2005 Illinois 65 ILCS 5/ Illinois Municipal Code. Division 8 - Audit Of Accounts
(65 ILCS 5/Art. 8 Div. 8 heading)
DIVISION 8.
AUDIT OF ACCOUNTS
(65 ILCS 5/8‑8‑1) (from Ch. 24, par. 8‑8‑1)
Sec. 8‑8‑1.
This Division 8 may be cited as The Illinois Municipal Auditing
Law.
(Source: Laws 1961, p. 576.)
|
(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) "Accountant" or "accountants" means all persons licensed to
practice public accounting under the laws of this State.
(5) "Audit report" means the written report of the accountant or
accountants and all appended statements and schedules relating thereto,
presenting or recording the findings of an 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 the municipalities of less than 800 population, which do not
own or operate public utilities and do not have bonded debt.
(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.
(Source: P.A. 81‑1050.)
|
(65 ILCS 5/8‑8‑3) (from Ch. 24, par. 8‑8‑3)
Sec. 8‑8‑3.
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 accountant or accountants
employed by such municipality or by an accountant or accountants retained
by the Comptroller, as hereinafter provided.
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 6 months after the close of such
fiscal year, unless an extension of time shall be granted by the
Comptroller in writing. The accountant or accountants making 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 accountant or accountants. The audit
report of such audit when filed with the Comptroller together with an audit
report covering the remainder of the period for which an audit is required
to be filed hereunder shall satisfy the requirements of this section.
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.
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.
(Source: P. A. 78‑592.)
|
(65 ILCS 5/8‑8‑3.5)
Sec. 8‑8‑3.5.
Tax Increment Financing Report.
The reports filed under
subsection (d) of Section 11‑74.4‑5 of the Tax Increment Allocation
Redevelopment Act and the reports filed under subsection (d) of Section
11‑74.6‑22 of the Industrial Jobs Recovery Law
in the Illinois Municipal Code must be separate from any
other annual report filed with the Comptroller. The Comptroller must, in
cooperation with reporting municipalities, create
a format for the reporting of information described in paragraphs (1.5)
and (5) and
in subparagraph (G) of paragraph (7) of subsection (d) of Section
11‑74.4‑5 of
the Tax Increment Allocation Redevelopment Act
and the information described in paragraphs (1.5) and (5) and in subparagraph
(G) of paragraph (7) of subsection (d) of Section 11‑74.6‑22 of the Industrial
Jobs Recovery Law
that facilitates consistent
reporting among the reporting municipalities. The Comptroller may allow these
reports to be filed electronically and may display the report, or portions of
the report, electronically via the Internet. All reports filed under this
Section must be made available for examination and copying by the public at all
reasonable times.
(Source: P.A. 91‑478, eff. 11‑1‑99; 91‑900, eff. 7‑6‑00.)
|
(65 ILCS 5/8‑8‑4) (from Ch. 24, par. 8‑8‑4)
Sec. 8‑8‑4.
Overdue reports.
(a) In the event the required audit report for
a municipality is not filed
with the Comptroller in accordance with Section 8‑8‑7 within 6 months after
the close of the fiscal year of the municipality, the Comptroller shall
notify the corporate authorities of that municipality in writing that the
audit report is due, and may also grant an extension of time of 60 days,
for the filing of the audit report. In the event the required audit report
is not filed within the time specified in such written notice, the
Comptroller shall cause such audit to be made by an accountant or
accountants. In the event the required annual or supplemental report for a
municipality is not filed within 6 months after the close of the fiscal
year of the municipality, the Comptroller shall notify the corporate
authorities of that municipality in writing that the annual or supplemental
report is due and may grant an extension in time of 60 days for the filing
of such annual or supplemental report.
(b) In the event the annual or supplemental report is not filed within
the
time extended by the Comptroller, the Comptroller shall cause such annual
or supplemental report to be prepared or completed and the municipality
shall pay to the Comptroller reasonable compensation and expenses to
reimburse him for the cost of preparing or completing such annual or
supplemental report.
Moneys paid to the Comptroller pursuant to the preceding sentence shall be
deposited into the Comptroller's Audit Expense Revolving Fund.
(c) The Comptroller may decline to order an audit or the completion of the
supplemental report if an initial examination of the books and records of the
municipality indicates that books and records of the municipality are
inadequate or unavailable to support the preparation of the audit report or the
supplemental report due to the passage of time or the occurrence of a natural
disaster.
(Source: P.A. 90‑104, eff. 7‑11‑97.)
|
(65 ILCS 5/8‑8‑5) (from Ch. 24, par. 8‑8‑5)
Sec. 8‑8‑5.
The audit shall be made in accordance with generally accepted
auditing standards. Reporting on the financial position and results of
financial operations for each fund of the municipality shall be in
accordance with generally accepted accounting principles, insofar as
possible. Each audit report shall include only financial information,
findings and conclusions that are adequately supported by evidence in the
auditor's working papers to demonstrate or prove, when called upon, the
basis for the matters reported and their correctness and reasonableness.
In connection with this, each municipality shall retain the right of
inspection of the auditor's working papers and shall make them available to
the Comptroller, or his designee, upon request. The audit report shall
consist of the professional opinion of the accountant or accountants with
respect to the financial statements or, if an opinion cannot be expressed,
a declaration that the accountant is unable to express such opinion and an
explanation of the reasons he cannot do so. Municipal authorities shall not
impose limitations on the scope of the audit to the extent that the effect
of such limitations will result in the qualification of the opinion of the
accountant or accountants. Each audit report filed with the Comptroller
shall be accompanied by a copy of each official statement or other offering
of materials prepared in connection with the issuance of indebtedness of
the municipality since the filing of the last audit report.
Audits under this Division may be made upon either an accrual or cash
basis of accounting depending upon the system followed by each
municipality.
(Source: P.A. 87‑433.)
|
(65 ILCS 5/8‑8‑7) (from Ch. 24, par. 8‑8‑7)
Sec. 8‑8‑7.
When the accountant or accountants have completed the audit,
not less than 2 copies of a report of the audit shall be made and signed by
the accountant making such audit, and shall immediately be filed with the
municipality audited. Each audit report shall include the certification
of the accountant or accountants making the audit that the audit has been
performed in compliance with generally accepted auditing standards.
The municipality shall immediately make one copy of
the report, or one copy of the report authorized by this Division 8 in lieu
of an audit report, a part of its public records and at all times
thereafter this copy shall be open to public inspection. In addition, the
municipality shall file one copy of the report with the Comptroller.
An audit report which fails to meet the requirements of this Act shall be
rejected by the Comptroller and returned to the municipal authorities for
corrective action. Nothing in this section shall be construed as
preventing a municipality, in
filing its audit report with the Comptroller, from transmitting with such
report any comment or explanation that it may desire to make concerning
that report. The audit report filed with the Comptroller, together with any
accompanying comment or explanation, shall immediately become a part of his
public records and shall at all times thereafter be open to public
inspection. It shall be unlawful for the accountant to make any disclosure
of the result of any examination of any public account excepting as he does
so directly to the corporate authorities of the municipality audited.
(Source: P.A. 85‑1000.)
|
(65 ILCS 5/8‑8‑8) (from Ch. 24, par. 8‑8‑8)
Sec. 8‑8‑8.
The expenses of the audit and investigation of public accounts
provided for in Division 8, whether ordered by the corporate authorities
or the Comptroller, shall be paid by the municipality for which the
audit is made. Payment shall be ordered by the corporate authorities out
of the funds of the municipality and it shall be the duty of such
authorities to make provisions for payment. Contracts for the
performance of audits required by this Division 8 may be entered into
without competitive bidding. If the audit is made by an accountant or
accountants retained by the Comptroller, the municipality shall pay to
the Comptroller reasonable compensation and expenses to reimburse him
for the cost of making such audit.
The corporate authorities of all municipalities coming under the
provisions of this Division 8 shall have the power to annually levy a
"Municipal Auditing Tax" upon all of the taxable property of the
municipalities at the rate on the dollar which will produce an amount
which will equal a sum sufficient to meet the cost of all auditing and
reports thereunder. Such municipal auditing tax shall be held in a
special fund and used for no other purpose than the payment of expenses
occasioned by this Division 8.
The tax authorized by this Section shall be in addition to taxes for
general corporate purposes authorized under Section 8‑3‑1 of this Act.
(Source: P.A. 81‑824.)
|
(65 ILCS 5/8‑8‑9) (from Ch. 24, par. 8‑8‑9)
Sec. 8‑8‑9.
The provisions of the Division 8 shall not be construed
to relieve any officer of any duties now required by law of him with
relation to the auditing of public accounts or the disbursement of
public funds. Failure of the corporate authorities of any municipality
to comply with any of the provisions of this Division 8 shall not affect
the legality of taxes levied for any of the funds of such municipality.
Notwithstanding any provision to the contrary, any municipality which
files audits or audit reports with the Comptroller in compliance with
this Act shall not be required to file any additional audits or audit
reports with any state governmental agency providing motor fuel tax
funds to such municipality. Any such state governmental agency may
obtain copies of all audits and audit reports from the Comptroller.
(Source: P.A. 80‑423.)
|
(65 ILCS 5/8‑8‑10) (from Ch. 24, par. 8‑8‑10)
Sec. 8‑8‑10.
The corporate authorities of a municipality may establish
an audit committee, and may appoint members of the corporate authority or
other appropriate officers to the committee, to review audit reports prepared
under this Act and any other financial reports and documents, including
management letters prepared by or on behalf of the municipality.
(Source: P.A. 82‑644.)
|
Disclaimer: These codes may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
