IllinoisHB1082104th General Assembly (2025–2026)House

MUNICIPALITIES-AUDITS

Sponsored By: Gregg Johnson (Democratic)

Became Law

cities & villagesassignmentslocal government

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 0 costs, 5 mixed.

Broader audit reports and simpler small-town forms

The law updates what an audit report covers. Beginning in Fiscal Year 2027, an audit must cover all accounts and funds, plus the town’s transactions, affairs, and financial condition, with statements and schedules. Small towns use a new annual financial report form in place of the old report. The Comptroller provides the form and designs it so a professional accountant is not needed to complete it.

Municipal leaders must ensure audits happen

Municipal corporate authorities must make sure an audit of their funds and accounts is done. The audit may be done by the town’s auditor or by an auditor the Illinois Comptroller hires.

Old municipal audit schedules end in 2027

Beginning in Fiscal Year 2027, earlier audit rules stop. The old rule that required annual audits for towns with 800 or more people, with bonded debt, or with utilities no longer applies. The old simple filing rule for towns under 800 people with no utilities and no bonded debt also ends. The special rule for very small utilities (under 200 people and $50,000 or less in bonded debt) that allowed audits only every fourth year ends.

Online reports and naming the purchasing agent

All audits and reports must be filed electronically with the Illinois Comptroller. The Comptroller posts them online within 45 days. A town can get a waiver if it shows it cannot file electronically. The Comptroller also posts a list of towns that are not in compliance. Each financial report must name the purchasing agent, or the person who oversees competitively bid contracts.

Starting 2027: municipal audit and filing rules

This law covers cities, villages, and towns under 500,000 people. Beginning in Fiscal Year 2027, towns with 1,000 or more people must file an audit report and an annual financial report every year with the Illinois Comptroller. Towns under 1,000 people with no public utilities and no bonded debt must file an annual financial report each year. Towns under 1,000 that run utilities or have bonded debt must file the annual report each year and a full audit every four years; if the last audit had an adverse opinion or a disclaimer, they must file audits every year until it is cleared. All reports are due within 180 days after the fiscal year ends unless the Comptroller grants a written extension. The auditor must send at least two copies of the audit to the town’s corporate authorities.

Sponsors & Cosponsors

Sponsor

Gregg Johnson
Democratic • House

Cosponsors

Andrew S. Chesney
Republican • Senate
Bradley Fritts
Republican • House
Charles Meier
Republican • House
Chris Balkema
Republican • Senate
Dan Swanson
Republican • House
Dave Severin
Republican • House
David Friess
Republican • House
Diane Blair-Sherlock
Democratic • House
Jackie Haas
Republican • House
Kevin Schmidt
Republican • House
Martha Deuter
Democratic • House
Nicolle Grasse
Democratic • House
Patrick Windhorst
Republican • House
Regan Deering
Republican • House
Sally J. Turner
Republican • Senate
Steven Reick
Republican • House
Wayne A. Rosenthal
Republican • House

Roll Call Votes

All Roll Calls

Yes: 190 • No: 0

Senate vote • 5/29/2025

Third Reading - Passed;

Yes: 56 • No: 0

Senate vote • 5/21/2025

Do Pass Local Government;

Yes: 7 • No: 0

House vote • 4/7/2025

Third Reading - Short Debate - Passed

Yes: 107 • No: 0

House vote • 3/11/2025

House Floor Amendment No. 1 Recommends Be Adopted Cities & Villages Committee;

Yes: 10 • No: 0

House vote • 2/18/2025

Do Pass / Short Debate Cities & Villages Committee;