Creates the Government Reporting Enhancement and Transparency Act. Provides that, beginning fiscal year 2028, the annual cash receipts from all external sources of a local government shall determine if the local government is a Category 1 government, Category 2 government, Category 3 government, or Category 4 government. Provides that, each fiscal year, the responsible officials of a Category 1 local government shall appoint an auditing committee composed of 3 independent electors to inspect the local government's records using the template for that fiscal year published by the Comptroller. Provides that, each fiscal year, the responsible officials of a Category 2 local government shall enter into agreed upon procedures with an independent CPA. Requires the agreed upon procedures to align with the minimum agreed upon procedures published by the Comptroller. Provides that the responsible officials of a Category 3 local government shall oversee management's preparation of the local government's draft financial statements following the cash basis of accounting. Provides that the responsible officials of a Category 4 local government shall oversee management's preparation of the local government's draft financial statements following GAAP. Provides that, upon completion of the Category 3 local government's or Category 4 local government's draft financial statements, management shall furnish the draft financial statements to the local government's independent CPA firm for audit. Limits home rule powers. Makes other and conforming changes to various Acts. Effective immediately.
House Committee Amendment No. 1: Replaces everything after the enacting clause. 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.

Statutes affected:
Introduced: 5 ILCS 220/10, 15 ILCS 405/23, 35 ILCS 200/2, 35 ILCS 200/30, 50 ILCS 20/10, 50 ILCS 305/1, 50 ILCS 310/4, 50 ILCS 310/10, 55 ILCS 5/6, 60 ILCS 1/80, 60 ILCS 1/205, 65 ILCS 5/3, 65 ILCS 5/4, 65 ILCS 5/8, 65 ILCS 5/11, 65 ILCS 95/5, 65 ILCS 95/11, 70 ILCS 5/11, 70 ILCS 10/3, 70 ILCS 105/5, 70 ILCS 200/2, 70 ILCS 200/15, 70 ILCS 200/20, 70 ILCS 200/30, 70 ILCS 200/50, 70 ILCS 200/55, 70 ILCS 200/100, 70 ILCS 200/110, 70 ILCS 200/125, 70 ILCS 200/155, 70 ILCS 200/175, 70 ILCS 200/185, 70 ILCS 200/190, 70 ILCS 200/195, 70 ILCS 200/200, 70 ILCS 200/205, 70 ILCS 200/250, 70 ILCS 200/255, 70 ILCS 200/280, 70 ILCS 210/26, 70 ILCS 405/7, 70 ILCS 410/6, 70 ILCS 410/15, 70 ILCS 605/4, 70 ILCS 705/6, 70 ILCS 705/11, 70 ILCS 750/35, 70 ILCS 755/30, 70 ILCS 805/13, 70 ILCS 805/18, 70 ILCS 810/24, 70 ILCS 810/35, 70 ILCS 905/15, 70 ILCS 905/16, 70 ILCS 910/18, 70 ILCS 1005/9, 70 ILCS 1105/20, 70 ILCS 1205/2, 70 ILCS 1205/8, 70 ILCS 1205/9, 70 ILCS 1505/26, 70 ILCS 1605/45, 70 ILCS 1801/140, 70 ILCS 1805/33, 70 ILCS 1807/150, 70 ILCS 1810/22, 70 ILCS 1815/43, 70 ILCS 1816/20, 70 ILCS 1820/25, 70 ILCS 1825/24, 70 ILCS 1830/44, 70 ILCS 1831/140, 70 ILCS 1832/150, 70 ILCS 1837/140, 70 ILCS 1842/110, 70 ILCS 1845/25, 70 ILCS 1850/25, 70 ILCS 1860/25, 70 ILCS 1863/31, 70 ILCS 1865/25, 70 ILCS 2005/16, 70 ILCS 2105/24, 70 ILCS 2205/26, 70 ILCS 2205/27, 70 ILCS 2305/5, 70 ILCS 2305/11, 70 ILCS 2405/11, 70 ILCS 2405/16, 70 ILCS 2405/32, 70 ILCS 2605/5, 70 ILCS 2605/11, 70 ILCS 2805/14, 70 ILCS 2805/26, 70 ILCS 2805/32, 70 ILCS 2805/94, 70 ILCS 2905/4, 70 ILCS 2905/5, 70 ILCS 3010/8, 70 ILCS 3010/23, 70 ILCS 3020/25, 70 ILCS 3105/10, 70 ILCS 3105/26, 70 ILCS 3105/30, 70 ILCS 3305/5, 70 ILCS 3405/30, 70 ILCS 3605/35, 70 ILCS 3610/7, 70 ILCS 3615/4, 70 ILCS 3705/14, 70 ILCS 3710/14, 70 ILCS 3715/6, 70 ILCS 3720/0, 70 ILCS 3720/6, 75 ILCS 5/4, 75 ILCS 10/10, 75 ILCS 16/30, 75 ILCS 50/3, 110 ILCS 805/3, 110 ILCS 805/7, 310 ILCS 10/8, 605 ILCS 5/6
Engrossed: 5 ILCS 220/3, 5 ILCS 220/10, 15 ILCS 405/23, 35 ILCS 200/2, 35 ILCS 200/30, 50 ILCS 20/10, 50 ILCS 305/1, 50 ILCS 310/4, 50 ILCS 310/7, 50 ILCS 310/10, 55 ILCS 5/6, 60 ILCS 1/80, 60 ILCS 1/205, 65 ILCS 5/3, 65 ILCS 5/4, 65 ILCS 5/8, 65 ILCS 5/11, 65 ILCS 95/5, 65 ILCS 95/11, 70 ILCS 5/11, 70 ILCS 10/3, 70 ILCS 105/5, 70 ILCS 200/2, 70 ILCS 200/15, 70 ILCS 200/20, 70 ILCS 200/30, 70 ILCS 200/50, 70 ILCS 200/55, 70 ILCS 200/100, 70 ILCS 200/110, 70 ILCS 200/125, 70 ILCS 200/155, 70 ILCS 200/175, 70 ILCS 200/185, 70 ILCS 200/190, 70 ILCS 200/195, 70 ILCS 200/200, 70 ILCS 200/205, 70 ILCS 200/250, 70 ILCS 200/255, 70 ILCS 200/280, 70 ILCS 210/26, 70 ILCS 405/7, 70 ILCS 410/6, 70 ILCS 410/15, 70 ILCS 605/4, 70 ILCS 705/6, 70 ILCS 705/11, 70 ILCS 750/35, 70 ILCS 755/30, 70 ILCS 805/13, 70 ILCS 805/18, 70 ILCS 810/24, 70 ILCS 810/35, 70 ILCS 905/15, 70 ILCS 905/16, 70 ILCS 910/18, 70 ILCS 1005/9, 70 ILCS 1105/20, 70 ILCS 1205/2, 70 ILCS 1205/8, 70 ILCS 1205/9, 70 ILCS 1505/26, 70 ILCS 1605/45, 70 ILCS 1801/140, 70 ILCS 1805/33, 70 ILCS 1807/150, 70 ILCS 1810/22, 70 ILCS 1815/43, 70 ILCS 1816/20, 70 ILCS 1820/25, 70 ILCS 1825/24, 70 ILCS 1830/44, 70 ILCS 1831/140, 70 ILCS 1832/150, 70 ILCS 1837/140, 70 ILCS 1842/110, 70 ILCS 1845/25, 70 ILCS 1850/25, 70 ILCS 1860/25, 70 ILCS 1863/31, 70 ILCS 1865/25, 70 ILCS 2005/16, 70 ILCS 2105/24, 70 ILCS 2205/26, 70 ILCS 2205/27, 70 ILCS 2305/5, 70 ILCS 2305/11, 70 ILCS 2405/11, 70 ILCS 2405/16, 70 ILCS 2405/32, 70 ILCS 2605/5, 70 ILCS 2605/11, 70 ILCS 2805/14, 70 ILCS 2805/26, 70 ILCS 2805/32, 70 ILCS 2805/94, 70 ILCS 2905/4, 70 ILCS 2905/5, 70 ILCS 3010/8, 70 ILCS 3010/23, 70 ILCS 3020/25, 70 ILCS 3105/10, 70 ILCS 3105/26, 70 ILCS 3105/30, 70 ILCS 3305/5, 70 ILCS 3405/30, 70 ILCS 3605/35, 70 ILCS 3610/7, 70 ILCS 3615/4, 70 ILCS 3705/14, 70 ILCS 3710/14, 70 ILCS 3715/6, 70 ILCS 3720/0, 70 ILCS 3720/6, 75 ILCS 5/4, 75 ILCS 10/10, 75 ILCS 16/30, 75 ILCS 50/3, 110 ILCS 805/3, 110 ILCS 805/7, 310 ILCS 10/8, 605 ILCS 5/6, 705 ILCS 105/27