Rep. Kevin Schmidt

Filed: 3/7/2023





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2    AMENDMENT NO. ______. Amend House Bill 2341 by replacing
3everything after the enacting clause with the following:
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.



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1    (b-5) If a local government is unable to meet the audit
2requirements of this Section or the audit requirements set
3forth in rules adopted under this Act due to circumstances
4beyond the local government's control, including, but not
5limited to, a natural disaster in which financial records of
6the local government are destroyed or alleged employee
7misconduct involving the destruction or withholding of
8financial records, the local government may submit a request
9to the Grant Accountability and Transparency Unit to be exempt
10from the audit requirements with which it is unable to comply.
11In its request for an exemption, the local government must
12provide: (i) all relevant information related to the lack of
13financial records or the inability of the local government to
14access those records; (ii) relevant financial records and
15documents that are available to the local government; (iii) a
16list of the specific audit requirements from which the local
17government is seeking an exemption; (iv) information about
18audits that could be performed with the available financial
19records and documents; (v) a description of the events that
20led to the local government not having the financial records
21and documents available; and (vi) any other information that
22the Grant Accountability and Transparency Unit finds relevant
23to the local government's specific situation.
24    Upon receiving the request from the local government, the
25Grant Accountability and Transparency Unit shall compile the
26information related to the request and shall submit the



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1request for an exemption to a 5-member panel established under
2this subsection. The Governor, the President of the Senate,
3the Senate Minority Leader, the Speaker of the House of
4Representatives, and the House Minority Leader shall each
5appoint one member to the panel. As soon as possible after the
6initial members are appointed, those members shall draw lots
7to determine the length of their terms so that 2 members have
82-year terms, 2 members have 3-year terms, and one member has a
94-year term. Thereafter, all members of the panel shall be
10appointed for terms of 4 years. The appointing authority may,
11at any time, make an appointment to fill a vacancy for the
12unexpired term of a member. Each member of the panel must have
13auditing or accounting experience. Members of the panel shall
14serve without compensation but may be reimbursed for
15reasonable travel expenses associated with their service on
16the panel. The Governor's Office of Management and Budget
17shall provide administrative support to the panel. The panel
18shall meet, virtually or in-person, to review the request for
19the exemption and shall make a determination, based on the
20facts and information available in the request, to deny or
21approve the local government's request to be exempt from the
22full audit requirements established under this Act to the
23extent allowed by the panel. If a majority of the members of
24the panel who are voting on the issue vote to approve the local
25government's request, then the request shall be approved.
26Otherwise, the request shall be denied. The panel may require



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