summary
Introduced
02/06/2026
02/06/2026
In Committee
03/25/2026
03/25/2026
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
Reinserts the provisions of the introduced bill with the following changes. Provides that The independent CPA firm retained by the responsible officials of Category 2 local governments shall complete all of the AUPs and electronically submit an agreed upon procedures report to the responsible officials and management of the Category 2 local government for review. Requires the Comptroller to develop, maintain, and publish the guidelines for circuit clerks, with the advice of the Local Government Advisory Board, the Administrative Office of the Illinois Courts, a Statewide organization representing circuit clerks, and a Statewide CPA organization. Makes changes to provisions concerning waivers the Comptroller may grant to governmental units. Defines terms. Further amends the Intergovernmental Cooperation Act. Provides that, for fiscal years beginning before January 1, 2028, the operations and fiscal activities of each municipal joint action water agency shall be subject to the Governmental Account Audit Act. Provides that, for fiscal years beginning after December 31, 2027, the operations and fiscal activities of each municipal joint action water agency shall be subject to the Government Reporting Enhancement and Transparency Act. Further amends the Governmental Account Audit Act. Provides that, on or after March 15, 2027, if a governmental unit fails to comply with the requirements of the Act or any other State law mandating the governmental unit to undergo an audit and is more than 63 days late in meeting its reporting obligations, after considering any extensions granted by the Comptroller, the Comptroller shall review the governmental unit's actions. Makes other and conforming changes. Effective immediately.
AI Summary
This bill, the Government Reporting Enhancement and Transparency Act, establishes a new framework for local government financial reporting and oversight, effective immediately but with requirements beginning in fiscal year 2028. It categorizes local governments into four tiers (Category 1 through 4) based on their annual cash receipts from all external sources, with specific thresholds for each category. Category 1 local governments, those with less than $100,000 in annual cash receipts, will have their records inspected by a committee of three independent electors using a template provided by the Comptroller. Category 2 local governments, with annual cash receipts between $100,000 and $3.5 million, will enter into "agreed-upon procedures" (AUPs), which are specific financial checks performed by a Certified Public Accountant (CPA) firm, aligning with minimum standards set by the Comptroller. Category 3 local governments, with annual cash receipts between $3.5 million and $35 million, will have their responsible officials oversee management's preparation of financial statements based on the cash basis of accounting, which are then audited by an independent CPA. Category 4 local governments, with annual cash receipts of $35 million or more, will follow the same process as Category 3 but will prepare their financial statements according to Generally Accepted Accounting Principles (GAAP). The bill also includes provisions for the selection and retention of CPA firms, limits home rule powers related to financial reporting, and makes conforming changes to various existing laws.
Committee Categories
Government Affairs
Sponsors (3)
Last Action
Placed on Calendar 2nd Reading - Short Debate (on 03/25/2026)
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