with the
requirements of Section 2 for audits and audit reports, file
with the Comptroller the annual financial report required by
this Section. Such annual financial reports shall be on forms
so designed by the Comptroller as not to require professional
accounting services for its preparation. All reports to be
filed with the Comptroller under this Section must be
submitted electronically and the Comptroller must post the
reports on the Internet no later than 45 days after they are
received. If the governmental unit provides the Comptroller's
Office with sufficient evidence that the report cannot be
filed electronically, the Comptroller may waive this
requirement. The Comptroller must also post a list of
governmental units that are not in compliance with the
reporting requirements set forth in this Section.
Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively
bid contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid

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contracts shall be listed.
(b) This subsection applies to governmental unit fiscal
years 2026 and after. Any governmental unit receiving revenue
of less than $1,400,000 for any fiscal year, with the amount to
increase or decrease by a percentage equal to the Consumer
Price Index-U as reported on January 1 of each year, shall, in
lieu of complying with the requirements of Section 2 either:
(i) cause an audit of the accounts of the unit to be made once
every 4 years and must file with the Comptroller an annual
financial report containing information required by the
Comptroller; or (ii) file with the Comptroller an annual
financial report containing information required by the
Comptroller, a copy of which has been provided to each member
of that governmental unit's board of elected officials,
presented either in person or by a live phone or web connection
during a public meeting, and approved by a three-fifths
majority vote. In addition, a governmental unit receiving
revenue of less than $1,400,000, with the amount to increase
or decrease by a percentage equal to the Consumer Price
Index-U as reported on January 1 of each year, may file with
the Comptroller any audit reports which may have been prepared
under any other law. Any governmental unit receiving revenue
of $1,400,000 or more for any fiscal year, with the amount to
increase or decrease by a percentage equal to the Consumer
Price Index-U as reported on January 1 of each year, shall, in
addition to complying with the requirements of Section 2 for

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audits and audit reports, file with the Comptroller the annual
financial report required by this Section. All reports to be
filed with the Comptroller under this Section must be
submitted electronically and the Comptroller must post the
reports on the Internet no later than 45 days after they are
received. If the governmental unit provides the Comptroller's
Office with sufficient evidence that the report cannot be
filed electronically, the Comptroller may waive this
requirement. The Comptroller must also post a list of
governmental units that are not in compliance with the
reporting requirements set forth in this Section.
Any financial report under this Section shall include the
name of the purchasing agent who oversees all competitively
bid contracts. If there is no purchasing agent, the name of the
person responsible for oversight of all competitively bid
contracts shall be listed.
(Source: P.A. 97-890, eff. 8-2-12; 97-1142, eff. 12-28-12;
98-1019, eff. 7-1-15.)
(50 ILCS 310/6) (from Ch. 85, par. 706)
Sec. 6. (a) This subsection applies to governmental unit
fiscal years before fiscal year 2026. When the audit is
completed the auditor making such audit shall make and sign at
least 3 copies of the report of the audit and immediately file
them with the governmental unit audited. Governmental units
receiving revenue of $850,000 or more for any fiscal year

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shall immediately make one copy of the audit report and one
copy of the financial report required by Section 3 of this Act
a part of its public record. Governmental units receiving
revenue of less than $850,000 shall immediately make one copy
of the audit report, or one copy of the report authorized by
Section 3 of this Act to be filed instead of the audit report,
a part of its public record. These copies shall be open to
public inspection. In addition, the governmental unit shall
file one copy of the report with the Comptroller and with the
county clerk of the county in which the principal office of the
governmental unit is located. A governmental unit may, in
filing its audit report with the Comptroller, transmit with
such report any comment or explanation that it wishes to make
concerning the report.
(b) This subsection applies to governmental unit fiscal
years 2026 and after. When the audit is completed, the auditor
making such audit shall make and sign at least 3 copies of the
report of the audit and immediately file them with the
governmental unit audited. Governmental units shall
immediately make one copy of the audit report or one copy of
the annual financial report a part of its public record as
required by Section 3 of this Act. These copies shall be open
to public inspection. In addition, the governmental unit shall
file one copy of the report with the Comptroller and with the
county clerk of the county in which the principal office of the
governmental unit is located. A governmental unit may, in

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filing its audit report with the Comptroller, transmit with
such report any comment or explanation that it wishes to make
concerning the report.
(Source: P.A. 101-419, eff. 1-1-20.)
Section 10. The Township Code is amended by changing
Section 80-20 as follows:
(60 ILCS 1/80-20)
Sec. 80-20. Independent audit of accounts.
(a) All accounts audited under this Article (and those
rejected, if any) shall be delivered with the certificate of
the trustees (or a majority of them) to the township clerk, who
shall keep them on file for the inspection of any of the
inhabitants of the township. They shall also be produced by
the township clerk at the next annual meeting and shall be read
at the meeting by the clerk.
(b) In townships that receive revenue of more than
$1,400,000 for any fiscal year, with the amount to increase or
decrease by a percentage equal to the Consumer Price Index-U
as reported on January 1 of each year $850,000 or more during
any fiscal year, exclusive of road funds, the township board
shall have the accounts and all records of the township
thoroughly audited by a certified public accountant within 6
months after the close of each fiscal year. The board shall
have a copy of the accountant's report and recommendations

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filed with the township clerk and another copy filed with the
county clerk for public inspection.
(c) In townships that receive revenue of less than
$1,400,000 for any fiscal year, with the amount to increase or
decrease by a percentage equal to the Consumer Price Index-U
as reported on January 1 of each year $850,000 during any
fiscal year, exclusive of road funds, the township board shall
have the accounts and all records of the township audited and
inspected by an independent auditing committee composed of 3
township electors chosen by the board. The audit shall be
completed within 6 months after the close of each fiscal year.
A copy of the auditing committee's report and recommendations
shall be filed with the township clerk and another copy shall
be filed with the county clerk for public inspection. The
auditing committee shall not contain any member of the
township board or any person related to a trustee. Members of
the auditing committee shall be proficient in accounting
principles and practices and shall be compensated at a rate
determined by the township board but not to exceed $50 per day.
In addition to the other audit requirements imposed by law, in
townships subject to this subsection, the township board shall
have the accounts and all records of the township thoroughly
audited by a certified public accountant within 6 months after
(i) the end of each term of office of the township supervisor
and (ii) a vacancy occurs in the office of township
supervisor. A copy of the accountant's report and

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recommendations shall be filed with the township clerk and
another copy shall be filed with the county clerk for public
inspection.
As used in this Section, "Consumer Price Index-U" means
the index published by the Bureau of Labor Statistics of the
United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
(Source: P.A. 92-582, eff. 7-1-02.)