HB2341 103RD GENERAL ASSEMBLY

LRB103 26830 HLH 53194 b

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.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Grant Accountability and Transparency Act is amended by changing Section 65 as follows:

(30 ILCS 708/65)

Sec. 65. Audit requirements.

(a) The standards set forth in Subpart F of 2 CFR 200 and any other standards that apply directly to State or federal agencies shall apply to audits of fiscal years beginning on or after December 26, 2014.

(b) Books and records must be available for review or audit by appropriate officials of the pass-through entity, and the agency, the Auditor General, the Inspector General, appropriate officials of the agency, and the federal Government Accountability Office.

(b-5) If a local government is unable to meet the audit requirements of this Section or the audit requirements set forth in rules adopted under this Act, 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, the local government may submit a request to the Grant Accountability and Transparency Unit to be exempt from those audit requirements with which it is unable to comply. In its request for an exemption, the local government must provide: (i) all relevant information related to the lack of financial records or the inability of the local government to access those records; (ii) relevant financial records and documents that are available to the local government; (iii) a list of the specific audit requirements from which the local government is seeking an exemption; (iv) information about audits that could be performed with the available financial records and documents; (v) a description of the events that led to the local government not having the financial records and documents available; and (vi) any other information that the Grant Accountability and Transparency Unit finds relevant to the local government's specific situation. Upon receiving the request from the local government, the Grant Accountability and Transparency Unit shall compile the information related to the request and shall submit the request for exemption to a 3-member panel consisting of the Auditor General, the Director of the Governor's Office of Management and Budget, and the Director of the State agency with which the local government has submitted the applicable grant application. The 3-member panel shall meet, virtually or in-person, to review the request for the exemption and shall make a determination, based on the facts and information available in the request, to deny or approve the local government's request to be exempt from the full audit requirements established under this Act to the extent allowed by the 3-member panel. The 3-member panel may require officials from the local government to testify to their request for exemption. Nothing in this Section shall be construed to exempt the local government from the audit requirements of this Act if financial records and documents are readily available and can be used to complete a required audit or a portion of the audit requirements.

(c) The Governor's Office of Management and Budget, with the advice and technical assistance of the Illinois Single Audit Commission, shall adopt rules for audits of grants from a State or federal pass-through entity that are not subject to the Single Audit Act because the amount of the federal award is less than $750,000 or the subrecipient is an exempt entity and that are reasonably consistent with 2 CFR 200.

(d) This Act does not affect the provisions of the Illinois State Auditing Act and does not address the external audit function of the Auditor General.

(Source: P.A. 98-706, eff. 7-16-14.)

Section 99. Effective date. This Act takes effect upon becoming law.