HB4104 Summary

• Amends the Governmental Account Audit Act, Counties Code, and Illinois Municipal Code to redefine "auditor" as a licensed certified public accountant (CPA) rather than any licensed public accountant.

• Establishes separate audit reporting standards for periods before and after fiscal year 2019, with fiscal year 2019 and later requiring compliance with generally accepted accounting principles (GAAP) if prior audits expressed unmodified or modified opinions under GAAP.

• Allows governmental units, counties, and municipalities filing audits starting in fiscal year 2019 to use either GAAP or other comprehensive basis of accounting (OCBOA), with OCBOA audits following American Institute of Certified Public Accountants best practices.

• Permits units that submit a GAAP-based audit report to continue using GAAP for all future audit reports.

• Increases the threshold for governmental units subject to audit requirements from $5,000 to amounts adjusted annually by the Consumer Price Index (CPI).