IL HB2341

Amends the Grant Accountability and Transparency Act to allow local governments to request exemptions from audit requirements when unable to comply due to circumstances beyond their control, such as natural disasters destroying financial records or employee misconduct involving destruction or withholding of records.

Local governments seeking exemptions must submit requests to the Grant Accountability and Transparency Unit with documentation including information about missing records, available financial documents, specific audit requirements sought for exemption, and descriptions of events causing the loss.

Requests for exemption are reviewed by 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 relevant State agency, who may approve or deny the request based on submitted facts and information.

Panel may require local government officials to testify regarding their exemption request and can require partial audits using available financial records when documents are readily accessible for audit purposes.

Takes effect immediately upon becoming law.