2005 Illinois Code - 30 ILCS 10/ Fiscal Control and Internal Auditing Act. Article 2 - Internal Auditing
(30 ILCS 10/Art. 2 heading)
ARTICLE 2.
INTERNAL AUDITING.
(30 ILCS 10/2001) (from Ch. 15, par. 2001)
Sec. 2001.
Program of internal auditing.
(a) Each designated State agency shall establish a
full‑time program of
internal auditing. The
Governor shall designate State agencies under this Act not later than April 1
of each
odd numbered year. The designations shall be filed with the Index Division
of the Office of the
Secretary of State as a public record. The Legislative Audit
Commission may make formal recommendations to the Governor
that the Governor designate other State agencies under this Act.
(b) The chief executive officer of a State agency is not relieved from
the responsibility for
maintaining an effective internal control system merely because that State
agency is not designated and required to have a full‑time program of
internal auditing under this Act. Agencies which do not have full‑time
internal audit programs may have internal audits performed by the
Department of Central Management Services.
(c) The Supreme Court will establish by its rulemaking authority or by
administrative order a full‑time program of internal auditing of
State‑funded activities of the judicial branch, which is consistent with
the intent of this Article.
(Source: P.A. 86‑936.)
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(30 ILCS 10/2002) (from Ch. 15, par. 2002)
Sec. 2002.
Qualifications of chief internal auditor.
(a) The chief executive officer of each designated State agency
shall appoint a chief internal auditor with a bachelor's
degree, who is either:
(1) a certified internal auditor by examination or a |
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certified public accountant and who has at least 4 years of progressively responsible professional auditing experience; or
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(2) an auditor with at least 5 years of
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progressively responsible professional auditing experience.
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(b) The chief internal auditor shall report directly to the
chief executive officer and shall have
direct communications with the chief executive officer and the governing
board, if applicable,
in the exercise of auditing activities. All chief internal
auditors and all full‑time members of an internal audit staff shall be free
of all operational duties.
(Source: P.A. 86‑936.)
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(30 ILCS 10/2003) (from Ch. 15, par. 2003)
Sec. 2003.
Internal auditing program requirements.
(a) The chief executive officer of each designated State
agency shall ensure that the internal auditing program
includes:
(1) A two‑year plan, identifying audits scheduled |
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for the pending fiscal year, approved by the chief executive officer before the beginning of the fiscal year. By September 30 of each year the chief internal auditor shall submit to the chief executive officer a written report detailing how the audit plan for that year was carried out, the significant findings, and the extent to which recommended changes were implemented.
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(2) Audits of major systems of internal accounting
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and administrative control conducted on a periodic basis so that all major systems are reviewed at least once every 2 years. The audits must include testing of:
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(A) the obligation, expenditure, receipt, and
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use of public funds of the State and of funds held in trust to determine whether those activities are in accordance with applicable laws and regulations; and
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(B) grants received or made by the designated
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State agency to determine that the grants are monitored, administered, and accounted for in accordance with applicable laws and regulations.
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(3) Reviews of the design of major new electronic
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data processing systems and major modifications of those systems before their installation to ensure the systems provide for adequate audit trails and accountability.
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(4) Special audits of operations, procedures,
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programs, electronic data processing systems, and activities as directed by the chief executive officer or by the governing board, if applicable.
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(b) Each chief internal auditor shall have, in addition to
all other powers or duties authorized by law, required by
professional ethics or standards, or assigned consistent with
this Act, the powers necessary to carry out the duties
required by this Act.
(Source: P.A. 86‑936.)
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(30 ILCS 10/2004) (from Ch. 15, par. 2004)
Sec. 2004. Consultations by internal auditor. Each
chief internal auditor may consult with the Auditor General,
the Department of Central Management Services, the Commission on Government Forecasting and Accountability, the appropriations
committees of the General Assembly, the
Governor's Office of Management and Budget,
or the Internal Audit Advisory Board on matters affecting the
duties or responsibilities of the chief internal auditor under this Act.
(Source: P.A. 93‑1067, eff. 1‑15‑05.)
(30 ILCS 10/2005) (from Ch. 15, par. 2005)
Sec. 2005.
Internal Audit Advisory Board.
(a) An 11 member Internal Audit Advisory Board is created.
(b) The composition of the Board shall be as follows:
(1) the chief internal auditor of the Department of |
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Central Management Services;
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(2) the chief internal auditor of the Office of the
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(3) the chief internal auditor of the Office of the
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(4) the chief internal auditor of the Office of the
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(5) the chief internal auditor of the Office of the
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(6) 6 chief internal auditors appointed by the
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At least one of the members appointed by the
Governor must be an employee of a State college or university
or university governing board.
(c) The
initial appointments by the Governor of the 6 chief
internal auditors who shall be members of the Board shall be made before
the next February 1 after the date this Act takes effect and shall be as
follows: 2 appointments for
three‑year terms, 2 appointments for two‑year terms, and 2
appointments for one‑year terms.
After the initial terms each member appointed by the Governor shall serve a
three‑year term.
(d) A vacancy shall exist
whenever a member ceases to be employed in the position which
qualified the member for appointment. Vacancies shall be filled in
the same manner as the original appointment. Persons
appointed to fill a vacancy shall serve the balance of the unexpired term.
(e) The Board shall select a chairman from its members, who
shall serve for a one‑year term as chairman. Board members shall receive
no additional compensation for their services, but shall be
reimbursed by their employing agency for expenses necessarily
incurred in the performance of their duties as Board members.
(f) The Board shall be responsible for:
(1) promulgating a uniform set of professional
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standards and a code of ethics (based on the standards and ethics of the Institute of Internal Auditors, the General Accounting Office, and other professional standards as applicable) to which all State internal auditors must adhere;
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(2) serving as a clearinghouse for the correlation
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of internal audit training needs and training designed to meet those needs; and
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(3) coordinating peer review activities among the
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State's internal audit units.
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(Source: P.A. 86‑936.)
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