Section 420.320  General Provisions

General Standards.

a)         Scope.

1)         The full scope of an audit and/or attestation engagement conducted by the Auditor General may encompass:

A)        An examination of financial transactions, accounts and reports;

B)        An examination of compliance with applicable laws and regulations and conformity with applicable fiscal and business practices;

C)        A review of efficiency and economy in the use of resources and soundness of managerial and other operational aspects;

D)        A review to determine whether intended program results are effectively achieved; and

E)         A review of the controls and integrity associated with computerized information systems.

2)         The scope for a particular audit and/or attestation engagement conducted by the Auditor General shall include:

A)        That prescribed by Section 1-13 of the Illinois State Auditing Act for compliance audits and other attestation engagements conducted pursuant to the provisions of Sections 3-1 and 3-2 of the Illinois State Auditing Act;

B)        That prescribed by Section 1-13.5 of the Illinois State Auditing Act for financial audits conducted pursuant to the provisions of Sections 3-1 and 3-2 of the Illinois State Auditing Act;

C)        That specified by an authorizing resolution approved by the Legislative Audit Commission or by either house of the General Assembly for engagements conducted pursuant to the provisions of Sections 3-2 and 3-4 of the Illinois State Auditing Act;

D)        That specified by the terms of the agreement for reimbursable federal audits conducted pursuant to the provisions of Section 3-3A of the Illinois State Auditing Act;

E)         That specified by the Auditor General in a notice provided to the Legislative Audit Commission for engagements conducted pursuant to Section 3-3 of the Illinois State Auditing Act;

F)         That prescribed by Section 1-13.5 of the Illinois State Auditing Act for engagements conducted pursuant to Section 2-3.17a of the School Code [105 ILCS 5/2-3.17a]; and

G)        That specified by the terms of the engagement for change-over engagements conducted pursuant to Section 3-2.1 of the Illinois State Auditing Act.

3)         The scope for a particular audit or attestation engagement conducted by a State agency (other than the Office of the Auditor General) of a local or private agency shall be that specified by the terms of the agreement making the grant or award of funds to the local or private recipient agency.  However, all such audits or attestation engagements shall, at a minimum, comply with the requirements of subsection (b) of this Section.

b)         General, Fieldwork and Reporting Standards.  All audits and attestation engagements subject to the provisions of the Illinois State Auditing Act and regulations issued under that Act shall be conducted in accordance with standards applicable to the engagement, which may include:  generally accepted auditing standards (GAAS) issued by the American Institute of Certified Public Accountants, Inc. (AICPA) and other relevant Statements on Auditing Standards (SAS) issued by the Auditing Standards Executive Committee; Statements on Standards for Attestation Engagements (SSAE) issued by senior technical bodies of the AICPA; generally accepted government auditing standards, as embodied in Government Auditing Standards (July 2007 Revision) (GAS) issued by the Comptroller General of the United States; and the federal Single Audit Act Amendments of 1996 (31 USC 7501-7507), and circulars implementing that Act issued by the Office of Management and Budget (OMB), including Circular A-133 establishing requirements for audits of States, Local Governments and Non-Profit Organizations.  Copies of GAAS, SSAE and SAS may be ordered on the  internet at www.cpa2biz.com or by calling 1-888-777-7077.  Copies of GAS may be downloaded from the internet at www.gao.gov/govaud/ybk01.htm .  Print copies may be obtained by contacting the Superintendent of Documents, U.S. Government Printing Office at 202-512-1800 or by visiting the GPO website at http://bookstore.gpo.gov (stock number 020-000-00288-3).  Copies of OMB circulars may be obtained from the Office of Federal Financial Management, Office of Management and Budget, Washington, D.C. 20503 or downloaded from the internet at www.whitehouse.gov/omb/circulars.  These incorporations by reference do not include any later amendments or editions.

c)         Specific standards for audits of regional offices of education and educational service centers conducted pursuant to Section 2-3.17a of the School Code [105 ILCS 5/2-3.17a].  By statute, this Section does not apply to an educational service center serving a school district in a city having a population exceeding 500,000.

1)         "Books and records" as used in this subsection (c) means all financial statements, fiscal documents, vouchers for distributions, records of cash receipts, records of obligation and expenditure of funds, records of accounts and funds, journals, ledgers and subsidiary records of the ledgers, computer programs and data files integral to records of funds and accounts in the care, custody or control of the regional superintendent of schools or educational service center, and required for the purpose of enabling the Auditor General to perform the audits required by Section 2-3.17a of the School Code.  The regional office of education and educational service center shall maintain records in accordance with this subsection (c), as applicable.  Financial records shall be maintained on either a cash or accrual basis of accounting.  However, supporting information must be maintained to allow preparation of an accrual statement as required by subsection (c)(2).

2)         For audit purposes, each regional office of education and educational service center subject to audit by the Auditor General shall make available to the Auditor General or its designee all books and records during regular business hours on such days in each fiscal year as the Auditor General or its designee shall deem necessary to make and complete the required audits.  The records shall be completed in auditable form by August 15 of the succeeding fiscal year.  Financial reports are to be available no later than August 31 in order that the annual audit may be done by an independent auditor selected by the Auditor General.  Annual financial statements are to be prepared on an accrual basis of accounting in accordance with generally accepted accounting principles.

3)         Each regional office of education and educational service center subject to audit by the Auditor General shall make available the books and records necessary to make the required audit by providing to the Auditor General or its designee full, complete and unrestricted access to those books and records and to those persons who may have prepared, reviewed, reported on or otherwise have knowledge of them.

4)         Each regional office of education and educational service center subject to audit by the Auditor General shall retain all books and records for a period of five years or until each required audit is resolved.  This provision shall not be construed to shorten any record retention requirement otherwise applicable to the records.

(Source:  Amended at 32 Ill. Reg. 16372, effective October 10, 2008)