Bill Text: IL SB2875 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Auditing Law of the Illinois Municipal Code. Provides that a municipality with a population of 1,000 or less may file an annual report in lieu of an audit report if an audit report has been conducted and filed with the Comptroller within the 3 preceding fiscal years and the municipality had no material findings that indicate significant errors or risks in the municipality's financial information in its last conducted audit report filed with the Comptroller. Makes conforming changes.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-03-12 - Chief Sponsor Changed to Sen. Don Harmon [SB2875 Detail]

Download: Illinois-2023-SB2875-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2875 Introduced 1/24/2024, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-8-2 from Ch. 24, par. 8-8-2
65 ILCS 5/8-8-3 from Ch. 24, par. 8-8-3
Amends the Audit of Accounts Division of the Illinois Municipal Code. Provides that a municipality with a population of 1,000 or less may file an annual report in lieu of an audit report if an audit report has been conducted and filed with the Comptroller within the 3 preceding fiscal years and the municipality had no material findings that indicate significant errors or risks in the municipality's financial information in its last conducted audit report filed with the Comptroller. Makes conforming changes.
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A BILL FOR
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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 Illinois Municipal Code is amended by
changing Sections 8-8-2 and 8-8-3 as follows:
(65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
Sec. 8-8-2. The following terms shall, unless the context
otherwise indicates, have the following meanings:
(1) "Municipality" or "municipalities" means all cities,
villages and incorporated towns having a population of less
than 500,000 as determined by the last preceding Federal
census.
(2) "Corporate authorities" means a city council, village
board of trustees, library board, police and firemen's pension
board, or any other body or officers having authority to levy
taxes, make appropriations, or approve claims for any
municipality.
(3) "Comptroller" means the Comptroller of the State of
Illinois.
(4) (Blank).
(5) "Audit report" means the written report of the auditor
or auditors and all appended statements and schedules relating
thereto, presenting or recording the findings of an

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examination or audit of the financial transactions, affairs,
or condition of a municipality.
(6) "Annual report" means the statement filed, in lieu of
an audit report, by a municipality the municipalities of less
than 800 population that does , which do not own or operate
public utilities and does do not have bonded debt or the
statement filed, in lieu of an audit report, by a municipality
with a population of 1,000 or less that meets the criteria
required under subsection (i) of Section 8-8-3.
(7) "Supplemental report" means the annual statement
filed, in addition to any audit report provided for herein, by
all municipalities, except municipalities of less than 800
population which do not own or operate public utilities and do
not have bonded debt.
(8) "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
municipal financial statements and records and expresses an
assurance or disclaims an opinion on the audited financial
statements.
(9) "Generally accepted accounting principles" means
accounting principles generally accepted in the United States.
(10) "Generally accepted auditing standards" means
auditing standards generally accepted in the United States.

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(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3)
Sec. 8-8-3. Audit requirements.
(a) The corporate authorities of each municipality coming
under the provisions of this Division 8 shall cause an audit of
the funds and accounts of the municipality to be made by an
auditor or auditors employed by such municipality or by an
auditor or auditors retained by the Comptroller, as
hereinafter provided.
(b) The accounts and funds of each municipality having a
population of 800 or more or having a bonded debt or owning or
operating any type of public utility shall be audited
annually. The audit herein required shall include all of the
accounts and funds of the municipality. Such audit shall be
begun as soon as possible after the close of the fiscal year,
and shall be completed and the report submitted within 180
days after the close of such fiscal year, unless an extension
of time shall be granted by the Comptroller in writing. The
auditor or auditors perform the audit shall submit not less
than 2 copies of the audit report to the corporate authorities
of the municipality being audited. Municipalities not
operating utilities may cause audits of the accounts of
municipalities to be made more often than herein provided, by
an auditor or auditors. The audit report of such audit when
filed with the Comptroller together with an audit report

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covering the remainder of the period for which an audit is
required to be filed hereunder shall satisfy the requirements
of this section.
(c) Municipalities of less than 800 population which do
not own or operate public utilities and do not have bonded
debt, shall file annually with the Comptroller a financial
report containing information required by the Comptroller.
Such annual financial report shall be on forms devised by the
Comptroller in such manner as to not require professional
accounting services for its preparation.
(d) In addition to any audit report required, all
municipalities, except municipalities of less than 800
population which do not own or operate public utilities and do
not have bonded debt, shall file annually with the Comptroller
a supplemental report on forms devised and approved by the
Comptroller.
(e) Notwithstanding any provision of law to the contrary,
if a municipality (i) has a population of less than 200, (ii)
has bonded debt in the amount of $50,000 or less, and (iii)
owns or operates a public utility, then the municipality shall
cause an audit of the funds and accounts of the municipality to
be performed by an auditor employed by the municipality or
retained by the Comptroller for fiscal year 2011 and every
fourth fiscal year thereafter or until the municipality has a
population of 200 or more, has bonded debt in excess of
$50,000, or no longer owns or operates a public utility.

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Nothing in this subsection shall be construed as limiting the
municipality's duty to file an annual financial report with
the Comptroller or to comply with the filing requirements
concerning the county clerk.
(f) All audits and reports to be filed with the
Comptroller under this Section must be submitted
electronically and the Comptroller must post the audits and
reports on the Internet no later than 45 days after they are
received. If the municipality provides the Comptroller's
Office with sufficient evidence that the audit or report
cannot be filed electronically, the Comptroller may waive this
requirement. The Comptroller must also post a list of
municipalities that are not in compliance with the reporting
requirements set forth in this Section.
(g) Subsection (f) of this Section is a limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by home rule
municipalities of powers and functions exercised by the State.
(h) 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.
(i) A municipality with a population of 1,000 or less may
file an annual report in lieu of an audit report if an audit
report has been conducted and filed with the Comptroller

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