Bill Text: IL HB1934 | 2021-2022 | 102nd General Assembly | Engrossed

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

Spectrum: Moderate Partisan Bill (Republican 10-2)

Status: (Passed) 2021-06-25 - Public Act . . . . . . . . . 102-0025 [HB1934 Detail]

Download: Illinois-2021-HB1934-Engrossed.html



HB1934 EngrossedLRB102 05065 CMG 15084 b
1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The School Code is amended by changing Section
52-3.17a as follows:
6 (105 ILCS 5/2-3.17a) (from Ch. 122, par. 2-3.17a)
7 Sec. 2-3.17a. Financial audits by Auditor General. The
8Auditor General shall annually cause an audit to be made, as of
9June 30th of each year, of the financial statements of all
10accounts, funds and other moneys in the care, custody or
11control of the regional superintendent of schools of each
12educational service region in the State and of each
13educational service center established under Section 2-3.62 of
14this Code other than an educational service center serving a
15school district in a city having a population exceeding
16500,000. The audit shall be conducted in accordance with
17Generally Accepted Governmental Auditing Standards and shall
18include an examination of supporting books and records and a
19representative sample of vouchers for distributions and
20expenditures. A regional office of education or educational
21service center may utilize a cash basis, modified cash basis,
22or generally accepted accounting principles (GAAP) basis of
23accounting to prepare the financial statements for the audit.

HB1934 Engrossed- 2 -LRB102 05065 CMG 15084 b
1On February 15 of each year, the Auditor General shall notify
2the Legislative Audit Commission in writing of the completion
3or of the reasons for the noncompletion of each audit required
4by this Section to be made as of the preceding June 30. An
5audit report shall be prepared for each audit made pursuant to
6this Section, and all such audit reports shall be kept on file
7in the office of the Auditor General, published on the Auditor
8General's website, and distributed in accordance with Section
93-14 of the Illinois State Auditing Act. Within 60 days after
10each audit report required to be prepared under this Section
11is completed, the Auditor General: (i) shall furnish a copy of
12such audit report to each member of the General Assembly whose
13legislative or representative district includes any part of
14the educational service region served by the regional
15superintendent of schools with respect to whose financial
16statements that audit report was prepared or any part of the
17area served by the educational service center that is the
18subject of the audit; and (ii) shall publish in a newspaper
19published in that educational service region or area served by
20the educational service center that is the subject of the
21audit a notice that the audit report has been prepared and is
22available for inspection during regular business hours at the
23office of the regional superintendent of schools of that
24educational service region or at the administrative office of
25the educational service center. Each audit shall be made in
26such manner as to determine, and each audit report shall be

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

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1 The Auditor General shall adopt rules and regulations
2relative to the time and manner by which the regional
3superintendent of schools or educational service center shall
4present for inspection or make available to the Auditor
5General, or to the agents designated by the Auditor General to
6make an audit and prepare an audit report pursuant to this
7Section, all financial statements, books, records, vouchers
8for distributions and expenditures, and records of accounts,
9funds and other moneys in the care, custody or control of the
10regional superintendent of schools or educational service
11center and required for purposes of making such audit and
12preparing an audit and preparing an audit report. All rules
13and regulations adopted by the State Board of Education under
14this Section before the effective date of this amendatory Act
15of the 92nd General Assembly shall continue in effect as the
16rules and regulations of the Auditor General, until they are
17modified or abolished by the Auditor General.
18 The Auditor General shall require the regional
19superintendent of schools of each educational service region
20or administrator of each educational service center to
21promptly implement all recommendations based on audit findings
22resulting from a violation of law made in audits prepared
23pursuant to this Section, unless the Auditor General, upon
24review, determines, with regard to any such finding, that
25implementation of the recommendation is not appropriate.
26(Source: P.A. 92-544, eff. 6-12-02.)

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1 Section 99. Effective date. This Act takes effect upon
2becoming law.
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