AUTHORITY: Subparts A and B implementing and authorized by Section 3-7 of the Illinois State Auditing Act [30 ILCS 5/3-7]; Subpart C implementing and authorized by Sections 3-8(b), 3-8(c), and 3-8(d) of the Illinois State Auditing Act [30 ILCS 5/3-8(b), 3-8(c), and 3-8(d)]; Subpart D implementing and authorized by Section 3-6 of the Illinois State Auditing Act [30 ILCS 5/3-6]; Subpart E implementing and authorized by Section 3-8 of the Illinois State Auditing Act [30 ILCS 5/3-8]; Subpart G implementing and authorized by Sections 3-7, 3-8(a), and 3-11 of the Illinois State Auditing Act [30 ILCS 5/3-7, 3-8(a) and 3-11]; Subpart H implementing and authorized by Sections 3-7, 3-8(c), and 3-8(d) of the Illinois State Auditing Act [30 ILCS 5/3-7, 3-8(c) and 3-8(d)].

SOURCE: Rules and Regulations of the Auditor General filed March 8, 1976, effective March 18, 1976, and amended: effective April 15, 1976; effective September 1, 1976; amended at 3 Ill. Reg. 5, p. 865, effective January 27, 1979; amended at 3 Ill. Reg. 5, p. 868, effective January 27, 1979; amended at 3 Ill. Reg. 15, p. 107, effective April 12, 1979; amended at 3 Ill. Reg. 34, p. 99, effective August 20, 1979; amended at 3 Ill. Reg. 48, p. 138, effective November 29, 1979; amended at 4 Ill. Reg. 40, p. 49, effective September 19, 1980; codified at 5 Ill. Reg. 10575; amended at 6 Ill. Reg. 2587, effective March 10, 1982; amended at 7 Ill. Reg. 1216, effective February 5, 1983; amended at 7 Ill. Reg. 6475, effective May 15, 1983; amended at 7 Ill. Reg. 6481, effective May 15, 1983; amended at 8 Ill. Reg. 7214, effective May 25, 1984; amended at 8 Ill. Reg. 17244, effective September 15, 1984; amended at 14 Ill. Reg. 15327, effective September 10, 1990; amended at 15 Ill. Reg. 3429, effective March 1, 1991; amended at 20 Ill. Reg. 701, effective January 31, 1996; amended at 30 Ill. Reg. 2260, effective February 20, 2006; amended at 32 Ill. Reg. 16372, effective October 10, 2008; amended at 43 Ill. Reg. 6361, effective May 31, 2019; amended at 46 Ill. Reg. 1619, effective January 4, 2022.

SUBPART A: STANDARDS OF CONSTRUCTION FOR REGULATIONS

 

Section 420.10  Introduction

 

a)         SUBJECT. This Subpart establishes the standards of construction applicable to all regulations promulgated by the Office of the Auditor General (74 Ill. Adm. Code 420).

 

b)         AUTHORITY. This subpart is promulgated under the authority of Section 3-7 of the Illinois State Auditing Act [30 ILCS 5/3-7].

 

c)         INCORPORATIONS. The following material is incorporated by reference and made a part of this regulation:

 

            Definitions (Section 420.Subpart B of this Part).

 

d)         EFFECTIVE DATE. This Subpart becomes effective on March 18, 1976.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.20  General Provisions

 

a)         PLURALS AND SINGULARS. A plural word includes the singular although a singular word does not necessarily include the plural.

 

b)         MEANING OF HEADNOTES. Titles and headnotes used in regulations are editorial devices to aid organization and readability, and do not limit, modify or expand the wording, effect, or meaning of the written provision of any regulation.

 

c)         SEVERABILITY. Should any part of a regulation be declared or adjudged invalid, ultra vires, or unconstitutional, such declaration or adjudication shall affect only that part of the regulation specifically covered by the declaration or adjudication and shall not affect any other provisions or parts of the regulation. The other provisions or parts shall remain in full effect.

 

d)         STATUTORY RULES OF CONSTRUCTION APPLICABLE. Rules of construction applicable to statutes shall be applicable to the regulations of the Office of the Auditor General unless by their nature they are clearly inapplicable or a different standard is specified by or within a regulation of the Office of the Auditor General.

 

e)         AUTHORITY OF ANNOTATIONS. Annotations accompanying regulations are not regulatory materials and do not have regulatory authority. They are supplementary reference materials intended to provide historical and operational perspective to the regulations and aid readers in understanding and interpreting the regulations.

 

f)         MEASUREMENT OF TIME.

 

1)         All times are based on the legal local time at Springfield, Illinois.

 

2)         If a time period is specified in days the first day of the period shall begin at 12:01 A.M., local time, Springfield, Illinois on the day immediately following the day on which the event starting the time period occurs.

 

3)         If a time period specified in days is shorter than seven days, then Saturdays, Sundays, and State and Federal Holidays are not counted in measuring the time period. In all other cases Saturdays, Sundays and State and Federal Holidays are counted.

 

4)         If a time period is specified in hours, the first hour of the period shall begin on the next whole hour immediately following the time at which the event starting the time period occurred.

 

5)         If a specified time period ends on a Saturday, Sunday, or State or Federal Holiday; or at a time which is after 5:00 P.M. local time, Springfield, Illinois, then the end of the time period shall be extended to 9:00 A.M., local time Springfield, Illinois, on the next day immediately following, which is not a Saturday, Sunday, or State or Federal Holiday.

 

6)         Where an event is to start on a specified date the starting time shall be at 12:01 A.M., local time, Springfield, Illinois, on the date specified.

 

7)         Where an event is to terminate on a specified date the ending time shall be at 5:00 P.M. local time, Springfield, Illinois, on the date specified.

 

g)         INCORPORATIONS IN REGULATIONS. Where materials from other rules or regulations or entire rules or regulations are incorporated by reference into a specific regulation, the effect shall be the same as if the text of the incorporated material were written into the regulation incorporating the material and without being affected by the status, construction, or validity of the rule or regulation being incorporated. Incorporated material shall be read and construed within the context of the regulation in which it is incorporated.

SUBPART B: DEFINITIONS

 

Section 420.110  Introduction

 

a)         SUBJECT. This Subpart establishes the definitions of words, phrases, terms, and abbreviations used in regulations promulgated by the Office of the Auditor General.

 

b)         AUTHORITY. This Subpart is promulgated under the authority of Section 3-7 of the Illinois State Auditing Act [30 ILCS 5/3-7].

 

c)         INCORPORATIONS. The following material is incorporated by reference and made a part of this regulation:

 

            Standards of Construction for Regulations (Subpart A of this Part).

 

d)         EFFECTIVE DATE. This Subpart becomes effective March 18, 1976.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.120  General Provisions

 

a)         DEFINITIONS ISAA. Words which are defined in the Illinois State Auditing Act [30 ILCS 5] have the same meanings when used in this Part as they have in the Illinois State Auditing Act unless there is an explicit indication to the contrary.

 

b)         APPLICATION.

 

1)         Words defined in this Subpart, when used in this Part, shall have the meanings or modifications established in this Subpart unless the context clearly requires otherwise or a different definition is explicitly made applicable.

 

2)         If a word is defined in a particular Subpart, the definition given in that Subpart does not necessarily apply when the defined word is used in a different Subpart unless there is a specific incorporation.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.130  Abbreviations

 

a)         C.RG.  C.RG means Code of Regulations (74 Ill. Adm. Code 420).

 

b)         C.RL.  C.RL means Code of Rules (74 Ill. Adm. Code 440).

 

c)         ISAA.  ISAA means the Illinois State Auditing Act [30 ILCS 5].

 

(Source:  Amended at 30 Ill. Reg. 2260, effective February 20, 2006)

 

Section 420.140  Specific Definitions

 

a)         Code of Regulations.  Code of Regulations means the official compilation of Regulations promulgated by the Auditor General and currently in effect (74 Ill. Adm. Code 420).

 

b)         Code of Rules.  Code of Rules means the official compilation of Rules promulgated by the Auditor General and currently in effect (74 Ill. Adm. Code 440).

 

c)         Officer of the Office of the Auditor General.  Officer of the Office of the Auditor General means any individual designated as a State Auditor; or any Special Assistant Auditor, Deputy Auditor, or other individual empowered by the Auditor General to act with respect to the performance of a specific audit, study, or investigation.

 

d)         Rulemaking.  Rulemaking means separately or in combination any processes, procedures, or activities intended to or which results in a Rule or Regulation.  Rulemaking includes the adoption, amendment, modification, update, suspension, repeal, recession, or termination of a rule or regulation.

 

e)         State Auditor.  State Auditor means a State payroll employee of the Office of the Auditor General who has been authorized to conduct audits, attestation engagements, investigations, and studies by the Auditor General, and who has otherwise been appointed State Auditor in accordance with the personnel rules of the Office of the Auditor General.

 

f)         Word.  Word includes terms, phrases, and abbreviations.

 

(Source:  Amended at 30 Ill. Reg. 2260, effective February 20, 2006)

SUBPART C: INVESTIGATIONS

 

Section 420.210  Introduction

 

a)         SUBJECT. This Subpart deals with the procedures to be followed during investigations conducted by the Auditor General pursuant to the Illinois State Auditing Act (ISAA); standards of delegation of authority to conduct investigations to persons who are not employees of the Auditor General; consultation with heads of agencies before the issuance of reports; the opportunity for heads of agencies to respond to reports; and the opportunity for persons who may, individually, be the subject of a report to respond to findings or recommendations in the report which pertain to them.

 

b)         AUTHORITY.

            Pars. 3-8(b), 3-8(c), 3-8(d) ISAA [30 ILCS 5/3-8(b), 3-8(c), and 3-8(d)].

 

c)         REFERENCES.

            Section 1-17 ISAA Definition of Investigation [30 ILCS 5/1-17].

 

            Section 3-1 ISAA Jurisdiction of Auditor General [30 ILCS 5/3-1].

 

            Section 3-4 ISAA Investigations [30 ILCS 5/3-4].

 

            Section 3-11 ISAA Maintenance of Records [30 ILCS 5/3-11].

 

            Section 3-12 ISAA Cooperation of State Agencies [30 ILCS 5/3-12].

 

            Section 3-15 ISAA Reports of Auditor General [30 ILCS 5/3-15].

 

d)         INCORPORATIONS. The following materials are incorporated by reference and made a part of this Subpart:

 

1)         Standards of Construction for Regulations (Subpart A of this Part).

 

2)         Definitions (Subpart B of this Part).

 

e)         DEFINITIONS. When used in this Subpart the term Audit Manager shall have the following meaning:

            Audit Manager means the State Auditor assigned by the Auditor General or the Deputy Auditor General to be the person responsible for conducting the investigation and in charge of any of the auditors participating in the investigation.

 

f)         EFFECTIVE DATE. This Subpart becomes effective on April 15, 1976.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.220  General Particulars

 

a)         COMMENCEMENT OF INVESTIGATIONS. An investigation after being authorized pursuant to Section 3-4 ISAA shall be commenced only upon the written direction of the Auditor General or Deputy Auditor General to an Audit Manager.

 

b)         NOTICE OF INVESTIGATION TO PARTIES.

 

1)         The Audit Manager shall make a reasonable attempt to notify each party who is named in the resolution directing the investigation of the existence of the investigation and provide as part of this notice: a copy of the resolution directing the investigation; a copy of the Audit Manager's assignment by the Auditor General; a copy of the agency notification to employees; and a copy of this regulation.

 

2)         Reasonable attempt to notify a party shall be accomplished:

 

A)        If the party is an agency or artificial person, by

 

i)          personal delivery to an officer or lawful agent; or

 

ii)         certified U.S. mail, return receipt requested, addressed to an officer or lawful agent at any office of the agency or artificial person.

 

B)        If the party is a natural person, by

 

i)          personal delivery; or

 

ii)         certified U.S. mail, return receipt requested, addressed to the person at the person's last known address or principal place of business or employment.

 

3)         For purposes of this subsection (b), the phrase a "party who is named in the resolution" means any individual, business, partnership, agency, corporation or other entity that the resolution specifically requires the Auditor General to investigate and from whom the Auditor General is required to obtain information during the course of conducting the investigation.

 

c)         AGENCY NOTIFICATION TO EMPLOYEES.

 

1)         Within seven (7) days after the receipt of a notification of investigation, the chief executive officer (or person acting in his or her stead) of any agency involved in the investigation shall sign and cause to be circulated to those persons designated by the Audit Manager and such other persons as determined by the agency head, the Notice to Cooperate provided by the Office of the Auditor General. A signed copy of the notice shall also be given to the Audit Manager.

 

2)         This notice shall be in the following form:

 

NOTICE TO COOPERATE IN INVESTIGATION

CONDUCTED BY THE AUDITOR GENERAL TO ALL EMPLOYEES:

 

Please be advised that            has by resolution directed the Auditor General to investigate (set out specific language of resolution).

 

The Illinois State Auditing Act provides that the officers and employees of our agency shall make available to the Auditor General or the Auditor General's designated representative any record or information requested and shall provide for examination or copying all records, accounts, papers, reports, vouchers, correspondence, books and other documentation in the custody of the agency including information stored in electronic data processing systems which is related to or within the scope of the investigation described above.

 

(Agency Head may include a paragraph to remind personnel of statutory requirements of confidentiality, if any, that apply to the agency.)

 

 

Please extend your complete cooperation.

 

 

Agency Head

 

d)         AGENCY RESPONSE TO NOTIFICATION. Within seven (7) days after receipt of the Notice of Investigation as provided in subsection (b) above, the chief executive officer or the person acting in his or her stead shall notify the Audit Manager of the name of some knowledgeable employee who shall be available to aid the Auditor General's representatives in locating material under the agency's control or in determining which agency personnel or other persons have knowledge of any matters within the scope of the investigation.

 

e)         APPEAL TO THE AUDITOR GENERAL. When a controversy arises during the course of an investigation between the Audit Manager and a person named in the resolution or an agency involved in an investigation, the controverted issue may be appealed to the Auditor General by the person named or the agency head by submitting a concise statement of the controverted issue in writing to the Auditor General at the Auditor General's office in Springfield, Illinois. The Auditor General shall issue a written response within 5 days.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.230  Right to Information

 

a)         AGENCY REPRESENTATION. An agency has no right to be represented by counsel in its response to an investigation. The representatives of the Auditor General shall not be required to submit to any screening of information requests or answers thereto as a condition to direct contact with agency personnel or records.

 

b)         INDIVIDUAL'S RIGHT TO COUNSEL. Any individual shall have the right to engage counsel who has no connection with an agency or office whose personnel or activities are the subject matter of the investigation to advise the individual on his or her legal rights. Counsel may not answer or reply for the individual.

 

c)         USE OF PROCESSES.

 

1)         When requested by the Audit Manager, the Auditor General or Deputy Auditor General may issue subpoenas as desirable during the conduct of an investigation.

 

2)         If an individual associated with the Office of the Auditor General is participating in an investigation and is not a State Auditor, then the Auditor General may, in his or her discretion, empower the individual to administer oaths and affirmations, and take depositions and testimony during the course of a specific investigation, by delegating such authority in writing.

 

d)         ENFORCEMENT. Upon notification by the Audit Manager of an unreasonable delay or of a failure to respond to a request for information or process relating to the investigation, the Auditor General or Deputy Auditor General may initiate appropriate legal proceedings to secure compliance.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.240  Investigative Personnel

 

a)         IDENTIFICATION.

 

1)         State Auditors will possess the official identification portfolio supplied and issued by the Auditor General. This identification will verify that the issuee is a State Auditor of the Office of the Auditor General.

 

2)         Special Assistant Auditors assigned to a particular investigation will be issued documentation substantiating their authority. The documentation will identify the Special Assistant Auditor and indicate the Special Assistant Auditor's powers and authorities and the investigation to which they apply.

 

b)         STANDARDS FOR DELEGATION OF INVESTIGATORY POWERS TO PERSONS NOT EMPLOYEES OF THE AUDITOR GENERAL. Any person who is qualified by education or experience may be appointed a Special Assistant Auditor to conduct or assist in a specific investigation. The appointment shall be by written contract which shall provide that it may be cancelled by the Auditor General at any time without cause. No person who has been employed or associated within the past four years with an agency, entity or individual named or involved in the investigation, shall be employed in the investigation.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.250  Investigation Procedures and Reports

 

a)         TIME DURING WHICH INVESTIGATION IS TO BE CONDUCTED. Any person authorized to participate on behalf of the Auditor General in an investigation shall make every effort to assure that the orderly and efficient conduct of agency activities are subject to a minimum amount of disruption. Interviewing of personnel and examination of records and materials in the possession of agencies or individuals shall be confined to normal business hours unless otherwise agreed upon.

 

b)         FURNISHING OF WORK AREA. An agency involved in an investigation, shall make reasonable effort to furnish the Auditor General's representatives a private area to carry out their duties.

 

c)         PRIVACY. In the discretion of any auditor assigned to an investigation, or at the request of the individual being questioned, any part of the investigation may be held outside the presence of all persons other than representatives of the Office of the Auditor General; the individual being questioned; and the individual's counsel, if the individual desires to have his or her counsel present.

 

d)         SAFEGUARDING OF INFORMATION DURING INVESTIGATION. All information obtained during the conduct of an investigation shall be held in strict confidence by the Office of the Auditor General and the personnel of the agencies or offices involved in the investigation during the conduct of an investigation except as provided in subsections (e) and (f) below and Section 420.630(b)(1) of this Part.  This Section shall not prohibit the communication of information among persons involved in the investigation in furtherance of the investigation.

 

e)         RESPONSE TO REPORT BY INDIVIDUALS.

 

1)         When the Audit Manager has determined the proposed findings and recommendations to be included in an investigation report, the Audit Manager shall forward to each individual who was the subject of an investigation report those proposed findings and recommendations which relate to him or her.  After the receipt of these materials an individual shall have 21 days in which to direct to the Auditor General any written comments the individual may have concerning the findings or recommendations involving him or her.  Copies of an individual's written comments will be included in the final version of the investigation report if they are received in the Springfield Office of the Auditor General on or before the 21st day after the materials being commented upon were received by the individual.

 

2)         Any written comments received after the period indicated above will be maintained in the official files of the Office of the Auditor General and thereafter dispensed with copies of the investigation report to which they pertain.

 

3)         The Auditor General, in his or her sole discretion, may extend any time period or deadline specified in this Section.

 

4)         For purposes of this subsection, the term "individual" means any person, business, partnership, corporation or other entity, other than a State agency, that is specifically named in a recommendation contained in an investigation report.

 

f)         RESPONSE TO REPORT BY HEADS OF AGENCIES.

 

1)         When the Audit Manager has determined the proposed findings and recommendations to be included in an investigation report, the Audit Manager shall forward a copy to the head of each agency involved in the investigation. An agency head (or his or her designee) shall have

 

A)

i)          7 days from receipt of the proposed findings and recommendations in which to request a conference (if he or she desires one) with the Office of the Auditor General concerning the proposed findings and recommendations.  All requested conferences shall be completed within 14 days from the agency's receipt of the proposed findings and recommendations.

 

ii)         Within 3 days of the close of the conference, the Office of the Auditor General shall forward to the agency head any changes in the proposed findings and recommendations.

 

B)        21 days from receipt of the proposed findings and recommendations in which to deliver to the Auditor General any written comments the agency may have concerning the findings and recommendations involving the agency.

 

2)         A copy of an agency's written comments will be included in the final version of the investigation report if they are received in the Springfield Office of the Auditor General on or before the 21st day after the agency's receipt of the proposed findings and recommendations.

 

3)         In the absence of a written response from the agency, within 21 days from the receipt by the agency head of the proposed findings and recommendations, the investigation report may be submitted without response. If no conference was held, the reason therefore shall be included in the audit workpapers.  Any written comments received after the period indicated above will be maintained in the official files of the Office of the Auditor General and thereafter dispensed with copies of the investigation report to which they pertain.

 

4)         The Auditor General, in his or her sole discretion, may extend any time period or deadline specified in this Section.

 

g)         INVESTIGATION REPORTS. Upon completion of the investigation, the Auditor General will issue a report and submit copies in accordance with the provisions of Section 3-4 ISAA and maintain the records in accordance with the provisions of Section 3-11 ISAA and the regulation promulgated in relation thereto.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

SUBPART D: STANDARDS APPLICABLE TO AUDITS AND ATTESTATION ENGAGEMENTS OF ILLINOIS STATE GOVERNMENTAL ORGANIZATIONS AND PROGRAMS AND TO AUDITS AND ATTESTATION ENGAGEMENTS CONDUCTED BY STATE AGENCIES OF LOCAL AND PRIVATE AGENCIES

 

Section 420.310  Introduction

 

a)         Subject

 

1)         This Subpart establishes the professional standards applicable to:

 

A)        audits and attestation engagements conducted pursuant to the authority of the Auditor General; and

 

B)        audits and attestation engagements conducted by State agencies of local government agencies or private agencies that are grantees or recipients of public funds of the State or of federal funds through projects administered by a State agency, but only to the extent these standards are not in conflict with any other applicable law, rule or regulation.

 

2)         The standards established in this Subpart D concern the scope and quality of the engagement and prescribe the contents and attributes of an acceptable report.

 

b)         Authority.  This Subpart D is promulgated pursuant to the authority of Section 3-6 ISAA [30 ILCS 5/3-6].

 

c)         Referenced Statutes

 

Section 3-7 ISAA. 30 ILCS 5/3-7.

 

Section 2-12(c) ISAA. 30 ILCS 5/2-12(c)

 

(Source:  Amended at 43 Ill. Reg. 6361, effective May 31, 2019)

 

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 ISAA for compliance audits and other attestation engagements conducted pursuant to the provisions of Sections 3-1 and 3-2 of the ISAA;

 

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

 

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 ISAA;

 

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

 

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 ISAA;

 

F)         That prescribed by Section 1-13.5 of the ISAA 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 ISAA.

 

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.

 

b)         General, Fieldwork and Reporting Standards.  All audits and attestation engagements subject to the provisions of the ISAA and regulations issued under that Act shall be conducted in accordance with current 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 clarified Statements on Auditing Standards (SAS) and Statements on Standards for Attestation Engagements (SSAE) promulgated by the Auditing Standards Board; generally accepted government auditing standards, as embodied in Government Auditing Standards (2018 Revision for financial audits, attestation engagements, and reviews of financial statements for periods ending on or after June 30, 2020, and for performance audits beginning on or after July 1, 2019; for all others, the 2011 Revision) (GAS) issued by the Comptroller General of the United States; and 2 CFR 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) (commonly referred to as the Uniform Guidance) issued pursuant to the Single Audit Act Amendments of 1996 (31 USC 7501 through 7507)by the Office of Management and Budget (OMB).  Copies of GAAS, SSAE and SAS may be ordered on the  internet at www.aicpa.org/research /standards.  Copies of GAS may be downloaded from the internet at https://www.gao.gov/yellowbook/overview.   Print copies may be obtained by contacting the U.S. Government Publishing Office (GPO) online or by calling 202-512-1800 or 1-866-512-1800.  Copies of the Uniform Guidance 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.grants.gov/web/grants/learn-grants/grant-policies/omb-uniform-guidance-2014.html.  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 this 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.

 

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 46 Ill. Reg. 1619, effective January 4, 2022)

 

Section 420.330  Examination and Evaluation Standards (Repealed)

 

(Source:  Repealed at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.340  Reporting Standards (Repealed)

 

(Source:  Repealed at 20 Ill. Reg. 701, effective January 31, 1996)

SUBPART E: FREQUENCY OF MANDATORY FINANCIAL AUDITS, COMPLIANCE AUDITS OR OTHER ATTESTATION ENGAGEMENTS

 

Section 420.410  Introduction

 

a)         Subject.  This Subpart designates the frequency with which specific agencies will be subject to financial audits, compliance audits or other attestation engagements by the Office of the Auditor General.

 

b)         Authority.  Section 3-8, ISAA [30 ILCS 5/3-8].

 

c)         Referenced Statutes.  Section 3-2 ISAA, Mandatory and Directed Post Audits [30 ILCS 5/3-2].

 

d)         Effective Date.  This Subpart becomes effective on March 18, 1976.

 

(Source:  Amended at 30 Ill. Reg. 2260, effective February 20, 2006)

 

Section 420.420  General Provisions

 

a)         Standard Audit or Examination Period.  Except as established in this Subpart all agencies for which the Auditor General is required to conduct a financial audit, compliance audit, or other attestation engagement will be so reviewed at least once every two years.

 

b)         Agencies to be Audited or Examined Yearly.  The Auditor General shall annually file a list with the Legislative Audit Commission of all agencies for which a mandatory financial audit and compliance attestation examination shall be conducted yearly.

 

c)         Financial Audits.

 

1)         The Auditor General shall annually file a list with the Legislative Audit Commission of all agencies subject to a yearly financial audit.

 

2)         A financial audit shall have the meaning prescribed in Section 1-13.5 of the ISAA.

 

d)         Administration.  In order to adjust workloads, respond to future audit needs and priorities, comply with federal or State laws and regulations, assist in rendering an opinion on the statewide financial statements, or maintain an audit firm rotation program, the Auditor General, if necessary, may adjust the audit frequency of any program.  The Auditor General shall quarterly notify the Legislative Audit Commission of any changes to the audit or examination frequency of any agency.

 

(Source:  Amended at 30 Ill. Reg. 2260, effective February 20, 2006)

 

Section 420.430  Miscellaneous Provisions

 

Nonlimitation.  Nothing in this subpart shall limit the power of the Auditor General to initiate or conduct any audit, attestation engagement, study, investigation, or inquiry which the Auditor General would otherwise be authorized to conduct under any law or the Illinois Constitution.

 

(Source:  Amended at 30 Ill. Reg. 2260, effective February 20, 2006)

SUBPART F: REVIEW OF RECEIPT OR COLLECTION OF STATE REVENUE BY STATE AGENCIES

 

Section 420.510  Introduction (Repealed)

 

(Source:  Repealed at 8 Ill. Reg. 17244, effective September 15, 1984)

 

Section 420.520  Review of Receipt or Collection of State Revenues by State Agencies (Repealed)

 

(Source:  Repealed at 8 Ill. Reg. 17244, effective September 15, 1984)

 

Section 420.530  Miscellaneous Provisions (Repealed)

 

(Source:  Repealed at 8 Ill. Reg. 17244, effective September 15, 1984)

SUBPART G: MAINTENANCE OF INFORMATION

 

Section 420.610  Introduction

 

a)         SUBJECT. This Subpart establishes the standards concerning the maintenance, availability, and dissemination of information which is a part of or under the control of the Office of the Auditor General.

 

b)         AUTHORITY.

 

            Section 3-7 ISAA [30 ILCS 5/3-7].

 

            Section 3-8(a) ISAA [30 ILCS 5/3-8(a)].

 

            Section 3-11 ISAA [30 ILCS 5/3-11].

 

c)         REFERENCES.

 

            Section 2-11 ISAA, Special Assistant Auditors [30 ILCS 5/2-11].

 

            Section 3-4 ISAA, Investigations [30 ILCS 5/3-4].

 

            Section 3-14 ISAA, Audit Reports [30 ILCS 5/3-14].

 

            Section 6-1 ISAA, Effect on Other Laws [30 ILCS 5/6-1].

 

d)         INCORPORATIONS. The following materials are incorporated by reference and made a part of this Subpart:

 

1)         Standards of Construction for Regulations (Subpart A of this Part).

 

2)         Definitions (Subpart B of this Part).

 

e)         EFFECTIVE DATE. This Subpart becomes effective on April 16, 1979.

 

(Source:  Amended at 20 Ill. Reg. 701, effective January 31, 1996)

 

Section 420.620  General Provisions

 

a)         AVAILABILITY OF INFORMATION.

Except as provided in Section 420.630 of this Part, all information maintained by the Office of the Auditor General shall be public information and shall be available to the public as provided by this Subpart.

 

b)         SUBPOENA OF EMPLOYEES.

 

1)         Any employee or agent of the Office of the Auditor General who is served with a subpoena requiring the disclosure of information or the production of any document that is classified confidential shall appear as required by the subpoena and shall respectfully decline to disclose the information or produce any document called for basing the refusal on the requirement of this Section, unless the person subpoenaed has a written authorization permitting the release of the information or production of the document requested.

 

2)         The authorization required by this Section may be issued only by the Auditor General, Deputy Auditor General, or the Chief Legal Counsel of the Office of the Auditor General.  An authorization may be issued only if the release of the information:

 

A)        would not contravene any statute;

 

B)        would not interfere with an ongoing audit or investigation; or

 

C)        would not unreasonably interfere with an individual's right of privacy.

 

3)         In addition, information of other agencies that is confidential by or pursuant to law shall not be disclosed by the Office of the Auditor General, unless:

 

A)        the information is not available from the officially authorized custodian and the officially authorized custodian consents to the release; or

 

B)        a court orders the disclosure of the documents.

 

c)         SUBPOENA OF CONTRACTORS.

 

1)         Any Special Assistant Auditor or other contractor of the Office of the Auditor General who is served with a subpoena requiring the disclosure of information or the production of any document that is classified confidential and that was obtained or created in the exercise of audit authority delegated by the Auditor General pursuant to the ISAA shall appear as required by the subpoena and shall respectfully decline to disclose the information or produce any document called for basing the refusal on the requirement of this Section, unless the person subpoenaed has a written authorization permitting the release of the information or production of the document requested.

 

2)         The authorization required by this Section may be issued only by the Auditor General, Deputy Auditor General, or the Chief Legal Counsel of the Office of the Auditor General.  An authorization may be issued only if the release of the information:

 

A)        would not contravene any statute;

 

B)        would not interfere with an ongoing audit or investigation; or

 

C)        would not unreasonably interfere with an individual's right of privacy.

 

3)         In addition, information that is confidential by or pursuant to law shall not be disclosed, unless:

 

A)        the information is not available from the officially authorized custodian and the officially authorized custodian consents to the release; or

 

B)        a court orders the disclosure of the documents.

 

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

 

Section 420.630  Confidential Information

 

a)         Statutory.  All information maintained by the office that was confidential by or pursuant to law when secured by the Auditor General shall be maintained in accordance with Section 6-1 of the Illinois State Auditing Act [30 ILCS 5/6-1] and other applicable law.

 

b)         Information Related to Current Work.

 

1)         Information not otherwise confidential, but acquired or developed as part of an ongoing audit, attestation engagement, investigation, study, or inquiry shall be classified confidential until the conclusion of the audit, attestation engagement, investigation, study, or inquiry to which the information pertains.  The Auditor General may release the information only to:

 

A)        persons or entities named in the audit, attestation engagement, investigation, study, or inquiry to which the information pertains;

 

B)        governmental agencies with whom the Auditor General is jointly conducting or co-operating on an audit or attestation engagement, to the extent necessary for the conduct of the audit or attestation engagement;

 

C)        prosecutorial offices, government agencies with investigatory powers and sworn law enforcement agencies if approved by the Auditor General but subject to subsection (b)(3) of this Section; and

 

D)        current or potential contractors, but only on a need to know basis, for specific audit or engagement purposes.

 

2)         The issuance of the final report shall establish the conclusion of the audit, attestation engagement, investigation, study, or inquiry that is the subject of the report, and all information acquired or developed as part of the audit, attestation engagement, investigation, study, or inquiry and classified confidential by operation of this subsection (b) shall at that time become public information, unless the Auditor General provides otherwise pursuant to subsection (c) or Section 420.640(h) of this Part.

 

3)         Prosecutorial offices, government agencies with investigatory powers  and law enforcement agencies shall not obtain through, or in conjunction with, the Office of the Auditor General, data, information, or evidence that the prosecutorial office, government agency with investigatory powers or law enforcement agency could not lawfully obtain through its own authorities.

 

c)         Investigation.  All information and documents pertaining to an investigation conducted pursuant to Section 3-4 ISAA may be classified as confidential and, if classified as confidential, may not be disclosed outside the office except as provided in Section 420.Subpart C of this Part or as declared in the resolution authorizing the investigation.

 

d)         Personnel Information.  All personnel information of the Office of the Auditor General matchable to an individual concerning job performance evaluations, personal conduct, disclosure statements, personal characteristics and health shall be confidential, and may be released only as authorized by law or with the consent of the individual affected.

 

e)         Special Assistant Auditor Evaluations.  Trade, business, and proprietary information concerning special assistant auditors and the performance evaluations of special assistant auditors shall be maintained confidential and may be disclosed to persons outside the office only as necessary to an authorized audit or inquiry concerning expenditures of our office.  An audit or inquiry is authorized if it is required by law, by formal action of the General Assembly or the Legislative Audit Commission, or by request of a designated peer review committee reviewing the Office of the Auditor General's audit or attestation process.

 

f)         Audit and/or Attestation Engagement Selection Criteria.

 

1)         Any test, standard, or specification intended for use in an audit or attestation engagement may be maintained confidential if:

 

A)        the test, standard, or specification under consideration is necessary or applicable to a future audit or attestation engagement and disclosure would impair the validity or reliability of the test, standard, procedure or specification for future application; or

 

B)        disclosure might impair auditor techniques or methods or procedures designed to detect fraud, abuse, or other illegal activity.

 

2)         Any information declared confidential under this subsection (f) shall be disclosed jointly to the Chair and Co-Chair of the Legislative Audit Commission at the joint request of the Chair and Co-Chair.

 

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

 

Section 420.640  Disclosure and Dissemination of Information

 

a)         Information Confidential when Acquired.  Information maintained in the office of the Auditor General that was confidential by or pursuant to law when acquired may not be disseminated outside the office for any reason except by court order or as provided in Section 420.620(b) or (c) of this Part.

 

b)         Information Established Confidential by the Office of the Auditor General.  Information maintained by the Office of the Auditor General that the office of the Auditor General has established confidential by authority of the Illinois State Auditing Act or these regulations may be released to persons outside the Office of the Auditor General only by order of the Legislative Audit Commission pursuant to Section 3-11 ISAA, by court order, or as specifically provided in this Subpart.

 

c)         Dissemination of Other State Agency Information.

 

1)         The Office of the Auditor General may decline to make available records or information that is available or currently controlled by the originating or controlling State agency.

 

2)         Records and information are considered "available" even if the agency or agent refuses to disseminate them, such as information that may be withheld as an exception to the Illinois Freedom of Information Act [5 ILCS 140].

 

d)         Dissemination Procedures and Copies (Public Records).

 

1)         All public records of the Office of the Auditor General stored in the Springfield or Chicago offices shall be available for inspection and copying at their respective office during regular working hours.

 

2)         All public records of the Office of the Auditor General stored at locations other than the Springfield or Chicago offices shall be available for inspection and copying, but only by request and appointment.

 

3)         Any person requesting inspection or copying of public records stored at locations other than the Springfield or Chicago office may require that the records be made available at the Springfield office.

 

4)         The Auditor General may establish reasonable charges to defray the cost of any copies requested.

 

e)         Purging of Acquired Confidential Information – Memorandum.

 

1)         Records supplied to the Office of the Auditor General that are confidential by or pursuant to law shall be destroyed or returned to the agency from which they were obtained no later than the time of the issuance of the final report for which the information constitutes work papers, unless the Auditor General provides otherwise pursuant to subsection (h) of this Section.

 

2)         However, if the records are confidential because they contain personally sensitive information that is matchable to individuals, the records need not be destroyed if all means of matching the information to its corresponding individuals has been destroyed.  In such cases, the destruction of the means of matching the information to its corresponding individuals shall occur no later than the time of the issuance of the final report for which the information constitutes work papers.

 

3)         The person destroying work papers pursuant to this Section shall place among the work papers a list of the number and type of records destroyed, identification of the source from which the records came, and an affidavit certifying how and when the records were destroyed and the fact that they were so destroyed.  The affidavit shall be signed by the person destroying the workpapers and countersigned by a person who witnessed the destruction.  Each affidavit shall be submitted to an Audit Manager for review.

 

f)         Purging of Records Generally.  The Auditor General may destroy any records five years after the release of the audit to which the records pertain unless a longer retention period is required by law.  The Auditor General may establish schedules for the destruction and type of storage for all records relating to the Office of the Auditor General.

 

g)         Maintenance and Reproduction of Permanent Records.  Permanent records of the Office of the Auditor General may be kept on microform, optical image, or other reliable media.  The Auditor General shall maintain suitable devices for reading and copying all permanent records.

 

h)         Exceptions to Purging and Disclosure of Workpapers. 

 

1)         If the Auditor General or Deputy Auditor General determines, in a written document certified by the Auditor General or Deputy Auditor General, that the establishment of the working papers of a particular audit as public records or the purging of confidential information contained in the work papers of a particular audit would:

 

A)        impair the reporting or defending of the audit;

 

B)        impair future or follow-up audit work;

 

C)        compromise the integrity of the audit process; or

 

D)        disclose confidential information, because of the postponement of the purging of confidential information pursuant to the Auditor General's authority under this subsection (h),

 

2)         then the Auditor General, or his or her designee, may postpone the implementation of the requirements of Section 420.630(b)(2) of this Part or subsection (e) for up to five years following release of the audit to which the information pertains.  After that time period, the postponement shall lapse and may be renewed, for up to 12 months at a time, only if the Legislative Audit Commission shall specifically approve the renewal.

 

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

SUBPART H: CONSULTATIONS AND RESPONSES TO FINDINGS

 

Section 420.710  Introduction

 

a)         Subject.  This Subpart covers consultations with heads of agencies concerning findings and recommendations in reports before the issuance of such reports; and the opportunity for persons who are identified by name in a recommendation contained in a post audit report to respond to findings or recommendations in the report which pertain to them.

 

b)         Authority.  Sections 3-7, 3-8(c), 3-8(d), ISAA [30 ILCS 5/3-7, 3-8(c) and 3-8(d)].

 

c)         Effective Date.  This regulation becomes effective on November 29, 1979 (This regulation is subject to Section 3-7 of the ISAA requiring approval by the Legislative Audit Commission within 90 days of its submission to the Commission).

 

d)         Definitions.  Report means the document issued by the Auditor General upon the completion of a post audit or attestation engagement by the Auditor General, which report may include any or all of the following: financial statements, statements of facts, findings, conclusions, recommendations, responses to findings by agencies or individuals; and shall include a "Report Digest" signed by the Auditor General.

 

(Source:  Amended at 30 Ill. Reg. 2260, effective February 20, 2006)

 

Section 420.720  Consultations with Heads of Agencies and Individuals

 

a)         Responses to Proposed Findings by Agencies

 

1)         When the Office of the Auditor General has determined the proposed findings and recommendations to be included in a report, a copy shall be forwarded to the head of each agency covered by the engagement.  Upon receiving a copy of the proposed findings and recommendations, an agency head (or his or her designee) shall have:

 

A)        5 days from receipt of the proposed findings and recommendations in which to request a conference (if the agency head desires one) with the Office of the Auditor General concerning the proposed findings and recommendations.  All requested conferences shall be completed within 10 days from the agency's receipt of the proposed findings and recommendations.  If no conference was held, the reason therefore shall be included in the workpapers.

 

B)        14 days from receipt of the proposed findings and recommendations in which to deliver to the Auditor General any written comments the agency may have concerning the findings and recommendations involving the agency.

 

2)         A copy of the agency's written comments will be included in the final version of the report if the comments are received in the Springfield office of the Auditor General on or before the 14^th day after the agency's receipt of the proposed findings and recommendations.

 

3)         In the absence of a written response from the agency, within 14 days from the receipt by the agency of the proposed findings and recommendations, the report may be issued without response.  Written comments received after 14 days will be placed in the engagement file.

 

4)         Where size of the agency or the complexity of the engagement would require additional response time, the Division director assigned to the engagement by the Auditor General, upon request from the agency head, may extend any time period or deadline specified by this Section.

 

b)         Responses to Proposed Findings by Individuals

 

1)         When the audit manager has determined the proposed findings and recommendations to be included in a report, the audit manager shall forward to each individual who is identified by name in a recommendation contained in the report those proposed findings and recommendations which relate to that individual.  After the receipt of these materials, the individual shall have 14 days in which to deliver to the Auditor General any written comments the individual may have concerning the findings or recommendations involving him or her.  Copies of an individual's written comments will be included in the final version of the report if they are received in the Springfield office of the Auditor General on or before the 14^th day after the proposed findings and recommendations were received by the individual.  Comments received after 14 days will be placed in the engagement file.

 

2)         When an individual who is the subject of a report demonstrates an inability because of personal hardship to meet the deadlines specified in this Section, the Division director may extend the specified time period or deadline.

 

c)         Responses to New Matter in Report Digest. When a Report Digest contains findings and recommendations not previously submitted with the proposed report text, a copy of the Report Digest shall be forwarded to the agency and/or individual covered by the engagement for comment.  The agency and/or individual covered by the new material will have 7 days from receipt of the Report Digest in which to make written comment.

 

(Source:  Amended at 43 Ill. Reg. 6361, effective May 31, 2019)