103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2341

 

Introduced 2/14/2023, by Rep. Kevin Schmidt

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 708/65

    Amends the Grant Accountability and Transparency Act. Provides that a local government may submit a request to the Grant Accountability and Transparency Unit to be exempt from certain audit requirements if the local government is unable to meet the audit requirements due to circumstances beyond the local government's control, including, but not limited to, a natural disaster in which financial records of the local government are destroyed or alleged employee misconduct involving the destruction or withholding of financial records. Effective immediately.


LRB103 26830 HLH 53194 b

 

 

A BILL FOR

 

HB2341LRB103 26830 HLH 53194 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Grant Accountability and Transparency Act
5is amended by changing Section 65 as follows:
 
6    (30 ILCS 708/65)
7    Sec. 65. Audit requirements.
8    (a) The standards set forth in Subpart F of 2 CFR 200 and
9any other standards that apply directly to State or federal
10agencies shall apply to audits of fiscal years beginning on or
11after December 26, 2014.
12    (b) Books and records must be available for review or
13audit by appropriate officials of the pass-through entity, and
14the agency, the Auditor General, the Inspector General,
15appropriate officials of the agency, and the federal
16Government Accountability Office.
17    (b-5) If a local government is unable to meet the audit
18requirements of this Section or the audit requirements set
19forth in rules adopted under this Act, due to circumstances
20beyond the local government's control, including, but not
21limited to, a natural disaster in which financial records of
22the local government are destroyed or alleged employee
23misconduct involving the destruction or withholding of

 

 

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1financial records, the local government may submit a request
2to the Grant Accountability and Transparency Unit to be exempt
3from those audit requirements with which it is unable to
4comply. In its request for an exemption, the local government
5must provide: (i) all relevant information related to the lack
6of financial records or the inability of the local government
7to access those records; (ii) relevant financial records and
8documents that are available to the local government; (iii) a
9list of the specific audit requirements from which the local
10government is seeking an exemption; (iv) information about
11audits that could be performed with the available financial
12records and documents; (v) a description of the events that
13led to the local government not having the financial records
14and documents available; and (vi) any other information that
15the Grant Accountability and Transparency Unit finds relevant
16to the local government's specific situation. Upon receiving
17the request from the local government, the Grant
18Accountability and Transparency Unit shall compile the
19information related to the request and shall submit the
20request for exemption to a 3-member panel consisting of the
21Auditor General, the Director of the Governor's Office of
22Management and Budget, and the Director of the State agency
23with which the local government has submitted the applicable
24grant application. The 3-member panel shall meet, virtually or
25in-person, to review the request for the exemption and shall
26make a determination, based on the facts and information

 

 

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1available in the request, to deny or approve the local
2government's request to be exempt from the full audit
3requirements established under this Act to the extent allowed
4by the 3-member panel. The 3-member panel may require
5officials from the local government to testify to their
6request for exemption. Nothing in this Section shall be
7construed to exempt the local government from the audit
8requirements of this Act if financial records and documents
9are readily available and can be used to complete a required
10audit or a portion of the audit requirements.
11    (c) The Governor's Office of Management and Budget, with
12the advice and technical assistance of the Illinois Single
13Audit Commission, shall adopt rules for audits of grants from
14a State or federal pass-through entity that are not subject to
15the Single Audit Act because the amount of the federal award is
16less than $750,000 or the subrecipient is an exempt entity and
17that are reasonably consistent with 2 CFR 200.
18    (d) This Act does not affect the provisions of the
19Illinois State Auditing Act and does not address the external
20audit function of the Auditor General.
21(Source: P.A. 98-706, eff. 7-16-14.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.