Governor JB Pritzker proclaimed May 2026 as Internal Audit Awareness Month in Illinois. This page walks through how state audits actually work, the Auditor General and the Legislative Audit Commission (on which Senator Balkema serves), what a decade of audit findings shows, Illinois's last-place financial transparency ranking, where corrective action stands today, and current audit-related legislation in Springfield.
Internal auditing is a vital part of strengthening organizations and protecting the stakeholders of both the public and private sectors: it helps identify and manage risk and ensures policies, procedures, and controls are in place and working appropriately. Governor JB Pritzker issued a proclamation declaring May 2026 as Internal Audit Awareness Month in the State of Illinois.
Source: Global Investigation & Forensic Accounting Services, "Celebrate in May: International Internal Audit Awareness Month"; Office of the Governor, 2026 proclamation.
The Illinois General Assembly passed the Illinois Auditing Act (1957), creating the Department of Audits and the Legislative Audit Commission (LAC), aiming to strengthen financial oversight.
The new Illinois Constitution created an independent Auditor General and shifted auditing power to the legislature.
Established a modern audit framework (financial, compliance, and performance audits) and formalized the relationship between the Auditor General, who conducts audits, and the Legislative Audit Commission, which oversees and reviews them.
The Commission reviews audits from the Illinois Auditor General, holds hearings on audit findings, monitors agency corrective actions, and works to ensure accountability and transparency in state government.
The Illinois Auditor General is an independent legislative official created under the Illinois Constitution and selected by the Illinois General Assembly to serve a 10 year term. The office is organized into performance audits and financial/compliance audits divisions, supported by a Deputy Auditor General, Fiscal Officer, Legal Counsel/FOI Officer, Inspector General, and Executive Secretary.
Source: Illinois Constitution; Office of the Auditor General.
The Commission is mandated by law (25 ILCS 150/0.01–0.06) to review all audits conducted by the State Auditor General. Its primary responsibilities:
Source: Illinois Legislative Audit Commission Act (25 ILCS 150/).
Source: Illinois Legislative Audit Commission Act (25 ILCS 150/).
Illinois oversees more than 100 agencies and entities across major public service sectors. Government Services, Public Safety, and Education together account for the majority of agencies under state oversight and audit review.
Source: Commission on Government Forecasting & Accountability. Totals may vary depending on counting methods and agency classifications.
FY2026 appropriations across all funds total roughly $215.3 billion. Special State Funds and General Funds together account for approximately $141 billion, representing roughly 65% of all funds shown.
Source: Commission on Government Forecasting & Accountability, preliminary appropriations data from the Statewide Accounting Management System Information Warehouse as of July 21, 2025.
Illinois conducts financial, compliance, performance, and special audits across state government. Over the past decade, the number of findings has climbed, repeat findings have stayed stubbornly common, and independent scorecards rank Illinois at or near the bottom nationally on financial transparency.
Source: Illinois State Auditing Act (30 ILCS 5/).
For example, in the State Compliance Examination for the two years ended June 30, 2023: 17 total findings (5 Category 1, 11 Category 2, 1 Category 3), 8 new and 9 repeat, up from 11 findings in the prior audit.
Audit findings nearly doubled from 568 in 2015 to a peak of 1,055 in 2022, a pattern consistent with growing oversight and compliance challenges across state agencies during and after the pandemic era. The repeated-findings ratio stayed above 50% in most years.
Source: Legislative Audit Commission.
The majority of identified weaknesses in Illinois agencies show an upward trend, with one exception: poor personnel oversight. Weak internal audit control issues quadrupled, from 6 agencies in FY2020 to 24 in FY2025.
Source: Office of the Auditor General.
Illinois has experienced growing delays in releasing its FY2023 Annual Comprehensive Financial Report, due to a reimbursement issue at the Department of Healthcare and Family Services (HFS), pushing release to 774 days, by far the longest delay in the 15 years shown.
Source: Truth in Accounting.
Source: Truth in Accounting, Financial Transparency Score 2025; Illinois Policy, "Illinois ranks last in U.S. for financial transparency" and "Illinois sets U.S. record: over 2 years late with state spending audit."
Illinois ranked 5th nationally in the total number of public corruption convictions from 2004 to 2023, with 844 cases, raising concerns about government transparency and accountability.
Source: U.S. Department of Justice; Cato Institute, "Public Corruption by State."
After a significant decrease in public corruption cases from 2013 to 2015 (a drop from 69 cases to 19 cases), the number of cases reemerged and more than tripled, reaching 59 cases in 2023.
Source: U.S. Department of Justice.
This study collected audit data from the Illinois Auditor General, categorized findings, reviewed the most recent agency audits, followed up directly with agencies on outstanding findings, and developed conclusions about where the state's corrective-action process stands today.
Category 2 accounted for the majority of findings, representing approximately 72% of all 955 audit findings. The overall repeated-findings rate is approximately 70%, indicating recurring weaknesses in specific operational or compliance areas.
Source: Office of the Auditor General.
Several Illinois agencies continue to report very high repeated-finding rates: 19 of 35 (54%) agencies with 10 or more findings reported repeated-findings rates exceeding 70%.
| Acronym | Agency |
|---|---|
| WCC | Workers' Compensation Commission |
| DoIT | Department of Innovation and Technology |
| IDOA | Illinois Department of Agriculture |
| ISU | Illinois State University |
| DCFS | Department of Children and Family Services |
| IDVA | Illinois Department of Veterans' Affairs |
| IDNR | Illinois Department of Natural Resources |
| DOI | Department of Insurance |
| IDoA | Department on Aging |
| ILETSB | Illinois Law Enforcement Training and Standards Board |
| ILCC | Illinois Liquor Control Commission |
| OOG | Office of the Governor |
| GSU | Governors State University |
Agencies with over 80% repeated audit findings. Source: Office of the Auditor General.
Source: Office of the Auditor General; agency follow-up updates.
Source: New Mexico Office of the State Auditor, "Types of Audit Opinions."
The Department of Innovation and Technology received the most adverse opinions; the Illinois Department of Labor and the Illinois Department of Human Services each received 4. Across all nine audit cycles shown, 15 agencies received at least one adverse audit opinion.
Source: Office of the Auditor General.
Source: Gallup News, "Illinois Residents Least Trusting of Their State Government."
Both point toward the same goal: achieving 100% agency compliance by strengthening internal controls across state agencies, leading to greater transparency and public trust.
At least 23 audit-, transparency-, and accountability-related bills have been filed in the 104th Illinois General Assembly this session, spanning municipal audit requirements, targeted performance audits, ethics enforcement, and updates to how local governments handle public records and notices.
Requires the Illinois Auditor General to conduct periodic performance audits (in 2025, 2030, 2035, 2040, and 2045) of Illinois Power Agency renewable energy programs, including the Renewable Portfolio Standard and Adjustable Block solar program. The audits must include site inspections, expert consultation, and public reports; the requirement sunsets in 2046.
Prohibits employers from offering jobs or compensation to individuals barred from accepting them under state ethics laws. Gives ethics commissions authority to enforce the rule and impose penalties of up to three times the annual compensation offered in violation.
Updates municipal auditing requirements starting in FY2026. Municipalities with 1,000+ residents must file annual audit and financial reports, while smaller municipalities file annual financial reports and periodic audits depending on debt, utilities, and audit findings. Sets a 180-day deadline to submit reports to the Comptroller, with possible extensions.
Raises the revenue threshold for simplified audit requirements starting in FY2027, allowing more small governmental units to reduce the frequency of full audits or submit financial reports instead. Increases the audit-related reporting threshold to $1.5 million beginning in FY2028.
Bills touching audits, transparency, and government accountability filed this session. Search by bill number or keyword below.
| Bill | What It Does |
|---|---|
| HB0762 | Foster Care/Adoption Liability Insurance SurveyRequires the Illinois Department of Insurance to survey liability insurance practices for foster care and adoption service providers and report findings on the insurance market. A final report must be completed by April 1, 2026, and shared with state leaders and stakeholders; the Act will be repealed on November 1, 2026. |
| HB1082 | Updates Municipal Auditing RequirementsUpdates municipal auditing requirements starting in FY2026. Municipalities with 1,000+ residents must file annual audit and financial reports, while smaller municipalities must file annual financial reports and periodic audits depending on debt, utilities, and audit findings. Sets a 180-day deadline to submit reports to the Comptroller, with possible extensions. |
| HB2065 | Charitable Trust Stabilization Act Grant EligibilitySets eligibility requirements for organizations seeking grants under the Charitable Trust Stabilization Act. Applicants must be in good standing, properly registered with the Attorney General, file recent annual reports, follow nondiscrimination laws, and have either a full-time employee or a fiscal agent with a physical office providing services. |
| HB2142 | Ambulance-Focused Emergency Services DistrictsAllows emergency services districts focused on ambulance service to be formed within fire protection districts if the fire district stops levying ambulance taxes and the new district provides service in that area. Updates formation procedures, including notice and hearing rules, removes some court-related requirements, and expands district powers such as borrowing money, holding property, and operating ambulance services. |
| HB2196 | Home-Raised Poultry Sales Food Safety StandardsUpdates rules for poultry raisers selling exempt home-raised poultry. Requires clearer, larger-font safety signage and adds new food safety standards for sales at farmers markets, including providing safe handling information, maintaining proper temperature control, and requiring poultry products to be sealed in leakproof packaging. |
| HB5166 | Sanitary & Drainage District Dissolution ProceduresRevises procedures for dissolving certain sanitary and drainage districts, limiting its application to districts in counties with populations between 650,000 and 1,000,000. Removes changes to several other district laws and updates reporting requirements to the Department of Revenue after dissolution. |
| SB0023 | Recurring Audits of IL Power Agency Renewable ProgramsRequires the Illinois Auditor General to conduct periodic performance audits (in 2025, 2030, 2035, 2040, and 2045) of Illinois Power Agency renewable energy programs, including the Renewable Portfolio Standard and Adjustable Block solar program. Audits must include site inspections, expert consultation, and public reports; the requirement sunsets in 2046. |
| SB0029 | Allows Legal Notices Published OnlineAllows municipalities to publish legal notices online instead of in newspapers, as long as they are also posted on a certified searchable database website. Updates related laws to reflect this change and removes a requirement for posting notices on a statewide website. |
| SB0053 | Bars Lobbyist Pay-to-Play ArrangementsProhibits lobbyists from offering or promising anything of value, including campaign contributions or endorsements, in exchange for specific legislative or executive actions. Also bars lobbying activity that encourages officials or state employees to violate ethics laws, while still allowing lawful voluntary political contributions. |
| SB0082 | Updates Municipal Auditing RulesUpdates municipal auditing rules starting in FY2026. Municipalities with 1,000+ residents must file annual audit and financial reports, while smaller municipalities must file annual financial reports and periodic audits depending on debt, utilities, and audit results. All reports must be submitted to the Comptroller within 180 days after the fiscal year ends, with possible extensions. |
| SB0642 | Raises Senior Property Tax Freeze Income LimitRaises and gradually increases the income limits for the Low-Income Senior Citizens property tax freeze exemption from $75,000 in 2026 to $79,000 in 2028 and beyond. Also updates rules for property tax delinquencies and allows county clerks to create payment plans during redemption periods, including the option to waive interest penalties when payments are made under the plan. |
| SB1599 | Electronic Filing for Charitable ReportsAmends the Solicitation of Charity Act and the Charitable Trust Act. Requires the Attorney General to accept reports required under these Acts electronically. Effective immediately. |
| SB1600 | Year-Round Daylight Saving TimeAmends the Time Standardization Act. Provides that daylight saving time shall be the year-round standard time of the entire State. Makes other changes. Effective January 1, 2026. |
| SB1719 | Electronic Storage of Public RecordsAmends the Local Records Act. Provides that a unit of local government required to store public records under the Act may satisfy the requirements of the Act by storing the public records in an electronic form. |
| SB1815 | Strengthens Revolving-Door Ethics RulesStrengthens revolving-door ethics rules by prohibiting employers from offering jobs or compensation to individuals barred from accepting them under state ethics laws. Gives ethics commissions authority to enforce the rule and impose penalties of up to three times the annual compensation offered in violation. |
| SB1935 | Regulatory Agency Performance ReviewRequires the Governor's Office of Management and Budget to review state regulatory agencies two years before their scheduled termination and evaluate their performance. The review must also consider how similar professions or industries are regulated in other states when deciding whether to continue, modify, or end the agency or program. |
| SB2044 | Web-Based Signatures ActCreates the Web-Based Signatures Act. Provides that a unit of local government may allow a person to sign any document with a web-based signature if the unit of local government uses a secure web-based platform. |
| SB2094 | Fiscal Note Act Technical ChangeAmends the Fiscal Note Act. Provides that no rule of either house may authorize or require a note request to be deemed inapplicable. Effective immediately. |
| SB2114 | Removes Senate Advice & Consent for Certain NominationsAmends various Acts. Removes the requirement that the Senate provide advice and consent to specified nominations. |
| SB3378 | Public Notices on Digital News PlatformsAllows legally required public notices to be published on qualified online or digital news platforms instead of newspapers, as long as the platform regularly publishes local content and meets specified activity requirements. Applies to notices published on or after the effective date of the Act. |
| SB3431 | Streamlines Regulatory Sunset Act ReviewChanges the Regulatory Sunset Act review process so that the Governor's Office of Management and Budget evaluates agencies only in the year two years before they are set to expire. The Governor must then issue recommendations on whether to continue, modify, or terminate each program by December 1 of the year before its scheduled termination. |
| SB3610 | Raises Simplified-Audit Revenue ThresholdRaises the revenue threshold for simplified audit requirements starting in FY2027, allowing more small governmental units to reduce the frequency of full audits or submit financial reports instead. Updates reporting and public disclosure rules for larger units and increases the audit-related reporting threshold to $1.5 million beginning in FY2028. |
| SB3620 | Extends Two Regulatory Sunset DatesAmends the Regulatory Sunset Act. Changes the repeal date of the Boiler and Pressure Vessel Repairer Regulation Act and the Petroleum Equipment Contractors Licensing Act from January 1, 2027 to January 1, 2032. |
Bill numbers link to each bill's official status page on the Illinois General Assembly website (104th General Assembly).
View the full presentation containing much of the audit data and analysis featured throughout this site.