Bill Text: IL HB2341 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Reinserts the provisions of the introduced bill. Provides that the 3-member panel referenced in the introduced bill shall be a 5-member panel. Provides that members of the panel shall be appointed by the Governor, the President of the Senate, the Senate Minority Leader, the Speaker of the House of Representatives, and the House Minority Leader. Provides that members of the panel shall serve for 4-year terms, except that members initially appointed shall have staggered terms. Provides that each member of the panel must have auditing or accounting experience. Provides that the Governor's Office of Management and Budget shall provide administrative support to the panel. Provides that members of the panel shall serve without compensation but may be reimbursed for reasonable travel expenses associated with their service on the panel. Provides that, if a majority of the members of the panel who are voting on the issue vote to approve the local government's request, then the request shall be approved; otherwise, the request shall be denied. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2023-03-29 - Added Co-Sponsor Rep. John Egofske [HB2341 Detail]

Download: Illinois-2023-HB2341-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2341 Introduced , 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.
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A BILL FOR
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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

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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

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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.